Authority to buy</li></li></ul><li>MARKETING IS ALL ABOUT IDENTIFYING <br />THE REAL FACE OF YOUR SEGMENTS<br />
Various Classes of Consumer and Industrial Goods and Services<br />Industrial goods are products used in the production of other products<br />
Types of Markets<br /><ul><li>Consumer Goods and Services
Industrial Goods and Services</li></li></ul><li>Purchase Decision Makers<br />Ultra Conservative - don't rock the boat, whatever <br />they purchase must be consistent with their current <br />way of doing things. <br />Conservatives - are willing to change, but only in <br />small increments and only in a very cost effective manner.<br />Liberals - regularly looking for new solutions, willing <br />to make change (even major change) if the benefit can be <br />shown. <br />Technical Liberals - enamored with the benefits <br />provided by high tech solutions and any purchase decision <br />will be biased by the technical content of the offering. <br />Self Helpers - consistently defines/designs solutions to <br />their problems, likes to acquire tools that help in the <br />innovation process. <br />
Market segmentation is a marketing concept which divides the complete market set up into smaller subsets comprising of consumers with a similar taste, demand and preference.
A market segment is a small unit within a large market comprising of like minded individuals.
One market segment is totally distinct from the other segment.
A market segment comprises of individuals who think on the same lines and have similar interests.
The individuals from the same segment respond in a similar way to the fluctuations in the market. </li></li></ul><li>Bases for Market Segmentation (CONSUMER)<br />
Bases for Market Segmentation (Industrial) <br />
Foundations of Market Segmentation <br /> Market segmentation is about <br />describing and dividing people. <br /> It seeks to identify the people who may <br />have want or need for your product, then <br />divides them into groups so that may be <br />served more efficiently and profitably. <br />
Foundations of Market Segmentation <br />The purpose of segmentation is the <br />concentration of marketing energy and <br />force on the subdivision (or the market <br />segment) to gain a competitive advantage <br />within the segment.<br />At its most basic level, the term “market <br />segmentation” refers to subdividing a <br />market along some commonality,<br />similarity, or kinship.<br />
Market Segmentation<br />Geographic location - based upon where people <br />live (historically a popular way of dividing <br />markets)<br />Demographic - based upon age, gender and <br />income level (very often used)<br />Psychographic / lifestyles - based on people’s <br />opinions, interests, lifestyleseg, people who like hard rock music probably prefer beer to wine<br />Benefits - based on the different expectation that <br />customers have about what a product/service <br />can do for them<br />
Geographic Segmentation<br />Geographic segmentation refers to the classification of market into various geographical areas. A marketer can’t have similar strategies for individuals living at different places.<br /><ul><li>Nestle promotes Nescafe all through the year in cold states of the country as compared to places which have well defined summer and winter season.
McDonald’s in India does not sell beef products as it is strictly against the religious beliefs of the countrymen, whereas McDonald’s in US freely sells and promotes beef products.</li></li></ul><li>Demographic Segmentation<br />Demographic Segmentation isthe most common approachto Market Segmentation<br />Variables are:<br /><ul><li> age
household (family - style) size</li></li></ul><li>Psychographic Segmentation<br />“The use of psychological attributes, lifestyles and attitudes in determining the behavioral profiles of different customers”<br />Psychographic profiles on a target market segment are obtained by doing a lot of questionnaires and surveys to ask people if they agree/disagree with certain statements made about particular activities, interests or opinions<br /> AIO - activities, interests, and opinions<br />
Benefit Segmentation<br />“It is based on the Attributes (Characteristics)of products, as seen by the customers”example, people buy something because it causes a benefitie. Diet coke - less sugar, lose weightie. Extra white toothpaste, whiter teeth, better smile<br />
Industrial Goods<br />Industrial goods are things used in the production of other products<br />Some products are both industrial and<br />consumer goods - eg. electricity, water, <br />desktop PCsTwo categories of industrial goods<br /><ul><li>Production Goods
Support Goods</li></li></ul><li>Segmentation for Industrial Markets<br /><ul><li>Geographic Segmentation</li></ul>useful for the automotive industry<br /><ul><li>Product Segmentation</li></ul>ie. Special parts and components<br /><ul><li>Segmentation by End-Use Application</li></ul>ie. Paint mfg. Paint for waterproof applications, paint for rust prevention, paint which sticks to glass<br />