MARKET SEGMENTATION

Market segmentation is based on fact that

markets are heterogeneous & not homogeneous. Homogeneous market refer to a market situation where the prospective buyers of any product are found to be uniform in their needs, habits ,choices, nature, etc.

CONT------ Heterogeneous market refer to a market situation

where the prospective buyers of any product are not found homogeneous in their needs, habits, choices, nature, etc. Market segmentation refers to dividing the heterogeneous markets into smaller customer groups having certain homogeneous characteristics. Such as income, age, sex, etc.

DEFINITION OF M.S
Market segmentation is the sub-dividing of a

market into homogeneous subset of consumers , where any subset may conceivably be selected as a market target to be reached with a distinct marketing mix. (Philip Kotler )

OBJECTIVES OF M.S
To make grouping of customers on the basis of

their homogeneous characteristics. To identify the needs, tastes, buying-motives of target customers. To determine marketing strategies, targets & goals of the firm. To make the activities of the firm consumer oriented.

CONT------ To identify the areas where the customers may be

created and market area can be expanded. the main aim of market segmentation is to prepare separate marketing programmes or strategies for each segment so that maximum satisfaction to consumers of different segments may be provided.

APPROACHES OF M.S
The marketeers adopt several app. To segment a market.
App. To market segmentation

Mass marketi ng

Product differentiation marketing

Target marketing

MASS MARKETING
In this total market is considered as one segment.

Under mass marketing only one product is

produced & sold in the market for all customers with help of common marketing programme. It assumes that there is no significant difference amongst Consumers in terms of their need & wants e.g. coca-cola

PRODUCT DIFFERENTIATION MARKETING

In this marketing, marketeers uses product

differentiation app. Once marketeers learnt that consumers would not accept one quality product, the marketeers try to provide different size, colours, shapes, features & qualities in his product as per the needs & wants of the customer of different segments.

CONT------- It provide different product to different segment

E.g. maruti udyog ltd.

TARGET MARKETING
It defined as a set of actual potential buyers of a

product, service or idea . Target marketing help the marketeer to correctly identify the market- the groups of consumers for whom the product is designed. It has 3 steps :1. Market segmentation 2. Market targeting 3. Product positioning

BASIS OR CRITERIA OF M.S

The step towards developing a segmentation

strategy is to locate the bases or basis for segmenting the market. There are two simple division of product market. I. Consumer market II. Industrial market

ON THE BASIS OF INDUSTRIAL PRODUCT

Type of business activities basis 2. Geographical location basis 3. Usual purchasing procedure basis 4. Size of user
1.

On the basis of consumer market

1.

2.
3. 4. 5.

Geographical basis Demographic basis Psychological basis behavioral basis Marketing basis

1- GEOGRAPHICAL BASIS
It is the most simple, convenient, popular, and

usual base for mkt segmentation. It includes : Region City size Density Climate

2- DEMOGRAPHIC BASIS
Under this basis, a market tries to differentiate

between groups of customers on the basis of demographic variables. It includes: Age Family size Family life-cycle Gender

CONT----- Income

Occupation
Education Religion Race Generation Nationality

3-PSYCHOGRAPHIC SEGMENTATION
It describe the human characteristics of

consumers. It segment the market on the basis that how people act. These include: personality life-style social class

4-BEHAVIORAL SEGMENTATION
Consumer behavior may also form the basis of

market segmentation. It includes: Occasions Benefits Users status User rate Loyality status

5-MARKETING BASIS
Marketing conditions also form an important basis

for market segmentation. There are latest variables used by modern marketeers. This include: Degree of competition Channels of distribution Buyer with price consciousness

IMPORTANCE OF MS

Knowledge of marketing opportunities Knowledge of customer needs Adopting effective marketing programme Proper allocation of resources Adjustment in products Increasing sales volume