This document discusses different levels of market segmentation from mass marketing to niche marketing. It identifies the bases for segmenting consumer markets including geographic, demographic, psychographic, and behavioral factors. The requirements for effective segmentation are that segments must be measurable, accessible, substantial, and differential. Advantages of segmentation include guiding marketing research, improving satisfaction and forecasting, and identifying competition and opportunities. Disadvantages include increasing marketing costs, proliferation of products, potential consumer backlash, and limits on general popularity.

1. SEGMENTATION

2. Mass MarketingSame product to all consumers (no segmentation)Segment MarketingDifferent products to one or more segments(some segmentation)Step 1. Market SegmentationLevels of Market SegmentationNiche MarketingDifferent products to subgroups within segments( more segmentation)MicromarketingProducts to suit the tastes of individuals or locations (complete segmentation)

3. Step 1. Market SegmentationBases for Segmenting Consumer MarketsGeographicNations, states, regions or citiesDemographicAge, gender, family size and life cycle, or income PsychographicSocial class, lifestyle, or personalityBehavioralOccasions, benefits, uses, or responses

4. MeasurableStep 1. Market SegmentationRequirements for Effective SegmentationAccessibleSubstantial Size, purchasing power, profiles

5. of segments can be measured. Differential Segments must be effectively

6. reached and served.

7. Segments must be large or profitable enough to serve.Actionable Segments must respond differently to different marketing mix elements & actions.

8. Must be able to attract and serve the segments.Advantages and disadvantages of segmentationguides marketing researchimproves satisfactionimproves forecastingidentifies competition and opportunitiesincreases marketing costsproliferation of productsconsumer backlashlimits general popularity