Market Segmentation

STUDY OF MARKET SEGMENTATION

What is a market?

Total population Felt need Interested Money to buy Willingness to spend Market

What It Means?

Segmentation is the process of partitioning a large heterogenous market into smaller groups or businesses which show similar needs and or

characteristics thus resulting into a similar purchase behaviour.

TOTAL MARKET

Benefits of Segmentation Two Approaches to segmentation1 ) Breaking down of entire market2) Segmentation approach from Individual customers

Limitations of Segmentation

Size

Responsiveness to marketing

Accessibility

Criteria for Effective Segmentation

Variable Typical Break-up

Age Children

Youngsters

Old Aged

Sex Males

Females

Family Size Small

Medium

Large

Family Life Cycle (FLC)

Young, single

Young married, no children,

Young married with children & so on

Occupation Professionals, Technical, Government servants, Businessman, Farmers, Housewives, etc

Education SSC & less, HSC, Graduate, Post Graduate, Doctoral & above

Religion Hindu, Muslim, Parsi, Sikh, Christian, Buddhist, Neo - Buddhist

Nationality Indian, Foreigner

Demographic Segmentation

Family Life Cycle ( FLC )

• Study of Family Life Cycle It refers to the series of stages through which individuals proceed over a

period of time

Traditional or conventional FLC

Revised FLC concept

Benefit segmentationBenefit segmentation of the toothpaste market:

BenefitSought

DemographicCharacteristic

BehaviouralCharacteristic

PsychigraphicCharacteristic

FavouredBrand

Low price Males Heavy users Price-conscious independent

Babool

Decay prevention Big families Heavy users TraditionalHealth-conscious

Pepsodent

Brightness of teeth

TeenagersYoungsters

Smokers Outgoing funloving

Colgate promise

Good flavor Children Mint lovers Active self-involvement

Colgate

Mouthwash TeenagersYoungsters

Want intimacy &togetherness

self-involvement Close-up gel

Gentler toothpaste

Children between 2.5to 7.5years

Loves to taste Fun dependent on mother for good habits

Just for kids

Benefit segmentation of the soap market:

BenefitSought

DemographicCharacteristic

BehaviouralCharacteristic

PsychigraphicCharacteristic

FavouredBrand

Low price Males\females Heavy users Price-conscious independent

Life buoy

Decay prevention Big families Heavy users TraditionalHealth-conscious

Lux, relona, santoor

Anticipatice for body

TeenagersYoungsters

sportmen Outgoing funloving

Dettol

Good smooth Children milk Active self-involvement

Johnson baby

Fragnance TeenagersYoungsters

Want intimacy self-involvement Pears, Dove

Gentler soap Children between 2.5to 7.5years

Loves to bath Fun dependent on mother for good habits

Just for kids

Classification Of Buyers

• Occasions• User status• Usage rate • Loyalty status• Buyer readiness stage• Attitude• Identifying the target Audience or groups

Thank you!!