Market

Segmentation
Group Members
Taha bin Javaid
Bilal Razzak
Umair Zafar
What is Market Segmentation?

 Dividing a market into distinct groups of

buyers on the basis of needs
characteristics or behaviour who might
require separate product or marketing
mixes.
 Steps in Market Segmentation

 Steps in Market Segmentation, targeting

and positioning.

Market Segmentation Market Targeting Market Positioning

2. Identify basis for 3. Develop measure 5. Develop positioning
segmentation of segment for target segments
3. Develop Segment attractiveness
6. Develop a marketing
Profiles 4. Select target mix for each segment
segments
Levels of Market Segmentation

 Segment marketing

 Individual marketing

 Niche marketing

 Local marketing
Levels of Market Segmentation

 Segment marketing – Dividing the market

into different segments on the basis of
homogenous need.
 Segmented on basis of broad similarity with
regard to some attributes
 Segmentation is also sometimes identifying,
capturing & retaining potential new markets
Levels of Market Segmentation

 Individual marketing – Extreme marketing in

which 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 to

position their product or service in smaller
markets that have similar attributes and
have been neglected by other marketer
 Segment further divided into sub segments
to cater unsatisfied needs of small group is
called as niche
Levels of Market Segmentation
 Local marketing – marketers offer
customized products to suit the local
markets.
 KFC introduced “Muslimized” or “Pakistani”
products such as Spicy Chicken, Hilal Chicken, Zinger
Extreme and more…
 Bases for Consumer Market Segmentation

Market
Segementation

Demographic
Age, Psychographic Behavioral
gender, Life style, Occasions,
Geographical income,
Regions, cities,
occupation,
personality, Benefits,
states, countries values, Usage rate,
religion,
social class, beliefs Loyalty status
family size
Bases for Organizational Market
Segmentation

Market
Segementation

Personal
Operating Characteristics Purchasing
Demographics Situational
Variables Of the Approaches
Purchaser
Intermarket Segmentation

 Forming segments of consumers who

have 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

 Actionable
Target Market Selection Process

 Evaluating the Market Segments

 Selecting the Market Segments

Evaluating Market Segments
 Before selecting the respective market
segment, 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 segment

Example: Mercedes concentrates on upper

income group
Selecting 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
segments
Selecting 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 super

segments

 Segment-by-segment invasion plans

 Inter segment cooperation

Ads In Focus - Imate
Ads In Focus – Protex Gum
Ads In Focus – Indoluna Care
Ads In Focus – Honda
Ads In Focus – HSBC
Print Ads
Print Ads
Print Ads
Print Ads
Conclusion
 Market Segmentation is the backbone of
marketing 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.