SEGMENTATION IN MARKETING Segmentation in Marketing

OBJECTIVES: 1-MARKET SEGMENTATION 2-BENEFITS OF SEGMENTATION 3-THE PROCESS OF SEGMENTATION 4-EFFECTIVE SEGMENTATION 5- BASES OF SEGMENTING CONSUMER MARKET

MARKET SEGMENTATION CAN BE DEFINED AS SUBGROUP OF PEOPLE OR ORGANIZATION, SHARING ONE OR MORE CHARACTERISTICS THAT CAUSE THEM TO HAVE SIMILAR PRODUCT NEEDS

WHY SEGMENT THE MARKET? Facilitates right choice of target market Facilitates Effective Tapping of the chosen Market makes the Marketing Effort More Efficient and Economic Helps Identify Less Satisfied Segments and Concentrate on them

LO 4 BENEFITS OF SEGMENTATION The process of grouping customers into market segments according to the benefits they seek from the product.

WHY SEGMENT? Most efficient Most effective One Mass Market Many Groups of One

PROCESS OF MARKET SEGMENTATION 1- IDENTIFY THE CURRENT AND POTENTIAL WANTS THAT EXIST IN THE MARKET 2- IDENTIFY THE CHARACTERISTIC THAT DISTINGUISH AMONG THE SEGMENTS 3- DETERMINE WHO HAS EACH WANT.FINAL STEP IS TO ESTIMATE HOW MUCH DEMAND AND POTENTIAL SALES EACH SEGMENT REPRESENTS.

CRITERIA FOR EFFECTIVE SEGMENTATION Substantiality Measurability / Identifiability Accessibility Responsiveness

BASES FOR SEGMENTATION LO 4 Usage Rate Benefits Sought Psychographics Demographics Geography

NO MARKET SEGMENTATION

SEGMENTED BY GENDER

SEGMENTED BY AGE

CONCLUSION