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 separate 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 segment

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 companies 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 attributes 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

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


Operating Variables

Personal Characteristics Of the Purchaser


Purchasing Approaches

Intermarket Segmentation
 Forming segments of consumers who

have similar needs and buying behaviour even though they are located in different countries.  World markets can be segmented on economic factors, political and legal 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 product according to their needs and establish that group of consumer in to permanent market segments.

Selecting the Market Segments
 Single Segment Concentration:

Focusing on a single segment gives the marketer the advantage of high sales as all 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 develops 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: Microscope manufacturer who sells to university, government, and commercial laboratories.

Selecting the Market Segments
 Full market coverage:

Company targets the full market rather than any specific segment. Example: Hewlett-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 firm sells assortment of product to university laboratories.

Other Consideration
 Ethical choice of market targets  Segment interrelationships and super

 Segment-by-segment invasion plans  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

 Market Segmentation is the backbone of

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