Marketing Management, 12/e A South Asian Perspective 8  Identifying Market Segments and Targets Dr. Hitesh Ruparel
Chapter Questions <ul><li>What are the different levels of market segmentation? </li></ul><ul><li>How can a company divide...
Effective Targeting Requires… <ul><li>Identify and profile distinct groups of buyers who differ in their needs and prefere...
Four Levels of Micromarketing <ul><li>Segments (Homogenous, Diffused , Clustered Preferences) </li></ul><ul><li>Niches (In...
Segment Marketing Targeting a group of customers who share a similar set of needs and wants.
Flexible Marketing Offerings <ul><li>Naked solution </li></ul><ul><ul><li>Product and service elements that all segment me...
Customerization Combines operationally driven mass customization with customized marketing in a way that empowers consumer...
Segmenting Consumer Markets <ul><li>Geographic </li></ul><ul><li>Demographic </li></ul><ul><li>Psychographic </li></ul><ul...
Geographic <ul><li>Region -South, North-East etc. – Dish TV, Ranotsav </li></ul><ul><li>City – Ahmedabad Mirror </li></ul>...
Demographic Segmentation <ul><li>Age and Life Cycle - Hungama </li></ul><ul><li>Life Stage – Savings Scheme </li></ul><ul>...
Profiling Generations <ul><li>GI Generation </li></ul><ul><ul><li>1901-1924 </li></ul></ul><ul><li>Silent Generation </li>...
Psychographic <ul><li>Lifestyle – Culture (Amul Butter Milk, Lassi,, Sankalp), Sports (Signature), Outdoor oriented </li><...
Behavioral Segmentation <ul><li>Decision Roles </li></ul><ul><li>Initiator </li></ul><ul><li>Influencer </li></ul><ul><li>...
Segmenting for Business Markets <ul><li>Demographic ind, co. size, location </li></ul><ul><li>Operating Variable – tech, u...
Models of Sequential Segmentation <ul><li>Stage of decision </li></ul><ul><li>First-time prospects </li></ul><ul><li>(Pati...
Steps in Segmentation Process <ul><li>Needs-based segmentation </li></ul><ul><li>Segment identification </li></ul><ul><li>...
Effective Segmentation Criteria <ul><li>Measurable </li></ul><ul><li>Substantial </li></ul><ul><li>Accessible </li></ul><u...
Segmentation Actions <ul><li>Single Segment Conc. </li></ul><ul><li>Selective Specialization </li></ul><ul><li>Product Spe...
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  1. 1. Marketing Management, 12/e A South Asian Perspective 8 Identifying Market Segments and Targets Dr. Hitesh Ruparel
  2. 2. Chapter Questions <ul><li>What are the different levels of market segmentation? </li></ul><ul><li>How can a company divide a market into segments? </li></ul><ul><li>How should a company choose the most attractive target markets? </li></ul><ul><li>What are the requirements for effective segmentation? </li></ul>
  3. 3. Effective Targeting Requires… <ul><li>Identify and profile distinct groups of buyers who differ in their needs and preferences. </li></ul><ul><li>Select one or more market segments to enter. </li></ul><ul><li>Establish and communicate the distinctive benefits of the market offering. </li></ul>
  4. 4. Four Levels of Micromarketing <ul><li>Segments (Homogenous, Diffused , Clustered Preferences) </li></ul><ul><li>Niches (Inside Outside, Overdrive) </li></ul><ul><li>Local areas (Gujarati – Financial Express) </li></ul><ul><li>Individuals (Asian Paints – Mera Wala Pink) </li></ul>
  5. 5. Segment Marketing Targeting a group of customers who share a similar set of needs and wants.
  6. 6. Flexible Marketing Offerings <ul><li>Naked solution </li></ul><ul><ul><li>Product and service elements that all segment members value </li></ul></ul><ul><li>Discretionary options </li></ul><ul><ul><li>Some segment members value </li></ul></ul><ul><ul><li>Options may carry additional charges </li></ul></ul>
  7. 7. Customerization Combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product and service offering of their choice.
  8. 8. Segmenting Consumer Markets <ul><li>Geographic </li></ul><ul><li>Demographic </li></ul><ul><li>Psychographic </li></ul><ul><li>Behavioral </li></ul>
  9. 9. Geographic <ul><li>Region -South, North-East etc. – Dish TV, Ranotsav </li></ul><ul><li>City – Ahmedabad Mirror </li></ul><ul><li>Rural & Semi-Urban – e-chaupal, Rajdoot </li></ul>
  10. 10. Demographic Segmentation <ul><li>Age and Life Cycle - Hungama </li></ul><ul><li>Life Stage – Savings Scheme </li></ul><ul><li>Gender – Wave, Pleasure </li></ul><ul><li>Income – Revlon </li></ul><ul><li>Generation - Gillette </li></ul><ul><li>Socio-Economical Class – Platinum Card </li></ul><ul><li>Occupation: Teachers’ Home Loan Scheme by SBI </li></ul><ul><li>Education: Training Institutions, Placement Consultants </li></ul>
  11. 11. Profiling Generations <ul><li>GI Generation </li></ul><ul><ul><li>1901-1924 </li></ul></ul><ul><li>Silent Generation </li></ul><ul><ul><li>1925-1945 </li></ul></ul><ul><li>Baby Boomers </li></ul><ul><ul><li>1946-1964 </li></ul></ul><ul><li>Generation X </li></ul><ul><ul><li>1965-1977 </li></ul></ul><ul><li>Generation Y </li></ul><ul><ul><li>1978-1994 </li></ul></ul><ul><li>Millenials </li></ul><ul><ul><li>1995-2002 </li></ul></ul>
  12. 12. Psychographic <ul><li>Lifestyle – Culture (Amul Butter Milk, Lassi,, Sankalp), Sports (Signature), Outdoor oriented </li></ul><ul><li>Personality – Compulsive, Gregarious, Authoritarian, Ambitious (Bristol) </li></ul>
  13. 13. Behavioral Segmentation <ul><li>Decision Roles </li></ul><ul><li>Initiator </li></ul><ul><li>Influencer </li></ul><ul><li>Decider </li></ul><ul><li>Buyer </li></ul><ul><li>User </li></ul><ul><li>Behavioral Variables </li></ul><ul><li>Occasions (Amul, Monaco, TGB) </li></ul><ul><li>Benefits (Lyril, H & S) </li></ul><ul><li>User Status (Dermicool) </li></ul><ul><li>Usage Rate (R-Connect) </li></ul><ul><li>Buyer-Readiness (i-72) </li></ul><ul><li>Loyalty Status (Jet Privilege) </li></ul><ul><li>Attitude (Sevlon) </li></ul>
  14. 14. Segmenting for Business Markets <ul><li>Demographic ind, co. size, location </li></ul><ul><li>Operating Variable – tech, user status, custo capabilities </li></ul><ul><li>Purchasing Approaches – stru, rela, policies, criteria </li></ul><ul><li>Situational Factors – urgency, appl, order size </li></ul><ul><li>Personal Characteristics – simi, risk atti, loyalty </li></ul>
  15. 15. Models of Sequential Segmentation <ul><li>Stage of decision </li></ul><ul><li>First-time prospects </li></ul><ul><li>(Patience and Empathy) </li></ul><ul><li>Novices </li></ul><ul><li>(Knowledge) </li></ul><ul><li>Sophisticates </li></ul><ul><li>(Elegant, Quick-grasp, Technical, Stylist) </li></ul><ul><li>Orientation </li></ul><ul><li>Price-oriented </li></ul><ul><li>(transactional selling) </li></ul><ul><li>Solution-oriented </li></ul><ul><li>(consultative selling) </li></ul><ul><li>Strategic-value </li></ul><ul><li>(enterprise selling) </li></ul>
  16. 16. Steps in Segmentation Process <ul><li>Needs-based segmentation </li></ul><ul><li>Segment identification </li></ul><ul><li>Segment attractiveness </li></ul><ul><li>Segment profitability </li></ul><ul><li>Segment positioning </li></ul><ul><li>Segment acid test </li></ul><ul><li>Marketing mix strategy </li></ul>
  17. 17. Effective Segmentation Criteria <ul><li>Measurable </li></ul><ul><li>Substantial </li></ul><ul><li>Accessible </li></ul><ul><li>Differentiable </li></ul><ul><li>Actionable </li></ul>
  18. 18. Segmentation Actions <ul><li>Single Segment Conc. </li></ul><ul><li>Selective Specialization </li></ul><ul><li>Product Specialization </li></ul><ul><li>Market Specialization </li></ul><ul><li>Full Market Coverage </li></ul><ul><li>Managing Through Differentiated Costs </li></ul><ul><li>Planned Invasion </li></ul><ul><li>Updating Segmentation schemes i.e. market partitioning through brand dominant to nation dominant hierarchy) </li></ul><ul><li>Ethical choices </li></ul>

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