Transcript BASES OF MARKETING SEGMENTATION

St. Joseph’s Evening College
BASES OF MARKETING
SEGMENTATION
Group 10
365-371
2nd B. Com ‘B’
Under the Guidelines of:
Subject:
Dr. H. Nagraj
Principle of Marketing
CONTENT
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Definition
Importance of Market Segmentation
Need for Market Segmentation
Requirements of Market Segments
Classification of Market Segmentation
Benefits of Market Segmentation
Conclusion
DEFINITION
“Market segmentation is the process of
splitting customers, or potential
customers, in a market into different
groups, or segments”
Importance of Market
Segmentation
Market segmentation is built around the
consumers. In other words, the company
analyses the needs of the consumers, & the
group of those consumers who have similar
needs. It tries to satisfy those needs by
having
common
marketing
program,
without
such
segmentation,
market
program becomes haphazard & they lead
the company no where. A small company
with limited resources can select a
particular group of consumers & market its
products efficiently by selecting the
marketing mix suitable to that group.
Need for Market Segmentation
The marketing concept calls for
understanding
customers
and
satisfying their needs better than the
competition. But different customers
have different needs, and it rarely is
possible to satisfy all customers by
treating them alike.
Requirements of Market
Segments
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A market segment should be
measurable
accessible by communication and
distribution channels
different in its response to a
marketing mix
durable (not changing too quickly)
substantial enough to be profitable
Classification of Market
Segmentation
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A market can be segmented by
various bases, and industrial markets
are segmented somewhat differently
from
consumer
markets,
as
described below.
Consumer Market Segmentation
Business Market Segmentation
Consumer Market Segmentation
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Geographic segmentation is based on
regional variables such as region, climate,
population density, and population growth rate.
Demographic segmentation is based on
variables such as age, gender, ethnicity,
education, occupation, income, and family
status.
Psychographic segmentation is based on
variables such as values, attitudes, and
lifestyle.
Behavioral segmentation is based on
variables such as usage rate and patterns, price
sensitivity, brand loyalty, and benefits sought.
Business Market Segmentation
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Geographic segmentation - based on
regional variables such as customer
concentration, regional industrial growth
rate, and international macroeconomic
factors.
Customer type - based on factors such
as the size of the organization, its
industry, position in the value chain, etc.
Buyer behavior - based on factors such
as loyalty to suppliers, usage patterns,
and order size.
Benefits of Market
Segmentation
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It helps to formulate marketing
programs.
It helps to understand the complex
behavior of consumers
Tastes & Preferences of consumers may
be easily determined.
It helps in locating the new markets
It helps marketing programs beneficial to
consumers as products are produced &
sold according to their needs.
CONCLUSION
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Marketing segmentation is an art,
not a science.
It has a capacity of analyses the
needs of the consumers
Market segmentation identifies the
requirements as per
customers/consumer requirements.
It has a target of reaching the
Products & Services for the particular
group of consumers.
THANK YOU
CREATED BY :
GROUP 10
MUNNU PRASAD.V
MAYURI H N
MARY PRETINA.I
MOSES. D
MUGILAN.M
PAVAN