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MARKET SEGMENTATIONMARKET SEGMENTATION

DEFINITION:- According to Philip Kotler “Market Segmentation is the subdividing of market into homogeneous sub-set of customers, where any subset may conceivably be selected as market target to be reached with distinct Marketing Mix.

According to William Stanton, “Market Segmentation consists of taking the total heterogeneous market for a product and dividing it into several sub-market of segments, each of which tends to be homogeneous in full significant aspects.

Thus, Market Segmentation is a process of grouping two or more customers for a product or services so as to serve their needs in a better way.

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IMPORTANCE OF MARKET SEGMENTATION

1.Allocation of Market budget.

2.Adjustment of the product to the market need.

3. To estimate level of sales in a given market

4. To overcome competition effectively.

5. To develop effective marketing programme.

6. To promote marketing activities.

7. To modify the existing product or to develop new product to satisfy needs of potential buyers.8. To have more precise definition of market

9. To contribute towards achieving company goals.

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IDENTIFYING MARKET SEGMENTS & IDENTIFYING MARKET SEGMENTS & SELECTING TARGET MARKETSSELECTING TARGET MARKETS

IDENTIFYING MARKET SEGMENTS & IDENTIFYING MARKET SEGMENTS & SELECTING TARGET MARKETSSELECTING TARGET MARKETSLEVELS OF MARKET SEGMENTATIONLEVELS OF MARKET SEGMENTATION

1.SEGMENT MARKETING1.SEGMENT MARKETING::

A Market segments consists of a group of customers A Market segments consists of a group of customers who share a similar set of wants.who share a similar set of wants.

2.NICHE MARKETING2.NICHE MARKETING: A niche is more narrowly : A niche is more narrowly defined group seeking a distinctive mix of benefitsdefined group seeking a distinctive mix of benefits

3.LOCAL MARKETING3.LOCAL MARKETING:: Target Marketing is leading to marketing programs Target Marketing is leading to marketing programs tailored to the needs & wants of local customer tailored to the needs & wants of local customer groups.groups.

4.4.INDIVIDUAL CUSTOMER MARKETINGINDIVIDUAL CUSTOMER MARKETING:: The ultimate level of segmentation leads to The ultimate level of segmentation leads to ‘Segment of One’‘Segment of One’

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PATTERNSPATTERNS OF MARKETING SEGMENTATIONOF MARKETING SEGMENTATIONPATTERNSPATTERNS OF MARKETING SEGMENTATIONOF MARKETING SEGMENTATION

1.HOMOGENEOUS PREFERENCES1.HOMOGENEOUS PREFERENCES: All the consumer have : All the consumer have roughly the same preferences.roughly the same preferences.

2. 2. DIFFERED PREFERENCESDIFFERED PREFERENCES: Consumers Preferences may : Consumers Preferences may be scattered through out the space, indicating that be scattered through out the space, indicating that

consumers vary greatly in their preferencesconsumers vary greatly in their preferences

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3. CLUSTERED PREFERENCES:

The marketing might reveal distinct preference clusters, called natural marketing segment.

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BASES FOR SEGMENTINGBASES FOR SEGMENTING CONSUMER MARKET CONSUMER MARKET

BASES FOR SEGMENTINGBASES FOR SEGMENTING CONSUMER MARKET CONSUMER MARKET

MARKET SEGMENTATION

CONSUMER CHARACTERISTICS

BEHAVIOURAL ORCONSUMER RESP.

GEOGRAPHIC

DEMOGRAPHIC

SOCIO-ECONOMIC

PSYCHOGRAPHIC

BENEFITS

USAGE

LOYALTY

OCCASIONS

STATUS OF USERS

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BASICS OF EFFECTIVE BASICS OF EFFECTIVE SEGMENTATIONSEGMENTATION

BASICS OF EFFECTIVE BASICS OF EFFECTIVE SEGMENTATIONSEGMENTATION

MEASURABLEMEASURABLE

SUBSTANTIALSUBSTANTIAL

ACCESSIBLEACCESSIBLE

DIFFERENTIABLEDIFFERENTIABLE