market segmentation and benefits of market segmentation

MARKET SEGMENTATION UNIT 3

1. Market Segmentation S.DHIVYA ASSISTANT PROFESSOR DEPARTMENT OF COMMERCE SRM INSTITUITION OF SCIENCE AND TECHONOLOGY RAMAPURAM CHENNAI

2. Market Segmentation Market segmentation is the process of dividing a large market into smaller groups of consumers who share similar characteristics. The success of business depends upon market segmentation.

3. Importance of Segmentation 1 Targeted Marketing 2 Product Development . 3 Enhanced Customer Relationships 4 Competitive Advantage

4. Bases for Segmenting a Consumer Market To segment a market one must find significant variations amongst the customer . These distinction may be based on a number of variables or “ segmentation bases

5. Bases for Segmenting a Consumer Market Demographic Segmentation Dividing customers based on Demographical Profile Psychographic Segmentation Dividing customers based on personality, attitudes, interests, and opinions. Behavioral Segmentation Dividing customers based on their purchasing behavior,.

6. Levels of Market Segmentation 1 Mass Marketing Targeting the entire market with a single marketing message. This approach is less common today due to its lack of specificity. 2 Segment Marketing Targeting several customer segments with differentiated marketing messages, allowing for greater customization and effectiveness. 3 Niche Marketing Targeting a very specific, narrow customer segment with highly specialized products and marketing messages. 4 Micromarketing Targeting individual customers with personalized marketing messages, often through one-to-one marketing strategies.

7. Benefits of Market Segments Increased Efficiency Improved Customer Satisfaction . Enhanced Competitive Advantage Data-Driven Insights .

8. Factors Influencing Selection of Market Segments Segment Size and Growth Potential Segment Profitability Competitive Intensity . Accessibility . Company Resources .

9. Criteria for Effective Market Segmentation Measurable The segment should be identifiable and quantifiable. Accessible The segment should be reachable through marketing efforts. Substantial The segment should be large enough to be profitable. Differentiable The segment should be distinct from other segments with unique needs and preferences. Actionable The segment should be targetable with specific marketing strategies.