Market Segmentation: Dr. Gopal Thapa

1. Market Segmentation
Dr. Gopal Thapa
Tribhuvan University

2. Market Segmentation
 Market Segmentation divides a market into well-
defined slices.
 A market segment consists of a group of
customers who share a similar set of needs and
wants.
 Marketer’s task is to identify the appropriate
number and nature of market segments and decide
which one(s) to target.
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3. Market Segmentation
 Market consists of buyers and buyers differ in ore
or more ways.
 They may differ in their wants, resources,
locations, buying attitudes, and buying practices.
 Through market segmentation, companies divide
large, heterogeneous markets into smaller
segments that can be reached more efficiently and
effectively with products and services that match
their unique needs.
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4. Segmentation, Targeting &
Positioning (STP)
 Market segmentation is dividing a market into
distinct groups with distinct needs, characteristics, or
behavior who might require separate products or
marketing mix.
 Target marketing is the process of evaluating each
market segment’s attractiveness and selecting one or
more segments to enter.
 Market positioning is arranging for a product to
occupy a clear, distinctive and desirable place relative
to competing products in the mind of target customers
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5. Market Segmentation Process
 Market survey
 Segment identification
 Segment profiling
 Segment selection
 Product positioning
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6. Segmentation Variables for
Consumer Markets
 Geographic variables
 Demographic variables
 Psychographic variables
 Behavioral variables
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7. Geographic Variables
 Area
 Development region, zone, district
 Topography/climate
 Mountain, hills, terai
 Temperate, alpine, tropical
 Population density
 Urban, sub-urban, rural market
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8. Demographic Variables
 Age
 Gender
 Family size
 Family lifecycle
 Education
 Occupation
 Income
 Social class
 Religion
 Ethnicity
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9. Psychographic Variables
 Buying motives
 Economy, durability, efficiency, convenience,
love, affection, friendship, belongingness, status,
respect, prestige, recognition
 Personality
 Introvert, extrovert, self-confidence, independent,
impulsive, masculine, feminine
 Lifestyle
 Activities, interest, opinion
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10. Behavioral Variables
 Product benefits
 Occasions
 User status
 Usage rate
 Loyalty status
 Marketing factor sensitivity
 Buyer-readiness stage
 Attitude
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11. Variables for Business Market
Segmentation
 Geographic variables
 Location, topography, climate
 Demographic variables
 Type of industry, size of customer
 Operating variables
 Technology, usage rate, service needed
 Purchase related
 Purchase organization, documentation, negotiation
period
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12. Evaluation of Market Segments
 Segment attractiveness
 Size and growth, profitability ,competition
,technology, customer loyalty, risks
 Organizational objectives and resources
 Segment Relations
 Inter-relationship
 Cooperation
 Ethical Considerations
 Government Policies
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13. Segment selection (Target
Marketing)
 Single segment coverage
 Multi-segment coverage
 Product specialization
 Market specialization
 Full market coverage
 Niche marketing
 Individual marketing
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14. Effective Segmentation Criteria
 Measurable
 Substantial
 Accessible
 Actionable
 Differentiable
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15. Positioning
 Act of designing the company’s offer and image
so that it occupies a distinct and value place in the
target customer’s mind
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16. Types of Positioning
 Attribute positioning
 Benefit positioning
 Image positioning
 Usage occasion positioning
 User positioning
 Competitive positioning
 Product class positioning
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