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Market Segmentation
Market Segmentation
Market Segmentation
Subu Shrestha
Director, Business Advantage
Why?
You cant target everybody Your product/service is not for everybody You dont have enough funds You dont have enough time
Identify a common group of people Aggregate their mutual interests and needs
How?
Behavioristic Geographic Demographic Psychographic
Behavioristic
User Status
Usage Rate
Purchase occasion
Regular, special
Economy, Convenience, Low fat
Benefits Sought
Geographic
Region
Terai, Hills, Mountain Cold, Moderate, Hot Dense, Medium, Sparse Urban, Suburban, Rural
Climate
Population
Demographic
Age Gender Family size Income Occupation Education Nationality Religion Ethnicity
Values
Attitudes
Lifestyle
Personalities
Aggregating
Extrapolate it to a larger market for greater reach, sales and thus profits
Target Market
Narrow down to one or more target a company wishes to appeal to, design products for, and tailor its marketing activities toward. For advertisers, it helps determine the content, look and feel of advertising
Size
The current size of the market and potential for growth Who are the players currently in this market
Competitive position
Ethical issues
Product Lifecycle
Introductory
Maturity
Educate customers Create a need Significant expenses Sales rise Repeat purchases Competitors crop up
Growth
Saturated market Very less new customers Innovation required Obsolete Losses
Decline
Product Positioning
Positioning Strategies
Product Attributes
Formulation (Complan), Ingredients (FAL Ayurvedic), Technology (Apple) Health (Lifebuoy), Safety (Volvo), Sex appeal (Axe), Confidence (CloseUp), Satisfaction (Snickers) Time (After 8), Wedding (Tanishq)
Benefits
Usage Occasions
Product Branding
Branding enables advertising and thus, choice Name, Symbols, Packaging, Image and Personality that distinguishes it from the competition
Offers instant recognition and identification Promise consistent, reliable standards of quality, taste, size, etc. Customer loyalty Long term profits
Brand Equity
Intangible, yet worlds top brands have value worth billions of dollars
When people consciously make a choice of one product over another, they are exercising their brand preference which are instilled by advertising. Then image of the Marlboro Man has endured over 50 years
Types of Brands
Individual brand
Unilever markets toothpastes with individual brands such as Close-Up and Pepsodent Bajaj wants to go for individual brands instead of Family/Umbrella Brand. Dabur and TATA markets all its products under one umbrella of Dabur
Family brand
Thank You!
subushrestha@yahoo.com