Process of dividing the market into sub groups

1. Market
Segmentation

2. Process of dividing the market into sub
groups
The process of defining and subdividing
a large homogenous market into clearly
identifiable segments having similar
needs, wants, or demand
characteristics.

3. Its objective is to design a marketing
mix that precisely matches the
expectations of customers in the
targeted segment.

4. Few companies are not big enough to supply the
needs of an entire market; most must breakdown
the total demand into segments and choose those
that the company is best equipped to handle.

5. Exampl
e
Banks have different kinds of accounts for
different users.

6. Factors affecting
Market Segmentation
(1) Clear
identification of
the segment

7. 2) measurability
of its effective
size

8. (3) its
accessibility
through
promotional
efforts.

9. (4)its
appropriateness
to the policies
and resources of
the company..

10. (a) behavioral
Segmentation

11. • Based on actual
customer behavior
towards the product.
• Some variables are :
a) Benefits Sought
b) Usage Rate
c) Brand Loyalty
d) Readiness
e) Occasion

12. Segmentation
Strategies
(b) demographic

13. Some Demographic Variables:
a)Age
b)Gender
c)Family Size
d)Family Lifecycle
e)Generation
f)Income
g)Education
h)Occupation
i)Religion

14. Segmentation
Strategies
(c) psychographic

15. Some psychographic
variables are :
a)Activities
b)Interests
c)Opinions
d)Attitudes
e)Values

16. Segmentation
Strategies
(d) geographical
differences

17. Some of the geographic Variables are:
a)Region : By continent , country, state .
b)Size Of Metropolitan Area :Segmented
according to size of population
c)Population Density; Urban , Rural ,semi urban
d)Climate

18. Why use Market
Segmentation
• The information will
allow more sales to
be made

19. Why use Market
Segmentation
• To gain greater
knowledge about
customers so that it
can vary the products

20. • Prevent promoting
product to wrong
people

21. • To target
particular groups

22. Benefits of Segmentation
• Sales should increase
• Satisfy customer needs more
successfully
• customer feedback more easily
obtained
• reduced costs as money is not
wasted on ineffective advertising
and promotion.
• Better utilization of scarce
resources.

23. Undifferentiated
Marketing
( Mass Marketing )
Advantages:
a)Mass Marketing ensures lower cost due
to economies of scale.
Disadvantage:
a)Less than optimal need satisfaction
b)Lower Adaption

24. Mass Marketing
vs.
Segmentation

25. Difference between
Mass Marketing and
Segmentation
Mass Marketing is a market coverage strategy in
which a firm decides to ignore market segment
differences and go after the whole market with one
offer..
Market Segmentation is the identifications of
portions of the market that are different from
another.

26. Difference between
Mass Marketing and
Segmentation
• In mass marketing it is more difficult to satisfy
the needs of the customers in total market.
• In market segmentation it is easy to tailor to the
needs and wants of the customers.

27. An example would be let's say for
toothpaste, toothpaste for sensitive teeth
would be segmentation whereas
toothpaste for the entire market would be
using mass marketing.