Market segmentation

Market segmentation is the process of dividing a potential market in to distinct subsets of consumers & selecting one or more segments as a target to be reached with a distinct marketing mix.

Market segmentation is the process of dividing a heterogeneous market in to homogeneous sub-units. Market segmentation consists of taking the total heterogeneous market for a product & dividing it in to several sub-markets or segments each of which tends to be homogeneous in all significant aspects.

Benefits
A more precise definition of the market A more effective marketing programme Better assessment of the competition Better allocation of resources

What
Benefits does the customer seeks? Factors influence demand? Functions does the product perform for the customer? Are the important criteria? Is the basis of comparison with other products? Risks does the customer perceive? Services do customers expect?

How
Do customer buy? Long does the buying process last? Do various elements of the marketing programme influence customers at each stage of the process? Does the product fit in to their life style? Much are they willing to spend?

Where
Is the decision made to buy? Do customers seek information about the product? Where do customers buy the products?

When
When the first decision to buy made? Is the product repurchased?

Why
Do customers buy? Do customers choose one brand as opposed to another?

Who
Buys our product, & why? Buys our competitors products, & why?

Bases
Geographic Demographic Psychographic Behavioral

Geographic
Region:- north, east, west, south, central, coastal, hilly. City size Density of area Climate

Demographic
Age Sex Marital status Income Family size Occupation Education Family life cycle Religion nationality

Psychographic
Life style:- conservation, liberal etc. Social-class Cultural Personality

Behavioural
Motivation Perception Attitudes Time Location