2. Market Segmentation
Market – A market is an aggregate of people
who, as individual or organization, have need for the
products and services & who have ability ,willingness,
& authority to purchase such products.
Segment- is a sub group of customers who share
similar set of needs & wants.
3. Market Segmentation
The market segmentation is a process of dividing
the market into market segments within which
customer share one or more characteristics that
cause them to similar products/services needs so
that a distinct marketing mix can be offered to a
particular segment & profit to marketer.
5. Levels of Market Segmentation
1.Segment Marketing: Identifying the buyers who differ
according to their wants ,purchasing power, geographical
locations buying attitude & behavior.
2.Niche marketing: subdividing an existing segment by
introducing more defining characteristics
3.Local marketing : serving a set of local customer by
giving a marketing programme according to the needs ,
wants, lifestyles of a particular locality
4.Individual marketing : “segments of one”-
6. Objectives of marketing
segmentation
Homogeneous grouping
Identifying priorities
A more precise definition of the market
Determining purchase potential
A more effective marketing programme
Better assessment of the competition
Better allocation of resources
7. Requirements
for an effective segmentation
1. Identifiable
2. Measurable
3. Accessible
4. Responsiveness
5. Significant
6. substantiable
8. Reasons for the development of
market segmentation
1. Customer oriented concept
2. Technological advancement
3. Cost reducing technique
4. Increase in purchasing power
5. Increase in competition
9. Patterns of Market Segmentation
1. Homogeneous preferences: where all customers
have roughly the same preferences.
2. Diffused preferences : consumer vary greatly in
their
preferences
3 Clustered preferences: called as natural market . In
this market ,distinct preference clusters are revealed.
