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Segmentation and itslevels:

Mass marketing is loosing itspopularity.

Micromarketing can be undertakenat four levels: Segment marketing

Niche marketing Local marketing Individual marketing-

Mass customization

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Preferences: Three patterns of preference segments are typically

identified: Homogeneous preferences- max people prefer one

thing only Diffused preferences- no specific choice Clustered preferences- each choice is preferred by

equal no. of people.

Market-Segmentation Procedure:•Survey•Analysis•Profiling

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Segmenting Consumer 

Markets: Geographical segmentation:

Region, Country, City, Density, Climate,

etc. Demographic segmentation:

Age, Gender, Income, Family size, etc.

Psychographic segmentation: Lifestyle, Personality, Values.

Behavioral segmentation

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BehavioralBehavioral

SegmentationSegmentation

VariablesVariables Occasions-mothers

day Benefits User Status

Usage Rates Loyalty Status – Hardcore Loyals, Split loyals, Shifting Loyals, Switchers. Readiness Stage- farmers

Attitude Toward the Product- enthusiastic, positive,indifferent, negative & hostile.

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Segmenting Business Markets

Demographic segmentation Industry, company size,

locationOperating variablesTechnology, customercapabilities

Purchasing approachesStructure, Negotiation, Relationshi

Policies.

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Requirements for 

Effective Segmentation

Measurable Size, purchasing power, and

profile of segment

Accessible

Can be reached and served 

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Substantial

Large and profitable enough to

serve

Requirements for 

Effective Segmentation

Differentiable

ResponddifferentlyActionable

Effective programs can be developed

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Segment size and growth Segment structural

attractiveness

 Level of competition

Substitute products

Power of buyers

Powerful suppliers Company objectives and

resources

Evaluating Market Segments

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ingle-Segment Concentration:

Productategory

Market Segment

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Selective Specialization:

Market Segment

Productategory

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Product Specialization:

Market Segment

Productategory

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Market Specialization:

Market Segment

Productategory

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Full Market Coverage:

Market Segment

Productategory