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Prepared by:-Tapas kumar Sumit Roy

What is Market Segmentation?

The breaking down or building up of potential buyers into groups called Market Segments


Benefits of Market Segmentation

1. Identifies opportunities for new product development 2. Helps design marketing programs most effective for reaching homogenous groups of buyers 3. Improves allocation of marketing resources

Market Segmentation Variables

Geographic Behavioral

Market Segmentation Variables

Psychographic demographic


Two commonly used behavioral segmentation variables are benefits sought and product usage. Benefit Segments The Internet offers something for everyone: information, entertainment, news, social meeting places, etc. To determine benefit segments, marketers look at what people actually do online.

Usage Segments Segmentations are also developed according to how they use the medium: home vs. work, access speed and preferred receiving device, time spent online, and industry specific usage


Geographic Segments Geographic location of computers in cyberspace is not important, however it is important to firms with an Internet presence. Product distribution strategy is the driving force behind geographic segmentation. Important Geographic Segments for E-Marketing 19 country markets have more than 50% Internet penetration, with the United States leading at 186 million users. One barrier to E-marketers is language. Only 33% of all Internet pages are written in the English language


Psychographic Segments Psychographics include personality, values, lifestyle, activities, interests, and opinions. Interest Communities The Internet is an ideal gathering place for people from anywhere in the world with similar interests and tasks. Attitudes and Behaviors Attitudes are internal evaluations about people, products, and other objects. Behavior refers to what a person physically does, such as talking, eating, etc. This information is important to e-marketers to help them define and describe market segments to better meet consumer needs.


Demographic Segments In the early years, the typical Internet user was a young male, college educated, with a high income. Millennial Those born between 1979 and 1994, over 75% use the Internet. These individuals are good at multitasking and are better able to handle information overload. Millennial are the first generation to control information quickly, use many technology gadgets at once, and totally ignore marketers. Kids The under 16 market is ever increasing, and children now account for over $40 billion of current online spending power.