Market Segmentation

Paramjit Sharma
Market Segmentation

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 Market

Market is
People or Organisation with
Needs or Wants with
The Ability and
Willingness To Buy

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 Market Segment

Within a Market a

•Segment is a Sub-Group of
•People Or Organizations
•Sharing one or More Characteristics
•That Cause them to have Similar Needs

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 Market Segmentation

The Process of Dividing a

market into

•Relatively Similar
•And Identifiable
•Segments or Groups
•Called Market Segmentation

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LEVELS OF MARKET SEGMENTATION

Segment Marketing Individual

Customer
Marketing

Niche
Marketing
Local Marketing
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 LEVEL OF MARKET SEGMENTATION

Segment Marketing

Identifiable Group with in a

Market With Similar
ALTO
•Wants
•Purchasing Power
•Geographical Location
•Buying Attitudes
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Narrowly defined Group (Small)
Whose needs are Not well served

•Distinct Needs
Niche •Pay Premium
Marketing •Specialization
•Less Competition
•Size, Profit & Growth
• Potential
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 LEVEL OF MARKET SEGMENTATION

Individual
Customer
Marketing

Marketing According To Individual’s Order

•Customized Marketing
•Cars /Tailors
•Designer’s Clothes
•Architects
•Software
Paramjit Sharma
 LEVEL OF MARKET SEGMENTATION

Local Marketing

Marketing Programmes Serving

Needs & Wants Of Local Customers

•Local Pune
•Region Chitle Sarees
•State
Kashmiri
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Silk
 Criteria's for Effective
Segmentation

4 Purpose Of Segmentation

1 Identifying Groups Of Customers with similar Needs

2 Analyze Their Characteristics & Buying Behaviors

3 Providing Products Matching with Needs

4 Satisfying Needs While Meeting

Paramjit Org. Objectives
Sharma
Segmenting Consumer Markets

Geographic
Demographic
Psycho graphic
Behavioral
Multi-attributable

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Geographic

Nations
States
Regions
Cities
World
M-Size
Density
Climate Paramjit Sharma
Demographic

Age
Family Size
Family life cycle
Gender income
Occupation
Education
Religion
Generation
Nationality
Social ClassParamjit Sharma
Psychographic

Life Styles
Personality
Values

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Behavioral

Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Readiness
Stage
Attitude
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Multi-attributes-Geoclustering

PRIZAM(Potential Rating Index by Zip Markets)

•Education & Affluence

•Family Life Cycle
•Urbanization
•Race & Ethnicity
•Mobility
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Market Targeting

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 M1 M2 M3
Single Segment
Concentration P1

•Volkswagen—small cars P2
•Porsche----sports car
P3

Can be Risky at Times

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 M1 M2 M3
SELECTIVE
SPECIALIZATION P1

•No of Segments P2
•Type Of Cars

P3

Risk is divided
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 M1 M2 M3
PRODUCT
SPECIALIZATION P1

•Several Segments P2
•Microscope-colleges, labs

P3

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Market Segments-Evaluation &
Selection

M1 M2 M3
MARKET
SPECIALIZATION P1

•Particular Customer Group P2

•Different Products to Univ

Books, labs, Computers, sports P3

goods.

Paramjit Sharma
 M1 M2 M3
FULL MARKET
COVERAGE P1

•General Motors-Cars for P2

every purse,purpose and
personality
P3

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 Market Segments-invasion Plan
Customer Groups
Airlines Railroads Truckers
Product Varieties

Large
Comp

Midsize
Comp

Pers
comp

A B
Paramjit Sharma C
Market Segments-Inter-
segment Coop

A B
Market
C D

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Market Segments-Inter-segment Coop

A B
HQ Market

C D

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