Download - Segmentation ppt ravs!
Made by: Ms. RAVNEET BHANGU 1
Market Segmentation
Made by: Ms. RAVNEET BHANGU 2
Definition
Market segmentation is the segmentation of markets into homogenous groups of customers, each of them reacting differently to promotion, communication, pricing and other variables of the marketing mix.
Market segments should be formed in that way that differences between buyers within each segment are as small as possible. Thus, every segment can be addressed with an individually targeted marketing mix.
Made by: Ms. RAVNEET BHANGU 3
REASONS??
• Better serving customers needs and wants.
• Higher Profits
• Opportunities for Growth
• Sustainable customer relationships in all phases of customer life
cycle.
• Targeted communication.
• Stimulating Innovation
• Higher Market Shares
Made by: Ms. RAVNEET BHANGU 4
TYPES
Consu
mer
Markets
Industrial
/ Business Markets
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CONSUMER MARKET SEGMENTATION
• Geographic:
Land or region
Rural or metropolitan area• Demographic:
Age, sex, marital status
Income, occupation, education
Religion, nationality, ethnical group• Psychographic:
Social status
Lifestyle-type
Personal type• Behavioral:
Intensity of product use
Brand loyalty
User behaviors
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INDUSTRIAL MARKET SEGMENTATION
• Industry
• Intermediary or final consumer
• Type of corporation (public or private sector)
• Size of corporation
• Geographical location
• Intensity of product use
• Organization of purchasing function
• Centralized or decentralized
• Purchasing policies, rules and criteria
Made by: Ms. RAVNEET BHANGU 7
SOCIO-ECONOMIC CLASSIFICATION
Made by: Ms. RAVNEET BHANGU 8
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Values and Lifestyles (VALS)
“VALS System of Psychographic Classification”
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Kotler’s 5 criteria for an effectivesegmentation:
Measurable
Accessible
Distinguishable
Feasible
Made by: Ms. RAVNEET BHANGU 11
THANK YOU!