Market Segmentation

Market Segmentation • Market segmentation can be defined as a process of identifying a group of homogenous customers with similar needs, characteristics and behavior.

Levels of market segmentation • • • •

Segment marketing Niche Marketing Local Marketing Individual Marketing

Patterns of marketing Segmentation • Homogenous Preference • Diffused Preference • Clustered preference

Procedure • Survey stage • Analysis stage • Profiling stage

Basis for segmenting consumers • Geographic Region Density Climate EX – Amul which first marketed its product in Gujarat

Demographic • Age, Family size, Family life cycle, Gender, income, • P&G ARIEL and Tide’ Surf and surf excel • Occupation , education, religion • Race, generation, nationality and social class Ex- cosmetic manufacturers Gender DEO for men and women by same company

Behavioral Segment • Occasion Asmi Diamonds- Buy diamond for diwali, Birthday • Benefits Close-up fresh breath, Pepsodent – 24 hr protection • Usage rate Big Bazaar Segments consumer on volume of monthly purchase to give discounts • Loyalty status AIR INDIA- frequent flier plan Retail outlets loyalty programs • Readiness Stage • Attitude towards the product

Psychographics Segmentation • Lifestyle Ashirvad ready to eat package foods • Personality • Values Raymonds the complete man

Multi-attribute Segmentation • Age, Family size, Family life cycle, Gender, income • Occasion • Benefits • User status • Region

Target Marketing A market segment must be Measurable Substantial Accessible Differentiable Actionable

Selecting the market segment • Single segmentation concentration Ex woodland shoes • Selective specialization Anchor tooth paste • Product specialization M&M and Bajaj • Market specialization Pearsons publication of management books • Full Market coverage PEPSI, Coke, Bata

Other issues • Segment Interrelationship • Segment by segment invasion plans Megamarketing • Intersegment cooperation

Positioning • Positioning is the act of designing the companies offering and image to occupy a distinctive place in the mind of the target market

• Define the customer value • Building the customer value hierarchy • Deciding the customer package Building value value proposition

Product differentiation • Differentiation is designing a set of meaningful differences to distinguish the company’s offering from competitors offering

Developing and communicating a media strategy • • • • • •

Important Distinctive Superior Preemptive Affordable Profitable

Four positioning errors • • • •

Under positioning Over positioning Confused positioning Doubtful positioning

Positioning strategy • Attribute positioning • Benefit positioning Close-up fresh breath, Pepsodent – 24 hr protection • Use or application positioning • User positioning • Competitor positioning • Product category positioning • Quality or price positioning

Positioning strategy • Life style positioning Ashirvad ready to eat package foods • Positioning by personality of celebrity Provogue and Fardeen Khan

Benefit positing •

Headline: Charge up your workplace Subhead: Tencel A 100. 440 V Collection Bodycopy: What's new? Allen Solly's Tencel A100 fabric absorbs colour like no other. Making it the brightest shirt you'll ever wear. In 35 different patterns!

Product category positioning •

Subhead: To Indian housewives, our salt always come first. Bodycopy: Tata salt was rated the most trusted brand by housewives across India, in a recent Brand Equity-ORG Marg Survey. Thank you for the faith. Baseline: Maine desh ka namak khaya hai!