.

Defination of segmentation
Benefits of segmentation

Costs involves in market segmentation

Bases of market segmantation

.........................................................................................

A market segment is a meaningful buyer group

having similar wants. Hence, segmentation is a
consumer oriented market strategy.

Hence by defination,
It is the sub-devision of a market into homogenious
sub-sects of customers where any sub-sect may
conceivably be selected as a market target to be
reached with a distinct marketing mix.
(philip kotler)
BENEFITS

More
PRECISE DEFINATIONof
market.

MoreEFFECTIVE market
programme.

Better assessment of COMPETITION.

Better assessment of RESOURCES.

COSTS OF SEGEMNTATION

PRODUCT COST PRODUCTION COST

Different product For fulfilment of

design & development customer need of each
for different segment segment firm needs
involves more cost. continuous
production. It
increases production
cost.
COSTS OF SEGEMNTATION

PROMOTION COST INVENTORY COST

Every segment needs Larger selection of

different promotional product make firm to
strategy to atract maintain large
customers, hence if inventory.
firm operated in diff It must maintain
customer segment its normal stock &
promotional cost increased safty stock
become high. for unpredicted
demand.
COSTS OF SEGEMNTATION

MANAGEMENT COST

More market segment needs more

managerial efforts to run it properly
which also increases the total cost.
 BASES FOR MARKET SEGMENTATION
------------------------------------------------------
SEGMENTATION ANALYSIS

CONSUMER CONSUMER
CHARACTERISTICS RESPONSE
(PERSONAL) (PRODUCT)

DEMOGRAPHIC
&
GEOGRAPHIC PSYCHOGRAPHIC
SOCIO
ECONOMIC

BENIFITS USAGE LOYALTY OCCASSION

GEOGRAPHIC SEGMENTATION

Segmentation according to the geographical

characteristics.

Diff region consumer having different taste.

Region should be carefully distinguished &

competitive advanteges should be
analyzed.

Helps marketers to execute their goal most

efficiently.
DEMOGRAPHIC & SOCIO-ECONOMIC
SEGMENTATION
.
Its the study of HUMAN POPULATION. It
consists following characteristics:-
AGE GROUP

SEX

FAMILY SIZE

INCOME LEVEL

OCCUPATION

LEVEL OF EDUCATION
PSYCHOGRAPHIC CHARACTERISTICS
..
Describe human characteristis of consumers that
have bearings on their response towards;-

PRODUCT PACKAGING
ADVERTISING

PUBLIC RELATION EFFORTS

PERSONALITY ATTITUDE

LIFESTYLE
 BENEFIT RESPONSE
..
Consumers are subdevided into groups in
relation to various benefits that buyer is seking
from a particular product.

OCCASSION RESPONSE
..
Products that are not daily use goods but
occassionally used product. Market segmentation for
that product is known a occasion based segmentation.
USAGE RESPONSE
.

In such segment use of a particular product is

counted.
Users mainly subdevided into:-

HEAVY USER MEDIUM USER

LIGHT USER NON USER

 USER BASE
SEGMENTATION

USER NON-USER POTENTIAL USER

HEAVY USER LIGHT USER

LOYALTY RESPONSE
..
Its the latest base used for segmentation.
Buyers are asked to compare the existing brands
of products & rate them as they prceived them
based on their likings.

CONSUMERS

MODERATELY FICKLE
MOST LOYAL INDED
LOYAL