Market segmentation involves dividing a market into subgroups of customers with similar needs and characteristics. The presentation discusses market segmentation, including its objectives, process, variables used, and targeting and positioning strategies. It provides examples of segmenting based on age group and income level. The key steps in market segmentation are identifying the target market, understanding their needs and expectations, and creating subgroups to develop tailored marketing strategies.

1. Welcome
to
Presentation
“Market Segmentation – Creating value for target customer”
Prepared By-
Md. Shahab Uddin (Tipu)

2. • MARKET SEGMENTATION OBJECTIVES
 To understand market segmentation and consider why it is used.
 To examine how companies segment markets.
 To explore different targeting strategies.
 To learn about the role and process of positioning in segmentation
strategies.
 To consider how marketers can achieve the most from market
segmentation.

3. An Notated Report Outline:
 Point 1 - Introduction.
Segmentation is the term given to the grouping of customers with similar needs by a number of different variables.
Once this has been done, segments can be targeted by a number of targeting strategies. The stage that then follows
is known as positioning which is the place that products or services occupy in the marketplace in relation to the
competition, as perceived by the target market.
 Point 2 - The market-segmentation concept.
The underlying principle of market segmentation is that individual customers have different product and service
needs. Mass marketing, the marketing of a single product to everyone, is rarely a viable strategy, just as it is to
customize products to an individual.
 Point 3 - The market segmentation process.
The segmentation process is generally regarded as consisting of three stages; segmentation, targeting, and
positioning.
 Point 4 - Segmentation variables.
The first stage of the segmentation process involves the selection of suitable variables for grouping customers.
These are also referred to as base variables or the segmentation basis. There is rarely one best way of segmenting a
market and more than one variable can be used. There are a number of segmentation variables that can be used for
consumer and business-to-business markets.

4.  Point 5 - Segmentation analysis.
Research plays an important role in segmentation as segmentation analysis requires a range
of data form a wide variety of sources on markets, customers’ attitudes, motives and behavior
as well as competitor information.
 Point 6 - Targeting.
Targeting is the next step in the sequential process and involves a business making choices
about segment(s) on which resources are to be focused. There are three major targeting
strategies: undifferentiated, concentrated, and differentiated. During this process the business
must balance its resources and capabilities against the attractiveness of different segments.
 Point 7 - Positioning.
Positioning follows on logically from the segmentation and targeting stages. Customer
perceptions are central to the product position especially in relation to the competition’s
offering. The product or service has to satisfy key customer requirements and this has to be
clearly communicated to customers.
 Point 8 - Getting the most out of market segmentation.
Market segmentation, targeting and positioning are not always easy to apply and problems
can arise for a number of reasons. There are a number of steps that can be taken to avoid
these problems and, in addition, there are a set of segmentation criteria that can help.
 Point 9 - Market segmentation: the future.
The two key factors that will affect segmentation in the future are competitive and
technological forces. In addition, there is a rising trend towards one-to-one marketing.

5.  What is a Market?
 A set up where two or more parties engage in exchange of goods, services and
information is called a market. Ideally a market is a place where two or more parties are
involved in buying and selling. The two parties involved in a transaction are called seller
and buyer.
The seller sells goods and services to the buyer in exchange of money. There has to
be more than one buyer and seller for the market to be competitive.
 What is Segmentation?
 Market Segmentation
 Market segmentation is a marketing concept which divides the complete market set up
into smaller subsets comprising of consumers with a similar taste, demand and
preference.
 A market segment is a small unit within a large market comprising of like minded
individuals.
 One market segment is totally distinct from the other segment.
 A market segment comprises of individuals who think on the same lines and have
similar interests.
 The individuals from the same segment respond in a similar way to the fluctuations in
the market.

6.  Basis of Market Segmentation:
 Gender.
 Age group.
 Income
 Marital Status.
 Occupation.
Now we show Two example based on Age group & Level of
income.
 Age Group :
Division on the basis of age group of the target audience is also one of the ways
of market segmentation.

7. Age Group :
Age Group Product Example
Age group (0- 10 years) - Toys, Nappies, Baby Food
Age Group (10-20 - Toys, Apparels, Books, School
years) Bags
Age group (20 years - Cosmetics, Anti-Ageing Products,
and above) Magazines, apparels and so on

8.  Income Group: Marketers divide the
consumers into small
segments as per their
income. Individuals are
classified into segments
according to their
monthly earnings.
 The three categories are:
Income group Product Example
High income Group Sunsilk Shampoo 400 ml.
Mid Income Group Sunsilk Shampoo 200 ml.
Low Income Group Sunsilk Shampoo 50 ml. &
Minipack

9.  Types Of market Segmentation
Psychographic segmentation
• The basis of such segmentation is the lifestyle of the
individuals. The individual’s attitude, interest, value help the
marketers to classify them into small groups.
Demographic Segment : Dividing a market in to groups
based on variables such as – age, gender, family
size, family life cycle, income , occupation
, education, religion, race, & nationality,
Geographic Segmentation
• Geographic segmentation refers to the classification of market into various
geographical areas. A marketer can’t have similar strategies for individuals
living at different places.
Behavioral Segmentation
• The loyalties of the customers towards a particular brand help the
marketers to classify them into smaller groups, each group comprising of
individuals loyal towards a particular brand.

10. Steps In Market Segmentation
Identify
Lower Income The target
Group market.
Identify the
Size of the
• Maruti 800, Alto target
Expectations
of target
Market.
market.
Middle Income
Group Review Market
Create
• - Wagon R, Swift, the Segmentatio
Subgroups
Swift Dzire, Ritz behavior. n.
High Income
Group Review the
Marketing needs of the
• Maruti Suzuki BMW. Strategy. target
audience.
Name your
Market
Segment.

11.  Marketing Mix & 4 “C”s.

12.  Why Target Marketing
 Why target marketing? (Need of Target
Marketing)
 Organizations can use similar kind of strategies to promote their products within a
target market.
 They can adopt a more focused approach in case of target marketing. They know their
customers well and thus can reach out to their target audience in the most effective
way.
 How to create Target Market
 The organization must first decide who all individuals would fit into a particular
segment. A male and a female can’t be kept in the same segment. The first and
the foremost step is to decide on the target market.
 The next step is to identify need and preference of the target market. It is
essential to find out what the target market expects from the product.
 Once the target market is decided, organizations can decide on the various
strategies helpful to promote their product.

13.  How to select the Target Market?
 It is essential for the organizations or marketers to identify the set of people whom
they want to target? Marketers must understand the needs and expectations of the
individuals to create its target market .
 To select a target market, it is essential for the organizations to study the
following factors:
 Understand the lifestyle of the consumers
 Age group of the individuals
 Income of the consumers
 Spending capacity of the consumers
 Education and Profession of the people
 Gender
 Mentality and thought process of the consumers
 Social Status
 Kind of environment individuals are exposed to
Always remember you would never be successful if you try to impress everyone.

14. .
 Let us go through the below example:
 Q: Why do people use soaps ?
Some would use it against body Freshness.
• Some would use it to fight germs and
infections.
• Some for a fair and spotless skin.
In the above case the product
is same but the needs of the
individuals are different.
Consumers have different
reasons as to why they use
soaps

15. If We Analysis Current Target Market of food & Beverages:
Let See---- Bangladesh.
Health
Growing kids Teenagers conscious
individuals Professionals, Office People.
(Horlicks (Soft drinks Fruit Juice Energy Drinks(Red
, Complan, Maltov Pepsi, Coke, 7 (Real, Frutika, P bull, Horse, Soda, Tiger, Speed)
a, Boost) up) ran Mango
Juice, Mangoli )

16.  Product Positioning Process - Steps in Product
Positioning
The process of creating an image of a product in the minds of the
consumers is called as positioning.
Positioning helps to create first impression of brands in the minds of target
audience.
Steps to product Positioning
The brand
1. Know your Target Audience Well. “Connecting
2. Identify the product feature .
People”
3. Unique Selling Proposition.
4. Know your competitors.
5. Ways to promote brands.
6. Maintain the position of the
brand. The brand
Unique Selling Proposition Is the most “Ceat Tyre”
Important , So let See stands for
better grip.
How Find out how the products can
be useful to the end-users----

17. Unique Selling Proposition

Individuals purchase “Dabur
Chyawanprash “to strengthen their
body’s internal defense mechanism
and fight against germs, infections
and stress. That’s the image of
Dabur Chyawanprash in the minds Why do people use “Anti Dandruff
of consumers. Shampoo?”
Anti Dandruff Shampoos are meant to
get rid of dandruff. This is how the
product is positioned in the minds of the
individuals.

18.  Conclusion
 The underlying principle of market segmentation is that the product
and services needs of individual customers differ. Market
segmentation involves the grouping of customers together with the
aim of better satisfying their needs whilst maintaining economies of
scale. It consists of three stages and if properly executed should
deliver more satisfy customers, few direct confrontations with
competitors, and better designed marketing programmers’.

19. Reference
www.gogle.com.
www.quickmba.com
www.yahoo.com
www.slideclick.com
 Book
 Principals of marketing by Philip kotler (12 editions)
 Marketing Management by kotler, Keller, (12 editions

20. Any Question?