What is Market Segmentation?
Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and applications for the relevant goods and services.

Segmentation Strategies A market segment should be…  measurable  accessible by communication and distribution channels  different in its response to a marketing mix  durable (not changing too quickly)  substantial enough to be profitable .

Why use segmentation?  For companies to better understand the needs of a specific customer base  Identify other applications for their products that may not have been obvious before  To improve the overall efficiency of the company's marketing efforts .

Segmentation argeting T Positioning .

Consumer Market Segmentation .

Consumer Market Segmentation Segmentation Variables Demographic Segmentation Geographic Segmentation Pyschographics Segmentation Behavioural segmentation .

Consumer Market Segmentation Demographic Segmentation  originates from the word ‘demography’ which means a ‘study of population’  can be divided into age. and family lifecycle amongst other variables . gender. income.

An area can be divided by the town. Marketers use geographic segmentation because consumers in different areas may display certain characteristics and behaviours in that particular region.Consumer Market Segmentation Geographic Segmentation  Geographical segmentation divides markets into different geographical areas. the region or the country. .

and personality characteristics.Consumer Market Segmentation Psychographics Segmentation can be broken down into lifestyle. Lifestyles segmentation Personality Characteristics Social Class Segmentation . social class.

Consumer Market Segmentation Behavioural Segmentation  Refers to why people purchase a product or service .

Business Market Segmentation .

etc. usage patterns. . and international macroeconomic factors. position in the value chain. its industry. Buyer Behavior based on factors such as loyalty to suppliers. and order size.Business Market Segmentation Geographic segmentation based on regional variables such as customer concentration. Customer Type based on factors such as the size of the organization. regional industrial growth rate.

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organization then targets them. . Once market segments are created.Targeting various marketing strategies and promotional schemes according to the tastes of the individuals of particular segment.

.Sometimes referred to as mass marketing the firm may decide to aim its resources at the entire market with one particular product.Kinds of Targeting/ 3 Targeting Options an Organization Can Adopt  Option 1 Undifferentiated marketing .

Kinds of Targeting/ 3 Targeting Options an Organization Can Adopt  Option 2 Differentiated marketing strategy .Where the firm decides to target several segments and develops distinct products/services with separate marketing mix strategies aimed at the varying groups. .

Kinds of Targeting/ 3 Targeting Options an Organization Can Adopt  Option 3 Concentrated Marketing: Where the organisation concentrates its marketing effort on one particular segment. . The firm will develop a product that caters for the needs of that particular group.

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Definition & Goal how organizations want their consumers to see their product about how you want consumers to perceive your products and services and what strategies you would adopt to reach this perceptual goal .

To influence how the product is perceived by consumers A product's position is how potential buyers see the product A platform for the brand: It facilitates the brand to get through to the mind of the target consumer .

Developing a Positioning Strategy  depends much on how competitors position themselves:  ‘a me too’ strategy .position themselves close to their competitors so consumers can make a direct comparison when they purchase  ‘away from their competitors’ strategy .

Get favorable perception by investors (stock profile) and lenders.Solve problems.3 Types of Concepts Functional positions . . .Provide benefits to customers. .

.  Experiential positions .Provide cognitive stimulation.Self-image enhancement. .Provide sensory stimulation.Belongingness and social meaningfulness.Ego identification. Symbolic positions . . .Affective fulfillment. .

. Clarity: While positioning its brand the firm must be able to position itself in both distinct value. and to its target audience. But it does not mean that the firm must change its positioning bases even though its survival is at stake. Consistency: Consistency in positioning means keeping the positioning plank/bases intact for longtime.  b.CRITERIA’S FOR SUCCESSFUL POSITIONING  a. proposition. The firm must be flexible to the changing environment.

There should be perfect match between promise and action. c. Competitiveness: For surviving in this competitive and changing environment innovative resources.  d. . Credibility: The firm must deliver trustworthy and believable value proposition. talent pool. strong financial backup etc are very important. competitive advantage.

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