2. MARKET SEGMENTATION
Market segmentation is based on fact that
markets are heterogeneous & not homogeneous.
Homogeneous market refer to a market situation
where the prospective buyers of any product are
found to be uniform in their
needs, habits, choices, nature, etc.
Heterogeneous market refer to a market
situation where the prospective buyers of any
product are not found homogeneous in their
needs, habits, choices, nature, etc.
3. DEFINITION
Market Segmentation is a method of “dividing
a market (Large) into smaller groupings of
consumers or organisations in which each
segment has a common characteristic such
as needs or behaviour.”
4. Geographic
Demographic
Age, gender,
family size and
life cycle, or
income
Psychographic
Social class, lifestyle,
or personality
Behavioral
Occasions, benefits,
uses, or responses
Nations, states,
regions or cities
BASIS OR METHODS OF SEGMENTATION
5. 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
chilli sauce is added and so on.
1) GEOGRAPHIC SEGMENTATION
6. Demographic variables
age
gender
sexual orientation
family size
family life cycle
education
income
occupation
education
socioeconomic status
religion
nationality/race
language
2) DEMOGRAPHIC SEGMENTATION
