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  • Session 6 Market Segmentation

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    Market segmentation involves dividing the overall market into sub-markets or segments based on characteristics like geography, demographics, psychographics, buyer behavior, benefits, and purchase volume. This allows marketers to target specific segments effectively, focus marketing efforts, and ensure benefits for both marketers and customers. Some examples of market segmentation bases include age, income level, lifestyle, degree of product use, and benefits sought from a product. Choosing the wrong target market can render a company's strategy ineffective.

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    Market segmentation involves dividing the overall market into sub-markets or segments based on characteristics like geography, demographics, psychographics, buyer behavior, benefits, and purchase volume. This allows marketers to target specific segments effectively, focus marketing efforts, and ensure benefits for both marketers and customers. Some examples of market segmentation bases include age, income level, lifestyle, degree of product use, and benefits sought from a product. Choosing the wrong target market can render a company's strategy ineffective.

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    89 views11 pages

    Session 6 Market Segmentation

    Uploaded by

    Narayana Reddy
    Market segmentation involves dividing the overall market into sub-markets or segments based on characteristics like geography, demographics, psychographics, buyer behavior, benefits, and purchase volume. This allows marketers to target specific segments effectively, focus marketing efforts, and ensure benefits for both marketers and customers. Some examples of market segmentation bases include age, income level, lifestyle, degree of product use, and benefits sought from a product. Choosing the wrong target market can render a company's strategy ineffective.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    Session 6

    MARKET
    SEGMENTATION
    Marketers usually divide the mixed market for any
    product into segments, with relatively more uniform
    characteristics, this process of disaggregating a
    market into a number of sub-markets/segments is
    known as market segmentation.
    ►Facilitates Proper Choice of Target Market.
    ►Facilitates Tapping of the Market, Adapting the Offer to
    the Target.
    ►Enables the marketer to resolve itself the needs of the target buyers.
    ►Helps to generate an accurate prediction of the likely responses from each
    segment of the target buyers.
    ►Makes the Marketing Effort more efficient and
    Economic.
    ►Ensures that the marketing effort is concentrated on well defined and
    carefully chosen segments.
    ►Benefits not only to the marketer but to the customer as
    well.
    Major Bases for Segmentation
    ►Geographic
    ►Demographic
    ►Psychographics
    ►Buyer Behaviour
    ►Benefits
    ►Volume of Purchase
    Geographic Segmentation:
    ►Climate zone
    ►Region
    ►State
    ►District
    ►Urban/Rural
    Demographic Segmentation:
    ► Age
    ► Sex (gender)
    ► Marital Status
    ► Family size
    ► Race
    ► Religion
    ► Community
    ► Language
    ► Occupation
    ► Income/Purchasing capacity
    ► Educational level
    ► Social Status
    Purchasing Capacity/Price Preference:
    Budget Car segment
    ►Maruthi 800 / Omni

    Compact Car segment


    ►Zen / Santro / Indica
    Family Car segment
    ►Maruthi Esteem / Daewoo Cielo / Tata Indigo
    Premium Car segment
    ►Opel Astra / Ford Ikon / Honda City / Mitsubishi Lancer
    Super Luxury segment
    ►Mercedes Benz / BMW / Audi
    Psychographic Segmentation:
    ►Personal traits
    ►Attitude
    ►Lifestyle
    Example: Titan created a sub-brand Fastrack under the Titan
    group. It was on the basis of life style based segmentation.
    Buyer Behavior Segmentation:
    ►Regular Buyers
    ►Special Occasion Buyers
    ►on occasion which product they buy
    ►Degree of Use: light, medium, high
    Benefit Segmentation:
    Example: Titan offered Aurum and Royale in the gold
    watch range. Price ranged between Rs. 20000 to 1 lakh.

    For middle segment, Titan offered 100 different models in


    the range of Rs. 500 to 750

    Titan offered the Timex watches with price range of Rs.


    350 to 500
    Wrong Targeting Renders Strategy Ineffective:
    Example:
    Levi’s priced its jeans upwards of Rs 995 extending to Rs 2,295. Its
    target market as the college students in the age group of 15 to 25
    years.
    Reebok aiming at the segment of those with Rs 5,00,000 plus
    annual income. Volumes are not forthcoming at this price.
    Bata decided to embrace the high-end segments of the Indian shoe
    market as a part of its target market. It launched higher price tags.

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