Segmentation

SEGMENTATION

SEGMENTATION • IT MAY NOT BE POSSIBLE FOR A BUSINESS UNIT TO CATER TO NEEDS OF ALL CUSTOMERS. • EARLIER THERE WAS HOMOGENOUS MASS CUSTOMISED PRODUCTS/SERVICES, BUT NOW CUSTOMER SHOWING PREFERENCES FOR CUSTOMISED PRODUCTS/SERVICES THAT SUITS HIS NEEDS/EXPECTATIONS. • SEGMENTATION MOST ESSENTIAL MARKETING CONCEPT.

SEGMENTATION • THREE ALTERNATIVE APPROACHES POSSIBLE 1. UNDIFFERENTIATED 2. DIFFERENTIATED –SEPARATE MARKETING MIX FOR EACH SEGMENT 3. CONCENTRATED APPROACHFOCUSSING ON A PARTICULAR SEGMENT.

– DEFINITION OF SEGMENT A GROUP OF CUSTOMERS WHO RESPOND IN A SIMILAR WAY TO A GIVEN SET OF MARKETING STIMULI. -

DEFINITION OF SEGMENTATION PROCESS OF DIVIDING A MARKET INTO DISTINCT GROUP OF BUYERS WITH DIFFERENT NEEDS, CHARACTERISTICS, BEHAVIOUR WHO MIGHT REQUIRE SEPARATE PRODUCTS OR MARKETING MIXES.

MARKETER SHOULD IDENTIFY AND SELECT A SEGMENT THAT HE IS CONFIDENT OF SERVING BETTER-GIVEN THE RESOURCES AND CONSTRAINTS.

BASES FOR MARKET SEGMENTATION

• DEMOGRAPHIC– AGE, SEX. SIZE AND STRUCTURE OF FAMILY, INCOME,EDUCATIONAL LEVEL. • GEOGRAPHIC– NATIONS, STATE, LOCALITY • PSYCHOGRAPHIC—LIFESTYLE, PERSONALITY • BEHAVIOUR– BENEFITS, PURCHASE OCCASION, USER STATUS( EX-USER,NON USER,POTENTIAL USER,REGULAR USER, FIRST TIME USER)USER RATE, LOYALTY, BUYER READINESS AND MARKETING FACTORS.

SEGMENTATION OF INDIAN INSURANCE SECTOR ( LIFE INSURANCE) • INDIVIDUAL

-- PROTECTION INVESTMENT

SAVINGS (ENDOWMENT) PENSION CORPORATE PROTECTION STATUTORY SAVINGS(GRATUITY) PENSION(Group Superannuation) ------------------------------------------------------------------------------2. URBAN RURAL customers.

REQUIREMENTS OF EFFECTIVE SEGMENTATION • MEASURABILITY • ACCESSIBILITY(ABILITY TO REACH OUT TO SEGMENT) • SUBSTANTIABILITY • ACTIONABILITY