LECTURE 3

MARKETING MANAGEMENT
Market Segmentation & Targeting

Instructor: Syed Ibrahim Saajid

 Segmentation

A segment is a group of customers who share one or more similar set

of needs and/or wants.

Geographic Demographic Psychographic Behavioral

• Region • Age • Lifestyle • Benefits

• City • Gender • Personality • Usage rate
• Rural/urban • Income • Attitude
towards
product
Psychographic Segmentation
Behavioral Segmentation
Effective Segmentation Criteria

Measurable

Actionable Substantial

Differentiable Accessible
Step by Step Process for Market Segmentation
Define the Market

A market definition covers the aggregation of all the alternative

products or services which customers regard as being capable of
satisfying a particular need.

Geographic area

Specific customer need

Reasonable size
Identify Decision Makers & Transactions

What Where When How Who

Identify Customer Purchasing Criteria

Motivators

Hygiene factors
 Create Final Segmentation
High Service Quality Need
30%

6% 24%

20% 80%
Low price Sensitivity High price Sensitivity

14% 56%

70%
Low Service Quality Need
Thank you!