SULIT

MMK37503

UNIVERSITI MALAYSIA PERLIS

PRESENTATION 1

Semester 02
Sidang Akademik 2022/2023

May 2023

MMK37503 – Product Management for Designers

[Pengurusan Produk Bagi Perekabentuk]

Title – Market Segmentation

[Segmentasi Pasaran]
CO3, C6, PO11

NAME : MUHAMMAD AIMAN BIN ZAINOL ABIDDIN

MATRIC NO : 201400909

PROGRAMME : UR6521004 - PRODUCT DESIGN

LECTURER : NORSYAHADAH BINTI YEOP WASIR

This question paper has ONE (1) presentation question. This presentation contributes 15 marks.
[Kertas soalan ini mengandungi SATU (1) soalan persembahan. Persembahan ini menyumbang 15 markah.]
SULIT MMK37503

Question [Soalan Tugasan]

Analyze Market Segmentation based on your research understanding.

[Analisakan Segmentasi Pasaran berdasarkan kajian pemahaman anda.]

MARKET SEGMENTATION
Market segmentation is the process of dividing a larger market into smaller, distinct groups or
segments based on similar characteristics, preferences, and behaviors of consumers. By
segmenting the market, businesses can tailor their marketing strategies and offerings to effectively
target specific customer segments, which can lead to improved customer satisfaction, higher sales,
and increased profitability.

IMPORTANCE OF MARKET SEGMENTATION

Market segmentation is important for several reasons:

➢ Better understanding of customer needs: By segmenting the market, businesses can gain
a deeper understanding of their customers' needs, preferences, and buying behaviours. This
understanding allows companies to develop products and services that align with specific
customer requirements.

➢ Effective targeting: Segmentation helps businesses identify the most attractive customer
segments for their offerings. By focusing on specific segments, companies can allocate
their resources more efficiently and effectively, leading to higher returns on investment.

➢ Customized marketing strategies: Each customer segment may have unique

characteristics and requirements. Market segmentation enables companies to develop
customized marketing strategies and messages that resonate with specific segments,
increasing the chances of attracting and retaining customers.
 ➢ Competitive advantage: By understanding and targeting specific market segments,
businesses can differentiate themselves from competitors. They can develop specialized
products, offer personalized experiences, and establish stronger relationships with
customers, thereby gaining a competitive advantage.

MARKET SEGMENTATION VARIABLES

Market segmentation can be done based on various variables. Here are some common
segmentation variables:

➢ Demographic: Dividing the market based on demographic factors such as age, gender,
income, education, occupation, and family size. For example, a company might target
young adults aged 18-24 for a new fashion line.

➢ Psychographic: Segmenting based on psychographic factors like lifestyle, personality

traits, interests, attitudes, and values. This helps understand the motivations and
preferences of customers. For instance, a company might target environmentally conscious
consumers with eco-friendly products.

➢ Behavioural: Dividing the market based on consumer behaviour, including purchasing

habits, usage patterns, brand loyalty, and product benefits sought. For example, a company
might target frequent travellers with a loyalty program.

➢ Geographic: Segmenting based on geographic factors such as location, climate, culture,

or population density. This can help businesses tailor their offerings to specific regions or
countries. For instance, a company might customize products for hot climates.
MARKET SEGMENTATION TABLE EXAMPLE

Market
Segment Segment Description Example
Segmentation

Age:
Demographic, Targeting fans of superheroes
Superhero Fans 18-35, Gender: Male and Psychographic with merchandise and events
Female

Lifestyle: Offering pet-friendly products

Pet Lovers Psychographic
Pet owners and services

Behaviour: Providing adventure tours and

Adventure Seekers Behavioural
Outdoor enthusiasts equipment

Age:
Demographic, Developing video games and
Gaming Enthusiasts 12-18, Psychographic: Psychographic gaming accessories
Gamers
Interest:
Offering book subscriptions and
Bookworms Book lovers, Education: Psychographic
hosting book clubs
Students

Income: Targeting affluent individuals

Luxury Travelers Demographic
High, Age: 35-55 with luxury travel packages

Lifestyle: Offering organic and natural

Health and Wellness
Fitness-conscious, Psychographic health products for wellness
Enthusiasts
Organic food consumers seekers

Behaviour:
Business Providing premium travel
Frequent business Behavioural
Professionals services for corporate clients
travellers

Interest:
Developing cutting-edge tech
Tech Enthusiasts Technology, Gadgets, Psychographic
products and accessories
Innovation

Geographic: Offering urban-inspired fashion

Urban Dwellers Geographic
City residents and home decor for city dwellers

*(A slide was prepared for presentation session)

(15 Marks/ Markah)