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Market segmentation


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it is all about market segmentation

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Market segmentation

  1. 1. Market Segmentation Presented By: Patel Chintan 10/13/2014 1
  2. 2. Definition  Market Segmentation is a method of “dividing a market (Large) into smaller groupings of consumers or organizations in which each segment has a common characteristic such as needs or behavior.” 10/13/2014 2
  3. 3. Level Of Market Segmentation Segment Marketing Niche Marketing Local Marketing Geographic segmentation 10/13/2014 3
  4. 4. The Need For Marketing Segmentation  The marketing concept calls for understanding customer and satisfying there needs better than the competition.  Different customers have different needs, and its rarely possible to satisfy all the customers by treating them alike. 10/13/2014 4
  5. 5.  Segment Marketing  Consists of a group of customers who share a similar set of needs and wants.  Identifiable Group with in a Market with Similar • Wants • Purchasing Power • Geographical Location • Buying Attitudes 10/13/2014 5
  6. 6.  Niche Marketing  A Niche is a narrowly defined group of customers seeking unique solution. Niche segment consists of buyers with high purchasing power, who have unique needs and strong motivation to fulfill their needs.(Ex:Ezee)  Local Marketing  It is done to satisfy the needs of local people.  For example : Spiderman movie was released in India in different languages. 10/13/2014 6
  7. 7.  Individual Marketing  It is also known as “One to one marketing”.  It is used to satisfy the individual needs of customers.  (For Example: Asian and Nerolac paints allow customers to mix and match the colours of their choice.) 10/13/2014 7
  8. 8. Criteria For Market Segmentation  Indefinable: the differentiating attributes of the segments must be measurable so they can be identified.  Accessible: the segments must be reachable through communication and distribution channels.  Unique needs: to justify separate offerings, the segments must respond differently to different marketing mixes.  Substantial: the segments should be sufficiently large to justify the resources required to target them. 10/13/2014  Durable: the segments should be relatively 8
  9. 9. Market Segmentation 9 Consumer market Industrial market  Geographic  Demographic  Psychographic  Behavioral  Demographic  Operational variables  Purchasing approaches  Situational factors  Personal characteristics 10/13/2014
  10. 10. Geographic segmentation  Regions: by continent, country, state or even neighborhood  Size of the area: segmented according to size of population  Population density: often classified as urban, suburban, or rural  Climate: according to weather patterns common to certain geographic regions 10/13/2014 10
  11. 11. Demographic segmentation  Demographic segmentation consists of dividing the market into groups based on variables such as:  Age  Gender  Income  Social class  Life style 10/13/2014 11
  12. 12.  Age : Marketers design, package and promote products differently to meet the wants of different age groups.  Good examples include the marketing of toothpaste (contrast the branding of toothpaste for children and adults) and toys (with many age-based segments).  Gender: Gender segmentation is widely used in consumer marketing.  The best examples include clothing, hairdressing, magazines and toiletries and cosmetics.  Income: Many companies target affluent consumers with luxury goods and convenience services.  Good examples include Coutts bank; Moet & Chandon champagne and Elegant Resorts - an up-market travel company. 10/13/2014 12
  13. 13.  Lifestyle: Marketers are increasingly interested in the effect of consumer "lifestyles" on demand. Unfortunately, there are many different lifestyle categorization systems, many of them designed by advertising and marketing agencies as a way of winning new marketing clients and campaigns. 10/13/2014 13
  14. 14. Psychographic segmentation  Psychographic segmentation groups customers according to their lifestyle. Activities, interest, and opinions (AIO) surveys are one tool for measuring lifestyle.  Activities  Interest  Opinion  Values 10/13/2014 14
  15. 15. Behavioral Segmentation  Behavioral segmentation is based on actual customer behavior towards products. Some behavioralistic variable include:  Opinions, interests and hobbies  Degree of loyalty  Occasions  Benefits sought  Usage 10/13/2014 15
  16. 16.  Opinions, interests and hobbies – this covers a huge area and includes consumers’ political opinions, views on the environment, sporting and recreational activities and arts and cultural issues.  Degree of loyalty – customers who buy one brand either all or most of the time are valuable to firms.  Occasions – this segments on the basis of when a product is purchased or consumed. 10/13/2014 16
  17. 17. Industrial base segmentation Demographic Industry Company size Location  Operating variables Technology User status Customer capabilities 10/13/2014 17
  18. 18. Industrial base segmentation Purchasing approaches Purchasing function organization(Centralized or decentralized) Power structure(engineering dominated or financially dominated Nature of existing relationship Purchasing criteria(Quality, price,service) 10/13/2014 18
  19. 19. Industrial base segmentation  Situational factors Urgency Specific application Size of order  Personal characteristics Buyers &sellers similarities Attitude towards risk loyalty 10/13/2014 19
  20. 20. Thank You… 10/13/2014 20