 Welcome learners. I am Dr. Smiti Sikha Sodhri from Krishna Kanto Handic State Open University. Today I am going to discuss the third unit of marketing management course of BBA second semester, that is your market segmentation. So first we will go to the outline of the program. After going through this video lecture, you will be able to explain the concept of market segmentation. Then we will define the concept of market segmentation. Then we will discuss the importance of market segmentation. And then we will discuss the requirements or criteria for market segmentation, why we needed market segmentation. And at the end of this unit we will describe the importance of market segmentation. So first we will go to the introduction. Market consists of customers and customers differ in one or more aspects. So we know that there are different types of customers in market. They may differ in size, resources, geographical location, requirements, buying attitude or buying practices. So on the basis of these variables, a market can be divided into different segments. The basic idea of market segmentation is that in high competition, individual sellers may prosper through developing offers or specific market segment, whose needs are not satisfied. Like in general if we are providing a product to the customers, they may not be satisfied. So if we segment the market and then provide them as per their requirements, then the customers will be more satisfied. Market segment is grouping of buyers according to some common characteristics such as income, age, sex, qualification, geographical location etc. So their needs are better served. Now we will go to the definition of market segmentation. The term market segmentation has been defined by various authors in various ways. Some of the definitions are discussed here. First as per Philip Kotler, market segmentation is the act of dividing a market into distinct groups of buyers who might marriage separate products and or marketing strategy. Then we will go to the definition of RS Dower. So as per him, grouping of behaviors or segmenting the market is described as market segmentation. Then we will go to the definition of WJ Stanton. So as per him, market segmentation consists of taking the total heterogeneous market for a product and then dividing it into several sub-markets or some sub-homogeneous segments, each of which tends to be homogeneous in all significant aspects. So from this definition, we can say that market segmentation is like segmenting the market, making them groups of some homogeneous characters. So here I have shown you the segmentation criteria. Like market segmentation can be done based on geographic location, based on demographic characteristics, then based on psychographic characteristics or maybe based on behavioral characteristics. I will discuss all these aspects in details in my next video lecture. Now we will discuss the importance of market segmentation. As we know like each and every element of marketing is very important for the marketers. So market segmentation helps to identify the various segments in a market for marketers to decide in which segment or segments they can serve effectively. This leads to efficient use of marketing resources, better understanding of customer needs, then better understanding of the competitive situation and accurate measurement of goals and performance. So we can say that market segmentation helps matching of marketing opportunities to the resources of the marketers and enable them to the competition. It enhances marketing efficiency by offering specific price, promotion and distribution in tune with the changes in segment. So we can say that like as per the requirement of the customers, market segmentation helps the marketer to serve the customers. It ensures higher customer satisfaction and brings quantitative improvement in the effectiveness of the marketing program. So there are different points I have sorted out for you, so just go through these. First is it helps in satisfying consumers in a better way. Then it provides various types of information that are useful in product development, marketing research, evaluation of marketing activities etc. Then it channelizes money and afford to the most potentially profitable segments. Then it produces goods and provides services as per the demand of the customers. It also helps in preparation of effective and efficient marketing policies. So when marketer will segment the market, it will help them in preparing the more effective and efficient marketing policies. Because they know that each homogeneous category of the customers and it will be better for them to serve the customers. Then it helps to determine effective promotional activities for the concerned segment. If we specify the segment then it will be always helpful for the marketers to provide the effective promotional strategies for them. Then it helps the producers to determine and compare the marketing potentialities of the products and services. Then it helps in providing marketers to understand the demographic information and to apply it in design of marketing strategies and programs. Each of the elements of marketing mix can be developed as per the requirement of the target market. So we have seen so many like importance are there for the marketers to have a segmented market. Now we will just sum up whatever we have discussed in this video lecture. So in this video lecture we have discussed about the market segmentation. What is market segmentation? Market segmentation is the subdivision of a market into homogeneous groups of customers. The marketers is in a better position to spot and compare marketing opportunities. He can make fine adjustment of his product and marketing appeals. Instead of applying one marketing program for total market, he or she can create separate marketing programs to meet the need of different buyers effectively. The ultimate basis for meaningful segmentation are differences in customer response to different marketing elements. Then we have discussed why market segmentation is important for the marketers. So that's all about this video lecture. I have given some further readings. You can go through this. Thank you.