about Market Segmentation...

1. MARKET
SEGMENTATION

2. MARKET SEGMENTATION
BASIC IDEAS ( for M.S)
1. Selection of target market.
2. Effective Marketing programs.

3. RATIONALE
• “WHAT NEEDS AND WHOSE NEEDS”
• “PRINCIPLE OF DISTINCTIVE
COMPETENCE”
Homogeneous 
--------------------------------------------------------------SuoenegoreteH

4. Targeting Options
1. Undifferentiated Mktg….ONE PRODUCT
2. Concentrated Mktg….. PARTICULAR
MARKET SEGMENT
3. Differentiated Mktg…..DIFFRENT
PRODUCT FOR DIFFERENT M.S

5. MARKET SEGEMENTATION
(DEFN.)
Process of identifying group of
buyers with different buying
desires or requirements.

6. MARKET TARGETING (Defn.)
Decision ‘Which M.S to serve’

7. ENTERING A MARKET?
FIVE STEPS
1. Determine those attribute along which to
identify the possible existence of distinct M.C.
2. Determine size & value of diff / vari. M.S
3. Determine how existing brands are positioned.
4. Look for opportunities in M.s’s not /
inadequately being served.
5. Determine co-related characteristics of
attractive M.S.

8. REQUIREMENTS FOR EFFECTIVE MARKET
SEGMENTATION
1. Measurability
2. Accessibility
3. Substantiality

9. BENEFITS OF SEGMENTATION
1. For guiding Marketing Strategy.
2. Better position to spot & compare mktg.
opportunities.
3. Finer adjustments of products & mktg. appeals
possible.
4. Mktg. programs & budgets based on clearer
ideas of the response characteristics of specific
M.S’s

10. BASES FOR SEGMENTATION
1. GEOGRAPHIC
2. DEMOGRAPHIC
3. PSYCHOGRAPHIC
4. BEHAVIORAL

11. MARKET
TARGETING

12. I. UNDIFFERENTIATED
MARKETING
•
•
•
Focus : ‘What is common’ (not ‘What is different’)
Appeal : Broadest number of buyers.
Rely on : Mass channels/ advts./ universal themes.
(Coke) Endow product, superior image in prosp’s
MIND
{Cost Economics, Mass Production} Low M.R.
COST(?)
Later, Less profitable segment (!)

13. II. DIFFERENTIATED
MARKETING
• Focus : Two or more segments & separate
product.
• Appeal : Customer’s Desires
• Rely On : Creating more total sales, Concern
about increasing cost, optimality of strategy.
Later, over – differentiation  reverse(!) CGL
MEMO

14. III. CONCENTRATED
MARKETING
• Focus : Large share in one or a few sub-market.
• Appeal : Customer’s Delight (Good MKT
Position)
• Rely on : Greater Knowledge, Special
Reputation. Enjoy operating economics (due)
specialization
Earns high rates of ROI.
Later, higher than normal risk.

15. FIVE FACTORS FOR ACTUAL CHOICE
1. Company resources
2. Product homogeneity
3. Product stage in life cycle
4. Market homogeneity
5. Competitive MKTG. STRATEGIES

16. MAJOR SEGMENTATION
VARIABLES

17. I. GEOGRAPHIC
1.
2.
3.
4.
5.
6.
7.
8.
World Region
Country
Metro (city)
Town
Village
Population density
Climate
Others

18. II. DEMOGRAPHIC
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Age
Sex
Gender
Income
Occupation
Education
Family Size
Family Life Cycle
Religion
Race
Caste
Special Community
Nationality
Others

19. III. PSYCHOGRAPHIC
1. Social class
2. Life style
3. Personality

20. IV. BEHAVIORAL
1.
2.
3.
4.
5.
6.
7.
8.
Occasion
Benefits
User status
Usage rate
Loyalty status
Readiness stage
Marketing Factors
Attitudes towards Product

21. Levels of market segmentation
Starting point… Mass Marketing
Example: Ford T car
Coke 6.5 Ounce Bottle !
MANY CRITICS HENCE ,
MICRO MARKETING

22. MICRO MARKETING
•
•
•
•
SEGMENTS
NICHES
LOCAL
INDIVIDUALS

23. MARKET SEGMENT……..
Consists of group of customers who
share a similar set of wants.

24. NICHE…..
is a more narrowly defined group
seeking a distinctive mix of benefits
•
•
•
Customers willing to pay a PREMIUM.
Niche unlikely to attract competitors.
Niche gets certain economics through
specialization
• Profit size & growth potential.
e.g. Estee lauder, Hallmark

25. Segmentation Levels
1. Mass marketing- No segments
2. Segment marketing-In between
3. Micro marketing-Complete segment.
I. Mass Marketing
Example Ford Model T Car, Coca Cola
Local Marketing
A. Specific location, spot
B. Specific stores
C. Neighborhoods
D. Cities

26. II.
A.
B.
C.
D.
Segmentation
Geographic
Demographic
Psychographic
Behavioral
And
Niche!

27. III. Targeting
A. Undifferentiated
B. Concentrated
C. Differentiated
IV. Product market grid
A. Single-specific
B. Selective
C. OP-AMS
D. OMS-AP
E. AMS-AP

28. v. Customization
Individual
To
Mass Communication!

29. LOCAL….
Target Marketing is leading to mktg.
programs tailored to the needs &
wants of local customer groups,
areas, neighborhoods.
e.g. Citibank's different services to
its branches.

30. INDIVIDUAL……..
Customized.. One to one
marketing!
Leading to mass customization,
On-line CHOICEBOARD!

31. ADVERTISING
1.
2.
3.
4.
5.
Any paid form of non-personal presentation of ideas, goods or
services by an identified sponsor.’
…Kotler.
‘Contribution to brand image.’ .David Ogilvy
‘Intervener in all aspects of economic & cultural life.’
…. Pope VI
‘Paid, non-personal communications through various media by
business firms, non profit organizations & individuals who are
in some way identified in the advertising message & who hope
to inform or persuade members of a particular audience.’
‘Nourishes consuming power.’
..Sir W. Churchill.

32. POSITIONING
‘BATTLE
FOR
YOUR
MIND.’
AL RIES
&
JACK TROUT
New approach to communication
‘POSITIONING’ to overcome universal
reason given for problems that develop
‘failure to communicate.’
Positioning starts with a product, a piece of
merchandise, a service, a company, an
institution or even a person. Perhaps yourself.
P is what you do to the mind of the prospect i.e.
position your product in mind of the prospect
6 INCHES OF GREY MATTER = MIND
= BATTLEGROUND

33. VARIOUS ERAS
1.
•
•
•
•
•
PRODUCT ERA
Fifties in USA & Seventies in India.
Attention on product feature.
Attention on customer benefits
Unique selling proposition
Rosser Reeves
Decline due technology + me too products
‘new & improved jokes

34. 2. IMAGE ERA
• Architect ‘David Ogilvy’
• Every advertisement is a long term investment
in the image of a brand.
• Me too companies kill image era.
• E.g. Rolls Royce, Marlboro
• Xerox exceptions due to technical achievement.

35. 3. POSITIONING ERA
• IBM…………. Invented the computer?
first company to build a computer position
‘Sperry Rand’
• Amerigo Vespucci……..who discovered USA?
{15th Century}
Separate Continent
Not Asia
Wrote!!
‘Christopher Columbus’

36. Examples
•
•
•
Promise - (clove oil + Grandmother)
7UP - Un Cola (but USA turning 7UP)
Avis- Avis is only no 2 in Rent- a car so why so
with us ? we try harder!(HERTZ)
• LITE - Everything you have always wanted in a
greater Beer & LESS!
• Listerine- The taste you hate twice a Day !(WL)
Scope ..Medicine Breath (P&G).
• Coca Cola – Real THING!
• Burger King- Have it your way!

37. • Joy- There is only one JOY !The costliest
perfume in the world!
• XEROX + Polaroid + Zippo lighter …
Inventor!
• Lowen BRAV Vs Beck- You have tasted the
German beer that’s the most popular in
America. Now taste the German beer that’s
the most popular in Germany.

38. 1. Attribute Listing..(say) Screw Driver then , replace
Plastic (for wood, mobile set. (OSBORN)
2. Forced Relationship(say) Furniture list ideas ,
relate w.r.t each ,table T therefore table T mostly,
therefore Table Lump.
3. MORAHU LOGICAL Analysis -MI Dimension
of start T Problem – Move WT from A to B !
4. Brain Storming- BBD&O advts technique
5. Operational Creativity- State Gen .Problem
SYNECTICS (GURDON)-Focus on Specific.
6. New Assumption Analysis- List normal
assumption, then reverse it MENU (New U

39. 7. New Context –Familiar process now ! New
Registration in Hotel, Day Care DUGS!
8. Mind Mapping- start one thought …Car !
Germany, Mercedes ..Size NEW!