BASES OF MARKETING SEGMENTATION Group nd B. Com ‘B’ Under the Guidelines of:Subject: Dr. H. NagrajPrinciple of Marketing St. Joseph’s Evening College

CONTENT Definition Definition Importance of Market Segmentation Importance of Market Segmentation Need for Market Segmentation Need for Market Segmentation Requirements of Market Segments Requirements of Market Segments Classification of Market Segmentation Classification of Market Segmentation Benefits of Market Segmentation Benefits of Market Segmentation Conclusion Conclusion

DEFINITION “Market segmentation is the process of splitting customers, or potential customers, in a market into different groups, or segments”

Importance of Market Segmentation Market segmentation is built around the consumers. In other words, the company analyses the needs of the consumers, & the group of those consumers who have similar needs. It tries to satisfy those needs by having common marketing program, without such segmentation, market program becomes haphazard & they lead the company no where. A small company with limited resources can select a particular group of consumers & market its products efficiently by selecting the marketing mix suitable to that group.

Need for Market Segmentation The marketing concept calls for understanding customers and satisfying their needs better than the competition. But different customers have different needs, and it rarely is possible to satisfy all customers by treating them alike.

Requirements of Market Segments A market segment should be measurable A market segment should be measurable accessible by communication and distribution channels accessible by communication and distribution channels different in its response to a marketing mix different in its response to a marketing mix durable (not changing too quickly) durable (not changing too quickly) substantial enough to be profitable substantial enough to be profitable

Classification of Market Segmentation A market can be segmented by various bases, and industrial markets are segmented somewhat differently from consumer markets, as described below.  Consumer Market Segmentation  Business Market Segmentation

Consumer Market Segmentation Geographic segmentation is based on regional variables such as region, climate, population density, and population growth rate. Geographic segmentation is based on regional variables such as region, climate, population density, and population growth rate. Demographic segmentation is based on variables such as age, gender, ethnicity, education, occupation, income, and family status. Demographic segmentation is based on variables such as age, gender, ethnicity, education, occupation, income, and family status. Psychographic segmentation is based on variables such as values, attitudes, and lifestyle. Psychographic segmentation is based on variables such as values, attitudes, and lifestyle. Behavioral segmentation is based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and benefits sought. Behavioral segmentation is based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and benefits sought.

Business Market Segmentation  Geographic segmentation - based on regional variables such as customer concentration, regional industrial growth rate, and international macroeconomic factors.  Customer type - based on factors such as the size of the organization, its industry, position in the value chain, etc.  Buyer behavior - based on factors such as loyalty to suppliers, usage patterns, and order size.

Benefits of Market Segmentation It helps to formulate marketing programs. It helps to formulate marketing programs. It helps to understand the complex behavior of consumers It helps to understand the complex behavior of consumers Tastes & Preferences of consumers may be easily determined. Tastes & Preferences of consumers may be easily determined. It helps in locating the new markets It helps in locating the new markets It helps marketing programs beneficial to consumers as products are produced & sold according to their needs. It helps marketing programs beneficial to consumers as products are produced & sold according to their needs.

CONCLUSION Marketing segmentation is an art, not a science. Marketing segmentation is an art, not a science. It has a capacity of analyses the needs of the consumers Market segmentation identifies the requirements as per customers/consumer requirements. Market segmentation identifies the requirements as per customers/consumer requirements. It has a target of reaching the Products & Services for the particular group of consumers. It has a target of reaching the Products & Services for the particular group of consumers.

THANK YOU CREATED BY : GROUP 10 MUNNU PRASAD.V MAYURI H N MARY PRETINA.I MOSES. D MUGILAN.MPAVANFROM: 2 nd B.Com ‘B’ (365 – 371) BLUES TEAM