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Abdirisak 1411-307029
Saeed 1411-307056
Hassan 1411-307001
Jama 1411-307035
Hassan 1411-307055
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Ä To understand the meaning of market segmentation

Ä To understand the be befits of segmenting market

Ä To outline the criteria for market segmentation

Ä Te examine the dimensions on which market can be

segmented

Ä To understand how to identify n select target market

Ä To understand how to develop profile of target segment

Ä To examine market segmentation practices followed in India

 


Ä A market is group of potential customers with
similar needs who are willing to exchange
something of value with sellers offering various
goods n services that can satisfy the needs.
Ä Market leads to higher sales.
Mass marketing saves on costs by the retailers
It is becoming obsolete because of distribution
channels, internet, TV channels
Hence retailers need to understand the criteria to
segment markets

   


Ä ›arket segmentation is the process of dividing the
heterogeneous total of market in to small groups of
customer who shares similar set of wants like :-
Ä On the basis of gender
Ä On the basis of culture
Ä On the basis of age
Ä On the basis of religious practices
Ä On the basis of house hold incomes
   

   



Ä evelopment of market mix; in terms of product,

service, price, strategy, promotion.

Ä Store location: segmentation helps a retail chain in

deciding a locations for it͛s a new store.

Ä Understand customers behavior: The failure or

success in any business is dependable upon the
behavior of the end-user or consumer who finally
uses the product or any services.
cont͙..
Ä ›erchandizing decision: merchandising is
essentially the skill that decides which the items
will go on shelves.

Ä Promotional campaigns: a coordinated series

of promotional efforts built around a single theme
and designed to achieve a specific objective.

Ä Positioning: creating an identity in the minds of a

target market
   
  


Ä Segmentation:
chose variable
state profile of segment
verify perspective segment
Ä Targeting:
decide on targeting
which segment be targeted
how many segments be there

Ä Positioning: understand target segment

decide location
evolve market mix
 

   
   



Ä ‘omogeneous within; customer should have similar

needs n wants n follow similar buying behavior
Ä ‘eterogeneous between; customer in different
segments should be as different as possible
Ä Substantial; should be large enough
Ä Atoneable; must be identifiable
Ä Accessible
Ä ›easurable ; to understand the size of market
 

 

Ä consumer

Ä Industrial

Ä Re-seller

  

Ä consumer market individuals and households who

buy goods and services for their own use like:-

Ä convenience product.

Ä Shopping product.

Ä Specialty product.

Ä Unsought items.
 
„
  „„ 

Ä A industrial market includes individuals, groups, or

organizations that purchase products or services for
direct use in the producing other products.

Ä Re-seller market includes middle men or

intermediate such as wholesalers and retailers, who
buy finished goods and re-sell them for a profit.
   
 
  



aeographic segmentation:
segmentation is based on variables such as:
Ä continent.
Ä country.
Ä Region.
Ä Urban.
Ä Suburban.
Ä Rural.
 


The market is divided in to groups based on demographic
variable such as:-
Ä Age
Ä Religion
Ä aender
Ä Income level
Ä Social classes
Ä Occupation
Ä Educational level and
Ä ›arital status
 
„

„  



›arket based on Psychological characteristics

it divides buyers into different group.

Ä „ifestyle

Ä Personality

Ä Values
 

  



This are divided into groups:

Ä Reason/ occasion for buying
Ä Frequency of purchase
Ä Quantity of purchase
Ä Product usage
Ä „oyalty status
Ä Buyer readiness
Ä Source of purchase

 
 

   


 

Ä Size of the segment

Ä Purchasing power

Ä arowth rate

Ä Presence of competition

Ä Retailers capacity to serve

Ä Share among customers

 
 
„ 

Retailer must develop customer profile in the

identified target segment

›arket research may be required to understand

the needs of the customers
c

Ä customer profile may contain
customer demographics, age, sex, edu,
Family decision making
Ä Psychographics
live style
value

 


 
 
„



Ä Purchase motivation

Ä Purchasing process

Ä Sources of purchase

Ä Time utility

Ä Place utility
  
    


Ä Frequency of visits to store

Ä Weekday/weekend shopping pattern

Ä Store selection criteria

Ä Spending per visit

Ä Planned v unplanned shopping

Ä Store loyalty

„
 

Ä Price

Ä Quality

Ä Brand

Ä Variety of merchandise

Ä salesperson

Ä Special offers

Ä Promotional offers
cont͙
Ä Packaging

Ä „ocation

Ä auarantee/adjustment

Ä Store deco

Ä Payment terms
 uestions
O. ‘ow retailers create it͛s market segmentation?

2. ‘ow retailers can benefit for market segmentation ?

3. o you thing that culture can effect market segmentation ? And how ?

4. Why the marketers need to develop the marketing mix of each segment?
5. Segmentations helps in retailer in merchandising decision , how ?

6. ‘ow effective market segmentation influences consumer purchasing decision

making ?

7. why ›arket researchers may require to understand the needs of the

customers ?

8. o you think behavioral segmentation is useful for retailers ? And how ?

 cont..
=. Why it͛s necessary for the retailers to develop customer profile ?

O . ‘ow market segmentation helps the promotional campaigns ?

OO. In which way retails can maximize the homogeneity with in segment?

O2. ‘ow the size of the market influence the segmentation process?

O3. ‘ow life style ,personality ,and value can participate retailers segmentation ?

O4. W‘AT RETAI„ STORE ATTRIBUTES ARE I›PORTANT TO T‘E E„ERs ?

O5. ‘ow can a retailers identify the segments that make up a market?

O6. What criteria can a company use to choose the most attractive target market?