Targeting & Segmentation

Each of these groups constitute a market segment Selecting one or more segments to enter Establishing and communicating the product s key distinctive benefits in that market .Target Marketing Identifying those particular groups of customers which your product/service is capable of meeting their requirements (needs) most.

purchasing power. geographical locations.Market Segment A large identifiable group within a market with similar wants. buying attitudes .

Niche Marketing What is an attractive niche ? A distinct set of needs A premium can be charged Not likely to attract competition Gains certain economies through specialisation Sufficient size. profit and growth potential .

Giving a higher/ lower discount than what s prevailing in the rest of the markets or implementing a different promotion scheme .Local Marketing When the marketing mix is altered to suit the local conditions eg.

Individualised Marketing When the firm deals with each customer on a one to one basis When products are customised for the customer .

Psychographic lifestyle. income. family size. etc.usage .personality. sex.values Behavioral knowledge.Bases for Segmentation Geographic territory demarcations Demographic age.attitudes.

Behavioral variables Occasions birthdays. lunchtime. educational User status non users. potential users Usage rate light. first time users. medium. heavy . vacation. ex Benefits eg. regular users.

hostile .Loyalty status diehards. positive.switchers Buyer Readiness unaware aware informed interested desire intention to buy Attitude enthusiastic.shifters. indifferent. negative.

Criteria for segmentation Measurable Substantial Accessible Differentiable Actionable .

Market Targeting Single segment concentration Selective specialisation Product specialisation Market specialisation Full Market coverage undifferentiated marketing differentiated marketing .

Undifferentiated Marketing Single product addressing all segments with a single marketing program. Mass production is possible giving scale economies Pushes price downwards enabling to attract price sensitive segments .

Differentiated Marketing A separate market offering for every segment Marketing programs for every segment could be different Pushes up costs at various levels. necessitating sufficient volumes for viability Generates inter-segment rivalry .