Submitted by Krishna

PGDM-1st Sem (PIBM)

Market Segmentation Market Segmentation

Submitted toAalok sir

Market SegmentationMarket Segmentation

Market segmentation is a marketing Market segmentation is a marketing strategy that involves dividing a strategy that involves dividing a broad target market into subsets of broad target market into subsets of consumers who have common needs consumers who have common needs desires (demand) as well as desires (demand) as well as common applications for the common applications for the relevant goods and services.relevant goods and services.

Why need segmentationWhy need segmentation

Basis of Market Segmentation Basis of Market Segmentation

GenderGenderAge groupAge groupIncomeIncomeMarital statusMarital statusoccupationoccupation

Type of Market Segmentation Type of Market Segmentation

Situation Situation SegmentationSegmentation

Psychographic Psychographic

SegmentationSegmentation

Geographic Geographic SegmentationSegmentation

Behavior/UsageBehavior/Usage SegmentationSegmentation

Demographic Demographic SegmentationSegmentation

Benefits-SoughtBenefits-Sought SegmentationSegmentation

FamilyFamilyFamilyFamily

Income LevelIncome LevelIncome LevelIncome Level

EthnicityEthnicityEthnicityEthnicityEducationEducationEducationEducation

AgeAgeAgeAge

Demographic SegmentationDemographic Segmentation

Cont...

Demographic SegmentationDemographic SegmentationAge Income level

Cont…

Demographic SegmentationDemographic SegmentationFamily consideration Family Life Cycle Bachelor, marriage, married with children, retired, etc.

Education Some products are marketed to consumers with certain educational levels

Cont…

Demographic SegmentationDemographic Segmentation

Ethnicity :- Some products are marketed to consumers from specific ethnic backgrounds

Geographic SegmentationGeographic Segmentation

When an organization localizes its marketing When an organization localizes its marketing efforts to accommodate the unique needs of efforts to accommodate the unique needs of specific geographic regions, cities, states, specific geographic regions, cities, states, countries, Population.countries, Population.

Psychographic SegmentationPsychographic Segmentation

Grouping customers together based on social class, lifestyles and psychological characteristics (attitudes, interests and opinions)

Benefits-Sought SegmentationBenefits-Sought Segmentation

Markets can be segmented based on the Markets can be segmented based on the benefits that consumers desire from using benefits that consumers desire from using a specific product.a specific product.

Situation SegmentationSituation Segmentation

Purchase situation or occasionPurchase situation or occasion Physical surroundingsPhysical surroundings Social surroundingsSocial surroundings Temporal perspectiveTemporal perspective

• How much time to make a purchase?

Pre-purchase attitudePre-purchase attitude

Behavior/Usage SegmentationBehavior/Usage Segmentation

Markets can be segmented by how often or how Markets can be segmented by how often or how heavily consumers use a specific productheavily consumers use a specific product 80/20 Principle - 80% of revenue generated by 20% 80/20 Principle - 80% of revenue generated by 20%

of customersof customers

Light Users

80%Heavy Users

20%

Advantage of Marketing SegmentationAdvantage of Marketing Segmentation

Easier analysis of consumers.Easier analysis of consumers. Assessment of demand potential.Assessment of demand potential. Identify competing products.Identify competing products. Increased sales effectiveness and Increased sales effectiveness and

cost efficiencies.cost efficiencies. Product positioning and easy Product positioning and easy

identification of opportunities.identification of opportunities.

Disadvantage of Marketing SegmentationDisadvantage of Marketing Segmentation

DisadvantagesDisadvantages Increased marketing costsIncreased marketing costs Narrow segmentation can Narrow segmentation can

impact brand loyalty.impact brand loyalty.