Market segmentation (tybms)


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Market segmentation (tybms)

  1. 1. MARKET SEGMENTATION- By- shehzaad shaikh Roll-07 Class- t.y.b.m.s
  2. 2. Contents • What is Market Segmentation? • Why segmentation? • What are the requirements of Segmentation? • Benefits & Limitations of Segmentation • Segmenting Consumer Markets - Geographic Segmentation - Demographic Segmentation - Psychographic Segmentation - Behavioural Segmentation
  3. 3. Target Marketing- •Market segmentation •whereby a product is developed and marketed for a very well-defined, specific segment of the consumer population. • Target marketing is particularly effective for small companies with limited resources because it enables the company to achieve a strong market position in the specific market
  4. 4. Requirements of Market Segments In addition to having different needs, for segments to be practical they should be evaluated against the following criteria: • Identifiable: the differentiating attributes of the segments must be measurable so that they can be identified.
  5. 5. • Accessible: the segments must be reachable through communication and distribution channels. • Measurable: This is important especially for demographic and geographic variables. For an organization with direct sales (without intermediaries), the own customer database could deliver valuable information on buying behavior (frequency, volume, product groups, mode of payment etc).
  6. 6. • Substantial: the segments should be sufficiently large to justify the resources required to target them. • Unique needs: to justify separate offerings, the segments must respond differently to the different marketing mixes. • Durable: the segments should be relatively stable to minimize the cost of frequent changes.
  7. 7. Defining Marketing Segmentation
  8. 8. ‘Market Segmentation’ Market Segmentation is the sub-dividing of customers into homogenous sub-set of customers where any sub-set may conceivably selected as market target to be reached with distinct Marketing Mix – Philip Kotler
  9. 9. • Segmentation aims to match groups of purchasers with the same set of needs and buyer behaviour. Such a group is known as a 'segment'.
  10. 10. Market segmentation involves the subdividing of a market into distinct subgroups of customers, where any subgroup can be selected as a target market to be met with a distinct marketing mix. - AAA
  11. 11. Benefits and LimitationsBenefits: The Organisation gets to know its customers better. Provides guidelines for resource allocation. It helps focus the strategy of the organisation. Limitations: Targeting multiple segments increases marketing costs. Segmentation can lead to proliferation of products. Narrowly segmenting a market can hamper the development of broad-brand equity.
  12. 12. Why Segmentation? • To develop marketing activities • Generate greater customer satisfaction • Create savings • Allocation of marketing budget • Adjustment of product to the market need • To estimate the level of sales in the market • To overcome competition effectively • To develop effective marketing programmes • To contribute towards achieving company goals
  13. 13. Bases for Segmentation in Consumer Markets
  14. 14. Geographic Segmentation The following are some examples of geographic variables often used in segmentation. • Region: by continent, country, state, or even neighbourhood. • Size of metropolitan area: segmented according to size of population. • Population density: often classified as urban, suburban, or rural. • Climate: according to weather patterns common to certain geographic regions.
  15. 15. Geographic Segmentation
  16. 16. Geographic Segmentation
  17. 17. Geographic Segmentation
  18. 18. The salt worth its salt.
  19. 19. Gender
  20. 20. Life-cycle stage: Dividing a market into different groups based on which stage in the life-cycle, presented in the table below, reflects the fact that people change the goods and services they want and need over their lifetime. Life-cycle stages Bachelor Stage young, single people not living at home Newly Married Couples young, no children Full Nest I youngest child under six Full Nest II youngest child six or over Full Nest III older married couples with dependent children Empty Nest I older married couples, no children living with them Empty Nest II older married couples, retired, no children living at home Solitary Survivor I in labour force Solitary Survivor II retired
  21. 21. Psychographic Segmentation
  22. 22. Experiencers They’re the young enthusiastic, impulsive people who seek variety and excitement. They spend a comparatively high proportion of income on fashion, entertainment, and socializing.
  23. 23. Thinkers They’re mature, satisfied, and reflective people motivated by ideals and who value order, knowledge, and responsibility. They seek durability, functionality, and value in products. Here we’re considering Mont-Blanc
  24. 24. Behavioral Segmentation
  25. 25. Usage Customers can be segmented on the basis of usage status- heavy users, light users & non- users of a product category. The profiling of heavy users allows this group to receive most marketing attention (particularly promotion efforts) on the assumption that brand loyalty among these people will pay heavy dividends.
  26. 26. Attitude Attitude is defined as a learned tendency to respond towards something. People’s response towards a product may range from – Enthusiastic, Positive, Indifferent, Negative, Hostile .
  27. 27. Occasions
  28. 28. Brand Loyalty
  29. 29. Benefit Sought