For Business test and interviews

2. MARKET
SEGMENTATION
By………………..

3. Market
Actual and Potential buyers of product or service
Market Segmentation
The process of dividing the market into subgroup of similar
Target Market
Subgroup of people that presents the greatest opportunity for
targeting
Market Planning
Development of a marketing mix for each segment according to the
target markets

4. What is Market
Segmentation
At its core, market segmentation is the practice of
dividing your target market into approachable groups.
Market segmentation creates subsets of a market based on
demographics, needs, priorities, common interests, and
other psychographic or behavioral criteria used to better
understand the target audience.

5. 4 types of Market
Segmentation
Demographic
Age
Gender
Family size
Life cycle
Income
Education
Religion
Nationality
Geographic
Country
Region
City size
Density
Climate
Behavioral
Occasions
Benefits
Users status
Loyalty
Attitude
User rate
Psychographic
Social Class
Lifestyle
Personality

6. Demographic Segmentation
Demographic segmentation is one of the most
common forms. It refers to splitting up audiences
based on observable, people-based differences.
These qualities include things like age, sex, marital
status, family size, occupation, education level,
income, race, nationality and religion.

7. Geographic
Segmentation
Geographic segmentation is a marketing
strategy used to target products or services
at people who live in, or shop at, a particular
location. It works on the principle that people in
that location have similar needs, wants, and
cultural considerations.

8. Geographic
Segmentation
Geographic segmentation is a marketing
strategy used to target products or services
at people who live in, or shop at, a particular
location. It works on the principle that people in
that location have similar needs, wants, and
cultural considerations.

9. Psychographic
Segmentation
Psychographic segmentation breaks down
your customer groups into segments that
influence buying behaviors, such as: beliefs,
values, lifestyle, social status, opinions and
activities.

10. Behavioral
Segmentation
You can also segment your market based on
consumers’ behaviors, especially regarding your
product. Dividing your audience based on
behaviors they display allows you to create
messaging that caters to those behaviors. Many
of the actions you might look at relate to how
someone interacts with your product, website,
app or brand.
Types of behavioral segmentation
 Online Shopping Habits
 Actions taken on a website
 Benefits sought
 Usage rate
 loyalty

11. Why do we do
segmentation?
 Increased understanding of customer wants and needs.
 Different products for different groups.
 Better match between customer wants and product benefits
 Maximize the use of available resources.
 Focused marketing expenditures
 Competitive advantage.

12. Benefits of
Marketing
Segmentatio
n
 The Organization gets to know its customers
better.
 Provides guidelines for resource allocation.
 It helps focus the strategy of the organization

13. Limitations of
Marketing
 Targeting multiple segments increases marketing
costs.
 Segmentation can lead to proliferation (large No. )
of products.
 Narrowly segmenting a market can hamper the
development of broad-brand equity.
 Sometime Don't achieve the desire goal
Segmentation

14. How to assess
segments
Common used a criteria, segments should be:
 Substantial
 Accessible
 Action
 Measurable
 Differentiable

15. Thanks You