The document discusses pricing and market segmentation in a perfectly competitive market, highlighting the advantages and disadvantages of pricing segmentation strategies. It covers various types of pricing segmentation, methods for identifying target markets, and steps for effective market segmentation. Additionally, it defines characteristics of perfect competition, emphasizing the lack of market influence by any single buyer or seller and the homogeneity of products.

1. Pricing and market
segmentation- perfect
competition
PRESENTED BY
Pavithra.D
MHA-2nd
Year

2. Price Segmentation:
• As consumers, we all buy goods and services based on a multitude of factors,
including price.
• Consciously or subconsciously we decide that a given price is worth paying for a
product or service and the transaction takes place.

3. Pros & Cons Of Pricing Segmentation
• Pricing segmentation, like any other strategy needs careful consideration to the
advantages and disadvantages of using it.
• Some brands are better placed to take advantage of it than others while some
markets have less defined segments to benefit.

4. Advantages and Disadvantages
Advantages
• Increase revenue and profit
• Increased reach and market share
• Flexibility for Differentiate market
• Broader appeal and growth potential
Disadvantages
• Avoidance and dilution
• Inequality & Distrust
• Internal Confusion

5. Types Of Pricing Segmentation
8
Types
Of
Price
Segmentation
•
Bundle
Pricing:
•
Value-Based
Pricing
•
Channel
Pricing
•
Location
Pricing
•
Time
Period
Pricing
•
Purchase
Time
Pricing
•
Volume
Pricing

6. market segmentation
• Market segmentation is a marketing term that refers to aggregating
prospective buyers into groups or segments with common needs and who
respond similarly to a marketing action.

7. market segmentation
Market Segmentation
• Market segmentation is a marketing concept which divides the complete market set
up into smaller subsets comprising of consumers with a similar taste, demand and
preference.
• A market segment is a small unit within a large market comprising of like minded
individuals.
• One market segment is totally distinct from the other segment.
• A market segment comprises of individuals who think on the same lines and have
similar interests.
• The individuals from the same segment respond in a similar way to the fluctuations
in the market.

8. Basis of Market Segmentation
Gender
Age Group
Income
Marital
Status
Occupation

9. Types of Market Segmentation
Psychographic
segmentation
Behaviouralistic
Segmentation
Geographic
Segmentation

10. Steps in Market Segmentation
Identify the target market
• The first and foremost step is to identify the target market. The marketers must be very
clear about who all should be included in a common segment. Make sure the individuals
have something in common. A male and a female can’t be included in one segment as
they have different needs and expectations.
Identify expectations of Target Audience
• Once the target market is decided, it is essential to find out the needs of the target
audience. The product must meet the expectations of the individuals. The marketer must
interact with the target audience to know more about their interests and demands.
Create Subgroups
• The organizations should ensure their target market is well defined. Create subgroups
within groups for effective results.

11. Review the needs of the target audience
• It is essential for the marketer to review the needs and preferences of individuals
belonging to each segment and sub-segment. The consumers of a particular
segment must respond to similar fluctuations in the market and similar marketing
strategies.
Name your market Segment
• Give an appropriate name to each segment. It makes implementation of strategies
easier.
• A kids section can have various segments namely new born, infants, toddlers and
so on.
Marketing Strategies
• Devise relevant strategies to promote brands amongst each segment. Remember
you can’t afford to have same strategies for all the segments. Make sure there is a
connect between the product and the target audience.

12. Review the behavior
• Review the behavior of the target audience frequently. It is not necessary
individuals would have the same requirement (demand) all through the year.
Demands vary, perceptions change and interests differ. A detailed study of the
target audience is essential.
Size of the Target Market
• It is essential to know the target market size. Collect necessary data for the same. It
helps in sales planning and forecasting.

13. perfect competition
Definition:
A perfectly competitive market is a market in which there are many buyers and
sellers. However, neither party can influence the price, because the price has been
determined by the market itself (overall supply and condition).

14. A perfectly competitive market has the following characteristics:
• There are many buyers and sellers in the market.
• Each company makes a similar product.
• Buyers and sellers have access to perfect information about price.
• There are no transaction costs.
• There are no barriers to entry into or exit from the market.

15. Characteristics of perfect competition:
The three primary characteristics of perfect competition are
(1) no company holds a substantial market share,
(2) the industry output is standardized, and
(3) there is freedom of entry and exit.
The efficient market equilibrium in a perfect competition is where marginal
revenue equals marginal cost.

16. Features of a perfectly competitive
market
1. The number of buyers and sellers is large
2. Goods or services traded are homogeneous
3. Factors of production are free to move
4. There is freedom to make decisions
5. Buyers and sellers know the state of the market
6. Producers are free to enter the market