Marketing

Segmentation
Presented by Khushi
Today's
Lessons
TOPICS WE WILL COVER

What is Market Segmentation ?

Why segmentation of Market is necessary ?
Bases of Market Segmentation :
• Geographic
• Demographic
• Psychographic
• Behavioral
 W H Y I T I S I M P O R TA N T

What is
Market Market segmentation divides a market into well-defined
slices.

Segmentatio
A market segment consists of a group of customers who
share similar set of needs and wants.
The marketer’s task is to identify the appropriate number

n and nature of market segments and decide which one(s)

to target.
.
GEOGRAPHIC
S E G M E N TAT I O N

Geographic segmentation divides a market

into geographical units such as nations,
states, regions, counties, cities, or
neighborhoods.

EXAMPLE

MacDonald–The fast-food chain divides its target markets into segments

by country, region, and cities, then customizes the menu by local
preferences. These different market segments have very different
preferences and McDonald’s does an excellent job of localizing its
products.
Instead of trying to sell a Big Mac (a beef burger) in India and affecting
the local sentiment, they introduced the Maharaja Mac: a variation of the
DEMOGRAPHIC
S E G M E N TAT I O N

In demographic situation, we divide the

market on variables such as age, family size,
family life cycle, gender, income,
occupation, education, religion, race,
generation, nationality, and social class.

EXAMPLE

Horlicks is Here the market is segmented on

the basis of the age groups .
Junior Horlicks- for preschool children
Regular Horlicks - general use
Women Horlicks -For pregnant and mothers
Chocolate Horlicks - For teenagers
PSYCHOGRAPHIC
S E G M E N TAT I O N

Psychographics is the science of using

psychology and demographics to better
understand consumers. In psychographic
segmentation, buyers are divided into
different groups on the basis
psychological/personality traits, lifestyle, or
values.

EXAMPLE

Starbucks - Starbucks customers have

college degrees with advanced incomes who
like a gregarious atmosphere. Starbucks
focuses on only one group: the gourmet
coffee drinker and expands its product to
keep that segment interested.
B E H AV I O R A L
S E G M E N TAT I O N

In behavioral segmentation, marketers divide

buyers into groups on the basis of their
knowledge of, attitude toward, use of, or
response to a product.
• Occasions
• User status
• Usage rate
• Buyer-Readiness stage
EXAMPLE

Restaurant
• Dietary Preferences(gluten-free options,
calorie measurement on menu, win free
food)
• Take Out Orders(dine-in or take-out,
grab on go Counter)
• Kid-Friendly Meals(clean, friendly, and
fun environment, comfortable to eat
food, fast service, and the excellent
value of the food.)
Thank-You
I F Y O U AT E T O D AY. . .
T H A N K A FA R M E R . . . . . .
R E S P E C T FA R M E R . . . . . .