Market Segmentation

Market Segmentation

• Market segmentation can be defined as a process of identifying a group of homogenous customers with similar needs, characteristics and behavior.

Levels of market segmentation

• Segment marketing

• Niche Marketing

• Local Marketing

• Individual Marketing

Patterns of marketing Segmentation

• Homogenous Preference

• Diffused Preference

• Clustered preference

Procedure

• Survey stage

• Analysis stage

• Profiling stage

Basis for segmenting consumers

• Geographic

Region

Density

Climate

EX – Amul which first marketed its product in Gujarat

Demographic

• Age, Family size, Family life cycle, Gender, income,

• P&G ARIEL and Tide’ Surf and surf excel• Occupation , education, religion• Race, generation, nationality and social class

Ex- cosmetic manufacturers

Gender DEO for men and women by same company

Behavioral Segment• OccasionAsmi Diamonds- Buy diamond for diwali, Birthday• BenefitsClose-up fresh breath, Pepsodent – 24 hr protection• Usage rate Big Bazaar Segments consumer on volume of monthly purchase

to give discounts• Loyalty statusAIR INDIA- frequent flier planRetail outlets loyalty programs• Readiness Stage• Attitude towards the product

Psychographics Segmentation

• Lifestyle

Ashirvad ready to eat package foods

• Personality

• Values

Raymonds the complete man

Multi-attribute Segmentation

• Age, Family size, Family life cycle, Gender, income

• Occasion

• Benefits

• User status

• Region

Target Marketing

A market segment must be

Measurable

Substantial

Accessible

Differentiable

Actionable

Selecting the market segment

• Single segmentation concentrationEx woodland shoes• Selective specializationAnchor tooth paste• Product specializationM&M and Bajaj• Market specializationPearsons publication of management books• Full Market coverage PEPSI, Coke, Bata

Other issues

• Segment Interrelationship

• Segment by segment invasion plans

Megamarketing

• Intersegment cooperation

Positioning

• Positioning is the act of designing the companies offering and image to occupy a distinctive place in the mind of the target market

Building value proposition

• Define the customer value

• Building the customer value hierarchy

• Deciding the customer value package

Product differentiation

• Differentiation is designing a set of meaningful differences to distinguish the company’s offering from competitors offering

Developing and communicating a media strategy

• Important

• Distinctive

• Superior

• Preemptive

• Affordable

• Profitable

Four positioning errors

• Under positioning

• Over positioning

• Confused positioning

• Doubtful positioning

Positioning strategy

• Attribute positioning

• Benefit positioning

Close-up fresh breath,

Pepsodent – 24 hr protection

• Use or application positioning

• User positioning

• Competitor positioning

• Product category positioning

• Quality or price positioning

Positioning strategy

• Life style positioning

Ashirvad ready to eat package foods

• Positioning by personality of celebrity

Provogue and Fardeen Khan

Benefit positing

• Headline: Charge up your workplaceSubhead: Tencel A 100. 440 V CollectionBodycopy: What's new? Allen Solly's Tencel A100 fabric absorbs colour like no other. Making it the brightest shirt you'll ever wear. In 35 different patterns!

Product category positioning

•  Subhead: To Indian housewives, our salt always come first.Bodycopy: Tata salt was rated the most trusted brand by housewives across India, in a recent Brand Equity-ORG Marg Survey. Thank you for the faith.Baseline: Maine desh ka namak khaya hai!