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INTRODUCTION TO MARKET SEGMENTATION

INTRODUCTION TO MARKET SEGMENTATION

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INTRODUCTION TO MARKET SEGMENTATION

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  1. INTRODUCTION TO MARKET SEGMENTATION

  2. CONTENTS • MARKET SEGMENTATION • TYPES OF MARKETS • BUSINESS MARKET • GOVERNMENT MARKET • CONSUMER MARKET • MARKET SEGMENTATION VARIABLE • GEOGRAPHIC SEGMENTS • DEMOGRAPHIC SEGMENTS • PSYCHOGRAPHIC SEGMENTS • BEHAVIORAL SEGMENTS

  3. MARKET SEGMENTATION • Marketing segmentation is the process of aggregating individuals and businesses along similar characteristics that pertain to the use , consumption, or benefits of a product or service. • The result of market segmentation is groups of customers called market segments.

  4. EXAMPLE • If internet users behave different at work than at home, marketers can capitalized on these difference by targeting each as a separate segment . Go Back

  5. TYPES OF MARKETS • Business market • Government market • Consumer market

  6. BUSINESS MARKET • It involves the market of products to businesses, government and institutions for use in the business operation, as components in the business products. • The online B2B(business to business) marketing is huge because a higher proportion of companies are connected to the internet than consumers , especially in developing countries. • Much of the B2B online activity is transparent to consumers. Go Back

  7. GOVERNMENT MARKET • Businesses wishing to sell to governments face challenges unique to this market. The government agencies have many rules for suppliers to follow regarding qualifications, paper work and so on. • The government agencies are generally particular about timely delivery of quality products at reasonable prices. • The good news is that small and large businesses usually have equal chance of selling to government. Go Back

  8. CONSUMER MARKET • The consumer market involves marketing goods and services to the end consumer. Go Back

  9. MARKET SEGMENTATION VARIABLE • Geographic segments • Demographic segments • Psychographic segment • Behavioral segment Go Back

  10. GEOGRAPHIC SEGMENTS • Product distribution strategy is a driving force behind geographic segmentation. A consumer goods online retailers , such as buy.com , we want to reach only customers in countries where it distributes products. Important geographic segments for e-marketing are: • Languages on web pages • Local marketing Go Back

  11. DEMOGRAPHIC SEGMENTS • Demographic comes out from the word demography which means “study of population”. • As people age their needs and wants change, some organizations develop specific products aimed at particular age groups for example  nappies for babies, toys for children, clothes for teenagers and so on.   Gender segmentation is commonly used within the cosmetics, clothing and magazine industry. Go Back

  12. PSYCHOGRAPHIC SEGMENTS • User psychographics includes personality, values, lifestyle, activities, interests and opinion(AIO).for example: • Lifestyle groups • Mobile • High valued house/flat • Good Salary • Young branded car Go Back

  13. BEHAVIORAL SEGMENTS • To commonly use behavioral segmentation variables are benefits sought and product usage. • It divides buyers in to groups based on there knowledge , attitudes, uses or responses to a product. Many marketers believe that behavior variables are the best starting point for building market segments. Go Back

  14. THANKS…. Go Back