Market Segmentation

It is the process of defining and dividing a

large market into clearly identifiable segment
having similar needs, wants, or demand
characteristics.
Help in design a marketing mix that precisely
matches the expectation of customer in the
segment.

Benefits Of Market Segment

Match Product and marketing appeal

Better positioning to spot marketing
opportunities.
Allocation of marketing budget
Making the competition effective
Effective marketing program
Evaluation of marketing activities
Increase in sales volume

Characteristics
Segmentation

Measurable
Accessible
Profitable
Market responsiveness

Of

Market

Market Segmentation
Process

Establish a sample of customer

Record personal details
Understand the real need of a customer
Bring the micro segment that illustrate similar
patterns
Verify that the concluding cluster can be
regarded as segment
Establish the attractiveness of each segment
Determine the relative competitive strenghht

Bases of segmentation