Market Segmentation

Why split up the market?

If you are planning to launch a product into
an already competitive industry, focusing
on a specific market segment may prove
to be more effective than appealing to all
tastes and preferences.
Why split up the market?
 Market Segmentation

Market segmentation is
the process of dividing
the total market for
good or service into
several smaller groups.
 Demographic Segmentation

Process of grouping customers according to

socioeconomic variables which include
INCOME RANGE AND SOCIAL CLASS,
OCCUPATION, GENDER, AGE, RELIGION, and
ETHNICITY.
Demographic Segmentation
 Psychographic Segmentation
It categorizes audiences and customers by factors that
relate to their personalities and characteristics.
• Personality traits
• Values
• Attitudes
• Interests
• Lifestyles
• Motivations
 Geographic Segmentation
Grouping customers according to their location
It can be as small as street, a village or barangay.
It can also be based on municipality, city
province or a country, population density and
climate.
 Behavioral Segmentation
Process of grouping the
customers according to
their actions.
• Purchasing habits
• Spending habits
• Brand interactions /
loyalty
 Market Segmentation is the way…
It is important for an entrepreneur to identify
their target customers so that they can create
or design a custom MARKETING MIX (7 Ps) for
the specific group.
TARGET MARKET