2. 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.
3. 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.
4. 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.
5. 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
6. 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.
8. Criteria for Effective Segmentation
1. Identifiable and Measurable.
2. Accessible
3. Substantial
4. Responsive
9. Performing Market Segmentation
1. 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.
10. 6. Form Segment based on chosen consumer
descriptors.
7. Establish profiles of segments.
8. Translate result into marketing strategy.
11. Demographic Characteristics and
Market Segmentation
Demography is the study of human population
statistics. Like;
Age
Size
Gender
Occupation
Income etc.
12. Assignment no 1
What are the Demographic Characteristics of Pakistani
Market? Explain in detail.
