1. Market Segmentation

2. Definition
Market Segmentation is the process of disaggregating the total market for a given product into a no. of relatively homogenous units.

3. Methods of market segmentation
Geographic
Demographic
Psychographic
Buyer behavior
Volume segmentation

4. Geographic Based on Region Continent State Country District Urban
Rural

5. Demographic Age Gender Family Size Race Religion Community Language
Occupation
Education level
Social level

6. Psycho-graphics
Psychological
Sociological
Anthropological

7. Buyer Behavior
Based on perception

8. Volume Segmentation Bulk Buyers Small scale buyers Regular Buyers
One time buyers

9. Steps involved Differentiate b/w consumer groups
Assessment of characteristics of a group
Analyzing market mix
Selecting the segment to suit the product
Estimating levels of purchase by segments
Selecting most potential segments

10. Market targeting
Process of fixing one’s target market.

11. How to select target market?
1. Size wise
2. Future position of segment
3.Consideration of profitability
4.Accessibility of segment
5.Firm’s resources, objectives, ambitions and distinctive capabilities.

12. Environmental Scanning

13. SWOT Analysis