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.

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.

IDENTIFYING
IDENTIFYING MARKET
MARKET SEGMENTS
SEGMENTS &
& SELECTING
SELECTING TARGET
TARGET MARKETS
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

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

3. CLUSTERED PREFERENCES:
The marketing might reveal distinct
preference clusters, called natural
marketing segment.

STEPS IN SEGMENTATION
PROCESS
NEED BASED SEGMENTATION
SEGMENT IDENTIFICATION
SEGMENT ATTRACTIVENSS
SEGMENT PROFITABILITY
SEGMENT POSITIONING
SEGMENT ACID TEST
7
MARKETING-MIX STRAGEGY

BASES FOR SEGMENTING

CONSUMER MARKET
MARKET SEGMENTATION

CONSUMER
CHARACTERISTICS
GEOGRAPHIC
DEMOGRAPHIC
SOCIO-ECONOMIC
PSYCHOGRAPHIC

BEHAVIOURAL OR
CONSUMER RESP.
BENEFITS
USAGE
LOYALTY
OCCASIONS
STATUS OF USERS

BASICS OF EFFECTIVE
SEGMENTATION

MEASURABLE
SUBSTANTIAL
ACCESSIBLE
DIFFERENTIABLE