Market Segmentation Also known as mass marketing or undifferentiated marketing. “Producing a single product and offering it to all consumers with a single marketing program”. Opposite of segmentation.
Characteristics Offering standard product. Little or no change from competition. Heavy use of mass promotion. Distinguishing the product as being superior. Products are as per the choice of producers not consumers.
Market Segmentation “Dividing the market into different segments.” Today is the “Age of Diversity.” All consumers are different. So are their demands. Selecting the right segment is the key to success.
Characteristics Viewing market as being made up of small segments. Homogeneous within the segment. Heterogeneous with other segments. Different products are produced for different people. E.g. General Motors, P&G etc
Benefits of Market Segmentation Know what consumers WANT. Fewer and similar consumers. Detailed knowledge of consumers characteristics. Consumer database is also built and used. Results in more profits. Niche Marketing is also an example.
Criteria for Effective Segmentation1. Identifiable and Measurable.2. Accessible3. Substantial4. Responsive
Performing Market Segmentation1. Define the Problem.2. Select a segment basis. (In advance or Natural Groupings)3. Choose a set of Descriptors.4. Select a Sample of Consumers.5. Collect data on segment descriptors from sample of consumers.
6. Form Segment based on chosen consumer descriptors.7. Establish profiles of segments.8. Translate result into marketing strategy.
Demographic Characteristics andMarket Segmentation Demography is the study of human population statistics. Like; Age Size Gender Occupation Income etc.
Assignment no 1What are the Demographic Characteristics of Pakistani Market? Explain in detail.