Market Market SegmentationSegmentation

By Uttam Raj RegmiBy Uttam Raj Regmi

What is market What is market segmentation?segmentation?

• Dividing a market into distinct Dividing a market into distinct groups of buyers with different groups of buyers with different needs, characteristics, or behavior needs, characteristics, or behavior who might require separate who might require separate products or marketing mixesproducts or marketing mixes

Requirements of Effective Requirements of Effective SegmentationSegmentation

• Heterogeneous needs and Heterogeneous needs and characteristicscharacteristics

• MeasurabilityMeasurability• AccessibilityAccessibility• ProfitabilityProfitability

Benefits of Market Benefits of Market SegmentationSegmentation

• Identification of profitable marketsIdentification of profitable markets• Market SpecializationMarket Specialization• Effective use of marketing resourcesEffective use of marketing resources• Monitoring changes in the market Monitoring changes in the market

placeplace

Process of Market Process of Market SegmentationSegmentation

• SurveySurvey-Product attributes desired by buyers-Product attributes desired by buyers- Brand awareness among the buyersBrand awareness among the buyers- Product use patternsProduct use patterns- Buyers’ attitude toward the product categoryBuyers’ attitude toward the product category- Buyers’ demographic, psychographic Buyers’ demographic, psychographic

characteristicscharacteristics

o AnalysisAnalysiso ProfilingProfiling

Segmentation variables for Segmentation variables for consumer marketsconsumer markets

• Geographic segmentationGeographic segmentationo Area, topography & climate, population densityArea, topography & climate, population density

o Demographic segmentation Demographic segmentation o Age, Gender (Sex), Income, Social class, Family Age, Gender (Sex), Income, Social class, Family

size education, occupation, education, religionsize education, occupation, education, religion

o PsychographicPsychographico Buying motives, personality, life styleBuying motives, personality, life style

o Behavioral Behavioral o Benefits, Ocassions, User Status, Usage rate, Benefits, Ocassions, User Status, Usage rate,

Loyalty statusLoyalty status

Major Segmentation Major Segmentation Variables for Consumer Variables for Consumer

MarketsMarketsVariableVariable Typical BreakdownsTypical Breakdowns

GeographicGeographic

RegionRegion Western, Eastern, Banke, Western, Eastern, Banke, SunsariSunsari

Country SizeCountry Size 147,141 Sq Km147,141 Sq Km

City /town/VDC City /town/VDC sizesize

5,000 – 10, 000, 50,0005,000 – 10, 000, 50,000

DensityDensity Urban, Suburban, RuralUrban, Suburban, Rural

Contd.Contd.VariableVariable Typical BreakdownsTypical BreakdownsDemographicDemographic

AgeAge Under 6, 6-11, 12-19, 20-34Under 6, 6-11, 12-19, 20-34

SexSex Male, FemaleMale, Female

Family SizeFamily Size 1-2, 3-4, 5+1-2, 3-4, 5+

Family life cycleFamily life cycle Young, Single, Young Married, no Young, Single, Young Married, no ChildrenChildren

IncomeIncome Under Rs 5000, 5000 -10000, Under Rs 5000, 5000 -10000, Above 10000Above 10000

OccupationOccupation Farmer, teacher, service holder, Farmer, teacher, service holder, studentsstudents

EducationEducation High school, SLC , Bachelor, High school, SLC , Bachelor, MastersMasters

ReligionReligion Catholic, Muslim, HinduCatholic, Muslim, Hindu

RaceRace White, Black, Asian, Oriental, White, Black, Asian, Oriental,

NationalityNationality Nepali, Indian, American, Nepali, Indian, American, GermanGerman

Contd.Contd.VariableVariable Typical BreakdownsTypical Breakdowns

PsychographicPsychographic

Social ClassSocial Class Lower class, working Lower class, working class, middle classclass, middle class

LifestyleLifestyle Straights, Swingers, Straights, Swingers, longhairs, Jhilkelonghairs, Jhilke

PersonalityPersonality Authoritarian, ambitious, Authoritarian, ambitious, gregariousgregarious

Contd.Contd.VariableVariable Typical BreakdownsTypical Breakdowns

BehavioralBehavioral

OccasionsOccasions Regular occasion, special Regular occasion, special ocassionocassion

BenefitsBenefits Quality, service, economyQuality, service, economy

User StatusUser Status Nonuser, ex –user, Nonuser, ex –user, potential user, regular potential user, regular user, first time useruser, first time user

Usage RateUsage Rate Light user, medium user, Light user, medium user, heavy us.heavy us.

Loyalty statusLoyalty status None, medium, strong, None, medium, strong, absoluteabsolute

Readiness stageReadiness stage Unaware, aware, Unaware, aware, informed, intrestinformed, intrest

Attitude toward Attitude toward productproduct

Enthusiastic, positive, Enthusiastic, positive, indifferent, negative, indifferent, negative, hostilehostile

Exercise 2Exercise 2

Participants to learn to segment Participants to learn to segment consumer markets by using consumer markets by using variables like geographic, variables like geographic, demographic, psychographic demographic, psychographic and behavioral and behavioral