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Marketing Management - Market Segmentation
Marketing Management - Market Segmentation
• Wants
• Purchasing Power
• Geographical Location
• Buying Attitudes
FLEXIBLE MARKET OFFERING
• Even in segments 100 % needs are not
same – consists of two parts
1.Naked Solution :- products and services that
all members of the segment values.
2.Discretionary options :- that some segment
members value. Each option might carry an
additional charge.
Example: Automobile industry – basic model is
same but for A.C , power steering, power
window buyer
has to pay extra price.
Delta Airlines offers all economy
passengers a seat and soft drinks. It
charges economy passengers extra for
alcoholic beverages.
Market Segments can be defined in many
different ways. One way to carve up a
market is to identify Preference
segments
Suppose ice cream buyers are asked how
much they value sweetness and
creaminess as two product attributes.
Three different patterns can emerge.
Homogeneous preference :
– where all the consumer have roughly the same preferences.
– We would predict that existing brand would be similar and
cluster around the middle of the scale in both sweetness and
creaminess.
Diffused preference :
– consumers vary greatly in their preferences
Clustered preference :
creaminess
sweetness
Homogeneous Preference
-no natural segments
-all buyers have same preference
creaminess
sweetness
Diffused Preference
-no pattern (…or poor research)
-take center position
creaminess
sweetness
Clustered Preference
-natural segments
-increases as number of competitors increases
2. NICHE MARKETING
Group of customers seeking a distinctive mix of benefits who are
ready to pay extra premium.
Niche = segment sub – segments
Pune
Chitle sarees
Kashmiri silk
4. INDIVIDUAL MARKETING
• Ultimate segmentation – segments of 1 or customized marketing or
one to one marketing.
• Customerization – empower the consumers to design the product
or service offering of their choice.
• Ex. Paint companies have started doing this- Asian Paint , Nerolac ,
Berger Paints
• Arvind mills launched Ruff’n Tuff Jeans, branded ready – to – stitch
GEOGRAPHIC SEGMENTATION
Divide the market into different group based on :
• Region – South India , North , Western Region, East
• City – metro cities, cities with population more than 1
million
• World
• Density
• Climate
• States