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IDENTIFYING MARKET
SEGMENTS AND TARGET
Effective Segmentation Criteria
• Size,
purchasing
power, profiles
of segments can
be measured.
• Segments can be
effectiv...
Segmenting for Business Markets
Demographic
Operating
Variable
Purchasing
Approaches
Situational
Factors
Personal
Characte...
Segmenting Business Markets
• Demographic segmentation
– Industry, company size, location
• Operating variables
– Technolo...
Segmenting International Markets
• Geographic segmentation
– Location or region
• Economic factors
– Population income or ...
Requirements for Effective
Segmentation
Measurable
Size,
purchasing
power,
and profile
of
segment
Accessible
Can be
reache...
Target Market
Consists of a set of buyers who
share common needs or
characteristics that the company
decides to serve
Evaluating Market Segments
Segment size and
growth
• Level of competition
• Substitute products
• Power of buyers
• Powerf...
Created by –priyanka yadav ,lady
shri ram college , during an
internship by prof. Sameer mathur.
IIM lucknow
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Requirements for effective segmentation

requirements for effective segmentation

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Requirements for effective segmentation

  1. 1. IDENTIFYING MARKET SEGMENTS AND TARGET
  2. 2. Effective Segmentation Criteria • Size, purchasing power, profiles of segments can be measured. • Segments can be effectively reached and served. • Segments are large or profitable enough to serve. • Segments must respond differently to different marketing mix elements & programs. • Effective programs can be designed to attract and serve the segments.
  3. 3. Segmenting for Business Markets Demographic Operating Variable Purchasing Approaches Situational Factors Personal Characteristics
  4. 4. Segmenting Business Markets • Demographic segmentation – Industry, company size, location • Operating variables – Technology, usage status, customer capabilities • Purchasing approaches • Situational factors – Urgency, specific application, size of order • Personal characteristics – Buyer-seller similarity, attitudes toward risk, loyalty
  5. 5. Segmenting International Markets • Geographic segmentation – Location or region • Economic factors – Population income or level of economic development • Political and legal factors – Type / stability of government, monetary regulations, amount of bureaucracy, etc. • Cultural factors – Language, religion, values, attitudes, customs, behavioral patterns
  6. 6. Requirements for Effective Segmentation Measurable Size, purchasing power, and profile of segment Accessible Can be reached and served Substantial Large and profitable enough to serve Differentiable Respond differently Actionable Effective programs can be developed
  7. 7. Target Market Consists of a set of buyers who share common needs or characteristics that the company decides to serve
  8. 8. Evaluating Market Segments Segment size and growth • Level of competition • Substitute products • Power of buyers • Powerful suppliers Segment structural attractiveness Company objectives and resources
  9. 9. Created by –priyanka yadav ,lady shri ram college , during an internship by prof. Sameer mathur. IIM lucknow

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