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What is Market Segmentation?
Market segmentation is a
marketing strategy that involves
dividing a broad target market into
subsets of consumers who have
common needs and applications
for the relevant goods and services.
Segmentation Strategies
A market segment should be…
measurable
accessible by communication and
distribution channels
different in its response to a
marketing mix
durable (not changing too quickly)
substantial enough to be profitable
Why use segmentation?
For companies to better understand the
needs of a specific customer base
Identify other applications for their
products that may not have been
obvious before
To improve the overall efficiency of the
company's marketing efforts
egmentation
argeting
ositioning
T
P
S
Consumer Market
Segmentation
Segmentation Variables
Demographic Segmentation
Geographic Segmentation
Pyschographics Segmentation
Behavioural segmentation
Consumer Market Segmentation
Demographic Segmentation
 originates from the
word ‘demography’
which means a ‘study
of population’
 can be divided into
age, gender, income,
and family lifecycle
amongst other
variables
Consumer Market Segmentation
Geographic Segmentation
 Geographical segmentation divides markets
into different geographical areas. Marketers
use geographic segmentation because
consumers in different areas may display
certain characteristics and behaviours in
that particular region. An area can be
divided by the town, the region or the
country.
Consumer Market Segmentation
Psychographics Segmentation
can be broken down into lifestyle,
social class, and personality
characteristics.
Lifestyles segmentation
Personality Characteristics
Social Class Segmentation
Consumer Market Segmentation
Behavioural Segmentation
 Refers to why people purchase a product or service
Consumer Market Segmentation
Business Market
Segmentation
based on regional variables such as customer concentration,
regional industrial growth rate, and international
macroeconomic factors.
Business Market Segmentation
Geographic segmentation
based on factors such as the size of the organization,
its industry, position in the value chain, etc.
Customer Type
Buyer Behavior
based on factors such as loyalty to suppliers, usage
patterns, and order size.
Targeting
various marketing strategies and
promotional schemes according to the tastes
of the individuals of particular segment.
Once market segments are created,
organization then targets them.
Kinds of Targeting/ 3 Targeting
Options an Organization Can Adopt
 Option 1
Undifferentiated marketing - Sometimes
referred to as mass marketing the firm may decide to
aim its resources at the entire market with one
particular product.
 Option 2
Differentiated marketing strategy - Where the firm
decides to target several segments and develops
distinct products/services with separate marketing
mix strategies aimed at the varying groups.
Kinds of Targeting/ 3 Targeting
Options an Organization Can Adopt
 Option 3
Concentrated Marketing: Where the organisation
concentrates its marketing effort on one particular
segment. The firm will develop a product that caters
for the needs of that particular group.
Kinds of Targeting/ 3 Targeting
Options an Organization Can Adopt
Definition & Goal
how organizations want their
consumers to see their product
about how you want consumers to
perceive your products and services
and what strategies you would
adopt to reach this perceptual goal
To influence how the product is
perceived by consumers
A product's position is how
potential buyers see the product
A platform for the brand: It
facilitates the brand to get through
to the mind of the target consumer
Developing a Positioning Strategy
depends much on how competitors
position themselves:
‘a me too’ strategy - position
themselves close to their competitors
so consumers can make a direct
comparison when they purchase
‘away from their competitors’
strategy
3 Types of Concepts
Functional positions
- Solve problems.
- Provide benefits to customers.
- Get favorable perception by
investors (stock profile)
and lenders.
Symbolic positions
- Self-image enhancement.
- Ego identification.
- Belongingness and social
meaningfulness.
- Affective fulfillment.
Experiential positions
- Provide sensory stimulation.
- Provide cognitive stimulation.
CRITERIA’S FOR SUCCESSFUL
POSITIONING
a. Clarity: While positioning its brand the
firm must be able to position itself in both
distinct value, proposition, and to its target
audience.
b. Consistency: Consistency in
positioning means keeping the positioning
plank/bases intact for longtime. But it does
not mean that the firm must change its
positioning bases even though its survival
is at stake. The firm must be flexible to the
changing environment.
c. Credibility: The firm must deliver
trustworthy and believable value
proposition. There should be perfect
match between promise and action.
d. Competitiveness: For surviving in
this competitive and changing
environment innovative resources,
talent pool, competitive advantage,
strong financial backup etc are very
important.
SUMMARY

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Market segmentation

  • 1.
  • 2. What is Market Segmentation? Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and applications for the relevant goods and services.
  • 3. Segmentation Strategies A market segment should be… measurable accessible by communication and distribution channels different in its response to a marketing mix durable (not changing too quickly) substantial enough to be profitable
  • 4. Why use segmentation? For companies to better understand the needs of a specific customer base Identify other applications for their products that may not have been obvious before To improve the overall efficiency of the company's marketing efforts
  • 7. Segmentation Variables Demographic Segmentation Geographic Segmentation Pyschographics Segmentation Behavioural segmentation Consumer Market Segmentation
  • 8. Demographic Segmentation  originates from the word ‘demography’ which means a ‘study of population’  can be divided into age, gender, income, and family lifecycle amongst other variables Consumer Market Segmentation
  • 9. Geographic Segmentation  Geographical segmentation divides markets into different geographical areas. Marketers use geographic segmentation because consumers in different areas may display certain characteristics and behaviours in that particular region. An area can be divided by the town, the region or the country. Consumer Market Segmentation
  • 10. Psychographics Segmentation can be broken down into lifestyle, social class, and personality characteristics. Lifestyles segmentation Personality Characteristics Social Class Segmentation Consumer Market Segmentation
  • 11. Behavioural Segmentation  Refers to why people purchase a product or service Consumer Market Segmentation
  • 13. based on regional variables such as customer concentration, regional industrial growth rate, and international macroeconomic factors. Business Market Segmentation Geographic segmentation based on factors such as the size of the organization, its industry, position in the value chain, etc. Customer Type Buyer Behavior based on factors such as loyalty to suppliers, usage patterns, and order size.
  • 14.
  • 15. Targeting various marketing strategies and promotional schemes according to the tastes of the individuals of particular segment. Once market segments are created, organization then targets them.
  • 16. Kinds of Targeting/ 3 Targeting Options an Organization Can Adopt  Option 1 Undifferentiated marketing - Sometimes referred to as mass marketing the firm may decide to aim its resources at the entire market with one particular product.
  • 17.  Option 2 Differentiated marketing strategy - Where the firm decides to target several segments and develops distinct products/services with separate marketing mix strategies aimed at the varying groups. Kinds of Targeting/ 3 Targeting Options an Organization Can Adopt
  • 18.  Option 3 Concentrated Marketing: Where the organisation concentrates its marketing effort on one particular segment. The firm will develop a product that caters for the needs of that particular group. Kinds of Targeting/ 3 Targeting Options an Organization Can Adopt
  • 19.
  • 20. Definition & Goal how organizations want their consumers to see their product about how you want consumers to perceive your products and services and what strategies you would adopt to reach this perceptual goal
  • 21. To influence how the product is perceived by consumers A product's position is how potential buyers see the product A platform for the brand: It facilitates the brand to get through to the mind of the target consumer
  • 22. Developing a Positioning Strategy depends much on how competitors position themselves: ‘a me too’ strategy - position themselves close to their competitors so consumers can make a direct comparison when they purchase ‘away from their competitors’ strategy
  • 23. 3 Types of Concepts Functional positions - Solve problems. - Provide benefits to customers. - Get favorable perception by investors (stock profile) and lenders.
  • 24. Symbolic positions - Self-image enhancement. - Ego identification. - Belongingness and social meaningfulness. - Affective fulfillment. Experiential positions - Provide sensory stimulation. - Provide cognitive stimulation.
  • 25. CRITERIA’S FOR SUCCESSFUL POSITIONING a. Clarity: While positioning its brand the firm must be able to position itself in both distinct value, proposition, and to its target audience. b. Consistency: Consistency in positioning means keeping the positioning plank/bases intact for longtime. But it does not mean that the firm must change its positioning bases even though its survival is at stake. The firm must be flexible to the changing environment.
  • 26. c. Credibility: The firm must deliver trustworthy and believable value proposition. There should be perfect match between promise and action. d. Competitiveness: For surviving in this competitive and changing environment innovative resources, talent pool, competitive advantage, strong financial backup etc are very important.