What is Segmentation ?

Segmentation refers to a process of dividing a large unit into various small units which have more or less similar or related characteristics.

Market segmentation
Market segmentation means dividing the total market for a product into different parts i.e segments on certain bases and using each segment fully for the purpose of marketing and sales promotion.

Market Aggregation
The market

No segmentation heterogenous customers homogenous product no differentiation

It is dividing the market into distinct group of customers with similar requirements

Segmentation

S-1
Good market segmentation has internally homogenous members and is externally heterogeneous

Segments must be Identifiable Measurable Accessible, reachable Substantial enough Unique enough

S-3 S-2

Durable/stable

Basic features
Needs and wants, Financial position i.e purchasing power, Willingness to buy, Likes and dislikes and Social and cultural background.

Benefit of market segmentation

In market segmentation , we first identify the wants of the customers with in a sub market and then decide if it is practical to develop a marketing mix to satisfy those want and the company also earn more profit.

Geographic Segmentation
In geographical segmentation, market is divided

into different geographical units like: Regions (by country, nation, state, neighborhood) Population Density (Urban, suburban, rural) City size (Size of area, population size and growth rate) Climate (Regions having similar climate pattern

Demographic Segmentation
In demographic segmentation, market is divided into

small segments based on demographic variables like: Age Gender Income Occupation Education Generation Family size Religion Nationality

Psychographic Segmentation
In Psychographic Segmentation, segments are defined on

the basis of social class, lifestyle and personality characteristics. Psychographic variables include: Interests Opinions Personality Self Image Activities Values Attitudes

Behavioral Segmentation

Behavioral Segmentation
In this segmentation market is divided into segments

based on consumer knowledge, attitude, use or response to product. Behavioral variables include: Usage Rate Product benefits Brand Loyalty Price Consciousness Occasions (holidays like mothers day, New Year and Eid) User Status (First Time, Regular or Potential)

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