marketsegmentation-mm2-lva1-app6891.pptx

Functions of Marketing: Market Segmentation
and Targeting – Positioning functional strategies
– Identification of Market segments - marketing
strategies

A market is a place which allows the purchaser and the seller
to invent and gather information’s and lets them carry out
exchange of various products and services. In other words
the Meaning of Market refers to a place where the trading of
goods takes place

Markets are Heterogeneous; Segmentation divides them
into Homogeneous Sub-Units
The market for a product is nothing but the aggregate of
the consumer of that product
Markets break up the heterogeneous market for product
into several sub units, or sub markets, each relatively more
homogeneous within itself, compared to market into a
number of sub markets/ distinct sub units of buyer , each
with relatively more homogeneous characteristics, is known
as market segmentation.

It is the Consumer who are Segmented, Not Product, nor Price
It would be useful to provide one important clarification right
at the beginning.
Markets, sometime, speaks of product segments and price
segments and use these expressions as synonymous with
market segments.
This can leads to a wrong understanding of what market
segments, or for that matter, the process of market
segmentation as a whole, actually connote
We have to be clear that in market segmentation, it is the
consumers who are segmented, not the product, nor price.
Market is about people who consume the product, not about
the product that’s gets consumed

Example of market segmentation?
Titan Watches
Arrives in three broad Segments
For the youth /the outdoor
lovers:
• The Rich
• The Middle
• The Lower
For the Gold lovers:
For Designer Segment
For Children Segment

Facilitates Right Choice of Target Market
Facilitates Effective Tapping of the Chosen Market
Makes the Marketing Effort More Efficient and Economic
Helps Identify Less Satisfied Segments and Concentrate on
Them

• A market/ consumer population for a product can be
segmented using several relevant bases. The major ones
include:
• Geographic
• Demographics
• Socio-cultural
• Psychographic
• Buying Behavior

Bases for segmentation
Segmentation of consumer based on factors like climate zone,
continents/ country, region, state, district, and urban/rural area,
constitutes geographic segmentation
Marketer, who operate globally, often segment the market
segments the market by continents/country/region in the first
instance, and then go for segmentation on other bases.
National markets within a country like India, often segment
the market by region, state, district and urban/rural area, in the
first instance, and then go for segmentation on other bases.

Segmentation of consumer based on variables such as race,
religion, community, language,
gender, marital status, family
age, stage in family cycle,
size, occupation, economic
position/income/purchasing capacity level, and social status ,of
the consumer demographic segmentation
Age: Based on age on can have the 1) Infants 2) Child Market
Teen Market 3) Youth Market 4) Middle Aged Market
5)Elders Market
Genders: On the basis of gender, the consumer market may be
classified into male market female market.
Social Class: Companion design their products and services for
particular social classes. There are three social classes: 1 Upper
classes 2. Middle classes 3. Lower class

Culture and social class are the two main bases of segmentation
here.
Culture: Culture influence consumer behavior, deeply. A given
culture brings in its own unique pattern of social conduct. A
person usually acquires his cultural attributes right at his
childhood. Culture includes religious, caste, traditional,
language, pattern of social behavior .
Social Factor: Social group of varying types exert influenced on
the consumer. Social group include family, peer group, close
colleges. They adopt their common life style.

Example:
Zee Televisions deals with variety of channels regional channel,
sports channel, movie channel.
McDonald has both veg and non veg burger
. McDonald has
veg burger for vegetarian and nonveg burger for non vegetarian.

Psychographic Segmentation groups customers according to
their life-style and buying psychology.
Many businesses offer products based on the attitudes, beliefs
and emotions of their target market
The desire for status, enhanced appearance and more money
are examples of psychographic variables.
They are the factors that influence your customers' purchasing
decision.
In psychographic segmentation, elements like life style,
activities
attitude, self-concept and value system, form the base.
A person’s pattern of interests, opinions, and
combine to represent his or her lifestyle.

Knowledge of lifestyle can provide a very rich and meaningful
picture of a person.
It can indicate whether the person is interested in outdoor
sports, shopping, culture, or reading.
It can include information concerning attitudes and personality
traits.
Lifestyle also can be used to define a segment empirically; this
is often called psychographic (as opposed to demographic)
segmentation..

The customer can also be divided into certain segments on the
basis of their knowledge, attitude, use, or response to a product.
Such behavioural variables are discussed below
Occasions : (Marraiges, festival occasasions)
Benefits sought : (Colgate- White teeth stops bad breath,
Cibaca Provides Therapeutic benefits, Vicco vajradanthi and
neem gives ayurvedic benefit)
User Status: (Ex-users, first users, regular users, Potential
users)
Usage rate: (Light, Medium, and heavyu user segments)
Loyality status: (Hard core loyals, Split Loyals(Two r Three
brans), Shifting Loyals (Shift from one brand to another),
Switchers (No loyalty to any brand))
Attitude: Customers are divided into five groups(Enthusiastic,
Positive, Indifferent, Negtive and Hostile)

Advantages of Segmentation
Various advantages of market segmentation are:-
Helps distinguish one customer group from another within a
given market
Facilitates proper choice of target market.
Facilitates effective tapping of the market.
Helps divide the markets and conquer them.
Helps crystallize the needs of the target buyers
Makes the marketing effort more efficient and economic
Helps spot the less satisfied segments and succeed by satisfying
such segments.
Makes the marketing effort more efficient and economic
Helps spot the less satisfied segments and succeed by satisfying
such segments
Brings benefits not only to the marketer but also to the customer
as well.

Effective Market Segmentation
Measurability (Interms of size and purhcasing power)
Accessibility (Reached and served through suitable
means of distribution of promotion)
Substantiality(Large and profitable)
Differentiability (Clearly distinguishable)
Actionalbility.(to be effective makers of segmentation
should be compatible with the manpower, financial and
managerial resources)

Market targeting refers to picking a specific group or small set
of groups to which a business will advertise.
It is based on the idea that, because it's not really possible to
make or do something that will please everyone, a business has
to specialize.
Companies select an advertising group to strengthen their
brands, as well as to get an idea of potential sales for production
or financing purposes.
They can use three main approaches for this: universal,
selective or concentrated.
It is common for an organization to reevaluate its target groups
and related campaigns over time because markets are always
somewhat flexible

Single segment concentration
Selective specialization
Product specialization
Market specialization
Full market coverage (Coke ,IBM)
Single segment concentration:
The company selects a single segment
Ex: Nirma selected only price sensitive segment
For its washing powder

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gor differentiated marketing strategy

An organization's strategy that combines all of its marketing
goals into one comprehensive plan.
A good marketing strategy should be drawn from market
research and focus on the right product mix in order to achieve
the maximum profit potential and sustain the business.
The marketing strategy is the foundation of a marketing plan.

Undifferentiated
Strategy
Marketing Mix Entire Market
Concentrated
Strategy
Marketing Mix Target Market
Differentiated
Strategy
Marketing Mix Segment 1

 Undifferentiated marketing
 Differentiated marketing
 Concentrated/Focused marketing
 Customized marketing (Levis, Mattel, De beers)

Undifferentiated Marketing
Marketing mix Whole market
Segment 1
Segment 2
Segment 3
Differentiated Marketing
Marketing mix 1
Marketing mix 2
Marketing mix 3

Concentrated/ Focused Marketing
Segment 1
Segment 2
Segment 3
Marketing mix
Customer 1
Customer 2
Customer 3
Customized Marketing
Marketing mix 1
Marketing mix 2
Marketing mix 3

marketsegmentation-mm2-lva1-app6891.pptx

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marketsegmentation-mm2-lva1-app6891.pptx