Market Segmentation

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Market segmentation- is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing strategy. That is, they are likely to have similar feeling and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way, and promoted in a certain way. Broadly, markets can be divided according to a number of general criteria, such as by industry or public versus private sector. Small segments are often termed niche markets or specialty markets. However, all segments fall into either consumer or industrial markets. Market segmentation is needed because the marketing concept calls for understanding customers and satisfying their needs better than the competition. But different customers have different needs, and it rarely is possible to satisfy all customers by treating them alike. Buyers together make up markets. These buyers vary in numerous ways. These ways include difference in their wants, acquiring ability, geographical sites, purchasing behavior, and buying practices. An example for how the market for soap may be segmented-

Types of SoapCharacteristics of market segment
Beauty soap
E.g.: Dove, Lux, Camay

People who buy beauty soap will be people who want to keep their skin soft. They will therefore buy soap which contains moisturizers. Women will mainly buy them. Baby Soap
E.g.: Johnson’s baby Soap

This is a mild soap which will not harm a baby’s skin. It is bought mainly by mothers for their babies. Medicated soap
E.g.: Dettol , Lifebuoy

Sometimes soap is sold to help fight acne. This tends to be bought mainly by teenagers, both male & female. Non-branded soap
This is an economy product which is plain soap with no extra perfume added. This will probably be bought by people on...
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