Customer-Driven Marketing Strategy

LECTURE-11

Market Segmentation

Topic Outline

Market Segmentation

Market segmentation: Dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.

Market Segmentation

Segmenting consumer markets

Segmenting business markets

Segmenting international markets

Requirements for effective segmentation

Market Segmentation

Market Segmentation

Geographic segmentation

Demographic segmentation

Psychographic segmentation

Behavioral segmentation

Segmenting Consumer Markets

Market Segmentation

Geographic segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities

Segmenting Consumer Markets

Market Segmentation

Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality

Segmenting Consumer Markets

Market Segmentation

Age and life-cycle stage segmentation is the process of offering different products or using different marketing approaches for different age and life-cycle groups

Gender segmentation divides the market based on gender (male or female)

Market Segmentation

Income segmentation divides the market into affluent, middle-income or low-income consumers

Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality traits

Segmenting Consumer Markets

Demographic Segmentation

• Age and Life-Cycle Stage• Gender• Income• Generation• Social Class• Occupation

Market Segmentation

Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product

Occasions Benefits sought User status Usage rate Loyalty status

Segmenting Consumer Markets

Market Segmentation

Multiple segmentation is used to identify smaller, better-defined target groups

. Using Multiple Segmentation Bases

Market Segmentation

Geographic location

Economic factors

Political-legal factors

Cultural factors

Segmenting International markets

Market Segmentation

Intermarket segmentation divides consumers into groups with similar needs and buying behaviors even though they are located in different countries

Segmenting International Markets

Market Segmentation

To be useful, market segments must be:

Requirements for Effective Segmentation

Measurable Accessible

Substantial Differentiable

Actionable

Bibliography

Principles of Marketing by Philip Kotler & Gary Armstrong Fifteenth Edition, Published by Prentice Hall

Marketing Management – A South Asian Perspective by Philip Kotler, Kevin Lane Keller, Abraham Koshy & Mithileshwar Jha, 13th Edition, Published by Pearson Education, Inc.

  Principles and Practices of Marketing by Jobber, D. 4th  edition, McGraw Hill International.

Principles of Advertising & IMC by Tom Duncan 2nd

Edition, Published by McGraw-Hill Irwin.

The End

"Success doesn't come to you, you go to it."

Marva Collins