MARKET SEGMENTATION

CONCEPT AND DEFINITION

• The concept of market segment is based

on the fact that the market of commodities
are not homogeneous but they are
heterogeneous.
• Market represent a group of customer
having common characteristics but two
customer are never common in their
nature, habits, hobbies income and
purchasing techniques.
• According to Philip Kotler , “ Market
segmentation is sub-dividing a market into
distinct and homogeneous subgroups of
customers, where any group can
conceivably be selected as a target
market to be met with distinct marketing
mix.”
GEOGRAPHIC SEGMENTATION

Divide the market into different group based on :

• Region – South India , North , Western Region, East
• City – metro cities, cities with population more than 1
million
• World
• Density
• Climate
• States

Ex.- McDonalds globally, sell burgers aimed at local

markets, for example, burgers are made from lamb in
India rather then beef because of religious issues. In
Mexico more chili sauce is added and so on.
DEMOGRAPHIC SEGMENTATION
No Market Segmentation
Segmented by Gender
Segmented by Age
•As people age their needs and wants change, some
organizations develop specific products aimed at
particular age groups for example  nappies for babies, 
toys for children, clothes for teenagers and so on.   

•Gender segmentation is commonly used within the

cosmetics, clothing and magazine industry.

•In UK we have also seen the introduction of Maxim,

(www.maxim-magazine.co.uk) a male lifestyle
magazine covering male fashion, films, cars, sports and
technology.
Income segmentation
• It is another strategy used by many organizations.
• Daewoo aim their vehicles at price sensitive buyers who
require a bundle of benefits for the price.
• In today's globally competitive environment brands are
specifically developed and positioned within particular income
segments in order to maximize turnover.
• Products and services are also aimed at different lifecycle
segments. Holidays are developed for families, the 18-30's
singles, and for those in their 50's.
PSYCHOGRAPHIC
SEGMENTATION
• Lifestyle groups

• Mobile
• High valued house/flat
• Good Salary
• Young branded car.
Third Agers Associations.
• 50's
• Retired early from profession.
• Time to spare
• Adventure Seekers
BEHAVIOURAL SEGMENTATION
 OCCASIONS - Archies and Hallmark
cards, Monaco at tea time.
 BENEFITS – Shampoo for hair conditioning,
cleaning , hair fall defence dandruff control
 USER STATUS- light – medium – heavy
user
 LOYALTY STATUS- hardcore loyal , split
loyal- loyal to 2-3 brand ,shifting loyal,
switcher
 Segmentation
• The most important base for
segmentation is the Lifestyle as
travelling decisions can be greatly
influenced by the same.
• Other factors such as Level of Income,
Availability of leisure time, etc.
are secondary.
 SWOT Analysis
Strengths:
•Geographical Diversity – Desert,
Mountains, Forests and Beaches
•Cultural Diversity
•Wealth of archaeological sites and
historic monuments
•Manpower costs are low
•World class hotels present

Weaknesses:
•Lack of adequate infrastructure
•Xenophobic attitude among certain
sections
•No proper marketing tools used
 SWOT Analysis
• Opportunities:
– Proactive role of govt. in framing
proper policies
– Allowing entry of more
multinational companies
– Growth of Domestic Tourism
• Threats:
– Economic Conditions of the other
countries
– Political turbulence in Kashmir,
Gujarat
– Aggressive strategies approached
by other countries for tourism