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Se g m en ta tio n
Segmentation: Product Services

Presented by:
Dwijesh Nath Tiwari FC10134

Mayank Jain FC10143

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The Segmentation Process

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To marketers, markets are people, plain and simple. Product markets Market segments The market segments that a company decides to serve with their marketing efforts are referred to as target markets.

What is Market?

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Segmentation : What? and Why?

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Converting a heterogeneous demanding markets into homogenous groups based on similar characteristics or traits. By excluding groups of people who are less likely to buy a firms brand, the firm has additional resources to focus on groups with the greatest potential to become customers. Decisions to overlook certain groups are meant to increase the efficiency with which a firm can serve its customers as well as the profitability of serving them.

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Major Segmentation Decision

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Product Category Decision

A product category is simply a group of products that, on some level, provide similar sets of benefits. From the basic level, product categories may be superordinated (made more abstract or general) or subordinated (made more specific). The main reason why product category decisions are so important is that they help marketers define their competition.
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Major Subgroup Decisions

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Desired benefits :
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Positive consequences that result from purchasing or using a product. Understanding why people buy products is critical to effectively promoting the product. Second, understanding why people buy can be terribly complicated. Four Types of Desired Benefits are:

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Motivation Communication al Preferentia Economical Sense of Security l Ease of operation Peace-of-mind

Functional Psychological Click icon to add picture

Be ne fit Pr ofi le for Tw o M ob ile Br an ds

Functional Motivatio nal Preferent Luxury ial Higher Performance
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Psychological Need for Variety Stylish Brand Status

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Demographic variables
Demographic variables include such physical characteristics as sex, ethnicity, and age. Social demographic characteristics include income, occupation, religion, and education. It is the most popular variable used while segmentation.

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Geographic variables
Geographic variable plays an important role and presents a big challenge for marketers in India. The sheer size and diversity of the geography of the country also affects the demographics of the country. The big divide between rural and urban in India is a critical factor in India as the two are characteristically Segmentation: Product Services very different from each

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Geographical Variable

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Psychographic Variables
Psychographic Segmentation

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Describe people in terms of their life style

Activity (What they do)

Interests (What they like)

Opinion( Wha t they think)

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Abundant resources

Minimal resources
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C l a s s i f i c a
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t y l e
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Describing segments using the traditional segmentation bases.

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Target Market Decisions

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Qualities of good target markets Measureable Compatible Accessible Substantial

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Process for describing Market Segmentation

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Segmenting for a Service Product (Fine Dining Restaurant)

Psychogra phic (Lifestyle) Actualizers
Achievers Experiencers

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Demogra phic
Age(25-45) Income(high) Gender(Male and Female)

Benefit Sought

Status, Luxury, Quality New Experience

Geograp hic
Metropolitan (Posh Area)

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"

Thank You"
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