What are the different levels of

Market segmentation?

BySanchit Aggarwal

Birla Institute of Technology and Science

Pilani-K.K Birla Goa Campus

The process of dividing and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants and demand characteristics

What is marketing segmentation?

Why segmentation?

•To develop marketing activities

•Increase marketing effectiveness

•Generate greater customer satisfaction

•To identify strategic opportunities and niches

•Allocation of marketing budgets

•Adjustment of product to the market need

Country State/Province

City

Rural and

urban areas

Geographic

Beer is segmented across countries and regions(through regional brewers and brands)

And so is cheese !!

Age and life stage

Gender

Income and education

Socio-econom

ic classific

ation

Demographic

AGE

Targeted at youth

Targeted at studentsTargeted at kids

Targeted at elders

People have different concerns at different LIFE STAGES

EDUCATIONRETIREMENT PLANNING

HEALTH INSURANCE

Gender

Men and women have different needs

Income

Companies like Rolex,omega, and TAG Heuer are increasingly advertising in India

Low unit price through appropriate packaging has made targeting low income audience possible

One of the ways is “Sachet marketing”

Socio-economic classification

• Developed under the initiative of the Marketing Research Society of India(MRSI) to classify the urban and rural household

• Urban system-the education level and the occupation of the head of the household as variables

• Rural system-uses education level of the head and the type of dwelling that the household lives in as variables

Consumption patterns across different classes

PATTERN

A,B

C,R1

D,E1,R2

E2,R3

A1

Psychographic • VALS system of

classification provides a dynamic framework of values and lifestyles; which helps to explain why people act as they do as social groups and as consumers.

• Dimensions of VALS system are consumer motivation and resources

Experiencers

Young, enthusiastic impulsive people who seek variety and excitement

They spend a comparatively high proportion of their income on fashion, entertainment, and socializing

Thinkers

• Mature, satisfied and reflective people motivated by ideals.

• They seek durability, functionality and value in a product.

Achievers

They’re successful, goal oriented people who focus on career and family. They favour premium products that demonstrate success to their peers.

Believers

They’re conservative, conventional, and traditional people with concrete beliefs.

They prefer familiar, Indian brands and are loyal to established brands.

Strivers

They are trendy fun loving people who are resource constrained.

They prefer stylish products that emulate the purchases of those with great material wealth.

Makers

Practical, down to earth, self sufficient people

Seek Indian made products with a practical or functional purpose

Survivors

Elderly, passive people concerned about change and LOYAL to their favourite brands.

Behavioural segmentation

OccasionUser status and

usage rateNeeds and benefits

Readiness stage Loyalty status Attitude

Occasion

Occasions marked at time of day

User status

The key is to attract potential users and even non-users.

Airlines keep expanding their network to attract new consumers

Usage rate

Customers can be classified and targeted as Heavy , Medium and Light users

AttitudePolitical campaign are targeted according to the attitudes of people towards their political party.

Benefits sought

A drink can offer different benefits

Brand loyaltyLoyalty cards help generate brand loyalty