MARKET
SEGMENTATION
BY ANUBHAV SINGH
MARKET SEGMETATION
•Market segmentation divided a market into well
defined slices. A Market Segmentation consists of a
group of customers who share a similar set of needs
and wants and Marketers task is to identify the
appropriate numbers and Nature of market segments
and decide which one to target.
MARKET SEGMENTATION
PATTERNS`
(A)
HOMOGENEOUS-A SEGMENT WITH MORE OR LESS SIMILAR
PREFERENCE. NO NATURAL SEGMENT
(B)
DIFFUSED THE CONSUMER PREFERENCES ARE SCATTERED
ALL OVER THE PLACE CUSTOMERS CHOICES ARE VERY
DIFFERENT.
(C)
CLUSTERED PREFRENCE—IN THIS CASE THE MARKET
REVEALS DISTINCT CLUSTERS EACH HAVING ITS OWN
PREFERENCES
HOMOGENEOUS MARKET
• CONSUMERS HAVE SAME PREFRENCE
• NO NATURAL SEGMENTS
• PREVALANT BRANDS WILL BE SIMILAR
DIFFUSED PREFERENCE
• CONSUMERS PREF SCATTERED ALL OVER.
• CONSUMERS CHOICES ARE DIFFERET
• FIRST BRANDS HAS “FIRST MOVER”
ADVANTAGE.
CLUSTERED PREFRENCE
MARKET SHOWS DISTINCT CLUSTERS. COS
HAVE FOLLOWING CHOICES.
1) POSITION IN CENTRE
2) POSITION IN LARGEST SEGMENT
3) DEVELOP A PRODUCT FOR EACH SEGMENT.
CRITERIA FOR SEGMENTATION
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GEOGRAPHIC
DEMOGRAPHIC
PSYCHOGRAPHIC
BEHAVIORAL
GEOGRAPHIC
• THE MARKET IS DIVIDED INTO COUNTRIES/ STATES
REGIONS ETC.
• Region
• City
• Rural and Urban Areas
• Classification
DEMOGRAPHIC
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AGE
INCOME
GENDER
GENERATION
SOCIAL CLASS
EDUCATION
RACE
RELIGION
NATIONALITY
DEMOGRAPHIC FACTORS
• AGE/ LIFE CYCLE STAGE
• GENDER-MAGZINES,CLOTHING,COSMETICS,HAIRSTYLE
• INCOME-MAY NOT REFLECT A PERSONS MONETARY CONDITIONS
• PLAYS A ROLE IN PROPDUCTS LIKE CARS, ACs, TRAVELLING
• GENERATION-MUSIC, POLITICS,LITERATURE, ENTERTAINMENT
• SOCIALISING etc
• SOCIAL CLASS-INFLUENCES LIESURE ACTIVITIES,
• DÉCOR,DRESSING READING ETC
PSYCHOGRAPHIC
• IN PSYCHOGRAPHIC SEGMENTATION
DIVIDED INTO GROUPS ON THE BASIS OF
CONSUMERS
ARE
• LIFESTYLE
• PERSONALITY--GIVING
THE
PRODUCT
PERSONALITY
ATTRIBUTES OF CONSUMER
• VALUES--INVESTING THE PRODUCTS WITH CORE VALUES /
BELIEFS.
• INFLUENCING CORE BELIEFS AND VALUES IS ONE OF THE
STRONGEST WAYS OF BONDING WITH PEOPLE
BEHAVIORAL SEGMENT
•
BEHAVORIAL SEGMENTATION IS BASED ON THE CONSUMERS
KNOWLEDGE,ATTITUDE AND RESPONSE TO A PRODUCT
•
SEGMENTATION IS POSSIBLE ON THE BASIS OF
OCCASIONS,BENEFITS,USER STATUS. USAGE RATE,LOYALTY ETC
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OCCASIONS
-PEOPLE BUY ON SPL OCCASIONS DIWALI,
EID, CHRISTMAS
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BENEFITS
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USER STATUS - EX USERS/ POTENIAL USERS/ NON USERS
USAGE RATE-CAN BE CLASSIFIED INTO HEAVY/LIGHT/MEDIUM
- COFFEE / SHAMPOO
LOYALTY STATUS
• BASED THE BEHAVIOR OF LOYALTY DISPLAYED HARD
CONSUMERS CAN BE CLASSIFIED AS
• HARD CORE LOYALISTS– ALWAYS PURCHASE THE SAME
BRAND
• SPLIT LOYALS– LOYAL TO TWO/THREE BRANDS
• SHIFTING LOYALTY—KEEP SHIFTING THEIR LOYALTIES TO
OTHER BRANDS
• SWITCHERS—CONSUMERS WHO DO NOT HAVE ANY LOYALTY
• COMBINING SEVERAL VARIABLES IN AN EFFORT TO IDENTIFY
SMALLER AND MORE FOCUSED GROUPS BY USING STATISTICAL
TOOLS LIKE GEO CLUSTERING.
• FOR SEGMENTATION TO BE EFFECTIVE IT MUST BE
• I) MEASURABLE– THE SIZE, PURCHASING POWER, DEFINING
CHARACTERISTICS
• II) SUBSTANTIAL—THE SEGMENT MUST BE SUBSTANTIALLY
LARGE AND PROFITABLE
• III) ACCESSIBLE—IT MUST BE EASY FOR THE CO TO REACH AND
SERVICE THE SEGMENT
THANK YOU