requirements for effective segmentation

1. IDENTIFYING MARKET
SEGMENTS AND TARGET

2. Effective Segmentation Criteria
• Size,
purchasing
power, profiles
of segments can
be measured.
• Segments can be
effectively reached
and served.
• Segments are large or
profitable enough to
serve.
• Segments must
respond differently
to different
marketing mix
elements &
programs.
• Effective
programs can
be designed to
attract and
serve the
segments.

3. Segmenting for Business Markets
Demographic
Operating
Variable
Purchasing
Approaches
Situational
Factors
Personal
Characteristics

4. Segmenting Business Markets
• Demographic segmentation
– Industry, company size, location
• Operating variables
– Technology, usage status, customer capabilities
• Purchasing approaches
• Situational factors
– Urgency, specific application, size of order
• Personal characteristics
– Buyer-seller similarity, attitudes toward risk, loyalty

5. Segmenting International Markets
• Geographic segmentation
– Location or region
• Economic factors
– Population income or level of economic development
• Political and legal factors
– Type / stability of government, monetary regulations,
amount of bureaucracy, etc.
• Cultural factors
– Language, religion, values, attitudes, customs,
behavioral patterns

6. Requirements for Effective
Segmentation
Measurable
Size,
purchasing
power,
and profile
of
segment
Accessible
Can be
reached
and
served
Substantial
Large and
profitable
enough to
serve
Differentiable
Respond
differently
Actionable
Effective
programs
can be
developed

7. Target Market
Consists of a set of buyers who
share common needs or
characteristics that the company
decides to serve

8. Evaluating Market Segments
Segment size and
growth
• Level of competition
• Substitute products
• Power of buyers
• Powerful suppliers
Segment structural
attractiveness
Company objectives
and resources

9. Created by –priyanka yadav ,lady
shri ram college , during an
internship by prof. Sameer mathur.
IIM lucknow