Presented By:-

ZAKI ANWAR
 What is a Market?

BUT - not just ANY people

They have to have………………..

• Willingness to buy
• Purchasing power (money)
 Market Segment

• Portion of a larger market

• It consist the individual, group, or

organizations.

• These segment have same need or

requirement for any product or
services.
 Why Define a Market
Segment?

 To understand customer needs

 Focus “whole solution” for narrower set of
customer needs
 It helps to become a leader in a smaller market
(Big fish in small pond)
 Through market segment we earn more profit.
 Market Segmentation

Dividing a market into distinct groups of buyers

on the basis of needs characteristics or behavior
who might require separate product or marketing
mixes.

“Grouping people according to their similarity

related to a particular product category”
 It Shows
Segmentation…

Seg. 1 Seg. 3
Seg. 2
Segment marketing

Individual marketing

Niche marketing

Local marketing
Segment marketing

 Dividing the market into different segments

on the basis of homogenous need.
 Segmented on basis of broad similarity with
regard to some attributes.
Individual Marketing
 Extreme marketing in which marketers focus on
individual customers.
 Keep track of individual tastes & preferences of
individual customers
 Many companies are approaching individuals
through e-mails to promote their products.
Example:
• Insurance Policy
• Designer’s Clothes
• Architects
• Software
Niche Marketing

 Marketers effort to position their

product or service in smaller markets
that have similar attributes and have
been neglected by other marketer
 Segment further divided into sub
segments to cater unsatisfied needs
of small group is called as niche
Example: BMW Cars, iPhones,
Local Marketing

Marketers offer customized products to suit the

local markets or local customer.

Example: KFC (Kentucky Fried Chicken)

introduced “Muslimized” products such as Spicy
Chicken, Hilal Chicken, Zinger Extreme and more…
 Bases for
Segmentation
1. Geographic Variable

2. Demographic Variable

3. Psychographic Variable

4. Benefits Variable
arkets: Geographic Variables

Region City or Metro Size Density Climate

Major
South India, Urban, Temperat
North India, Metropolitan ure,
Semi-Urban,
Mountain areas, Small Hot,
States Rural etc. Humid,
City, Town
etc. etc. Rainy etc.
rkets: Demographic Variables

Age Under 12, 15, 18, 24, 32, 40 +

Gender Male, Female
Student, Businessman, Professional( Doctor,
Occupation
Engineer etc.), Labor
Family Size
Single, married couple, 4 members, 6
thmembers
Illiterate, !0 Pass, Graduate, Post
Education
Graduate
Nationality Indian, American, Russian
Religion Hindu, Muslim, Christen, Sikh
Low (up to Rs. 40,000 p.a), Medium (up to Rs.
Income 1,20,000 – 3,00,000 p.a), High (above Rs. 3,00,000
p.a),
rkets: Psychographic Variable

Lifestyle
Cultured, Hobbies, TV viewing habits, Club Member

Personality
Compulsive, Outgoing, Authoritarian, Ambitious

Attitude Posative Attitude, Negative Attitude

arkets: Usage Variables
Occasions Regular occasion, special occasion

Benefits Quality, service, economy, speed

Nonuser, ex-user, potential,
User status
first-time, regular

Usage rate Light user, medium user,

heavy user
Loyalty status None, medium, strong, absolute
Buyer-
Unaware, aware, informed,
readiness
stage interested, intends to buy
Attitude Enthusiastic, positive,
toward indifferent,
product negative, hostile
 EXAMPLE OF
SEGMENTATION

Titan identified various distinct

market segments for its watches.
The First Segment

• It consisted of the high

income / elite consumers
Offering
• Titan offered Aurum and
Royale in the gold/ jewelry
watch range.
Price
Between Rs.20,000 - Rs. 1 lakh
The Second Segment

It consisted those consumers who

preferred some fashion in their
watches but to them price did
matter.
Offering
• Titan offered Exacta range in
stainles steelwatch with 100
different models.
Price
Rs.500-700
The Third Segment

The third segment consisted of the

lower-income consumers
Offering
Titan offered TIMEX and SONATTA
with
200 different models.
Price
Rs. 350 – 500
The Fourth Segment

The fourth segment targeting

the
female customer
Offering
Titan offered RAGA.
The Fifth Segment

This segment targeting children

Offering
Titan offered DASH.
 Strategic Segmentation

Differentiated
• Different marketing strategies
Marketing for
different segments.
• Focusing into each segment
separately.
• Higher sales and higher costs
Example
•Maruti Suzuki (Sx4, WagonR,800)
 Strategic Segmentation

• Take whole market as a single

Undifferentiated Mkt.
Marketing
/ Mass Marketing • One strategy for entire
market
• No segmentation
Example
Colgate Tooth Paste
Strategic Segmentation

•Target a small market

Concentrated
Marketing •To get a large share
•Small firm survival
 Importance Of Market
Segmentation
Easy for Marketing Appeals

To spot marketing opportunities

Proper Allocation of marketing budget

Making the competition effectively

Effective marketing programme

Evaluation of marketing activities

Increase in sales volume

 Conclusion

Market Segmentation is the backbone of

marketing tactics. No matter of the
locality market segmentation plays an
important role in the products life cycle.
It is one of that important practice that
can never be ignored and specially in
this era of mass customization.