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IN WHAT WAYS CAN A
COMPANY DIVIDE A
MARKET INTO SEGMENTS?
BASES FOR SEGMENTING
CONSUMER MARKETS
Shivam Verma || IIT Delhi
•Geographic
Segmentation
•Demographic
Segmentation
•Psychographic
Segmentation
•Behavioural
•Segmentation
GEOGRAPHIC SEGMENTATION
Divides into geographical units
such as nations, states, regions,
countries, cities or
neighbourhood
There are differences in
consumer preferences, purchase
patterns, and behaviours across
regions
Hence different market efforts
Shivam Verma || IIT Delhi
DEMOGRAPHIC SEGMENTATION
Age and life
cycle stage
Lifestage Gender
Income
Socio-
Economic
Classification
Generation
Shivam Verma || IIT Delhi
AGE AND LIFE CYCLE STAGE
Titan’s Zoop targets 6-14 year-old-children by using
design elements that reflect the preferences of the target
segment
Shivam Verma || IIT Delhi
LIFE STAGE
iBall Aasaan, targeted at citizens, has features that are
compatible with the needs of the segment
Shivam Verma || IIT Delhi
GENDER
Today, many companies are targeting
women, and not just men, for their two-
wheeler brands. Mahindra Rodeo, for
example, uses Kareena Kapoor as its
brand ambassador, suggesting the
brand’s qualities of power and style
Shivam Verma || IIT Delhi
INCOME
With the increase in income, luxury
wristwatch brands such as TAG Heuer are
increasing their visibility and presence in
the Indian market
Shivam Verma || IIT Delhi
SOCIO-ECONOMIC
CLASSIFICATION
Rural areas are emerging as important
markets for many products and services.
Shivam Verma || IIT Delhi
PSYCHOGRAPHIC SEGMENTATION
Psychographics is the science of using
psychology and demographics to better
understand consumers
Buyers are divided into different groups on the
basis of psychological/personality traits, lifestyle,
or values
Popular and commercially available classification
system is Strategic Business Insight’s (SBI) VALS
framework.
Shivam Verma || IIT Delhi
BEHAVIOURAL SEGMENTATION
Shivam Verma || IIT Delhi
BEHAVIOURAL SEGMENTATION
Shivam Verma || IIT Delhi
Marketers divide buyers into groups on the
basis of their knowledge of, attitude toward,
use of, or response to a product.
•Occassions
•User Status
•Usage Rate
•Buyer Readiness Stage
•Loyalty Status
•Attitude
•Multiple Bases
Needs and Benefits
Decision Roles
User and Usage- Real
user and Usage-Related
Variables
BUYER-READINESS STAGE
LifeCell uses celebrity endorsements to
introduce umbilical cord stem cell
banking in India.
Shivam Verma || IIT Delhi
BUYER-READINESS STAGE
Example of Marketing Funnel
Shivam Verma || IIT Delhi
LOYALTY STATUS
Shivam Verma || IIT Delhi
Hard-core loyals- Consumers who buy only one brand all the time
Split loyals- Consumers who are loyal to two or three brands
Shifting loyals- Consumers who shift loyalty from one brand to
another
Switchers- Consumers who show no loyalty to any brand
THANK YOU

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Q2

  • 1. IN WHAT WAYS CAN A COMPANY DIVIDE A MARKET INTO SEGMENTS?
  • 2. BASES FOR SEGMENTING CONSUMER MARKETS Shivam Verma || IIT Delhi •Geographic Segmentation •Demographic Segmentation •Psychographic Segmentation •Behavioural •Segmentation
  • 3. GEOGRAPHIC SEGMENTATION Divides into geographical units such as nations, states, regions, countries, cities or neighbourhood There are differences in consumer preferences, purchase patterns, and behaviours across regions Hence different market efforts Shivam Verma || IIT Delhi
  • 4. DEMOGRAPHIC SEGMENTATION Age and life cycle stage Lifestage Gender Income Socio- Economic Classification Generation Shivam Verma || IIT Delhi
  • 5. AGE AND LIFE CYCLE STAGE Titan’s Zoop targets 6-14 year-old-children by using design elements that reflect the preferences of the target segment Shivam Verma || IIT Delhi
  • 6. LIFE STAGE iBall Aasaan, targeted at citizens, has features that are compatible with the needs of the segment Shivam Verma || IIT Delhi
  • 7. GENDER Today, many companies are targeting women, and not just men, for their two- wheeler brands. Mahindra Rodeo, for example, uses Kareena Kapoor as its brand ambassador, suggesting the brand’s qualities of power and style Shivam Verma || IIT Delhi
  • 8. INCOME With the increase in income, luxury wristwatch brands such as TAG Heuer are increasing their visibility and presence in the Indian market Shivam Verma || IIT Delhi
  • 9. SOCIO-ECONOMIC CLASSIFICATION Rural areas are emerging as important markets for many products and services. Shivam Verma || IIT Delhi
  • 10. PSYCHOGRAPHIC SEGMENTATION Psychographics is the science of using psychology and demographics to better understand consumers Buyers are divided into different groups on the basis of psychological/personality traits, lifestyle, or values Popular and commercially available classification system is Strategic Business Insight’s (SBI) VALS framework. Shivam Verma || IIT Delhi
  • 12. BEHAVIOURAL SEGMENTATION Shivam Verma || IIT Delhi Marketers divide buyers into groups on the basis of their knowledge of, attitude toward, use of, or response to a product. •Occassions •User Status •Usage Rate •Buyer Readiness Stage •Loyalty Status •Attitude •Multiple Bases Needs and Benefits Decision Roles User and Usage- Real user and Usage-Related Variables
  • 13. BUYER-READINESS STAGE LifeCell uses celebrity endorsements to introduce umbilical cord stem cell banking in India. Shivam Verma || IIT Delhi
  • 14. BUYER-READINESS STAGE Example of Marketing Funnel Shivam Verma || IIT Delhi
  • 15. LOYALTY STATUS Shivam Verma || IIT Delhi Hard-core loyals- Consumers who buy only one brand all the time Split loyals- Consumers who are loyal to two or three brands Shifting loyals- Consumers who shift loyalty from one brand to another Switchers- Consumers who show no loyalty to any brand