Market Segmentation

1. Slide No. 3 by: Asad Ali
Email: ASADL1864@GMAIL.COM
Mob: 0092 302 7744927
CP COLLEGE OF COMMERCE
MARKET
SEGMENTATION
MARKETING MANAGEMENT/PRINCIPLES OF MARKETING
UOS - AIOU
MCOM - MBA
1

2. THE CONCEPT OF MARKET SEGMENT IS
BASED ON THE FACT THAT THE MARKET OF
COMMODITIES ARE NOT HOMOGENEOUS
BUT THEY ARE HETEROGENEOUS. MARKET
REPRESENT A GROUP OF CUSTOMER HAVING
COMMON CHARACTERISTICS BUT TWO
CUSTOMER ARE NEVER COMMON IN THEIR
NATURE, HABITS, HOBBIES INCOME AND
PURCHASING TECHNIQUES.
What Is SEGMENTATION?
2

3. definition?
• MARKET SEGMENTATION IS A METHOD OF “DIVIDING A MARKET (LARGE)
INTO SMALLER GROUPINGS OF CONSUMERS OR ORGANIZATIONS IN
WHICH EACH SEGMENT HAS A COMMON CHARACTERISTIC SUCH AS
NEEDS OR BEHAVIOR.”
• ACCORDING TO PHILIP KOTLER , “ MARKET SEGMENTATION IS SUB-
DIVIDING A MARKET INTO DISTINCT AND HOMOGENEOUS SUBGROUPS
OF CUSTOMERS, WHERE ANY GROUP CAN CONCEIVABLY BE SELECTED AS
A TARGET MARKET TO BE MET WITH DISTINCT MARKETING MIX.”
3

4. Difference between a mass market
and target market:
• Mass market refers to treatment of the market as a homogenous
group and offering the same marketing mix to all customers.
4

5. Difference between a mass market
and target market:
• Targetmarketon theotherhand recognizes
thediversity of the customersand does
not tryto please all of them withthe same
offering.
5

6. Types of market segmentation:
GEOGRAPHIC
DEMOGRAPHIC
PSYCHOGRAPHIC
BEHAVIORALISTIC 6

7. Geographic segmentation:
Geographic segmentation tries to divide markets
into different geographical units:
• Regions
• Sizeof thearea
• Populationdensity
• Climate
7

8. Geographic segmentation:
• Regions:by continent,country, state or even
neighbourhood.
• Sizeof the area: segmented according to sizeof
population
8

9. • Populationdensity:oftenclassifiedas
urban, suburban, orrural
• Climate:according to weatherpatterns
common to certaingeographic regions
Geographic segmentation:
9

10. demographic segmentation:
Demographic segmentation consistsof dividingthe marketintogroups
based on variablessuch as:
Age Gender Income
Social
class
Life
style 10

11. Marketersdesign,package and promoteproductsdifferently to
meetthewantsof different age groups.
demographic segmentation:
Age
Good examples include the marketing of
toothpaste (contrast the brandingof
toothpasteforchildrenand adults)and toys
(withmany age-based segments). 11

12. Gender segmentation iswidelyused inconsumer marketing.
demographic segmentation:
Gender
Thebest examples include clothing,
hairdressing,magazines and toiletries and
cosmetics.
12

13. demographic segmentation:
Income
Income decides the purchasing power of the target audience. It is
also one of the key factors to decide whether to market the product
as a need, want or a luxury. Marketers usually segment the market
into three different groups considering their income. These are:
• High Income Group
• Mid Income Group
• Low Income group
This division also varies according to the product,
its use, and the area the business is operating in.
13

14. demographic segmentation:
Social
class
Consumers "perceived" social class influencestheir
preferences forcars,clothes,home furnishings,leisure
activities and other products & services.
14

15. demographic segmentation:
Life
style
Marketers are increasingly interested inthe effect of consumer "lifestyles"on
demand. Unfortunately, there are many differentlifestylecategorization
systems,manyof themdesigned by advertising and marketing agencies
as a way of winning new marketing clients andcampaigns.
15

16. psychographic segmentation:
Psychographic Segmentation divides the audience on the basis of their
personality, lifestyle and attitude. Activities, interest,and opinions (AIO)
surveysare one toolformeasuringlifestyle.
Activities
Interest
Opinion
Values
16

17. behavioral segmentation:
Behavioural segmentation is based on actual customer behaviour
towardsproducts.Somebehaviouralvariable include:
Opinions, interests and hobbies
Degree of loyalty
Occasions
Benefits sought
Usage
17

18. behavioral segmentation:
Opinions, interestsand hobbies –this covers a huge area
and includes consumers’ political opinions, views on the
environment, sporting and recreational activities and
arts and culturalissues.
18

19. behavioral segmentation:
Degree of loyalty –customers who buy one
brand either all or most of the time are
valuable to firms.
19

20. behavioral segmentation:
Occasions –this segments on the basis
of when a product is purchased or
consumed.
20

21. Benefitssought–this requires marketers to identify and
understand the main benefits consumers look for in a
product.
Usage –some markets can be segmented into light,
medium and heavy user groups.
behavioral segmentation:
21

22. 22