Market Segmentation: Segments of a market refer to distinct groups of consumers who share similar characteristics or needs and who are likely to respond to marketing efforts in a similar way. Market segmentation is a crucial strategy for businesses to effectively target their products or services to specific groups of consumers. Here are some common types of market segmentation: Demographic Segmentation: This involves dividing the market based on demographic variables such as age, gender, income, education, occupation, marital status, and family size. Geographic Segmentation: Here, the market is divided based on geographic units such as region, country, city size, climate, population density, and cultural preferences. Psychographic Segmentation: This segmentation is based on psychological traits, lifestyle, values, interests, attitudes, and behavior of consumers. It aims to understand consumers' personalities and motivations. Behavioral Segmentation: This segmentation categorizes consumers based on their behavior towards the product, brand, or buying decision. It includes variables like usage rate, loyalty, occasion, benefits sought, and readiness to buy. Technographic Segmentation: In this digital age, technographic segmentation is gaining importance. It categorizes consumers based on their technology adoption, preferences, and behaviors, such as device usage, internet usage, social media activity, and preferred communication channels. B2B Segmentation: In business-to-business markets, segmentation may involve factors like industry type, company size, purchasing behavior, decision-making processes, and geographic location. Cultural Segmentation: This segmentation considers cultural differences and preferences, including language, religion, customs, and traditions. Generational Segmentation: It focuses on dividing the market based on generational cohorts such as Baby Boomers, Generation X, Millennials, and Generation Z, considering the unique characteristics and preferences of each group. Market segmentation allows businesses to tailor their marketing efforts, product offerings, pricing strategies, and distribution channels to meet the specific needs and preferences of different consumer segments, ultimately maximizing their chances of success in the market.

1. Market Segmentation
Unit – 1
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2. Demographic Segmentation
Gender
Segmenting the market
based on gender helps
businesses tailor their
marketing messages and
products to specific
genders. It enables
them to create targeted
advertising campaigns
and develop products
that resonate with their
target audience.
Age
Demographic
segmentation based on
age helps businesses
understand the
preferences and needs
of different age
groups. It allows them
to create targeted
marketing campaigns
and develop products
that cater to specific
age demographics.
Income
Demographic
segmentation based on
income allows
businesses to target
consumers with
different income levels.
It helps them develop
pricing strategies and
product offerings that
are suitable for
different income
brackets.
Education
Segmenting the market
based on education level
helps businesses
understand the
preferences and needs of
consumers with different
educational backgrounds.
It enables them to
develop marketing
strategies and products
that align with the
knowledge and interests
of their target audience.
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3. Occupation
Demographic
segmentation based on
occupation helps
businesses target specific
professional groups. It
allows them to tailor
their marketing messages
and products to the
specific needs and
interests of different
occupations.
Marital Status
Segmenting the market
based on marital status
helps businesses
understand the
preferences and needs of
different marital status
groups. It enables them
to create targeted
marketing campaigns
and develop products
that cater to specific
marital status
demographics.
Family Size
Demographic
segmentation based on
family size helps
businesses target
consumers with different
family compositions. It
allows them to develop
marketing strategies and
products that are suitable
for different family sizes
and lifestyles.
Demographic Segmentation
Niveditha AS- Faculty FDDI Chennai

4. Geographic Segmentation
Region
Dividing the
market based on
regions allows
businesses to target
specific areas with
customized
marketing
strategies and
products.
Country
Market
segmentation by
country helps
businesses
understand and
adapt to the unique
needs and
preferences of
different countries.
City Size
Segmenting the
market based on
city size enables
businesses to tailor
their offerings to
the specific needs
and preferences of
urban, suburban,
and rural areas.
Niveditha AS- Faculty FDDI Chennai

5. Geographic Segmentation
Climate
Geographic
segmentation by
climate allows
businesses to develop
products and
marketing campaigns
that are suitable for
different weather
conditions.
Population Density
Segmenting the
market based on
population density
helps businesses
understand the
unique challenges
and opportunities of
different areas.
Cultural
Preferences
Market segmentation
by cultural
preferences enables
businesses to tailor
their offerings to the
specific tastes, values,
and traditions of
different cultural
groups.
Niveditha AS- Faculty FDDI Chennai

6. Psychographic Segmentation
Understanding Consumer
Motivations
Psychographic segmentation
categorizes consumers based on
psychological traits, lifestyle, values,
interests, attitudes, and behavior.
This helps businesses gain insights
into consumers' motivations and
understand what drives their
purchasing decisions.
Tailoring Marketing Efforts
By understanding the psychographic
profiles of their target audience,
businesses can tailor their marketing
efforts accordingly.
They can create personalized
messages and experiences that
resonate with consumers' values,
interests, and attitudes.
Niveditha AS- Faculty FDDI Chennai

7. Behavioral Segmentation
• Behavioral segmentation is a powerful tool that businesses can use to
categorize consumers based on their behavior towards the product, brand, or
buying decision.
• By understanding consumer preferences and targeting specific behaviors,
businesses can tailor their marketing strategies and offerings to effectively
reach and engage their target audience.
Niveditha AS- Faculty FDDI Chennai

8. Types of Behavioral Segmentation
Segment Description
Usage Rate Categorizes consumers based on the frequency and
volume of product usage.
Occasion Groups consumers based on the occasions or situations in
which they use or purchase a product.
Benefits Sought Segments consumers based on the specific benefits they
seek from a product or service.
Brand Loyalty Categorizes consumers based on their level of loyalty and
commitment to a particular brand.
User Status Groups consumers based on their level of experience or
familiarity with a product or service.
Readiness Stage Segments consumers based on their readiness or
willingness to make a purchase.
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9. Technographic Segmentation
• What is Technographic Segmentation?
• Technographic segmentation categorizes consumers based on their
technology adoption, preferences, and behaviors. This helps businesses
understand how consumers engage with technology and tailor their
marketing efforts accordingly.
Niveditha AS- Faculty FDDI Chennai

10. B2B Segmentation
Industry Type
Segmenting B2B
customers based on
the industry they
operate in allows
businesses to tailor
their products and
services to specific
industry needs.
Company Size
Segmenting B2B
customers by
company size helps
businesses
understand the
different
requirements and
challenges faced by
small, medium, and
large enterprises.
Purchasing
Behavior
Analyzing the
purchasing
behavior of B2B
customers helps
businesses identify
patterns and
preferences,
enabling them to
develop targeted
marketing
strategies.
Decision-Making
Processes
Understanding the
decision-making
processes of B2B
customers helps
businesses
streamline their
sales and marketing
efforts and provide
the necessary
information at each
stage..
Geographic
Location
Segmenting B2B
customers by
geographic location
allows businesses to
adapt their
marketing and
distribution
strategies to
specific regions or
countries.
Niveditha AS- Faculty FDDI Chennai

11. Cultural Segmentation
Language
Understanding the
language preferences of
different consumer
groups allows
businesses to effectively
communicate their
marketing messages and
provide customer
support in the preferred
language.
Religion
Recognizing the
religious beliefs and
practices of different
consumer groups helps
businesses develop
products and services
that align with their
values and avoid
cultural insensitivity.
Customs
Adapting to the
customs and traditions
of different consumer
groups enables
businesses to create
culturally relevant
experiences and build
strong connections with
their target audiences.
Traditions
Incorporating
traditional elements into
marketing campaigns
and product offerings
allows businesses to
resonate with
consumers on a deeper
level and foster brand
loyalty.
Niveditha AS- Faculty FDDI Chennai

12. Generational Segmentation
• Generational segmentation is a valuable tool for businesses to understand the
diverse needs and preferences of different generational cohorts. By dividing
the market based on generational cohorts such as Baby Boomers, Generation
X, Millennials, and Generation Z, businesses can tailor their marketing
strategies and offerings to effectively target each generation.
Niveditha AS- Faculty FDDI Chennai

13. Key Generational Cohorts
Generation Birth Years Characteristics
Baby Boomers 1946-1964 Experienced significant social
changes, value loyalty, prefer
traditional marketing methods
Generation X 1965-1980 Independent and self-reliant,
embrace technology, seek work-life
balance
Millennials 1981-1996 Digital natives, value experiences,
socially conscious
Generation Z 1997-2012 Tech-savvy, diverse, prioritize
authenticity and personalization
Generation Alpha Born after 2013 socializing from birth to be digitally
active, drawn to authenticity,
interactivity, and gamification.
Niveditha AS- Faculty FDDI Chennai

14. Benefits of Market Segmentation
Tailored Marketing Efforts
Market segmentation allows
businesses to customize their
marketing efforts to target specific
consumer segments. By
understanding the unique needs,
preferences, and behaviors of each
segment, businesses can create
targeted marketing campaigns that
resonate with their target audience,
leading to higher engagement and
conversion rates.
Customized Product Offerings
Market segmentation enables
businesses to develop and offer
products that are specifically
designed to meet the needs and
preferences of different consumer
segments. By tailoring their
products to address the specific pain
points and desires of each segment,
businesses can increase customer
satisfaction and loyalty, leading to
higher sales and profitability.
Customized Pricing Strategies
Market segmentation allows
businesses to develop pricing
strategies that are tailored to each
consumer segment. By
understanding the price sensitivity
and willingness to pay of different
segments, businesses can optimize
their pricing to maximize revenue
and profit.
Targeted Distribution Channels
Market segmentation helps
businesses identify the most
effective distribution channels to
reach each consumer segment. By
understanding the preferred
shopping behaviors and channel
preferences of different segments,
businesses can optimize their
distribution strategies to ensure that
their products are easily accessible
to their target customers.
Niveditha AS- Faculty FDDI Chennai