Transcript MARKET SEGMENTATION

MARKET SEGMENTATION
 CONCEPT AND DEFINITION
The concept of market segment is based on the fact that the
market of commodities are not homogeneous but they are
heterogeneous. Market represent a group of customer having
common characteristics but two customer are never
common in their nature, habits, hobbies income and
purchasing techniques.
 Market Segmentation is a method of “dividing a market
(Large) into smaller groupings of consumers or organisations
in which each segment has a common characteristic such as
needs or behaviour.”
LEVELS OF MARKET SEGMENTATION
1. SEGMENT MARKETING
Consists of a group of customers
who share a similar set of needs
and wants.
Identifiable Group with in a
Market with Similar
• Wants
• Purchasing Power
• Geographical Location
• Buying Attitudes
FLEXIBLE MARKET OFFERING
 Even in segments 100 % needs are not same – consists of two
parts
1. Naked Solution :- products and services that all members
of the segment values.
2. Discretionary options :- that some segment members
value. Each option might carry an additional charge.
 Example: Automobile industry – basic model is same
but for A.C , power steering, power window buyer
 Market Segments can be defined in many different ways.
One way to carve up a market is to identify Preference
segments
Suppose ice cream buyers are asked how much they value
sweetness and creaminess as two product attributes. Three
different patterns can emerge.
Homogeneous preference :
 where all the consumer have roughly the same preferences.
 We would predict that existing brand would be similar and cluster around
the middle of the scale in both sweetness and creaminess.
Diffused preference :
 consumers vary greatly in their preferences
Clustered preference :
creaminess
sweetness
Homogeneous Preference
-no natural segments
-all buyers have same preference
creaminess
sweetness
Diffused Preference
-no pattern (…or poor research)
-take center position
creaminess
sweetness
Clustered Preference
-natural segments
-increases as number of competitors increases
2. NICHE MARKETING
 Group of customers seeking a distinctive mix of benefits who are ready to pay
extra premium.
 Niche = segment
sub – segments
Eg. Washing detergents
hard & gentle washes . Surf excel for tough
stains ( hard on clothes) & Ezee from Godrej for delicate clothes.
--- Astha , Sanskar , Q TV – focus on religion & spiritualism.
 DISTINCT NEEDS
 PAY PREMIUM
 SPECIALIZATION
 LESS COMPETITION
 POTENTIAL
3. LOCAL MARKETING
 Marketing programs tailored to the needs & wants of local customer groups in
trading areas, neighborhoods , etc.
 this trend is called grass roots marketing.
Ex. – Spiderman 3 was released in 5 different language in India including bhojpuri.
Chitle
Pune sarees
Kashmiri silk
4. INDIVIDUAL MARKETING
 Ultimate segmentation – segments of 1 or customized marketing or one to one
marketing.
 Customerization – empower the consumers to design the product or service
offering of their choice.
 Ex. Paint companies have started doing this- Asian Paint , Nerolac , Berger
Paints
 Arvind mills launched Ruff’n Tuff Jeans, branded ready – to – stitch
GEOGRAPHIC SEGMENTATION
Divide the market into different group based on :
• Region – South India , North , Western Region, East
• City – metro cities, cities with population more than 1 million
• World
• Density
• Climate
• States
Ex.- Mcdonalds globally, sell burgers aimed at local markets, for
example, burgers are made from lamb in India rather then beef
because of religious issues. In Mexico more chilli sauce is added
and so on.
As people age their needs and wants change, some
organisations 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.
In the UK we have also seen the introduction of Maxim,
(www.maxim-magazine.co.uk) a male lifestyle
magazine covering male fashion, films, cars, sports and
technology. \
• Income segmentation is another strategy used by many
organisations. Stores like Harrods, Harvey Nicohals are
predominantly aimed at the affluent market. Daewoo aim their
vehicles at price sensitive buyers who require a bundle of benefits
for the price. In today's globally competitive environment brands
are specifically developed and positioned within particular income
segments inorder to maximise turnover.
• Products and services are also aimed at different lifecycle
segments. Holidays are developed for families, the 18-30's
singles, and for those in their 50's.
PSYCHOGRAPHIC SEGMENTATION
1. Life style
2. Social class
3. Personality.
• Lifestyle groups
Yuppie Associations
• Mobile
• High valued house/flat
• Good Salary
• Young branded car.
Third Agers Associations.
• 50's
• Retired early from profession.
• Time to spare
• Adventure Seekers
BEHAVIOURAL SEGMENTATION
Benefit
 Occasion
 Usage

 OCCASIONS - Archies and Hallmark
cards, Monaco at tea time.
 BENEFITS – Shampoo for hair conditioning, cleaning , hair
fall defence dandruff control
 USER STATUS- light – medium – heavy user
 LOYALTY STATUS- hardcore loyal , split loyal- loyal to 2-3
brand ,shifting loyal, switcher