Professional Documents
Culture Documents
Segmentation
Targeting
Positioning
SEGMENTATION
Process of subdividing a total market into
different subsets or groups.
Where the marketer may select one or
more segments.
To be reached with an appropriate
marketing mix.
Basis for market segmentation
Geographic Psychographic
Usage Loyal
Demographic Benefits
Socio-economic based status
Geographic Segmentation
Subdividing the whole market into different
geographical units which can be further
sub-divided into smaller units.
A national marketer may take whole nation
Psychographic segmentation
Sub division of different groups on the basis of
personality, life style and values.
Marketers of cosmetics, textiles, fast food providers etc.
must understand the life style of the target market.
Automobile manufacturers must consider different
personality traits in dividing the market.
Benefit segmentation
Segmented on the basis of benefits sought by consumers
Toothpaste
Medium buyers
light buyers
Loyal buyers
Relationship seekers: buyers who want to develop
long term relationships with their suppliers or retailers.
Loyal buyers of particular brand: buyers who seek a
particular brand among competing brands.
Evaluation of segmentation
Measurable
Substantial
Accessible
Differentiable
Actionable
Targeting
Once the firm has segmented the total
market ,it should select the target market
segment or segments for marketing.
Investing in a particular segment should be
sensible in terms of company’s mission,
objectives, skills and resources.
Targeting Strategies
Semi-luxury segment
Single marketing mix
Car maker (Expensive)
Small car
segment Luxury car
(affordable, segment
less (very
expensive) expensive)
Multi-segments strategy
Here the firm may select two or more then two or may
be all the segments and approach each segment with an
appropriate marketing mix programme.
Car maker