Market segmentation involves dividing the market into groups of customers with similar needs and characteristics so that companies can target their products and marketing efforts. There are several types of market segmentation including geographic, demographic, psychographic, and behavioral segmentation for consumer markets. Industrial market segmentation considers factors like industry, company size and purchasing policies. Effective segmentation should meet criteria like segments being measurable, accessible, substantial, differentiable, and actionable.

1. Market Segmentation 1 Made by: Ms. RAVNEET BHANGU

2. Definition Market segmentation is the segmentation of markets into homogenous groups of customers, each of them reacting differently to promotion, communication, pricing and other variables of the marketing mix. Market segments should be formed in that way that differences between buyers within each segment are as small as possible. Thus, every segment can be addressed with an individually targeted marketing mix. 2 Made by: Ms. RAVNEET BHANGU

3. REASONS?? Better serving customers needs and wants. Higher Profits Opportunities for Growth Sustainable customer relationships in all phases of customer life cycle. Targeted communication. Stimulating Innovation Higher Market Shares 3 Made by: Ms. RAVNEET BHANGU

4. TYPES 4 Made by: Ms. RAVNEET BHANGU

5. CONSUMER MARKET SEGMENTATION Geographic: Land or region Rural or metropolitan area Demographic: Age, sex, marital status Income, occupation, education Religion, nationality, ethnical group Psychographic: Social status Lifestyle-type Personal type Behavioral: Intensity of product use Brand loyalty User behaviors 5 Made by: Ms. RAVNEET BHANGU

6. INDUSTRIAL MARKET SEGMENTATION Industry Intermediary or final consumer Type of corporation (public or private sector) Size of corporation Geographical location Intensity of product use Organization of purchasing function Centralized or decentralized Purchasing policies, rules and criteria 6 Made by: Ms. RAVNEET BHANGU

7. SOCIO-ECONOMIC CLASSIFICATION 7 Made by: Ms. RAVNEET BHANGU

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9. Values and Lifestyles (VALS) “VALS System of Psychographic Classification” 9 Made by: Ms. RAVNEET BHANGU

10. Kotler’s 5 criteria for an effectivesegmentation: 10 Made by: Ms. RAVNEET BHANGU

11. Thank you! 11 Made by: Ms. RAVNEET BHANGU