Scribd
Upload
100 views34 pages

Session 7-Segmentation & Target Markets

The document discusses market segmentation, which involves dividing a heterogeneous market into smaller, more homogeneous submarkets. It describes the key reasons for segmentation as allowing companies to better understand customer needs, target the most profitable segments, and develop specialized offers. The main bases for segmentation discussed are geographic, demographic, psychographic, and behavioral factors.

Uploaded by

Aroop Sanyal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
100 views34 pages

Session 7-Segmentation & Target Markets

The document discusses market segmentation, which involves dividing a heterogeneous market into smaller, more homogeneous submarkets. It describes the key reasons for segmentation as allowing companies to better understand customer needs, target the most profitable segments, and develop specialized offers. The main bases for segmentation discussed are geographic, demographic, psychographic, and behavioral factors.

Uploaded by

Aroop Sanyal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 34

Segmenting and Targeting

Markets

Session 7
Segmentation
Dividing a heterogeneous market into a
number of smaller, homogeneous
submarkets.

Mass Market Market Segmentation


Segmentation
Itis obvious that a market for a product is
heterogeneous.
Consumers of a product vary in needs,
motives, characteristics and buying
behavior.
Marketers break the heterogeneous
market for the product into several sub
units of consumers.
Segmentation
The act of disaggregating a market into
distinct sub units of consumers is known
as market segmentation.
Segmentation
Segmentation groups the heterogeneous
consumers into homogeneous sub-units.
After segmentation, consumers will vary
across segments but will be homogeneous
within.
It is consumers who are segmented, not
product or price.
Why segment the market?
Locate distinctive customer groups within
a market
Divide the market for conquering the
market.
Facilitates choice of right segments as
target market.
Why segment the market?
Provides useful insights into the value
sought by each segment.
Crystallize needs of target buyer.
Elicit predictable responses from them.
Helps achieve specialization required in
product, pricing, distribution and
promotion for matching the customer
group.
Why segment the market?
Helps offer a compelling value
proposition to each segment.
Focus on the most productive and
profitable segments.
Spot the less satisfied segments and
concentrate on them.
Benefits the consumer as well.
1) Market Segmentation- Bases
 Geographic
 Demographic
◦ Age
◦ Gender
◦ Income
 Psychographic
◦ Lifestyle
◦ Personality Bases for
 Behavioral Segmentation
◦ Occasion
◦ Usage rates, user status
◦ Loyalty status
Geographic segmentation
Geographic segmentation- divides the
market into different geographical units
such as nations, regions, states etc.
To fit the need of individual regions.
Geographic segmentation
Examples of geographic segmentation-
Hilton hotel groups.
Hotels in business locations such as
Sydney Hilton are sleeker and
cosmopolitan- caters to business travelers.
Hilton Hotels in Hawaii are open, airy
and relaxed.
Geographic segmentation
Facebook uses information about a
computer’s location to sell localised ads.
Smart phones allow location tracking and
helps in geographic segmentation.
Examples of Geographic Segmentation
discussed in class
https://www.reliancefreshdirect.com/
http://timesofindia.indiatimes.com/city/
http://www.mcdonalds.com.hk/en.html
http://www.mcdonaldsindia.net/home.aspx
Demographic segmentation
Gender based segmentation.
In recent years, in India, women shoppers
have become a distinct and sizeable
segment.
Branded women’s wear has become a
sizeable business segment.
Lifestyle, Shopper’s Stop etc. are all
treating branded women’ s wear as a
lucrative segment.
Demographic segmentation
Women become a distinct segment for
shoes.
German shoe maker Adidas.
Has only women – focused stores across
the world e.g. China, Korea, US.
All women stores at malls like Eva Malls
in Bangalore.
Demographic segmentation
Woman- specific scooters
Hero Honda, Bajaj, TVS.
 Hero Honda Pleasure – 100 cc woman
specific scooters.
TVS Pep – scooters for women
consumers.
Demographic segmentation
Income based segmentation.
Tiffany’s and Louis Vutton offering
expensive perfumes, jewellery, bags to
affluent consumers.
Airlines offering economy class,
executive class, business class facilities
based on the purchasing power of
potential customers.
Demographic segmentation
Age based segmentation.
Nick Scali- a Sydney based Italian
furniture retailer aims its products at older
and more affluent buyers.
Johnson & Johnson aims its products at
babies.
Examples of Demographic Segmentation
discussed in class
http://www.johnsonsbaby.com/baby-produ
cts
http://www.cadburybournvita.in/
http://www.shoppersstop.com/?gclid=CNH
t7Omn58YCFRYSjgodRqsDxQ
http://www.trivago.in/shimla-84770/hotel
http://www.airindia.in/economy-class.htm
http://www.airindia.in/executive-class.htm
Psychographic segmentation
Combination of beliefs, attitudes,
activities, interests, opinions of potential
consumers.
Titan is a nice example.
Café Coffee Day is another good
example.
Companies manufacturing green products
can be another example.
Philanthropic organizations may also
follow this segmentation.
Examples of Psychographic
Segmentation discussed in class
https://www.fitnessfirst.com/
http://www.tatapower.com/
http://www.cafecoffeeday.com/
http://www.aamoksh.com/
Behavioral segmentation
Purchase occasions- Mother’s Day,
Valentine’s Day etc. to promote the sale of
gifts, cards etc. from Archies.
Benefits sought- Tartar Control Colgate
Fluorigard- appeals to family segment;
Colgate Herbal White directed at those
who want no artificial ingredients,
Rexona’s Close Up appeals to those
desiring breath freshness.
Behavioral segmentation
Usage rate- light-medium and heavy
users.
 Retail stores.
 Airlines.
 Credit card users.
Behavioral segmentation
Loyalty status- loyal and non loyal
consumers.
Companies could study their own loyal
consumers and develop marketing
appeals.
Apple could study mac fanatics and
develop marketing appeals.
Behavioral segmentation
User status – requirements of consumers
change as they progress in life.
Example: A newly married couple has a
set of requirements which are quite
different from the requirements that they
had when they were singles.
Home Shop 18 , an online shopping
portal targets newly wed couples with
products that they require for setting up
their home.
Examples of Behavioural Segmentation
discussed in class.
http://www.coca-colaindia.com/
http://www.vlccwellness.com/India/
ttp://www.homeshop18.com/s/newlywed_
musthaves
http://www.airindia.in/
https://www.apple.com/in/
http://www.archiesonline.com/
Targeting
The market segment toward which
the organization decides to direct its
marketing plan

Target
Market
Selecting the Segment to Target

Company Company
Marketing Market Marketing Segment 1
Mix Mix 1
Company
Marketing Segment 2
Undifferentiated Marketing Mix 2
Company
Marketing Segment 3
Company Mix 3
Marketing Segment 1
Mix
Differentiated Marketing

Concentrated Marketing
Which Segment? (Measures of Segment
Attractiveness)
Measurability – can the size and the
purchasing power of the segment be
determined? Profitability?
Accessibility – the degree to which the
segments can be reached and served
Substantiality – are the segments large
and profitable enough? Growth rates?
Actionability – can effective programs be
designed to attract the segments
Develop Positioning
Product positioning is the way that a
product is defined by the consumer on a
number of important variables (attributes).
It is the place that a product occupies in
the consumer’s mind relative to
competing products
What is positioning?

quality
a
b

c fit
d

-- locating
locating the
thebrand
brand on
on attributes
attributes
-- relative
relativeto
to competitors
competitors
-- inside
inside the
thecustomer’s
customer’shead
head
Functions of the perceptual map….
a) to determine what current market
perceptions are of the market offering
b) to allow companies to plan ahead and
make changes to the positioning
c) the positioning map often hinges on the
value proposition
Perceptual mapping – Levi’s
High price Vintage

Red Line
Slates
Red Tab
Red Tab Elesco
Dockers Dry Goods

Designer
Silver Tab
Classic

Premium

501
L2
Dockers Red Tab
Classics Basics

Old product
Low price New product

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy