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



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

Product differentiation
Differentiation is designing a set of
meaningful differences to distinguish the
companys 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!