Scribd Logo
Upload

Welcome to Scribd!

  • 86 views

    Market Segmentation: - Prepared By: Hiren Kodiyatar (10) Parfez Virani

    Uploaded by

    lungi1
    This document provides an overview of market segmentation including: 1. It defines market segmentation as dividing a potential market into distinct subsets that may require separate products or marketing mixes. 2. It discusses various bases for segmentation including geography, demographics, psychographics, and benefits sought. 3. It outlines criteria for effective target market selection including identification, sufficiency, stability, and accessibility. 4. It explores strategies for implementing segmentation like undifferentiated, differentiated, concentrated, and customized approaches.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    Market Segmentation: - Prepared By: Hiren Kodiyatar (10) Parfez Virani

    Uploaded by

    lungi1
    86 views44 pages
    This document provides an overview of market segmentation including: 1. It defines market segmentation as dividing a potential market into distinct subsets that may require separate products or marketing mixes. 2. It discusses various bases for segmentation including geography, demographics, psychographics, and benefits sought. 3. It outlines criteria for effective target market selection including identification, sufficiency, stability, and accessibility. 4. It explores strategies for implementing segmentation like undifferentiated, differentiated, concentrated, and customized approaches.

    Original Title

    ch-3

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document provides an overview of market segmentation including: 1. It defines market segmentation as dividing a potential market into distinct subsets that may require separate products or marketing mixes. 2. It discusses various bases for segmentation including geography, demographics, psychographics, and benefits sought. 3. It outlines criteria for effective target market selection including identification, sufficiency, stability, and accessibility. 4. It explores strategies for implementing segmentation like undifferentiated, differentiated, concentrated, and customized approaches.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    86 views44 pages

    Market Segmentation: - Prepared By: Hiren Kodiyatar (10) Parfez Virani

    Uploaded by

    lungi1
    This document provides an overview of market segmentation including: 1. It defines market segmentation as dividing a potential market into distinct subsets that may require separate products or marketing mixes. 2. It discusses various bases for segmentation including geography, demographics, psychographics, and benefits sought. 3. It outlines criteria for effective target market selection including identification, sufficiency, stability, and accessibility. 4. It explores strategies for implementing segmentation like undifferentiated, differentiated, concentrated, and customized approaches.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 44

    Chapter 3

    Market Segmentation

    • Prepared by :
    Hiren Kodiyatar (10)
    Parfez Virani (34)
    Chapter Outline
    • What Is Market Segmentation?
    • Bases for Segmentation
    • Criteria for Effective Targeting of
    Segments
    • Implementing Segmentation Strategies
    Market Segmentation
    The process of dividing a
    potential market into
    distinct subsets of
    consumers and selecting
    one or more segments as
    a target market to be
    reached with a distinct
    marketing mix.
    Three Phases of
    Marketing Strategy
    Phase 3
    Product/Brand Positioning

    Phase 2
    Target Market and Marketing Mix Selection

    Phase 1
    Market Segmentation
    MARKET SEGMENTATION
    =
    • Dividing market into segments, each of
    which behaves differently vis-à-vis
    your product
    • Selecting certain segment(s)
    • Developing one marketing plan for
    each segment
    • Thinking small(er)
    Market segmentation
    aggregating consumers into groups that:

    1. Have common needs and


    2. Will respond similarly to marketing
    action.

    The groups that result from the


    market segmentation process are
    called market segments.
    Ryka produces
    sports shoes
    that meet the
    special needs
    of women’s
    feet.
    Bases for Segmentation
    Geography
    Geography

    Bases
    Bases Demographics
    Demographics
    Used
    Used to
    to
    Segment
    Segment Psychographics
    Psychographics
    Consumer
    Consumer
    Markets
    Markets Benefits
    Benefits Sought
    Sought

    Behavioral
    Behavioral
    Geographic
    Segmentation
    • The division of a total potential market into smaller subgroups
    on the basis of geographic variables (e.g., region, state, or city)

    • Market size

    • Market density : TV Companies

    • Climate: woollen clothes

    • City
    Demographic
    Segmentation
    • Age: Cartoon Network; MTV; News Channels
    • Gender: Cosmetics & After Shave
    • Income: Economical & Luxury goods
    • Ethnic background: Food
    • Family Life Cycle: Life Insurance Companies
    • Generation: old , young
    • Education: student , graduate , masters
    • Occupation
    Web sites for Singles
    Looking for a Match

    Match.com targets all The Right Stuff


    singles targets only Ivy
    League graduates
    Psychological
    Segmentation
    • Motivations
    • Personality
    • Perceptions
    • Learning
    • Attitudes Harley-Davidson Video
    Two High-End Watches for Different
    Psychological Segments
    Psychographic
    Segmentation
    • Psychographic segments market in terms of
    shared attitudes, interests, and opinions
    • Segments include demographic information
    such as age and income, but also includes
    richer descriptions
    • Some organizations develop their own
    psychographic segments for their
    consumers, but others utilize national
    systems (VALS by SRI International)
    Opinions
    and Attitudes
    ADBUSTERS
    Web site is
    targeted to
    consumers
    with a certain
    attitude
    weblink
    toward
    advertisers
    Sociocultural
    Segmentation
    • Family Life Cycle
    • Social Class
    • Culture, Subculture, and Cross-Culture
    Family Life Cycle
    Advertising
    Video cameras
    are often
    purchased by
    young couples
    with children.
    Target
    reaches out to
    the Latino
    market.
    Use-Related
    Segmentation
    • Rate of Usage
    – Heavy vs. Light
    • Awareness Status
    – Aware vs. Unaware
    • Brand Loyalty
    – Brand Loyal vs. Brand Switchers
    Usage-Situation
    Segmentation
    • Segmenting on the basis of special occasions
    or situations
    • Example Statements:
    – Whenever our daughter gets a raise, we always
    take her out to dinner.
    – When I’m away on business, I try to stay at a
    suites hotel.
    – I always buy my wife flowers on Valentine’s Day.
    Benefit Segmentation
    • The process of grouping customers
    into market segments according to
    the benefits they seek
    from the product .
    • Maruti Esteem, Honda City
    Band-aid
    offers “flex”
    as a
    benefit to
    consumers.
    Hybrid Segmentation
    Approaches
    • Psychographic-Demographic Profiles
    • Geodemographic Segmentation
    • SRI Consulting’s VALS
    VALS Framework
    •PRINCIPLE ORIENTED:
    •Fulfilled: Mature, Well Educated, Informed,
    Respectful but Open minded
    •Believers: Conservative, Conventional, follow
    established rules
    •STATUS ORIENTED:
    •Achievers:Committed to family and Work,
    Image is very Important
    •Strivers: Unsure of themselves, Money is a
    measure of success
    •ACTION ORIENTED:
    •Experiencers: Young, Vital, Enthusiastic,
    rebellions
    •Makers: Practical, Suspicious of new ideas,
    value working with their hands
    Criteria for Effective
    Targeting of Market
    Segments
    • Identification
    • Sufficiency
    • Stability
    • Accessibility
    Implementing
    Segmentation Strategies

    • Undifferentiated Segmentation Strategies


    • Differentiated Segmentation Strategies
    • Concentrated Segmentation Strategies
    • Customized Segmentation Strategies
    Undifferentiated
    segmentation

    • Appeals to a broad spectrum of people


    • Efficient due to economies of scale
    • Effective when most consumers have
    similar needs
    • Example: Big Bazaar
    Differentiated
    Segmentation
    • Develops one or more products for each of
    several customer groups with different product
    needs
    • Appropriate when consumers are choosing
    among well-known brands with distinctive
    images and it is possible to identify one or
    more segments with distinct needs for different
    types of products
    • Example:Lakme, Ponds, Fair & Lovely
    Concentrated
    segmentation
    • Entails focusing efforts on offering one
    or more products to a single segment
    • Useful for smaller firms that do not
    have the resources to serve all markets
    • Example:HMT Watches
    Customized
    segmentation
    • Segments are so precisely defined that
    products are offered to exactly meet the
    needs of each individual
    – Example: Xbox360
    • Mass customization is a related approach in
    which a company modifies a basic good to
    meet the needs of an individual
    – Example: Dell Computers
    Target Market

    Group of people or organizations for which an


    organization designs, implements, and
    maintains a marketing mix intended to meet
    the needs of that group, resulting in mutually
    satisfying exchanges.
    Strategies for Selecting
    Target Markets

    Undifferentiated
    Undifferentiated Concentrated
    Concentrated Multisegment
    Multisegment
    Strategy
    Strategy Strategy
    Strategy Strategy
    Strategy
    Undifferentiated
    Targeting Strategy
    Advantages:
     Potential savings on
    production and marketing
    costs

    Disadvantages:
    Disadvantages
     Company more susceptible
    to competition
    Concentrated
    Targeting Strategy
    Advantages:
    Advantages
     Concentration of resources
     Meets narrowly defined segment
     Small firms can compete
     Strong positioning

    Disadvantages:
    Disadvantages
     Segments too small, or changing
     Large competitors may market to
    niche segment
    Multisegment
    Targeting Strategy
    Advantages:
    Advantages
     Greater financial success
     Economies of scale

    Disadvantages:
    Disadvantages
     High costs
     Cannibalization
    Positioning
    Developing a specific marketing
    mix to influence potential
    customers’ overall perception of
    a brand, product line, or
    organization in general.
    Position
    The place a product, brand, or
    group of products occupies in
    consumers’ minds relative to
    competing offerings.
    Toothpaste Example
    • Pepsodent Tooth Decay
    • Close-Up Freshness Appeal
    • Aqua fresh Triple Benefit Teeth
    • Colgate CDC Strong Teeth
    • Colgate Jr Kids Brand with fluoride
    POSITIONING THE PRODUCT
    • Choosing a Positioning Strategy:
    – Identifying possible competitive advantages
    • Products, services, channels, people or image can be
    sources of differentiation.
    – Choosing the right competitive advantage
    • How many differences to promote?
    – Unique selling proposition
    – Choose more than one if others share a claim to be best:
    • Which differences to promote?
    - Some: Important, Distinctive, Superior, Affordable, visible to
    buyers.
    POSITIONING THE PRODUCT
    • Choosing a Positioning Strategy:
    – Developing a positioning statement
    • Positioning statements summarize the
    company or brand positioning
    • EXAMPLE: To (target segment and need) our
    (brand) is (concept) that (point-of-
    difference).
    – Communicating the chosen position
    Steps to Choosing and Implementing
    a Positioning Strategy

    • Step 1. Identifying a set of possible competitive advantages:


    – Competitive Differentiation.
    • Step 2. Selecting the right competitive advantage.
    • Step 3. Effectively communicating and delivering the chosen position to
    the market.
    • Step 4: Evaluate market response and reposition if necessary
    1.Attribute Positioning GM: Safety

    2.Benefit Positioning Maruti:Economy

    3. Use Positioning PVR:Leisure Based Entertainment

    4. User Positioning Bungee Jumping: Adventurous

    5.Competitor Positioning IIPM:Better Than IIMs

    6. Product Category IIMs: Best B School


    Repositioning

    Changing consumers’
    perceptions of a brand
    in relation to competing
    brands.

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy