Market Segmentation - Irfan Bashir Sanskriti University

1. Market Segmentation
Mr.Irfan Bashir
Asstt. Professor

2. Market Segmentation
It is the process/activity of dividing a total market into groups, or segments,
consisting of people of common characteristics or relatively similar product
needs/wants.
Market segmentation is a marketing strategy that uses well-defined criteria to
divide a brand's total addressable market share into smaller groups. Each
group, or segment, shares common characteristics that enable the brand to
create focused and targeted products, offers and experiences.

3. THE BREAKING DOWN OR BUILDING UP OF POTENTIAL BUYERS INTO
GROUPS CALLED MARKET SEGMENTS
. These segments can later be used to optimise products and advertising to
different segments of customers
What is Market Segmentation?

5. ● Bases for segmentation
Ps
Geographic
Psychographic
Demographic
Behavioralistic

6. ● Geographic segmentation
Geographic segmentation tries to divide markets into different geographical
units such as regions, countries, States,Cities.
▶ Regions: by continent, country, state
▶ Size of the area: segmented according to size of population
▶ Population density: Often classified as urban, suburban, or rural
▶ Climate: According to weather patterns common to certain geographic
regions

7. ▶ Age: Marketers design, package and promote products differently to meet the
wants of different age groups.
Good examples include the marketing of toothpaste (contrast the branding of
toothpaste for children and adults) and toys (with many age-based segments).
● Demographic Segmentation
Demographic segmentation divides the market into smaller categories
based on demographic factors, such as age, gender, and income.
Instead of reaching an entire market, a brand uses this method to focus
resources into a defined group within that market
▶ Gender: Gender segmentation is widely used in consumer marketing.
The best examples include clothing, hairdressing and cosmetics.

8. ▶ Social class: Consumers "perceived" social class influences their
preferences for cars, clothes, home furnishings, leisure activities and other
products & services.
▶ Income: Many companies target affluent consumers with luxury goods
and convenience services.
Good examples include Indian Car Industry

9. ● Behavioral segmentation
Behavioural segmentation is based on actual customer behavior
towards products. Some behavioristic variable include:
▶ Opinions, interests and hobbies
▶ Degree of loyalty
▶ Occasions
▶ Benefits sought
▶ Usage

10. ▶ Opinions, interests and hobbies – this covers a huge area and
includes consumers’ political opinions, views on the environment,
sporting and recreational activities and arts and cultural issues.
● Behavioural segmentation
▶ Degree of loyalty – customers who buy one brand either all or most
of the time are valuable to firms.
▶ Occasions – this segments on the basis of when a product is
purchased or consumed.
▶ Benefits sought – this requires marketers to identify and understand
the main benefits consumers look for in a product.
▶ Usage – some markets can be segmented into light, medium and heavy
user groups.

11. ● Psychographic segmentation
Psychographic segmentation groups customers according to their
lifestyle. Activities, interest, and opinions (AIO) surveys are one tool
for measuring lifestyle.
▶ Activities
▶ Interest
▶ Opinion

12. ● Benefits of Market Segmentation
Market segmentation has its own set of benefits for any organisation as:
● Design better marketing campaigns and messaging
● Identify the best marketing tactics
● Differentiate your business from the competition
● Build deeper affinity and customer loyalty
● Identify niche opportunities

13. THANK YOU