CHAPTER 3:

MARKET SEGMENTATION

Market segmentation can be defined as the

process of dividing a market into distinct subsets
of consumers with common needs or
characteristics and selecting one or more
segments to target with a distinct marketing mix.
 WHO USES MARKET SEGMENTATION

 Marketer of consumer goods

 Marketer of industrial goods
 HOW MARKET SEGMENTATION OPERATES

 Segmentation studies are made to launch

products to fill the product gap (e. g. Tetra pack
milk, skim milk, flavored milk)
 Research is also done to identify appropriate
media for promotion in the relevant segment
(Omega watch ad in Times and Newsweek)
 BASES FOR SEGMENTATION : GEOGRAPHIC

Region: Sindh, Punjab, Balochistan, NWFP,

South, North, East, West
City size: Major metropolitan areas, small
cities, towns
Density of area: Urban, suburban, exurban,
rural
Climate: Temperate, hot, rainy, humid, cold
 DEMOGRAPHIC SEGMENTATION

Age: < 12, 12-17, 18-34, 35-49, 50-64, 65-74,

Sex: Male, Female

Marital status: Single, married, divorced,

Income: <Rs. 25,000; 25,000 – 50,000

Education: Some h/school, High school, Graduate

Occupation: Professional, blue collar, white collar,

agricultural, military
 PSYCHOLOGIC SEGMENTATION

 Needs motivation: Shelter, safety, security, affection

 Personality: Extrovert, Novelty seekers, aggressive,
innovators
 Perception: Low risk, moderate risk, high risk
 Learning involvement: Low involvement, high
involvement
 Attitude: Positive, negative
 PSYCHOGRAPHIC SEGMENTATION

 Lifestyle Segmentation: Economy

minded, couch potato, outdoor
enthusiasts, status seekers
 SOCIOCULTURAL SEGMENTATION

 Cultures: Pakistani, Indian, English, Chinese

 Religion: Muslim, Catholic, Protestant,
Jewish, Hindu
 Subculture (Race/ethnic): American,
Pakistani, Sindhi, Punjabi, Balochi, Pathan
 Social class: Upper, Middle, Lower
 Family Lifestyle: Bachelor, Young married, Full
nesters, Empty nesters.
 USE RELATED SEGMENTATION

 Usage rate: Super heavy users, heavy users,

medium users, light users, non-users
 Awareness status: Unaware, aware, interested,
enthusiastic
 Brand loyalty: None, some, strong
 USE SITUATION SEGMENTATION

Time: Leisure, work, rush, morning, night

Objective: Personal, gift, snack, fun,
achievement
Location: Home, works, friend’s home, in-
store
Person: Self, family members, boss, peer
 HIBRID SEGMENTATION

Demographic / psychographic: Men-economy minded,

women –status seekers
Prism NE (Geodemographics) : Movers and shakers
SRI VALS: Strivers, experiencers, makers, survivors