Defining Marketing

Segmentation
 Market Segmentation
Market Segmentation is the sub-
dividing of customers into
homogenous sub-set of customers
where any sub-set may conceivably
selected as market target to be
reached with distinct Marketing Mix
Philip Kotler
 Segmentation is essentially the
identification of subsets of buyers within a
market that share similar needs and
demonstrate similar buyer behaviour. The
world is made up of billions of buyers with
their own sets of needs and behaviour.
Segmentation aims to match groups of
purchasers with the same set of needs and
buyer behaviour. Such a group is known as
a 'segment'.
 The process of defining and subdividing a
large homogenous market into clearly
identifiable segments having similar needs,
wants, or demand characteristics is called
Segmentation. Its objective is to design a
marketing mix that precisely matches the
expectations of customers in the targeted
segment.
 Requirements of Market Segments

In addition to having different needs, for segments

to be practical they should be evaluated against the
following criteria:
Identifiable
Accessible
Measurable
Substantial
Unique needs
Durable
 Bases for Segmentation
Geographic (Regional, Urban, rural,
Countrywise)
Demographic (age, gender family size, family
lifecycle, income, occupation, education)
Socio Psychographic (Lifestyle, Social Class,
Personality, Attitude, )
Behavioral (Occasion, Benefits, User status
etc.)
 Why Segmentation?
To develop marketing activities
Increase marketing effectiveness
Generate greater customer satisfaction
To identify strategic opportunities and niches
Allocation of marketing budget
Adjustment of product to the market need
To overcome competition effectively
To develop effective marketing programmes
To contribute towards achieving company goals
 Market targeting
After evaluating various segments the
company must decide which and how many
segments to target. A target market consists of
a set of buyers who share common needs or
characteristics that the company decides to
serve.
 Strategies of market targeting
Single segment Concentration
Product Differentiation
Market Differentiation
Mass Market Targeting
Or
Undifferentiated
Differentiated
Niche Marketing
 Characteristics of Niche Segment
Distinctive set of need
And for that they are ready to pay little more
Niche marketer gains EOS through
specialization
Adequate size, profit and growth potential
 Positioning strategies
Attribute positioning
Benefit positioning
Use or application positioning
User Positioning
Competitor Based positioning
Product Category positioning
Quality or Price Positioning
Celebrity endorsement positioning
Corporate umbrella Positioning
 New product Development
Its important to know different types of new
products before going into the modalities of
new product development:
New to the world
Addition to Existing product Line
New for a company
Factors Contributing to a New Product
Changing Consumer lifestyle

Changing Customer Preferences and Needs

Technological Changes
New Product Development Process
Idea Generation
Idea Screening
Concept Development and Testing
Marketing Strategy
Business Analysis
Product Development
Test Marketing
Commercialization