Market Segmentation

Group Members Taha bin Javaid Bilal Razzak Umair Zafar

What is Market Segmentation?

Dividing a market into distinct groups of
buyers on the basis of needs characteristics or behaviour who might require sepa
rate product or marketing mixes.

Steps in Market Segmentation

Steps in Market Segmentation, targeting
and positioning.
Market Segmentation
2. 3. Identify basis for segmentation Develop Segment Profiles
Market Targeting
3. Develop measure of segment attractiveness 4. Select target segments
Market Positioning
5. Develop positioning for target segments 6. Develop a marketing mix for each s
egment

Levels of Market Segmentation

Segment marketing
Individual marketing

Niche marketing

Local marketing

Levels of Market Segmentation

Segment marketing Dividing the market
into different segments on the basis of homogenous need.
Segmented on basis of broad similarity with
regard to some attributes
Segmentation is also sometimes identifying,
capturing & retaining potential new markets

Levels of Market Segmentation

Individual marketing Extreme marketing in
which marketers focus on individual customers.
Keep track of individual tastes & preferences of individual customers Many compa
nies are approaching individuals through e-mails to promote their products.

Levels of Market Segmentation

Niche marketing Marketers effort to
position their product or service in smaller markets that have similar attribute
s and have been neglected by other marketer
Segment further divided into sub segments
to cater unsatisfied needs of small group is called as niche

Levels of Market Segmentation

Local marketing marketers offer
customized products to suit the local markets.
KFC introduced Muslimized or Pakistani products such as Spicy Chicken, Hilal Chicken
, Zinger Extreme and more

Bases for Consumer Market Segmentation

Market Segementation
Geographical
Regions, cities, states, countries
Demographic Age, gender, income, occupation, religion, social class, family size
Psychographic Life style, personality, values, beliefs
Behavioral Occasions, Benefits, Usage rate, Loyalty status

Bases for Organizational Market Segmentation

Market Segementation
Demographics
Operating Variables
Personal Characteristics Of the Purchaser
Situational
Purchasing Approaches

Intermarket Segmentation
Forming segments of consumers who
have similar needs and buying behaviour even though they are located in differen
t countries.
World markets can be segmented on economic factors, political and l
egal factors.

Effective Segmentation
Measurable
Substantial

Accessible

Differential

Actionable

Target Market Selection Process

Evaluating the Market Segments
Selecting the Market Segments

Evaluating Market Segments

Before selecting the respective market
segment, the company should evaluate the possible market segments in the current
markets. It should identify and select its target consumers, give them their pr
oduct according to their needs and establish that group of consumer in to perman
ent market segments.

Selecting the Market Segments

Single Segment Concentration:
Focusing on a single segment gives the marketer the advantage of high sales as a
ll the efforts are concentrated on that one segment
Example: Mercedes concentrates on upper income group

Selecting the Market Segments

Selective Specialization:
Process in which the company focuses its resources on a few segments and develop
s its expertise in fulfilling the needs of those segments

Selecting the Market Segments

Product Specialization :
The firm makes a certain product that it sells to several segments Example: Micr
oscope manufacturer who sells to university, government, and commercial laborato
ries.

Selecting the Market Segments

Full market coverage:
Company targets the full market rather than any specific segment. Example: Hewle
tt-Packard targets the full market for its printers.

Selecting the Market Segments

Market specialization:
The firm concentrates on serving many needs of a particular segment Example: A f
irm sells assortment of product to university laboratories.

Other Consideration
Ethical choice of market targets
segments
Segment-by-segment invasion plans

Segment interrelationships and super

Inter segment cooperation

Ads In Focus - Imate

Ads In Focus Protex Gum

Ads In Focus Indoluna Care

Ads In Focus Honda

Ads In Focus HSBC

Print Ads

Print Ads

Print Ads

Print Ads

Conclusion
Market Segmentation is the backbone of
marketing tactics. No matter of the locality market segmentation plays an import
ant role in the products life cycle. It is one of that important practice that c
an never be ignored and specially in this era of mass customization.