WEL COME TO THE PRESENTATION

ON
MARKET SEGMENTTION
MARKET SEGMENTTION
Functions of Marketing: Market
Segmentation and Targeting –
Positioning functional strategies –
Identification of Market segments -
marketing strategies
 WHAT IS MARKET?
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
What is market segmentation?
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.
What is market segmentation?
What is 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 For the youth /the
Arrives in three broad outdoor lovers:
Segments
• The Rich
• The Middle
• The Lower
For the Gold lovers:
For Designer
For Children Segment
Segment
 Why segment the market?
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
 BASES FOR SEGMENTATION
• 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
 Bases for segmentation
Geographical 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 for segmentation
Geographical Segmentation
 Bases for segmentation
Demoraphical Segmentation
Segmentation of consumer based on variables
such as race, religion, community, language,
age, stage in family cycle, gender, marital status,
family 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
 Bases for segmentation
Demoraphical Segmentation
 Bases for segmentation
Demographical Segmentation
 Bases for segmentation
Socia Culture Segmentation
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.
 Bases for segmentation
Socio Culture Segmentation
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.
 Bases for segmentation
Socio-Culture Segmentation
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.
 Bases for segmentation
Psychographic Segmentation
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, attitude, self-concept and value
system, form the base.
A person’s pattern of interests, opinions, and
 Bases for segmentation
Psychographic Segmentation
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..
 Bases for segmentation
Psychographic Segmentation
 Bases for segmentation
Behavioural 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
 Bases for segmentation
Behavioural Segmentation
Various advantagesof
Advantages of Segmentation
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
Measurability (IntermsSegmentation
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
 Market Targeting
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
 Market Targeting
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
 Market Targeting
Full market Product
Specialisation:
coverage: Market Selective The firm specialise
If the firm tries to Specialisation: in serving many
Specialisation:
The firm can needs of a specific
serve all specialise in
The company
segements with selects many group of
serving many attractive customers. Ex Sell
different needs of a segments. This is PCs to educational
marketing mixes, specific group of also called institutetions,
customers. Ex: A multisegment
it is caled full software company government
coverage strategy.
market coverage can concentrate offices and
This strategy will
strategy. This in developing enable the firm to individual
suitable software deversity its risk. customers
strategy is
required by banks
normally adopted
by very big
companies
adopted by very
big companies.
Marketers attemp
to cover the
market through
undifferentiated
marketing or
differentiated
marketing
strategy
 Marketing Strategies
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.
 Marketing Strategies
Undifferentiated Marketing Mix Entire Market
Strategy

Concentrated Marketing Mix Target Market

Strategy

Differentiated Marketing Mix Segment 1

Strategy
Marketing Mix Segment 2

Marketing Mix Segment 3

 Target Marketing Strategies
 Undifferentiated marketing

 Differentiated marketing

 Concentrated/Focused marketing

 Customized marketing (Levis, Mattel,

De beers)
 Target Marketing Strategies
Undifferentiated Marketing

Marketing mix Whole market

Differentiated Marketing

Marketing mix 1 Segment 1

Marketing mix 2 Segment 2
Marketing mix 3 Segment 3
 Target Marketing Strategies
Concentrated/ Focused Marketing

Segment 1
Marketing mix
Segment 2
Segment 3
Customized Marketing

Marketing mix 1 Customer 1

Marketing mix 2 Customer 2
Marketing mix 3 Customer 3