• CONCEPT AND DEFINITION The concept of market segment is based on the fact that the market of commodities are not homogeneous but they are heterogeneous. Market represent a group of customer having common characteristics but two customer are never common in their nature, habits, hobbies income and purchasing techniques.
SEGMENT MARKETING NICHE MARKETING LOCAL MARKETING INDIVIDUAL MARKETING
• Consists of a group of customers who share a similar set of needs and wants.• Identifiable Group with in a Market with Similar• Wants• Purchasing Power• Buying Attitudes
Group of customers seeking a distinctive mix of benefits who are ready to pay extra premium. DISTINCT NEEDS PAY PREMIUM SPECIALIZATION LESS COMPETITION POTENTIAL
Marketing programs tailored to the needs & wants of local customer groups in trading areas, neighborhoods , etc.Ex. – Spiderman 3 was released in 5 different language in India including Bhojpuri.
Ultimate segmentation – segments of 1 or customized marketing or one to one marketing. Customerization – empower the consumers to design the product or service offering of their choice. Ex. Paint companies have started doing this- Asian Paint , Nerolac , Berger Paints.
Basis for Market Segmentation: Geographic Segmentation Demographic Segmentation Income Segmentation Psychographic Segmentation Behavioral Segmentation
Divide the market into different group based on : Region – South India , North , Western Region, East City – metro cities, cities with population more than 1 million World Density Climate StatesEx.- Mcdonalds globally, sell burgers aimed at local markets, for example, burgers are made from lamb in India rather then beef because of religious issues. In Mexico more chilli sauce is added and so on.
Ex: As people age their needs and wants change, someorganizations develop specific products aimed atparticular age groups for example nappies for babies, toys for children, clothes for teenagers and so on. Gender segmentation is commonly used within thecosmetics, clothing and magazine industry.
Income segmentation is another strategy used by many organizations. In todays globally competitive environment brands are specifically developed and positioned within particular income segments in order to maximize turnover.
OCCASIONS - Archies cards, Monaco at tea time. BENEFITS – Shampoo for hair conditioning, cleaning , hair fall and dandruff control USER STATUS- light – medium – heavy user
EXAMPLES OF MARKET SEGMENTATION: HINDUSTAN UNILEVER LIMITED Hindustan Lever (now known as Unilever) has had three different detergents in the offering including Surf, Wheel and Rin but they have never eaten away each other’s market share due to efficient segmentation that caters to the needs of different classes of people.
The constant innovation and effective marketsegmentation has been the great boon of thecompany.Today the company has a model for every pricesegment and every market.It brought out the Aqua, a trendy collection for theyouth.Raga was for the sophisticated Indian woman. Thiswas a significant move as the women were now moreliberal in the society and the corporate culture wasestablishing its roots in India. The needs of womenthroughout the nation were changing and the brandwas aimed to cater these very needs.Dash for the kids segment.Sonata for the masses and the budget-conscious.