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MAR KE T

SEG MEN TATIO N


AN D
TAR GETIN G
Ma rket Se gmentatio n
 Market segmentation is the process of dividing
the total market for good or service into several
smaller groups.

 Market segment as an element of marketing


strategy recognizes the wisdom of specializing
to suit the needs of a segment of the market
rather than trying to be “all things to all the
people”
SE GM ENTAT IO N
STR ATEGI ES
 Geographic segmentation: Divides consumer
on the basis of countries, regions, states, cities
etc
 Demographic segmentation: segmentation
on the basis of population size, sex, age,
income etc
 Psychological segmentation: segmentation
on the basis of consumer life style, social class
or personality profile etc
 Volume segmentation: based on usage
rate, usage expenses, brand loyalty etc.
(heavy usage, medium usage, non user)
 Benefit segmentation: on the basis of
different benefits sought from the product
or service. (HP printers, 2 in 1, 3 in 1 etc)
 (small car segment, luxury car segment)
MARK ET TARG ETI NG

 Target market is a group of customers for


whom a seller designs a particular
marketing mix.
GUIDELI NES FO R SELECTI NG
TARG ET MA RK ET

 it should be consistent
 It should meet organizational goals
 It should be consistent with
organizational resources
 It should generate sufficient profit volume
 It should have competitors small in size
and number
APPRO ACH ES TO TARG ET
MARK ET

 MASS MARKETING/ UNDIFFERENTIATED


MARKETING: company’s attempt to appeal to
the whole market with a single basic marketing
strategy intended to have mass appeal.

 DIFFERENTIATED MARKETING/ MULTIPLE


SEGMENTATION: company’s attempt to
appeal to two or more well defined market
segments with a marketing strategy tailored to
each segment
 CONCENTRATED MARKETING:
company’s attempt to appeal to one well
defined market segment with one tailor
made marketing strategy.