Market SegmentationGroup Members Taha bin Javaid Bilal Razzak Umair ZafarWhat is Market Segmentation? Dividing a market into distinct groups ofbuyers on the basis of needs characteristics or behaviour who might require separate product or marketing mixes.Steps in Market Segmentation Steps in Market Segmentation, targetingand positioning.Market Segmentation2. 3. Identify basis for segmentation Develop Segment ProfilesMarket Targeting3. Develop measure of segment attractiveness 4. Select target segmentsMarket Positioning5. Develop positioning for target segments 6. Develop a marketing mix for each segmentLevels of Market Segmentation Segment marketing Individual marketing Niche marketing Local marketingLevels of Market Segmentation Segment marketing Dividing the marketinto different segments on the basis of homogenous need. Segmented on basis of broad similarity withregard to some attributes Segmentation is also sometimes identifying,capturing & retaining potential new marketsLevels of Market Segmentation Individual marketing Extreme marketing inwhich marketers focus on individual customers.

Keep track of individual tastes & preferences of individual customers Many companies are approaching individuals through e-mails to promote their products.

Levels of Market Segmentation Niche marketing Marketers effort toposition their product or service in smaller markets that have similar attributes and have been neglected by other marketer Segment further divided into sub segmentsto cater unsatisfied needs of small group is called as nicheLevels of Market Segmentation Local marketing marketers offercustomized products to suit the local markets. KFC introduced Muslimized or Pakistani products such as Spicy Chicken, Hilal Chicken, Zinger Extreme and moreBases for Consumer Market SegmentationMarket SegementationGeographicalRegions, cities, states, countriesDemographic Age, gender, income, occupation, religion, social class, family sizePsychographic Life style, personality, values, beliefsBehavioral Occasions, Benefits, Usage rate, Loyalty statusBases for Organizational Market SegmentationMarket SegementationDemographicsOperating VariablesPersonal Characteristics Of the PurchaserSituationalPurchasing ApproachesIntermarket Segmentation Forming segments of consumers whohave similar needs and buying behaviour even though they are located in different countries. World markets can be segmented on economic factors, political and legal factors.Effective Segmentation Measurable Substantial Accessible Differential ActionableTarget Market Selection Process Evaluating the Market Segments Selecting the Market SegmentsEvaluating Market Segments Before selecting the respective marketsegment, the company should evaluate the possible market segments in the current markets. It should identify and select its target consumers, give them their product according to their needs and establish that group of consumer in to permanent market segments.Selecting the Market Segments Single Segment Concentration:Focusing on a single segment gives the marketer the advantage of high sales as all the efforts are concentrated on that one segmentExample: Mercedes concentrates on upper income groupSelecting the Market Segments Selective Specialization:Process in which the company focuses its resources on a few segments and develops its expertise in fulfilling the needs of those segmentsSelecting the Market Segments Product Specialization :The firm makes a certain product that it sells to several segments Example: Microscope manufacturer who sells to university, government, and commercial laboratories.Selecting the Market Segments Full market coverage:Company targets the full market rather than any specific segment. Example: Hewlett-Packard targets the full market for its printers.Selecting the Market Segments Market specialization:The firm concentrates on serving many needs of a particular segment Example: A firm sells assortment of product to university laboratories.Other Consideration Ethical choice of market targets Segment interrelationships and supersegments Segment-by-segment invasion plans Inter segment cooperationAds In Focus - ImateAds In Focus Protex GumAds In Focus Indoluna CareAds In Focus HondaAds In Focus HSBCPrint AdsPrint AdsPrint AdsPrint AdsConclusion Market Segmentation is the backbone ofmarketing tactics. No matter of the locality market segmentation plays an important role in the products life cycle. It is one of that important practice that can never be ignored and specially in this era of mass customization.