Recommended
More Related Content
What's hot
What's hot (20)
Similar to Chapter 4 marketing study
Similar to Chapter 4 marketing study (20)
More from Aishwarya surag
Recently uploaded
Recently uploaded (20)
Chapter 4 marketing study
- 1. • Organization has LIMITED RESOUCRES • WITHIN LIMITED RESOURCES THEY NEED TO ACHIEVE THEIR goals and objectives • Now there is problem?How Market Segmentation/rbg/bom106
- 2. Marketing’s one of the Definition is …. • Marketing is value creating and Value Satisfying process Market Segmentation/rbg/bom106
- 3. Value selection. • Marketing planning, buyer analysis, market segmentation and targeting are concerned with value selection. Market Segmentation/rbg/bom106
- 4. value creation & value delivery • Product development, manufacturing, service planning, pricing, distribution and servicing, are concerned with value creation & value delivery Market Segmentation/rbg/bom106
- 5. Value communication • Personal selling, advertising, publicity and sales promotion are concerned with value communication. Market Segmentation/rbg/bom106
- 6. Value delivery process • Activities like market research and market control assess the effectiveness of the value delivery process, the level of satisfaction the customer has actually received and how it compares with the firm’s intention as well as with other competing offers for the purpose of enhancing value. Market Segmentation/rbg/bom106
- 7. In any marketing situation, one can discern four distinct steps in the value providing process: • * Value selection. * Value creation/value delivery * Value communication (making a value proposition and communicating it.) * Value enhancement. Market Segmentation/rbg/bom106
- 8. Market Segmentation/rbg/bom106 Unit 4 Market Segmentation
- 9. Market Segmentation/rbg/bom106 Learning Objectives: : 1. What are the different levels of market segmentation? 2. How can a company divide a market into segment / 3. How should the company choose the most attractive target markets ? 4. What are the requirements for effective market segments ?
- 10. Market Segmentation/rbg/bom106 Definition: Market Segmentation • A market segment consists of a group of customers who share a similar set of needs and wants
- 11. Market Segmentation/rbg/bom106 Why Market Segmentation Study is Important ? • Markets are not homogeneous • Company cannot connect with all customers in large, broad or diverse customers • Company can select the market to serve effectively i.e. TARGET MARKET
- 12. Market Segmentation/rbg/bom106 Levels of Market Segmentation: – Mass Marketing – Segments Marketing – Niches Marketing – Local areas Marketing – Individuals( one to one marketing
- 13. Market Segmentation/rbg/bom106 Bases of Market Segmentation for CONSUMER MARKET • Geographic: • Demographic: • Psychographic: • Behavioural
- 14. Market Segmentation/rbg/bom106 Geographic: • World region or country region : India ,China,Middle East,North India,South America Latin America • City or Metro size:Under5000,5000- 20000,20000-50000,50000-100000 • Density:urban,suburban,rural • Climate:Hot,Humid,Cold etc
- 15. Market Segmentation/rbg/bom106 Demographic: • Age :under 6,6-11,12-19,20-34 etc • Gender: male, female • Family size:1-2,3-4,5+ • Income :under 1 lac,1lac to 2 lac,2lac to 3 lac etc • Family life Cycle: • Young,single; young,married;married with children;older,married with children etc • Occupation :students,homemakers,self employed,professionals,businessmen,farmers etc • Education :Grade school or less, some high school,graduate,post graduate etc • Religion:Hindu,Christian,muslim,jewish,arbic etc • Race :black,white,American etc • Nationality :Indian ,Pakistani etc
- 16. Market Segmentation/rbg/bom106 : Psychographic: • Social class: • Lower lowers, working class,middleclass,upper middles,rich,super rich • Lifestyle: • Innovators,thinkers,experiencers,believers, achievers,strivers,survivors • Personality :ambitious,gregarious,compulsive,authoritatrian
- 17. Market Segmentation/rbg/bom106 Behavioral: • Occasions: Regular occasion, special occasion • Benefits: quality,service,economy,speed • User status: light user, medium user, heavy user • Loyalty status: none,medium,strong,absolute • Readiness stage: unaware,aware,informed,interested,desirous,intending to buy • Attitude towards product: enthusiastic,positive,indifferent,negative,hostile • Decision role: initiator,influencers,deciders,buyers,users
- 18. Market Segmentation/rbg/bom106 Effective Segmentation Criteria: • Measurable : • size, purchasing power,chratecrtestics of the segment • Substantial: • Large & profitable enough to serve • Accessible • It can be effectively reached & served • Differentiable • Conceptually distinguishable • Actionable • Effective programs can be formulated fro attarcting & serving the segment
- 19. Market Segmentation/rbg/bom106 Bases for segmenting business market: • 1.5.1 Demographic: • Industry : To which Industry we should serve • Company: What size company should we serve? • Location: What geographical ares should we serve? – 1.5.2 Operating Variables : • Technology: What customer technologies should we focus on? • user or non user status: should we serve heavy users, medium users, light users or non users • Customer capabilities: should we serve customers needing many or few services? • 1.5.3 Purchasing Approaches : • Purchasing-function organization: should we serve the companies with highly centralized or decentralized purchasing organizations? • Power structure: should we serve companies with which we have strong relationships or simply go after the most desirable companies? • Nature of existing relationships: should we serve companies with which we have strong relationships or simply go after the most desirable companies. • General purchase policies: should we serve companies that prefer leasing? Service contracts? System purchases? Sealed bidding? • Purchasing criteria: should we serve companies that are seeking quality? Service? Price? • 1.5.4 Situational factors » urgency: should we serve companies that need quick and sudden delivery or service? » Specific application: should we focus on certain applications of our product rather than all applications? » Size of order: should we focus on large or small orders? » Personal characteristics: » Buyer-seller similarity: should we serve companies whose people & values are similar to ours? » attitudes towards risk: should we serve risk taking or risk avoiding customers » loyalty: should we serve the companies that show high loyalty to their suppliers
- 20. Market Segmentation/rbg/bom106 1.5.2 Operating Variables : • Technology: What customer technologies should we focus on? • user or non user status: should we serve heavy users, medium users, light users or non users • Customer capabilities: should we serve customers needing many or few services?
- 21. Market Segmentation/rbg/bom106 1.5.3 Purchasing Approaches : • • Purchasing-function organization: should we serve the companies with highly centralized or decentralized purchasing organizations? • Power structure: should we serve companies with which we have strong relationships or simply go after the most desirable companies? • Nature of existing relationships: should we serve companies with which we have strong relationships or simply go after the most desirable companies. • General purchase policies: should we serve companies that prefer leasing? Service contracts? System purchases? Sealed bidding? • Purchasing criteria: should we serve companies that are seeking quality? Service? Price?
- 22. Market Segmentation/rbg/bom106 1.5.4 Situational factors » urgency: should we serve companies that need quick and sudden delivery or service? » Specific application: should we focus on certain applications of our product rather than all applications? » Size of order: should we focus on large or small orders? » Personal characteristics: » Buyer-seller similarity: should we serve companies whose people & values are similar to ours? » attitudes towards risk: should we serve risk taking or risk avoiding customers » loyalty: should we serve the companies that show high loyalty to their suppliers
- 23. Market Segmentation/rbg/bom106 1.6.2 Evaluating & selecting the market segments: • In evaluating the different market segments, the firm must look at two factors: the segment’s overall attractiveness and the company’s objectives & resources.
- 24. Market Segmentation/rbg/bom106 • Does the potential segment is attractive, such as size, growth, profitability, scale economics and low risk? • Does the selected market segmentation makes sense in terms of firms objectives to be achieved, competencies & it’s resources etc?. • Does the segment selected for serving match up with the company’s long term goals & objectives?
- 25. Market Segmentation/rbg/bom106 1.7 POSITIONING • 1.7.1 Positioning is the act of designing the company’s offerings and image to occupy the distinctive place in the mind of the target market.
- 26. Market Segmentation/rbg/bom106 For e.g. • Scorpio is a Sports Utility Vechicle.It appeals to the lifestyle oriented segment with the value proposition of “luxury of car and thrill of SUV.” • TATA’S Indica’s value proposition is “more spaciousness without extra costs.” This value proposition is captured in Indica’s tagline_”More car per car.”
- 27. Market Segmentation/rbg/bom106 Positioning contd… • TATA’S Indica’s value proposition is “more spaciousness without extra costs.” • This value proposition is captured in Indica’s tagline_”More car per car.”
- 39. Market Segmentation/rbg/bom106 Chapter 4 Market Segmentation