Market segmentation

Presented by:-Sheena
SIAS COLLEGE (Saharanpur Institute of
advanced studies)
 What is market?
A market is a place where people go to buy or sell things. When
people have products to sell, they set up a market place. ... When
things are sold, people buy the product, and this "stimulates the
economy" (helps people to spend and earn money). The market
needs to balance supply and demand.
 What is market segmentation ?

Market segmentation is the research that determines how your

organisation divides its customers or cohort into smaller groups based on
characteristics such as, age, income, personality traits or behaviour. ... At
its core, market segmentation is the practice of dividing your target market
into approachable groups.
 Example of market segmentation ?
 TITAN WATCHES
Arrives in three broad segments
• The Rich
• The Middle
• The Lower For children segment:
For the gold lovers: For
Designer segment :
Benefits of market segmentation

Identifies opportunities for new product development

Helps design marketing programs most effective for

reaching
Homogenous groups of buyers.

Improve allocation of marketing resources

 The need of marketing segmentation
Market segmentation helps the marketers to understand the needs of
the target audience and adopt specific marketing plans accordingly.
Organizations can adopt a more focussed approach as a result of market
segmentation. Market segmentation also gives the customers a clear view
of what to buy and what not to buy.
Bases for segmentation in consumer
markets

Demographi
Geographic
c

Psychograph
Behaviour
ic
 Definitions
Demographic:- Demographic segmentation consists of dividing the market into
groups based on variables.
 Geographic :- Geographic segmentation tries to divide markets into different
geographical units.
 Psychographic :- Psychographic segmentation groups customers according to their
lifestyle. Activities interest and opinion (AIO)m surveys are one tool for measuring
lifestyle.
 Behavior :- Behavior segmentation is based on actual customer behavior towards
product.
 Market segmentation

Demographic Geographic
segmentation segmentation

Age, gender, Local,

income, regional,
martial status national,
international

Psychographic segmentation Behaviour segmentation

Lifestyle, social Benefits, volume,

class, personality, purchase, loyalty,
values product uses, rates
THANK YOU

By:-sheena