Market segmentation is the process of dividing the total market for a product into smaller groups based on characteristics like income, age, gender, or interests. It involves identifying distinct groups of buyers with different needs and desires. The goal is to segment the market in ways that allow companies to better target their products and marketing efforts. Some common bases for segmenting the market include geographic, demographic, psychographic, and behavioral factors. Effective market segmentation allows companies to tailor their products, pricing, placement, and promotions to specific customer segments.

1. MARKET SEGMENTATION
Is a process of identifying groups of buyers with different
desires & requirements”.
Means to divide total market for product into small segments &
is done on the basis of income, age, sex, etc.
Market means consumers &segmentation means to divide so it
means to divide the total consumers into small groups

2. NATURE / CHARACTERISTICS
• Heterogeneous Market
• Primary marketing Activity
• Dividing the market
• Bases of market segmentation
• Continuous process
• Consumer centric
• Consumer satisfaction & fights competition
• Process
• Gives many benefits
• Limitations

3. IMPORTANCE
• Identify & take advantages of market opportunities
• Adjustments in marketing mix
• Develop marketing programs & budget
• Design the product
• Media selection
• Fix the timing of advertising / marketing efforts
• Efficient use of Resources
• Better services to consumers
• Fix prices
• Distribution stratergies

4. BASIS OF MARKET SEGMENTATION
GEOGRAPHIC DEMOGRAPHIC SOCIOGRAPHIC
Region Age Culture
Rural / Urban Sex Social class
Locality Income, etc Reference groups
PSYCHOGRAPHIC BEHAVIOURAL
Life Style Usage Rate
Personality User Status

5. NICHE MARKETING
• In market segmentation the full market is divided into small segments.
Each segment is again subdivided into very small parts. Each part is
called a niche market. It is a very selective market. It is very target
market. It contains very small no. of consumers.
• Single niche strategy
• Multiple niching strategy
• Geographic specialist
• Product specialist
• Service specialist
• Channel specialist
• Quality / price specialist
• Customer specialist
• Job – shop specialist

6. CUSTOMER RELATIONSHIP MANAGMENT
• Better services to customer
• Customized / tailor made offers
• Reduces customers defection rate
• Increases long – term relationships
• Increases customer equity
• Competitive advantage
• Improves corporate image
• Easy to introduce new products
• Expansion
• Low advertising budget

7. TECHNIQUES OF BUILDING CRM
• Data Warehousing and data mining
• One – to – one marketing
• Loyalty programs
• Priority customer programs
• Know customers by name
• Spend quality time with customer
• Provide Best Quality products & services
• Invite suggestions & complaints from customers