Scribd
Upload
15K views

Market Segmentation

The document defines market segmentation as dividing a heterogeneous market into homogeneous subgroups with distinct needs. It discusses the importance of segmentation for allocating budgets, adjusting products to market needs, estimating sales, overcoming competition, and developing effective marketing programs. The key steps in segmentation involve identifying segments, evaluating segment attractiveness and profitability, positioning segments, and developing marketing strategies tailored for each segment.

Uploaded by

HARSHAD
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT or read online on Scribd
15K views

Market Segmentation

The document defines market segmentation as dividing a heterogeneous market into homogeneous subgroups with distinct needs. It discusses the importance of segmentation for allocating budgets, adjusting products to market needs, estimating sales, overcoming competition, and developing effective marketing programs. The key steps in segmentation involve identifying segments, evaluating segment attractiveness and profitability, positioning segments, and developing marketing strategies tailored for each segment.

Uploaded by

HARSHAD
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT or read online on Scribd
You are on page 1/ 9

MARKET SEGMENTATION

DEFINITION:- According to Philip Kotler “Market


Segmentation is the subdividing of market into
homogeneous sub-set of customers, where any subset
may conceivably be selected as market target to be
reached with distinct Marketing Mix.

According to William Stanton, “Market Segmentation


consists of taking the total heterogeneous market for a
product and dividing it into several sub-market of
segments, each of which tends to be homogeneous in full
significant aspects.

Thus, Market Segmentation is a process of grouping two


or more customers for a product or services so as to
serve their needs in a better way.

06/22/08 1
IMPORTANCE OF MARKET
SEGMENTATION
1.Allocation of Market budget.

2.Adjustment of the product to the market need.

3. To estimate level of sales in a given market

4. To overcome competition effectively.

5. To develop effective marketing programme.

6. To promote marketing activities.

7. To modify the existing product or to develop new


product to satisfy needs of potential buyers.
8. To have more precise definition of market

9. To contribute towards achieving company goals.


06/22/08 2
IDENTIFYING MARKET SEGMENTS &
SELECTING TARGET MARKETS
LEVELS OF MARKET SEGMENTATION
1.SEGMENT MARKETING:
A Market segments consists of a group of customers who
share a similar set of wants.

2.NICHE MARKETING: A niche is more narrowly defined


group seeking a distinctive mix of benefits

3.LOCAL MARKETING:
Target Marketing is leading to marketing programs
tailored to the needs & wants of local customer groups.

4.INDIVIDUAL CUSTOMER MARKETING:


The ultimate level of segmentation leads to ‘Segment of
One’
06/22/08 3
PATTERNS OF MARKETING SEGMENTATION

1.HOMOGENEOUS PREFERENCES: All the consumer have roughly


the same preferences.

2. DIFFERED PREFERENCES: Consumers Preferences may be


scattered through out the space, indicating that consumers vary
greatly in their preferences

06/22/08 4
3. CLUSTERED PREFERENCES:

The marketing might reveal distinct


preference clusters, called natural
marketing segment.

06/22/08 5
STEPS IN SEGMENTATION
PROCESS
 NEED BASED SEGMENTATION

 SEGMENT IDENTIFICATION

 SEGMENT ATTRACTIVENSS

 SEGMENT PROFITABILITY

 SEGMENT POSITIONING

 SEGMENT ‘ACID TEST’

06/22/08
 MARKETING-MIX STRAGEGY 6
BASES FOR SEGMENTING
CONSUMER MARKET

MARKET SEGMENTATION

CONSUMER BEHAVIOURAL OR
CHARACTERISTICS CONSUMER RESP.

BENEFITS
GEOGRAPHIC
USAGE
DEMOGRAPHIC
LOYALTY
SOCIO-ECONOMIC
OCCASIONS
PSYCHOGRAPHIC
STATUS OF USERS

06/22/08 7
BASES FOR SEGMENTING
BUSINESS MARKETS
 DEMOGRAPHIC: Industry, Company size.

 OPERATING VARIABLES: Technology, User


or Non-user status, Customer capabilities.

 PURCHASING APROACHES: Centralized or


Decentralized purchasing etc.,

 SITUATIONAL FACTORS: Urgently, specific


application, size of orders

 PERSONAL CHARACTERISTICS: Buyer-Seller


similarity, attitude towards risks, loyalty.
06/22/08 8
BASICS OF EFFECTIVE
SEGMENTATION

 MEASURABLE

 SUBSTANTIAL

 ACCESSIBLE

 DIFFERENTIABLE

06/22/08 9

You might also like