Customer-Driven Marketing Strategy LECTURE-11

 Market Segmentation Topic Outline

Market Segmentation

Market segmentation: Dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes. Market Segmentation

 Segmenting consumer markets  Segmenting business markets  Segmenting international markets  Requirements for effective segmentation Market Segmentation

Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation Segmenting Consumer Markets

Market Segmentation  Geographic segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities Segmenting Consumer Markets

Market Segmentation Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality Segmenting Consumer Markets

Market Segmentation Age and life-cycle stage segmentation is the process of offering different products or using different marketing approaches for different age and life-cycle groups Gender segmentation divides the market based on gender (male or female)

Market Segmentation Income segmentation divides the market into affluent, middle-income or low-income consumers Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality traits Segmenting Consumer Markets

Demographic Segmentation Age and Life-Cycle Stage Gender Income Generation Social Class Occupation

Market Segmentation  Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product  Occasions  Benefits sought  User status  Usage rate  Loyalty status Segmenting Consumer Markets

Market Segmentation Multiple segmentation is used to identify smaller, better-defined target groups. Using Multiple Segmentation Bases

Market Segmentation Geographic location Economic factors Political- legal factors Cultural factors Segmenting International markets

Market Segmentation Intermarket segmentation divides consumers into groups with similar needs and buying behaviors even though they are located in different countries Segmenting International Markets

Market Segmentation To be useful, market segments must be: Requirements for Effective Segmentation MeasurableAccessible SubstantialDifferentiable Actionable

Bibliography  Principles of Marketing by Philip Kotler & Gary Armstrong Fifteenth Edition, Published by Prentice Hall  Marketing Management – A South Asian Perspective by Philip Kotler, Kevin Lane Keller, Abraham Koshy & Mithileshwar Jha, 13th Edition, Published by Pearson Education, Inc.  Principles and Practices of Marketing by Jobber, D. 4th edition, McGraw Hill International.  Principles of Advertising & IMC by Tom Duncan 2 nd Edition, Published by McGraw-Hill Irwin.

The End "Success doesn't come to you, you go to it." Marva Collins