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Segmentation, targeting &

Segmentation: The process of dividing the market into
distinct needs characteristics or behavior that might
require separate marketing strategy or mixes.
Market targeting: the process of evaluating each
market segments attractiveness & selecting one or
more segments to enter.
Differentiation: Actually differentiating the market
offering to create superior customer value.
Positioning: Arranging for a market offering to occupy
clear, distinctive and desirable places relative to
competing product in the minds of target consumers.
Basis of segmentation.
Geographic segmentation: Dividing the market
into different geographical units such as
nation, states, regions, countries, cities or
Eg: tyres, MC Donald.
Types of tyres for different climatic
Demographic segmentation
Dividing the market into groups based on
variables such as age, gender, family size,
family life cycle, income, occupation,
Education, religion, race, generation &
Psychological Segmentation
Dividing the market into different groups
based on social class, lifestyle, or personality
Ex: Lufthansa airlines, Big Basket, reid & taylor,
mountain dew.
Behavioral segmentation
Dividing the market on the basis of consumer
knowledge, attitude, uses or response to a
Eg: minute maid pulpy orange.
Occasion Based.
Benefit based.
Benefit Segmentation
Occasion Segmentation:
Dividing the market into group
according to the occasion when buyers
get the idea to buy, actually make their
purchase or use the product item
Benefit segmentation
Dividing the market into groups according to
the different benefits that consumer seeks
from the product.
Eg: anti dandruff shampoo
User status:
The markets can be segmented into non users,
ex-users, potential users, regular user of the
Usage rate
The market can be segmented into light,
medium & heavy users (less in no.).
Super fans- young males (18-34 years)- 18 % ,
half of the customer visit.
Loyalty Status:
A market can also be segmented by customer
Brand loyal colgate.
Store loyal- big bazaar.
Company loyal- LG.`
Multi segmentation bases
Marketers rarely limit their segmentation
analysis to only one or a few variables.
Rather they often use multiple segmentation
bases in an effort to identify smaller, better
defined target groups
Intermarket segmentation
Forming segments of consumers who have
similar needs & buying behavior even though
they are located in different countries.
Eg: IKEA targets aspiring global middle class.
Market Targeting