What are the different levels of Market segmentation? By Sanchit Aggarwal Birla Institute of Technology and Science Pilani-K.K Birla Goa Campus
What are the different levels of segmentation?
Jul 28, 2015
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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
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