Market Segmentation

Paramjit Sharma

Market Segmentation

Paramjit Sharma

Market Segmentation

Paramjit Sharma

Market

Market isPeople or Organisation withNeeds or Wants withThe Ability andWillingness To Buy

Paramjit Sharma

Market Segment

Within a Market a

•Segment is a Sub-Group of•People Or Organizations•Sharing one or More Characteristics•That Cause them to have Similar Needs

Paramjit Sharma

Market Segmentation

The Process of Dividing a market into

•Relatively Similar•And Identifiable •Segments or Groups•Called Market Segmentation

Paramjit Sharma

LEVELS OF MARKET SEGMENTATION

Segment Marketing

NicheMarketing Local Marketing

Individual CustomerMarketing

Paramjit Sharma

LEVEL OF MARKET SEGMENTATION

Segment Marketing

Identifiable Group with in a Market With Similar

•Wants•Purchasing Power•Geographical Location•Buying Attitudes

ALTO

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NicheMarketing

•Distinct Needs•Pay Premium•Specialization•Less Competition•Size, Profit & Growth• Potential

Narrowly defined Group (Small)Whose needs are Not well served

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LEVEL OF MARKET SEGMENTATION

Individual CustomerMarketing

Marketing According To Individual’s Order

•Customized Marketing•Cars /Tailors•Designer’s Clothes•Architects•Software

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LEVEL OF MARKET SEGMENTATION

Local Marketing

Marketing Programmes ServingNeeds & Wants Of Local Customers

•Local•Region•State

PuneSareesChitle

KashmiriSilk

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Criteria's for Effective Segmentation

4 Purpose Of Segmentation

1 Identifying Groups Of Customers with similar Needs 2 Analyze Their Characteristics & Buying Behaviors

3 Providing Products Matching with Needs

4 Satisfying Needs While Meeting Org. Objectives

Paramjit Sharma

Segmenting Consumer Markets

GeographicDemographicPsycho graphicBehavioralMulti-attributable

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Geographic

NationsStatesRegionsCitiesWorldM-SizeDensityClimate

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Demographic

AgeFamily SizeFamily life cycleGender incomeOccupationEducationReligionGenerationNationalitySocial Class

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Psychographic

Life StylesPersonalityValues

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Behavioral

OccasionsBenefitsUser StatusUsage RateLoyalty StatusReadiness StageAttitude Toward Offerings

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Multi-attributes-Geoclustering

PRIZAM(Potential Rating Index by Zip Markets)

•Education & Affluence•Family Life Cycle•Urbanization•Race & Ethnicity•Mobility

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Market Targeting

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Single Segment Concentration

•Volkswagen—small cars

•Porsche----sports car

Can be Risky at Times

M1 M2 M3

P1

P2

P3

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SELECTIVESPECIALIZATION

•No of Segments•Type Of Cars

Risk is divided

M1 M2 M3

P1

P2

P3

Paramjit Sharma

PRODUCTSPECIALIZATION

•Several Segments•Microscope-colleges, labs

M1 M2 M3

P1

P2

P3

Paramjit Sharma

Market Segments-Evaluation & Selection

MARKETSPECIALIZATION

•Particular Customer Group•Different Products to Univ

Books, labs, Computers, sports goods.

M1 M2 M3

P1

P2

P3

Paramjit Sharma

FULL MARKETCOVERAGE

•General Motors-Cars for every purse,purpose and personality

M1 M2 M3

P1

P2

P3

Paramjit Sharma

Market Segments-invasion Plan

Customer Groups Airlines Railroads Truckers

LargeComp

MidsizeComp

Perscomp

Pro

du

ct V

arie

ties

A B C

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Market Segments-Inter-segment Coop

Market

A B

C D

Paramjit Sharma

Market Segments-Inter-segment Coop

H Q

A B

C D

Market