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Market Segmentation and its Importance in Marketing Management

This presentation by Mr. A. J. Veer explores the concept of market segmentation and its role in effective marketing management. It covers various levels of segmentation, criteria for effective segmentation, and different methods of segmenting consumer markets based on geography, demographics, psychographics, and geodemographics.

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Market Segmentation and its Importance in Marketing Management

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  1. Wel-Come

  2. Presented By Mr. A. J. VeerM.Com., SET Yashwantrao Mahavidyalaya, Tuljapur

  3. Market SegmentationB.Com 2nd Year Sub: Marketing Management

  4. What are Markets? • Market: people or institutions with sufficient purchasing power, authority, and willingness to buy.

  5. Requirements of a Markets • Need • Ability • Willingness • Authority +

  6. Role of Market Segmentation • Market Segmentation: division of the total market into smaller, relatively homogeneous groups • Why? • Levels – Mass, Segment, and Niche

  7. Why segment? Most efficient Most effective Many Groups of One One Mass Market

  8. The Importance of Market Segmentation • Markets have a variety of product needs and preferences. • Marketers can better define customer needs. • Decision makers can define objectives and allocate resources more accurately.

  9. No Market Segmentation

  10. Segmented by Gender

  11. Segmented by Age

  12. Segmentation Process • Marketers follow two methods to determine the bases on which to identify markets: • Segments are predefined by managers based on their observation of the behavioral and demographic characteristics of likely users • Segments are defined by asking customers which attributes are important and then clustering the responses

  13. Substantiality Measurability / Identifiability Accessibility Responsiveness Criteria for Effective Segmentation

  14. Geography Demographics Psychographics Benefits Sought Usage Rate LO4 Bases for Segmentation

  15. Segmenting Consumer Markets • Geographic Segmentation: Dividing an overall market into homogeneous groups on the basis of their locations Metropolitan Statistical Area (MSA)

  16. Segmenting Consumer Markets • Demographic segmentation: dividing consumer groups according to characteristics such as gender, age, income, occupation, education, ethnicity, household size, and stage in the family life cycle.

  17. Age MaritalStatus Children Family Life Cycle

  18. Psychographic Segmentation • Psychographic Segmentation: dividing a population into groups that have similar psychological characteristics, and lifestyles. • Lifestyle: people’s decisions about how to live their daily lives, including family, job, social, and consumer activities

  19. Geodemographic Segmentation LO4 Segmenting potential customers into neighborhood lifestyle categories. Combines geographic, demographic, and psychographic segmentation.

  20. Thanking You

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