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Market Segmentation

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7 views

Market Segmentation

Uploaded by

shaxrizodaisoyeva24
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Market Segmentation

YouTube
An Introduction to Market Segmentation
A brief introduction to market segmentation

03:59

Market segmentation divides customers into groups with similar needs


and characteristics. This allows businesses to target specific segments
more effectively. Understanding market segmentation is crucial for
developing successful marketing strategies.

by Heungsok Cha
Definition of Market Segmentation
Divide Market 1
Segmentation splits the total market into
smaller subsets of consumers.
2 Similar Needs
Each segment contains consumers with similar
tastes, demands and preferences.
Target Marketing 3
Allows businesses to reach specific segments
with distinct marketing strategies.
Importance of Market
Segmentation
YouTube
Market Segmentation In Under 4 Minut…
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03:27

Understand Customers
Gain knowledge of customer needs and preferences.

Increase Sales
Target marketing efforts to boost sales and profits.

Identify Opportunities
Discover new marketing opportunities and areas for growth.

Improve Strategies
Develop more effective advertising and marketing strategies.
Basis of Market Segmentation

Demographic Geographic Psychographic


Demographic segmentation divides Geographic segmentation considers Psychographic segmentation delves
customers based on quantifiable location-based factors like region, into the psychological aspects of
characteristics, such as age, gender, urban or rural setting, and climate. A customers, including their lifestyle,
income, education level, and ski resort, for example, would target personality traits, and values. A
occupation. For example, a clothing individuals residing in regions with company selling organic food might
brand might target young adults snowy winters or those who target individuals who prioritize
aged 18-25 with a focus on trendy frequently travel to such areas. healthy living, sustainability, and
and affordable styles. environmentally conscious choices.
Steps in Market Segmentation
1 2 3 4

Identify Target Determine Bases Develop Profiles Evaluate Segments


Market Choose segmentation Create detailed profiles Assess the
Define the overall criteria like of each market segment. attractiveness and
market to be demographics or viability of each
segmented. behavior. segment.
Types of Market Segmentation

Demographic
Segmentation based on population characteristics.

Geographic
Segmentation based on location and region.

Psychographic
Segmentation based on lifestyle and personality.

Behavioral
Segmentation based on consumer behavior and preferences.
Demographic Segmentation

1 Age
Segment consumers by different age groups.

2 Gender
Target marketing based on gender differences.

3 Income
Tailor products and services to different income levels.

4 Education
Segment based on educational background and level.
Geographic Segmentation

Urban Rural Regional


Target consumers in city Focus on customers in rural areas. Segment markets by geographic
environments. regions.
YouTube
What is Psychographic Segmentation? | Coca Cola Examples
What if I told you that companies like Coca Cola are using a powerful tool to
better understand their customers and create marketing campaigns that…

03:18

Psychographic Segmentation
Lifestyle Segment by consumer lifestyles and activities

Personality Target based on personality traits

Values Group consumers with similar values and beliefs

Interests Segment according to hobbies and interests


Behavioral Segmentation

1 Usage Rate
Segment by frequency of product usage.

2 Brand Loyalty
Target based on loyalty to specific brands.

3 Benefits Sought
Group consumers seeking similar product benefits.

4 Occasions
Segment by purchase occasions like holidays.
Benefits of Market
Segmentation
Increased Sales
Better targeting leads to higher sales.

Enhanced Profits
More efficient marketing improves profitability.

Competitive Advantage
Gain an edge over competitors.

Customer Satisfaction
Better meet specific customer needs.
Benefits to Consumers

1 Tailored Products
Products designed to meet specific needs.

2 Better Communication
More relevant marketing messages.

3 Improved Satisfaction
Products and services that better match preferences.

4 Greater Choice
More options catering to different segments.
Challenges in Market Segmentation
1 Overlapping Segments 2 Changing Consumer Behavior
Segments may not be clearly defined. Segments can shift over time.

3 Data Collection 4 Cost


Gathering accurate segment data can be difficult. Segmentation research and implementation can
be expensive.
Effective Segmentation Criteria
1 Measurable 2 Substantial
Segments should be quantifiable. Segments must be large enough to be profitable.

3 Accessible 4 Differentiable
Must be able to reach and serve the segment. Segments should respond differently to marketing
mix.
Conclusion
Strategic Tool
Market segmentation is crucial for effective marketing strategies.

Customer Focus
It allows businesses to better understand and serve customer needs.

Competitive Advantage
Proper segmentation can lead to increased sales and market share.
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