Kazi Nazrul University

ASSIGNMENT ON
SERVICE MARKETING

NAME: NEHA VERMA

DEPARTMENT: BBA
ROLL NO: 31
REGISTRATION NO: KNU20111002586
SESSION: 2022 – 2023
TOPIC: SERVICE MARKET
SEGMENTATION
 Acknowledgement

"I would like to express my sincere gratitude to

everyone who contributed to the success of this
project. First and foremost, I am deeply grateful to
my supervisor [Mr.Jayanta Hazra], for their
unwavering support, guidance, and valuable
insights throughout the course of this project. Their
expertise and dedication have been instrumental
in shaping the direction of this work.

I also extend my heartfelt thanks to all for their

invaluable contributions, whether it be through their
technical expertise, provision of resources, or simply
offering their encouragement and support. Their
willingness to go above and beyond has
undoubtedly made a significant impact on the
outcome of this project.”
 Introduction

Market segmentation is the process of dividing a

larger market into smaller groups of consumers
with similar needs or characteristics. This allows
businesses to tailor their marketing efforts and
offerings to specific groups, resulting in better
customer satisfaction and higher profits. Service
market segmentation, specifically, is the process
of segmenting a market based on the type of
service being offered. This could include things
like healthcare services, financial services,
transportation services, and many others. There
are a few different ways that service market
segmentation can be accomplished. By doing
so, businesses can increase customer loyalty and
satisfaction, and ultimately drive revenue growth.
That concludes my brief introduction to service
market segmentation.
 Table of Content

1. Why Service Marketing

Segmentation is important?

2. Prominent Ways to Segment.

3. Limitation Of Service Market

Segmentation.

4. Conclusion
 Why Service Marketing is
Required?

Market segmentation is the process of dividing a broad

target market into smaller, more manageable subgroups
or segments that share similar characteristics, needs, and
preferences. Market segmentation is important for several
reasons:

1. Targeted Marketing: Market segmentation allows

companies to target specific customer groups with
tailored marketing messages and products that meet
their unique needs and preferences. By
understanding the specific needs of each segment,
companies can develop marketing campaigns that
resonate with their target audience, resulting in
better engagement, conversions, and sales.

2. Improved Customer Satisfaction: By segmenting the

market and tailoring products and services to meet
the specific needs of each segment, companies can
improve customer satisfaction. When customers feel
like their needs are being met, they are more likely to
be loyal to the brand and recommend it to others.
3. Increased revenue: By targeting specific customer
segments with services that meet their needs, service
providers can potentially increase revenue by
attracting new customers and retaining existing ones.

4. Resource allocation: Service providers can allocate

resources more efficiently by focusing on the most
profitable and promising customer segments. They
can prioritize their investments and efforts based on
the needs and potential of each segment.

Overall, market segmentation is an essential tool for

companies looking to optimize their marketing efforts,
improve customer satisfaction, and gain a competitive
advantage in today's highly competitive business
environment.
 4 Prominent ways of
service segmentation

Demographic Segmentation
This involves dividing the market based on
demographic variables such as age, gender, income,
education, occupation, and family size. For example,
a healthcare provider may target seniors with specific
health needs, such as joint pain or diabetes.

Psychographic Segmentation
This involves dividing the market based on
psychological variables such as values, beliefs,
attitudes, interests, and lifestyles. For example, a
fitness centre may target individuals who prioritize
health and wellness and have an active lifestyle.
 Geographic Segmentation
This involves dividing the market based on
geographic variables such as location, region,
climate, and population density. For example, a snow
removal service may target regions with heavy
snowfall.

Behavioural Segmentation
This involves dividing the market based on
behavioral variables such as buying habits, usage
patterns, and brand loyalty. For example, a credit
card company may target customers who frequently
travel and offer travel-related rewards and benefits.
 Limitations

1. Over-generalization: Segmentation can

sometimes be too general and not provide
enough detail to understand individual
customers' needs and preferences.

2. Limited Information: Market segmentation

requires a lot of data to be effective, and
businesses may not always have access to
enough data to make informed decisions.

3. Cost: Segmenting the market can be

expensive, as it often requires market
research, data analysis, and customized
marketing strategies.

4. Difficulty of Implementation: Segmenting the

market can be challenging, especially for
businesses that offer complex services with
multiple benefits and attributes.
 Conclusion

In conclusion, market segmentation is

a powerful tool for businesses to
identify and understand their
customers' needs and preferences. By
dividing the market into smaller, more
manageable segments, businesses
can develop targeted marketing
strategies that are more effective at
reaching and engaging customers.
However, segmentation has its
limitations, such as the cost and
complexity of implementation and the
potential for over-generalization or
overlapping segment.

THANK YOU.