Market Segmentation

• Market segmentation can be defined as a

process of identifying a group of
homogenous customers with similar needs,
characteristics and behavior.
 Levels of market segmentation
• Segment marketing
• Niche Marketing
• Local Marketing
• Individual Marketing
 Patterns of marketing
Segmentation
• Homogenous Preference
• Diffused Preference
• Clustered preference
 Procedure
• Survey stage
• Analysis stage
• Profiling stage
Basis for segmenting consumers
• Geographic
Region
Density
Climate
EX – Amul which first marketed its product
in Gujarat
 Demographic

• Age, Family size, Family life cycle, Gender,

income,
• P&G ARIEL and Tide’ Surf and surf excel
• Occupation , education, religion
• Race, generation, nationality and social class
Ex- cosmetic manufacturers
Gender DEO for men and women by same company
 Behavioral Segment
• Occasion
Asmi Diamonds- Buy diamond for diwali, Birthday
• Benefits
Close-up fresh breath, Pepsodent – 24 hr protection
• Usage rate
Big Bazaar Segments consumer on volume of monthly purchase to
give discounts
• Loyalty status
AIR INDIA- frequent flier plan
Retail outlets loyalty programs
• Readiness Stage
• Attitude towards the product
 Psychographics Segmentation
• Lifestyle
Ashirvad ready to eat package foods
• Personality

• Values
Raymonds the complete man
 Multi-attribute Segmentation
• Age, Family size, Family life cycle, Gender,
income
• Occasion
• Benefits
• User status
• Region
 Target Marketing
A market segment must be
Measurable
Substantial
Accessible
Differentiable
Actionable
 Selecting the market segment
• Single segmentation concentration
Ex woodland shoes
• Selective specialization
Anchor tooth paste
• Product specialization
M&M and Bajaj
• Market specialization
Pearsons publication of management books
• Full Market coverage PEPSI, Coke, Bata
 Other issues
• Segment Interrelationship
• Segment by segment invasion plans
Megamarketing
• Intersegment cooperation
 Positioning
• Positioning is the act of designing the
companies offering and image to occupy a
distinctive place in the mind of the target
market
• Define the customer value
• Building the customer value hierarchy
• Deciding
Buildingthe customer
value value package
proposition
 Product differentiation
• Differentiation is designing a set of
meaningful differences to distinguish the
company’s offering from competitors
offering
Developing and communicating a
media strategy
• Important
• Distinctive
• Superior
• Preemptive
• Affordable
• Profitable
 Four positioning errors
• Under positioning
• Over positioning
• Confused positioning
• Doubtful positioning
 Positioning strategy
• Attribute positioning
• Benefit positioning
Close-up fresh breath,
Pepsodent – 24 hr protection
• Use or application positioning
• User positioning
• Competitor positioning
• Product category positioning
• Quality or price positioning
 Positioning strategy
• Life style positioning
Ashirvad ready to eat package foods
• Positioning by personality of celebrity
Provogue and Fardeen Khan
 Benefit positing
Headline: Charge up your
• workplace
Subhead: Tencel A 100. 440
V Collection
Bodycopy: What's new? Allen
Solly's Tencel A100 fabric
absorbs colour like no other.
Making it the brightest shirt
you'll ever wear. In 35 different
patterns!
 Product category positioning
• Subhead: To
Indian housewives,
our salt always
come first.
Bodycopy: Tata salt
was rated the most
trusted brand by
housewives across
India, in a recent
Brand Equity-ORG
Marg Survey. Thank
you for the faith.
Baseline: Maine
desh ka namak
khaya hai!