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MARKETING MGT Segmentation

Segmentation notes

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10 views14 pages

MARKETING MGT Segmentation

Segmentation notes

Uploaded by

adityagupta98397
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Market Segmentation

MARKET SEGMENTATION
Market segmentation
is a way of
aggregating
prospective buyers
into groups or
segments, based on
demographics,
geography, behavior,
or psychographic
factors, in order to
better understand
and market to them.
Why Segmentation?
• Generate greater customer satisfaction
• Create savings
• To identify strategic opportunities and niches
• Increase marketing effectiveness
• Allocation of marketing budget
• Adjustment of product to the market need
• To estimate the level of sales in the market
• To overcome competition effectively
• To develop effective marketing programmers
• To contribute towards achieving company goals
• To develop marketing activities
GOALS OF SEGMENTATION
• The two main goals that any segmentation methodology should be able to
address are

• 1) At a strategic level, segmentation should be able to help an organization


rapidly evaluate new business opportunities
• Geographical expansion: Should the retail chain expand to north east?
• Product expansion: Should the electronic manufacturer launch a
Smartphone?

• 2) At an operational level segmentation should yield information to help


craft successful marketing offers for specific prospects.
• Product: What product features are must haves vs. nice to haves?
• Price: What is the price point that customers are willing to pay?
• Communication: How to message to the target customers.
• Distribution: Where do the target customers live?
Requirements of market segments
• In addition to having different needs, for segments to be practical
they should be evaluated against the following criteria:

• Identifiable: the differentiating attributes of the segments must be


measurable so that they can be identified.
• Accessible: the segments must be reachable through
communication and distribution channels.
• Measurable: It has to be possible to determine the values of the
variables used for segmentation with justifiable efforts. This is
important especially for demographic and geographic variables. For
an organization with direct sales (without intermediaries), the own
customer database could deliver valuable information on buying
behavior (frequency, volume, product groups, mode of payment
etc).
• Substantial: the segments should be sufficiently large to
justify the resources required to target them.
• Unique needs: to justify separate offerings, the segments
must respond differently to the different marketing mixes.
• Durable: the segments should be relatively stable to
minimize the cost of frequent changes.
Geographic segmentation
• When a population is divided on the basis on geographies i.e.
country, state, city, village, region, postal code etc, it is referred to
as geographic segmentation. This market segmentation type helps
form clusters based on location, topography, location etc.

• The following are some examples of geographic variables often


used in segmentation.

• Region: by continent, country, state, or even neighborhood.


• Size of metropolitan 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.
Demographic segmentation

Slicing the market into groups based on


demographics like age, gender, income, family
members, educational qualification, socio economic
status, occupation religion, race & nationality etc
called Demographic segmentation.

Demographic factor are the most popular bases for


segmenting customer groups. Because customer
needs, wants & usage often very closely with
demographic variables & are easier to measure
than other types
Psychographic segmentation
• Divides the customers
based on:
• Lifestyle
• Social Class
• Personality
• Based on the different
expectation that
customers have about
what a product/service
can do for them
Behavioral segmentation
• Behavioral segmentation
is a marketing strategy
that groups customers
into segments based on
their behaviors, rather
than their
demographics. It can help
businesses understand
their customers better
and improve their
marketing strategies.
Example:
One example of marketing segmentation is Coca-Cola. The company uses various
segmentation strategies to target different consumer groups effectively:

1.Demographic Segmentation: Coca-Cola targets different age groups with


specific products. For instance, Diet Coke and Coca-Cola Zero Sugar appeal to
health-conscious adults, while classic Coca-Cola is marketed to a broader
audience.

2.Geographic Segmentation: The company tailors its marketing strategies based


on regional preferences. For example, in some countries, Coca-Cola offers unique
flavors or products that resonate with local tastes, such as Thums Up in India.

3.Psychographic Segmentation: Coca-Cola markets its products based on


lifestyle and personality traits. Campaigns often focus on themes like happiness,
sharing, and celebration, appealing to consumers who value social experiences.

4.Behavioral Segmentation: The brand also segments its audience based on


consumer behaviors, such as occasion-based marketing (e.g., holidays, summer
events) and loyalty programs that reward frequent buyers.
BY:
Aditya Gupta
(01625501723)
Kartik Sani
Vibhor Jain
Manshika shrama
( 04425501723)

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