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Market Segmentation

Paramjit Sharma
Market Segmentation

Paramjit Sharma
Market

Market is
People or Organisation with
Needs or Wants with
The Ability and
Willingness To Buy

Paramjit Sharma
Market Segment

Within a Market a

•Segment is a Sub-Group of
•People Or Organizations
•Sharing one or More Characteristics
•That Cause them to have Similar Needs

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Market Segmentation

The Process of Dividing a


market into

•Relatively Similar
•And Identifiable
•Segments or Groups
•Called Market Segmentation

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LEVELS OF MARKET SEGMENTATION

Segment Marketing Individual


Customer
Marketing

Niche
Marketing
Local Marketing
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LEVEL OF MARKET SEGMENTATION

Segment Marketing

Identifiable Group with in a


Market With Similar
ALTO
•Wants
•Purchasing Power
•Geographical Location
•Buying Attitudes
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Narrowly defined Group (Small)
Whose needs are Not well served

•Distinct Needs
Niche •Pay Premium
Marketing •Specialization
•Less Competition
•Size, Profit & Growth
• Potential
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LEVEL OF MARKET SEGMENTATION

Individual
Customer
Marketing

Marketing According To Individual’s Order

•Customized Marketing
•Cars /Tailors
•Designer’s Clothes
•Architects
•Software
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LEVEL OF MARKET SEGMENTATION

Local Marketing

Marketing Programmes Serving


Needs & Wants Of Local Customers

•Local Pune
•Region Chitle Sarees
•State
Kashmiri
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Silk
Criteria's for Effective
Segmentation

4 Purpose Of Segmentation

1 Identifying Groups Of Customers with similar Needs

2 Analyze Their Characteristics & Buying Behaviors

3 Providing Products Matching with Needs

4 Satisfying Needs While Meeting


Paramjit Org. Objectives
Sharma
Segmenting Consumer Markets

Geographic
Demographic
Psycho graphic
Behavioral
Multi-attributable

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Geographic

Nations
States
Regions
Cities
World
M-Size
Density
Climate Paramjit Sharma
Demographic

Age
Family Size
Family life cycle
Gender income
Occupation
Education
Religion
Generation
Nationality
Social ClassParamjit Sharma
Psychographic

Life Styles
Personality
Values

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Behavioral

Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Readiness
Stage
Attitude
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Multi-attributes-Geoclustering

PRIZAM(Potential Rating Index by Zip Markets)

•Education & Affluence


•Family Life Cycle
•Urbanization
•Race & Ethnicity
•Mobility
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Market Targeting

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M1 M2 M3
Single Segment
Concentration P1

•Volkswagen—small cars P2
•Porsche----sports car
P3

Can be Risky at Times


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M1 M2 M3
SELECTIVE
SPECIALIZATION P1

•No of Segments P2
•Type Of Cars

P3

Risk is divided
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M1 M2 M3
PRODUCT
SPECIALIZATION P1

•Several Segments P2
•Microscope-colleges, labs

P3

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Market Segments-Evaluation &
Selection

M1 M2 M3
MARKET
SPECIALIZATION P1

•Particular Customer Group P2


•Different Products to Univ

Books, labs, Computers, sports P3


goods.

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M1 M2 M3
FULL MARKET
COVERAGE P1

•General Motors-Cars for P2


every purse,purpose and
personality
P3

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Market Segments-invasion Plan
Customer Groups
Airlines Railroads Truckers
Product Varieties

Large
Comp

Midsize
Comp

Pers
comp

A B
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Market Segments-Inter-
segment Coop

A B
Market
C D

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Market Segments-Inter-segment Coop

A B
HQ Market

C D

Paramjit Sharma