The document discusses market segmentation, which is the process of dividing a heterogeneous market into homogeneous subgroups. It explains that marketers segment markets based on geographic, demographic, psychographic, and behavioral factors to better understand customer needs and target specific subgroups. The key benefits of segmentation are developing specialized offers for each subgroup and improving marketing efficiency.

2.  A market is the aggregate of consumers of a
given product, theses consumer vary in their
characteristics and buying behavior. It is thus
natural that many different segments occur with
in a market.
 Marketers usually divide the heterogeneous
market for any product into different segments
of relatively homogeneous characteristics.
 The process of fragmenting whole market into
sub-markets is known as market segmentation.

3.  It helps the marketers to distinguish one
customer group from another within a given
market and thereby enables him to decide which
segment should from his target market.
 It enables the marketers to identify the real
needs of the target buyers and to develop
marketing offers that are most suited to each
group.
 It makes the marketing efforts more focused,
more efficient and economic by concentrating on
segments that are most profitable and will be the
customers of the market offers.

4.  It benefits the customer as well, as now they
can buy specialized product that caters to
their specific needs and wants.
 When segmentation attains high
sophistication, customers and companies can
choose each other and stay together for
mutual benefits.

5.  Geographic Segmentation: segmenting
market on the basis of factors like region,
state, district, urban/rural, climate etc.
 Demographic Segmentation: segmenting
customers on the basis of factors like age,
sex, marital status, family size and structure,
race, religion, community, language,
occupation, income, education etc.

6.  Psychographic Segmentation: segmenting
customers on the basis of psychological
factors like personality traits, lifestyle, socio
economic classes, value system, etc. the
marketing researcher, ‘Emanuel Denby’
coined the term Psychographics.
 Behavioral Segmentation: markets can be
segmented on the basis of buyer behaviour
as well as Buying behavior.

7.  Buying Behavior includes:
a) User status: Non-user, Ex-user, potential user, first-
time user, regular user.
b) Usage rate: Bulk buyers, small-scale buyers,
moderate buyers.
c) Benefits: Quality, service, economy, speed.
d) Occasions: Regular, special.
e) Loyalty status: Hard core loyal, split loyal(two or
more brands), shifting loyal, switchers.
f) Readiness stage: Unaware, aware, informed,
interested, desirous, intending to buy.
g) Attitude: Enthusiastic, positive, indifferent,
negative, hostile.

8.  It must be distinguishable from one another.
 Potential demand of the segment is
measurable.
 It is easily accessible and servable.
 It should have a appropriate size i.e.
significant number of buyers.
 It should be profitable.
 It should be growing/durable.
 Segment’s needs should be compatible to the
marketers product utility.

9.  Once the firm has identified the segments, it
must decide how may and which ones to target.
In targeting different segments, the firm must
look at two factors.
i. Segment’s overall attractiveness in terms of
size, growth and profit.
ii. Company’s objectives and resources.
 In choosing a target market, the firm basically
examine alternative possibilities- whether the
whole market has to be chosen for tapping, or
only a few segments are to be targeted.
 It must look at each segments as a distinct
marketing opportunity.

10.  Single Segment Concentration
Through concentrated marketing, a firm tries
to achieve strong market presence. One
segment is selected for serving only one
product.
Example: Zodiac for men’s formal shirts and
ties.
[P1-M1] Product 1 for Market 1

11.  Selective Specialization
A firm selects two or more segments. Even if
the two are not at all related, each promises
to be a money maker. It helps the firm to
diversify the risk.
Example: Sony produces plasma TV as well as
Walkman, the two different types of products
obviously for two different types of markets.
[P2-M1,P3-M2,P1-M3]

12.  Product Specialization
The firm makes a certain product that it sells
to several different market segments.
Example: Super Precision Components supply
small nuts and screws for use in military,
industry and daily use.
[P1-M1,M2,M3] one product to all markets.

13.  Market Specialization
The firm concentrates on serving many needs
of a particular segment.
Example: Company producing all sorts of home
appliances like TV, washing machine,
refrigerator and micro oven for middle class
people. .
[P1,P2,P3-M1] All products for one markets.

14.  Full Market Coverage
The firm attempts to serve all customer groups
with all the products they can provide.
Example: In carbonated soft drink market, Coca-
Cola follows Full Market Coverage approach to
their product-market matrix. They have Thums-
Up, Coca-Cola, Limca, Sprite, Fanta that are
different tastes and are consumed by different
types of people. The company even made its
entry into other drinks segments like mineral
water (Kinley) and tea (Georgia).
[P1,P2,P3-M1,M2,M3] All products for All
markets.

15.  Positioning is the act of fixing the locus of
the product offer in the minds of the target
customers.
 In positioning, the firm decides how and
around what parameters, the product offers
has to be placed before the target customers.
 It facilitates the brand to get through the
mind of target customer.
 The result of positioning is the successful
creation of a customer focused value
preposition.

16.  Positioning a product can be possible by way of
differentiation. There are certain Point-of-
Difference (PoD) and certain Point-of-Parity (PoP)
of each product.
 PoDs are attributes or benefits, a customer
strongly associates with a brand, and believe they
could not find to the same extent with a
competitive brand. Creating identifiable and
unique PoDs is a real challenge in terms of
competitive brand positioning.
 PoPs are associations that are not necessarily
unique to the brand but may in fact, be shared
with other brands.

17.  Positioning means putting the product in a
predetermined orbit.
 It connects product offering with target
segment.
 It is a continuous never ending process.
 It can be best done by generating clear PoDs.