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