Assignment 05 Group 02 Marketing Management

Assignment - 05
Marketing Management
Chapter – 8 Identifying Market Segments and Targets
Group -2
Members - Abhinandan Darbe (2024-2805-0001-0061)
Priyamvada Yadav (2024-2805-0001-0062)
Gurvinder Singh (2024-2808-0001-0001)
Jatin Verma (2024-1709-0001-0002)
Mansheel Sawhney (2024-1009-0001-0005)
Q1. What are the different levels of market segmentation?
Market segmentation can be thought of as a spectrum, starting broad and getting more refined:
• Mass Marketing: This is the "one-size-fits-all" approach. Companies offer a single product or
service to the entire market, assuming everyone's needs are pretty similar. It’s like Coca-Cola
saying, "Everyone loves a cold Coke," and aiming to get one in every hand.
• Segment Marketing: Here, companies recognize that not everyone is the same. They divide the
market into different groups based on common characteristics, such as age, income, or lifestyle.
Think of Nike offering different athletic shoes for runners, basketball players, and soccer
enthusiasts.
• Niche Marketing: Now we’re getting into smaller, specialized groups with unique needs. It’s
about finding a smaller pool of customers who have specific wants that aren’t being fully met.
For example, a company might sell luxury eco-friendly yoga mats made from recycled materials
for environmentally conscious yoga enthusiasts.
• Micromarketing: This is the most personalized level. It focuses on individual customers or local
groups, tailoring products or marketing strategies to fit their unique preferences. A good example
would be a coffee shop creating a custom drink based on your favorite flavors or a local bakery
offering a special cake for your town’s annual festival.
Q2. In what ways can a company divide a market into segments?

Companies can divide a market into segments using several approaches:
1. Geographic Segmentation: This method divides the market by location, such as country, region,
city, or neighborhood, recognizing that geographic areas may have distinct needs. For example,
clothing brands may offer different styles based on the climate of each region.
2. Demographic Segmentation: This approach segments customers based on measurable
characteristics such as age, gender, income, education, and occupation. For example, luxury car
brands target higher-income groups, while diaper companies focus on households with young
children.
3. Psychographic Segmentation: Here, the focus is on lifestyle, values, and personality traits. It
aims to understand customers’ deeper motivations. A brand like Patagonia targets eco-conscious
consumers who value sustainability, while Harley-Davidson appeals to those with a love for
freedom and adventure.
4. Behavioral Segmentation: This approach divides the market based on customer behavior, such
as purchasing habits, brand loyalty, or benefits sought. For example, airlines segment travelers as
business or leisure customers, offering tailored services for each group.
By combining these methods, companies can more accurately target segments with specific needs and
preferences, thereby enhancing their marketing effectiveness and allowing for more personalized
customer experiences.
Q3. What are the requirements for effective segmentation?
Requirements for Effective Segmentation should be as follows-
• Measurable: You should be able to define and measure the size and characteristics of the
segment. It’s hard to target "people who like cool stuff" if you can’t quantify who they are.
• Substantial: The segment needs to be large enough to be worth targeting. Even if you discover a
small group of customers with very specific needs, it might not make sense to cater to them if
they’re not numerous or profitable enough.
• Accessible: Can you actually reach these people with your marketing efforts? If you’re aiming to
target mountain-dwellers in remote areas, you’d need strategies that go beyond digital ads.
• Differentiable: Each segment should be distinct and respond differently to various marketing
strategies. You wouldn’t want to create a different campaign for groups that behave almost
identically.
• Actionable: It should be possible to develop tailored marketing programs that can effectively
reach and serve these segments
Q4. How should business markets be segmented?

Just like consumer markets, business markets can also be broken down in different ways:
• Demographic Variables: This might include the industry a company operates in, its size, or
location.
• Operating Variables: Think about whether the company uses a particular technology or has
certain service needs.
• Purchasing Approaches: How does the company buy things? Are they a big spender who values
close relationships with suppliers, or do they hunt for the best deal every time?
• Situational Factors: This could involve special circumstances, such as an urgent need for a
product or larger orders.
• Personal Characteristics: Even in business settings, personal relationships matter. Companies
often prefer to work with businesses they trust, share values with, or have established
relationships with.
Q5. How should a company choose the most attractive target markets?
To figure out which segments are worth pursuing, companies often weigh several factors:
• Size and Growth Potential: Larger and fast-growing segments can be very tempting, but they
aren’t always the best choice. Sometimes, a smaller segment can be more lucrative if there’s less
competition.
• Segment Structural Attractiveness: This involves analyzing things like how fierce the
competition is, whether there are many substitutes available, or if the power balance heavily
favors suppliers or buyers.
• Company Fit: Does the segment align with what the company does best? Even if a segment
looks appealing on paper, it won’t work out if the company can’t deliver a competitive offering or
lacks the needed resources.
• Porter’s Five Forces Analysis: By considering factors like potential new entrants, buyer and
supplier power, existing competition, and the threat of substitutes, companies can get a sense of
the segment’s appeal

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Assignment - 05

Q2. In what ways can a company divide a market into segments?

Q4. How should business markets be segmented?

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