IDENTIFYING MARKET SEGMENTS AND TARGET MARKETS

Chapter 8

Mass

marketing

Micro

MarketingLevels of Micro

Marketing

Segment MarketingNichesLocal MarketingIndividuals

Segment Marketing

Meaning Targeting a Group of Customer s who

share a similar set of needs and wantsReflection

Marketing MixProductPricePromotionDistribution

Segment Marketing

Flexible Marketing

Flexible Marketing

Naked solution

Discretionary options

The product and service elements that all segment members value

Discretionary options that some segment

members value. Each option might carry an

additional charge.

Segment Marketing

Preference segments

Niche Marketing

A niche is a more narrowly defined customer group seeking a distinctive mix of benefits.

Segment ito subsegments

Local Marketing

Target marketing is leading t marketing programs tailored to the needs and wants of local customer groups Grassroots marketing

Marketing activities concentrate on getting as close and personally relevant to individual customers as possible. Experiential marketing

Promotes product or service not just by communicating its features and benefits, But by also connecting it with unique and interesting experiences.

Customerization

Combines operationally drivenmass customization with customizedmarketing in a way that empowers

consumers to design theproduct and service offering

of their choice.

Segmenting Consumer Markets Geographic Segmentation Demographic Segmentation Psychographic Segmentation Behavioral Segmentation Conversion Model

Segmenting Consumer Markets Geographic Segmentation

Nation States Regions Countries Cites Rural Semi-urban Urban

Segmenting Consumer Markets Demographic Segmentation

Age and Life-Cycle Stage Pears – Pink Color --- For Children Magic pot – Book Sun Music – Mtv– V channel

Life StageChildYouthYoungMarried YoungMarried young -ChildrenMiddle ageOld age

Segmenting Consumer Markets Demographic Segmentation

Gender Income

Segmenting Consumer Markets Demographic Segmentation

Generation GI Generation

1901-1924 Silent Generation

1925-1945 Baby Boomers

1946-1964

Generation X 1965-1977

Generation Y 1978-1994

Millennial 1995-2002

Segmenting Consumer Markets Demographic Segmentation

Social Class

7. a) What is the highest educational qualification of the chief wage earner of your household

b) And what is the current occupation of the chief wage earner of your household

Illiterate Literate but no formal schooling

School up to 4 years

School 5-9 years

SSLC/Hsc Some college but not graduate

UG/PG-general

UG/PG -professional

Unskilled worker E2 E2 E2 E1 D D D D

Skilled worker E2 E1 E1 D C C B2 B2

Petty trader E2 D D D C C B2 B2

Shop owner D D D C B2 B1 A2 A2

Business men(no employee) D C C B2 B1 A2 A2 A1

Business men (1-9 employee) C B2 B2 B2 B1 A2 A1 A1

Businessmen(10+ employee) B1 B1 B1 A2 A2 A1 A1 A1

Self employed D D D D B2 B1 A2 A1

Clerical/salesman D D D D C B2 B1 B1

Supervisory level D D D C C B2 B1 A2

Officers/executives junior C C C C B2 B1 A2 A2

Officers/executives middle/senior B1 B1 B1 B1 B1 A2 A1 A1

Psychographic Segmentation

Behavioral Segmentation

Decision Roles Initiator Influencer Decider Buyer User

Behavioral Variables

Occasions Benefits User Status Usage Rate Buyer-Readiness Loyalty Status Attitude

Conversion Model

Bases for Segmenting business Markets

DemographicDemographic

Operating VariableOperating Variable

Purchasing ApproachesPurchasing Approaches

Situational FactorsSituational Factors

PersonalCharacteristicsPersonalCharacteristics

Sequential Segmentation

Stage of decision

First-time prospects

Novices Sophisticates

Orientation Price-oriented Solution-

oriented Strategic-value

Steps in Segmentation Process

Needs-based segmentation

Segment identification

Segment attractiveness

Segment profitability

Segment positioning

Segment acid test

Marketing-MixStrategy

Segmenting Organizational Markets

Variables for Segmenting Organizational Markets

Macro-Segmentation

1. Organizational Size

2. Industry

Micro-Segmentation1. Choice criteria2. Decision making

Process3. Buy Class4. Purchasing

Organization5. Organization

Innovativeness

Segmenting Organizational Markets(Reference: Marketing Management 2nd Edition by Arunkumar and N. Meenakshi;

Vikas Polishing)

Market Targeting

Effective Segmentation Criteria

Measurable

Substantial

Accessible

Differentiable

Actionable

Evaluating and selecting The Market segments

Market Factors

• Segment Size• Segment Growth

Rate• Price Sensitivity• Bargaining Power

of Customers• Bargaining Power

of Suppliers• Barriers to market

segment entry• Barriers to market

segment exit

Competitive Factors

• Nature of Competition

• New entrants• Competitive

differentiation

Political, Social and Environmental

Factors• Political Issues• Social Trends• Environmental

Issues

Selecting Factors to Evaluate Market Segments(Reference: Marketing Management 2nd Edition by Arunkumar and N. Meenakshi;

Vikas Polishing)

Evaluating and selecting The Market segments- Market Targeting

Evaluating and selecting The Market segments

Evaluating and selecting The Market segments

About Anant Health

Anant Health is Healthcare IT Company based at Ahmedabad working for clients in USA for 10+ years. The organisation has deep expertise in development and implementation of Healthcare IT systems.

Our Indian operations started with commencement of development of web based software for Indian Healthcare. After two years of development efforts, today we have following software modules ready fully tested and ready for all India launch.

• Anant Health Clinics

• Anant Health Doctors

• Anant Health Pathology

• Anant Health Radiology

• Anant Health Pharmacy

• Anant Health Records

• Anant Health Insurance

Note that all modules are integrated with each other and they all are part of comprehensive Electronic Health Record(EHR) System developed by us. Though each module is integrated with one another, it also works in a standalone environment. Over and above this, we have following modules under development, which would be ready for launch in 4 months from now.• Anant Health Hospitals• Anant Health Pharmacy +The software we offer is first of its kind and is likely to revolutionize medical practice in India. Soft promotion of the software is on and we have started getting very encouraging response from the doctors.

We had Pre-launch event for the software during January 2009, at Hotel Pride, Ahmedabad, which was attended by 30+Doctors from different specialization of medicine. The objective of this meet was to have inputs from Doctors before launch of the software. With very active participation and loud endorsement to the work done, the Pre-launch event was ahuge success. After making enhancements based on inputs from the doctors, we had launch of two modules, (1) Anant Health Pathology and (2) Anant Health Insurance during October 2009 at Ahmedabad Management Association, Ahmedabad.

Anant Health Pathology is a software module which is also integrated with all other modules of Anant Health. This module provides for management of all activities related with handling of the laboratory and also connects the laboratory with all of the branches and collection centres. Over and above this seamless integration is provided withal of associated laboratories too. Integration with Electronic Health Record System ensures that Referring Doctors can see Test Reports of all of their Patients online with their own Anant Health Account. Patients too can view their Health Record.

Anant Health Insurance is a module for Insurance Professionals using which they can ensure timely reminders about Life Insurance, Mediclaim, Property Insurance and Vehicle Insurance.

During Jan 2010, Ahmedabad played a host for National Conference and Exhibition for Radiologists. IRIA 2010 was organised at Karnavati Club, Ahmedabad. Anant Health took the opportunity and launched Anant Health Radiology, a software module for Radiologists during this event by taking part in exhibition. Anant Health Radiology provides for Tele Radiology, Total Administration of the Centre and Electronic Health Record(EHR) System by which Referring Doctors and Patients can view Health Records. The software was very well received by all the visitors to the exhibition.

Target MarketCliniciansCorporate HospitalsClinical LabsRetail Pharmacy Insurance

GeographicThough this product has no set geographic target

area,

initially it can serve to metro and urban market.

Demographic

Though this Product is for all kind of clinicians, Its first target is, To focus specialized physicians (Like Ortho, Cardiologist, etc), (Ambivalent)Research scholars, (Available)Recent PGs (Ambivalent)

Market Selection Game Console Category

Tot 51 55 28 15 7

Age Teen(13 - 19)

Youth(20 - 25)

Young(26 - 35)

Yielder(36 – 50)

Senior(above 50)

Gender Male - 29Female - 22

Male - 29Female -26

Male - 13Female - 15

Male - 11Female - 4

Male - 7

S.NO Demographic variables Chi-Square Value DF P = Interpretation

1 Gender 0.252 1 0.616 Not significant

2 AGE 41.809 5 .000 Significant

3 Marital status 17.073 1 .000 significant

4 Educational States 4.812 3 0.186 Not significant

5 Income 8.384 4 0.78 Not significant

6 SEC 1.919 5 .860 Not significant

7 Occupation status 8.434 4 .077 Not significant

Column Profiles

I'll Play Vedio Games

Age

Below 12

a

13-19

20-25

26-30

36-50

Above 50

MassYes

.000 1.000 .927 .731 .733 .250 .864

No

.000 .000 .073 .269 .267 .750 .136

Active Margin .000 1.000 1.000 1.000 1.000 1.000

a. Supplementary column

Row Profiles

I'll Play Vedio Games

Age

Below 12

a

13-19

20-25

26-30

36-50

Above 50

Active Margin

Yes

.000 .376 .383 .143 .083 .015 1.000

No

.000 .000 .190 .333 .190 .286 1.000

Mass .000 .325 .357 .169 .097 .052

a. Supplementary column

Who are they?