Your SlideShare is downloading. ×
0
7 market segmentation & market targeting
7 market segmentation & market targeting
7 market segmentation & market targeting
7 market segmentation & market targeting
7 market segmentation & market targeting
7 market segmentation & market targeting
7 market segmentation & market targeting
7 market segmentation & market targeting
7 market segmentation & market targeting
7 market segmentation & market targeting
7 market segmentation & market targeting
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

7 market segmentation & market targeting

487

Published on

market segmentation & market targeting

market segmentation & market targeting

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
487
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
30
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Market Segmentation & Market Targeting
  • 2. 4 step approach to marketing • Segmentation • Market Targeting • Product Differentiation • Product Positioning
  • 3. Why do we need to segment? • Customers are : • too numerous • too dispersed • too varied in terms of their buying habits • have varied requirements • Market is therefore heterogeneous • Segmentation attempts to disaggregate the total market into homogenous units
  • 4. • Characteristics of the groups vary among the various groups but be uniform within individual groups. • Also referred to as Target Marketing • It helps the seller to: • Develop the right offer • Adjust prices • Select distribution channels • Direct the right communication for each
  • 5. SEGMENTATION & TARGET MARKETING • Segmentation symbolises a movement from mass marketing to more focused marketing….segmenting the market and targeting. • Market Segmentation…dividing the heterogeneous market into homogenous groups, whose needs/wants could be satisfied by specific products • Market Targeting…evaluating & deciding from amongst the various alternatives, which segment can be satisfied best by the company.
  • 6. SEGMENTATION VARIABLES: Consumer markets • Geographic…Country, City, District, climate • Demographic…Age, gender, family size, family life cycle, Income, occupation, education level etc. • Psychographic…Social class, life style, personality, achiever, striver, strugglers, ambitious • Behavioral…Regular/occasional; quality/economy; convenience/speed; user/non-user/light user; loyalty status; readiness stage of buying
  • 7. SEGMENTATION VARIABLES: Business markets • Demographics…Industry types, size of company, location of company • Operating variables…technology used, type of user (heavy/medium or light) • Purchase approach…centralized vs decentralized, nature & type of relationship, type of purchase policies (sealed bids vs specific negotiations), service/quality or price seekers • Situational…urgency of need, type of applications, size of order • Personal…value systems of buyer, risk appettite, level of loyalty
  • 8. ESSENTIALS FOR EFFECTIVE SEGMENTATION • Measurable…size, purchasing power & profiles can be measured. • Accessible…Segments can be effectively reached & served. • Substantial…segments are large enough &/or profitable to serve. • Differentiable…segments should have different characteristics • Actionable…capable of developing specific programs for the segment
  • 9. BENEFITS OF SEGMENTATION • Enables marketer to understand the market characteristics better • Company can develop a more focused strategy to satisfy customer needs/wants more efficiently • Leads to better utilization of scarce resources • Enables company to develop customized products • Distinguishes between potential & profitable segments • Assessment of response enables firm to develop suitable marketing mix “Dividing markets to conquer them”
  • 10. MARKET TARGETING • Market segmentation reveals the firms market segment opportunities. The firm now has to decide /evaluate the various segments and decide how many and which ones to target. • Parameters for evaluation – Segment size & growth potential – Segment structural attractiveness – Company objectives & resources • The company may enter only segments in which it can offer superior value and gain advantages over competitors
  • 11. Target Marketing strategies Undifferentiated (mass marketing) Differentiated (segmented) Concentrated (niche) Micromarketing (individual) Targeting broadly Targeting narrowly

×