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Market Segmentation
Market segmentation involves dividing a market into distinct groups of customers with distinct needs, characteristics, or behaviors who might require separate products or marketing mixes. The key benefits are identifying new product opportunities, designing effective marketing programs for homogeneous groups, and improving resource allocation. Segments must be identifiable, accessible, responsive to different offers, large enough to target, and stable over time. Common bases for segmentation include geographic, demographic, psychographic, and behavioral factors such as age, gender, income, lifestyle, customer behavior, and usage occasions.
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Introduction to market segmentation concepts and definitions, emphasizing the classification of buyers into groups.
Market segmentation benefits include identifying product development opportunities and improving marketing efficiency.
Contrasts mass market treatment with target market strategies, highlighting the need for tailored marketing.
Key requirements for defining market segments: identifiable, accessible, unique needs, substantial, and durable.
Introduction to various bases for market segmentation: geographic, demographic, psychographic, and behavioral.
Details on geographic segmentation factors: regions, area size, population density, and climate.
Demographic criteria including age, gender, income, social class, and lifestyle impacting marketing strategies.
Overview of psychographic segmentation focusing on lifestyle, activities, interests, opinions, and values.
Explores behavioralistic segmentation based on customer behavior, loyalty, usage occasions, and benefits sought.
A closing slide expressing thanks for the audience's attention after a detailed presentation on market segmentation.
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Market Segmentation
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- 2. THE BREAKING DOWNOR BUILDING UP OF POTENTIAL BUYERS INTO GROUPS CALLED MARKET SEGMENTS What is Market Segmentation?
- 3. Benefits of Market Segmentation Identifiesopportunities for new product development Helps design marketing programs most effective for reaching homogenous groups of buyers Improves allocation of marketing resources
- 4. The need formarketing segmentation The marketing concept calls for understanding customer and satisfying there needs better than the competition. Different customers have different needs, and its rarely possible to satisfy all the customers by treating them alike.
- 5. Difference between amass market and target market Mass market refers to treatment of the market as a homogenous group and offering the same marketing mix to all customers.
- 6. Difference between amass market and target market Target market on the other hand recognizes the diversity of the customers and does not try to please all of them with the same offering.
- 7. Requirements of marketsegments Indefinable: the differentiating attributes of the segments must be measurable so they can be identified. Accessible: the segments must be reachable through communication and distribution channels.
- 8. Requirements of marketsegments Unique needs: to justify separate offerings, the segments must respond differently to different marketing mixes. Substantial: the segments should be sufficiently large to justify the resources required to target them.
- 9. Requirements of marketsegments Durable: the segments should be relatively stable to minimize the cost of frequent changes.
- 10. Bases for segmentationin consumer markets Geographic Demographic Psychographic Behavioralistic
- 11. Geographic segmentation Geographic segmentationtries to divide markets into different geographical units: Regions Size of the area Population density Climate
- 12. Geographic segmentation Regions:by continent, country, state or even neighborhood Size of the area: segmented according to size of population
- 13. Geographic segmentation Populationdensity: often classified as urban, suburban, or rural Climate: according to weather patterns common to certain geographic regions
- 14. Demographic segmentation Demographic segmentationconsists of dividing the market into groups based on variables such as: • Age • Gender • Income • Social class • Life style
- 15. Age :Marketers design, package and promote products differently to meet the wants of different age groups. Good examples include the marketing of toothpaste (contrast the branding of toothpaste for children and adults) and toys (with many age-based segments). Demographic segmentation
- 16. Gender: Gendersegmentation is widely used in consumer marketing. The best examples include clothing, hairdressing, magazines and toiletries and cosmetics. Demographic segmentation
- 17. Demographic segmentation Income:Many companies target affluent consumers with luxury goods and convenience services. Good examples include Coutts bank; Moet & Chandon champagne and Elegant Resorts - an up-market travel company.
- 18. Demographic segmentation Socialclass: Consumers "perceived" social class influences their preferences for cars, clothes, home furnishings, leisure activities and other products & services.
- 19. Demographic segmentation Lifestyle:Marketers are increasingly interested in the effect of consumer "lifestyles" on demand. Unfortunately, there are many different lifestyle categorization systems, many of them designed by advertising and marketing agencies as a way of winning new marketing clients and campaigns.
- 20. Psychographic segmentation Psychographic segmentationgroups customers according to their lifestyle. Activities, interest, and opinions (AIO) surveys are one tool for measuring lifestyle. Activities Interest Opinion Values
- 21. Behavioralistic segmentation Behavioralistic segmentationis based on actual customer behavior towards products. Some behavioralistic variable include: Opinions, interests and hobbies Degree of loyalty Occasions Benefits sought Usage
- 22. Opinions, interestsand hobbies – this covers a huge area and includes consumers’ political opinions, views on the environment, sporting and recreational activities and arts and cultural issues. Behavioralistic segmentation
- 23. Degree ofloyalty – customers who buy one brand either all or most of the time are valuable to firms. Behavioralistic segmentation
- 24. Occasions –this segments on the basis of when a product is purchased or consumed. Behavioralistic segmentation
- 25. Benefits sought– this requires marketers to identify and understand the main benefits consumers look for in a product. Usage – some markets can be segmented into light, medium and heavy user groups. Behavioralistic segmentation
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