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Market Segmentation

Market segmentation involves dividing the market into distinct groups based on characteristics like demographics, psychographics, behaviors, or other attributes. This allows companies to better understand customer needs and target specific segments. Titan watches segments the market into rich, middle, and lower income groups. Effective segmentation criteria are measurable, substantial, accessible, differentiable, and allow companies to develop targeted marketing programs for each segment.

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Priya Roy
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153 views14 pages

Market Segmentation

Market segmentation involves dividing the market into distinct groups based on characteristics like demographics, psychographics, behaviors, or other attributes. This allows companies to better understand customer needs and target specific segments. Titan watches segments the market into rich, middle, and lower income groups. Effective segmentation criteria are measurable, substantial, accessible, differentiable, and allow companies to develop targeted marketing programs for each segment.

Uploaded by

Priya Roy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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MARKET SEGMENTATION AND

TARGETING
Market Segmentation
• Segmentation helps marketers understand
the needs of different customers better and
serve them with better value propositions.
• Example of market segmentation? Titan
Watches Arrives in three broad Segments •
The Rich • The Middle • The Lower
Why market segmentation?
• Increasing demand of consumers that exactly
match their needs.
• Some firms adapt segmentation because they
lack the ability to cater to the mass market.
• Indentifies less satisfied segment and firms
are able to concentrate on them with
products that cater to their needs.
MARKET SEGMENTATION LEVELS

SEGMENT MARKETING - TANISHQ

INDIVIDUAL MARKETING – AMAZON.COM

NICHE MARKETING - GUCCI

LOCAL MARKETING - McDONALDS


• GEOGRAPHIC – The market is divided according
to geographic areas- localities, regions, cities,
states , countries, etc. Ex: Hyderabad Times.
BASIS/CRITERIA OF MARKET
SEGMENTATION

DEMOGRAPHIC

AGE AND
LIFECYCLE GENDER INCOME GENERATION SOCIAL CLASS
STAGE
DEMOGRAPHIC SEGMENTATION
• AGE AND LIFECYCLE STAGE – the taste and preferences of a customer
change with time and age. Ex- Cadbury.
• GENDER – Products like garments, jewellery and watches are specific to
gender. Ex – Raymond.
• INCOME – Products and services such as apparels, automobiles, are
segmented on the basis of income groups. Ex- Titan
• GENERATION – Every generation is influenced by various activities of its
time like movies, politics, society, music, etc. These influences deeply impact
their product purchase pattern. Ex- GOT inspired Tshirts.
• SOCIAL CLASS – This segmentation is influenced by customer choices of
automobiles, interior decorations, reading habits, clothing preferences, etc. Ex-
Allen Solly.
BASIS/CRITERIA OF MARKET
SEGMENTATION

PSYCHOGRAPHIC

LIFESTYLE PERSONALITY VALUES


PSYCHOGRAPHIC SEGMENTATION

• LIFESTYLE – Consumers tend to purchase products that suit their lifestyle.


Ex – Titan has introduced Fastrack to target young urbanites.
• PERSONALITY – Consumers either have a particular characteristic or aspire
to have that particular characteristic and will be influenced positively to buy that
particular brand.
• VALUES – If values of the customers can be influenced, impact on customers
will be for longer period. Marketers need to develop their communication
program in such a way that they can affect customer’s long term choices and
desires.
BASIS/CRITERIA OF MARKET
SEGMENTATION

BEHAVIORAL

LOYALTY BUYER
OCCASIONS BENEFITS USAGE RATE ATTITUDE
STATUS READINESS
BEHAVIORAL SEGMENTATION
• OCCASIONS – Consumers tend to different products for different occcasions. Ex- Archies
• BENEFITS– Market is divided on the basis of benefits that the consumers seek form the
products.
• USAGE RATE – Usage rate can be divided into heavy, medium and light and accordingly the
customers are segmented. Ex- Indian Airlines gives “frequent flier status’ to its heavy users.
• LOYALTY STATUS:
HARD CORE LOYALS – Customers are extremely brand loyal. Ex- Beetle automobile of Volkswagen.
SPLIT LOYALS – USE more than one brand. Loyalty divided in to two or three brands. Ex- two to three
perfume brands.
SHIFTING LOYALS – Customers who shift their loyalty from one brand to another. Ex- Soaps.
SWITCHERS- Customers who are not brand specific. Might buy any brand on impulse or to seek
variety.

• BUYER READINESS STAGE – A desire has to be developed in consumers, which will lead
them to take action.
• ATTITUDE – Enthusiastic, Positive, Indifferent, Negative and Hostile.
EFFECTIVE SEGMENTATION
–
• MEASURABLE The variable used for the segmentation of the markets
should be measurable to be effective. Ex- purchasing power of
consumers.
• SUBSTANTIAL – Each segment should consist of adequate number of
customers worth catering to. Ex – equipment producing companies
manufacture for right handed person.
• ACCESSIBLE – The appropriate selection of media, its coverage and other
factors like product distribution facilities play a major role in a marketer
becoming accessible to customers.
• DIFFERENTIABLE – Each segment should be different from others in
terms of its needs and wants. Ex- A motorcycle manufacturer can
segment the market on the basis of usage of product.
• ACTIONABLE – A segmentation variable should help marketers develop
effective marketing programs to attract and serve potential customers.
SELECTING THE MARKET SEGMENTS
• SINGLE SEGMENT CONCENTRATION – single segment concentration
gives marketer the advantage of high sales, as he pulls all his marketing
efforts on that segment and improving the product to what matches the
tastes and preferences of that segment. EX - MERCEDES
• SELECTIVE SPECIALIZATION – Marketers focuses its resources on a few
market segments and develops its expertise in fulfilling the needs of
those segments. EX- Hyundai manufacture different models like santro,
accent , sonata to cater different segments as per different level of
income.
• PRODUCT SPECIALIZATION – Specializing in a specific category suplying
to different segments effectively will gain a substantial reputation in
manufacturing such products. Ex- Gillette is famous for shaving products.
SELECTING THE MARKET SEGMENTS
• MARKET SPECIALIZATION- It involves concentrating on the different
needs of a customer group. Ex- Ordinance factory caters to different
defence needs of India.
• FULL MARKET COVERAGE – The company targets the full market rather
than any specific segment. Ex – HP targets the full market for its printers.

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