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Market Segmentation with Examples

Designed for MBA Marketing graduates to understand the fundamentals of Market Segmentation.. Please comment or write me a review to uzair@hotmail.co.in

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Market Segmentation with Examples

  1. 1. A Market is a place which allows the purchaser and the seller to invent and gather information’s and lets them carry out exchange of various products and services. In other words the Meaning of Market refers to a place where the trading of goods takes place. The place can be a market place or a street market. A market is thus by definition comprises people or business with potential interest, purchasing power and willingness to spend the money to buy a product or service that satisfies need.
  4. 4. BENEFITS OF SEGMENTATION •Increases Sales. •Satisfy customer needs more successfully. •Customer feedback more easily obtained. •Reduced costsas money is not wasted on ineffective advertising & promotion.
  5. 5. 1. Geographic 2. Demographic 3.Behavioral 4. Psychographic
  6. 6. - Region South India, Western Region, North, East -City Cities, Metro Cities, Cities with a population of 0.5 million to 1 million, Cities with a population of over 1 million. - Rural & semi-urban areas Rural villages with a population over 10,000; Semi-urban areas; small town with a population between 20,000 & 50,000
  7. 7. -Age Kids, Teenagers, Youth, Working age group, senior Citizens. -Gender Male, Female -Income Low (up to 40,000 p.a.), lower middle (40,001 -80,000p.a.), Middle (80,001-12,000 p.a.), Upper middle (12,001 -1,60,000p.a.), High (above 1,60,000 p.a.) -Occupation Unskilled worker, Skilled worker, Petty traders, Shop owners, Businessman/Industrialist, Self employed(Professionals, Supervisory level, Sales executive) -Education Illiterate, School up to 4 years, School between 5 – 9, SSC/HSC, Graduate/Postgraduate.
  8. 8. -Socioeconomic classification (SEC) A1, A2, B1, B2, C, D, E1,E2. (Purchase potential) -Lifestyle Culture Oriented, Sports Oriented, Outdoor oriented. -Personality Compulsive, Gregarious, Ambitious
  9. 9. Occasions Regular, Special Benefits Quality, Service, Economy, Speed User status Nonuser, Ex-user, Potential user, First time user, Regular user Loyalty status None, Medium, Strong, Absolute Readiness stage Unaware, Aware, Informed, Interested, Desirous, Intending to buy Attitude towards product Enthusiastic, Positive, Indifferent, Negative, Hostile
  10. 10. Niche Marketing
  11. 11. Meaning A Niche is more narrowly defined customer group seeking a distinctive mix of benefits. Marketers usually identify niches by dividing a segment into sub segments.