Course: Marketing Management

1.
Market segmentation is an effective tool for marketers to furnish to their
target group. This segmentation makes it easier for them to personalise
campaigns, focus on the necessary things and to group consumers have
similarities so as to target a specific audience in a cost-effective manner.
Market segmentation is being in use since the late 1900s by many
marketers. Even though this is a very simple tool for marketing yet an
effective and vital one.
There maybe many reasons for any marketer as to why he is segmenting
the market, but one of the major reasons is because they can create a
custom marketing mix for each segment and cater them accordingly. Any
market gets segmented according to some “bases”. These bases cover a
wide range and are as follows:
 Gender –
One of the simplest yet important bases of market segmentation is
gender. Wants, needs and interest of males and females differ from
each other at various levels. One can usually see this type of
segmentation in case of cosmetics, clothing and jewellery industry,
etc.
 Age group –
For personalized marketing it is a great strategy to segment the
market on the bases of age group of the audience. Many products
in the market cannot be used by people of all age group in the
market. Hence, by segmenting the market according to age group,
marketers make a better marketing strategy and get better
conversion rates.
 Income –
The purchasing power of any individual is decided by his/her
income. It is also one of the key factors to decide whether the
demand for the product is as a need or luxury. On the basis of
income, market is segmented in three groups:
 High income group
  Mid income group
 Low income group
The type of product, its use and area where the business is
operating also affects this division.
 Occupation –
Just like income, occupation also influences the purchase decision
of the audience. Generally, a need for an entrepreneur might be a
luxury for an employee working in an organisation. Many products
also cater to audience engaged in a specific occupation.
 Usage –
Usage of the product is also one of the bases for segmenting the
market. A user can be segmented as a heavy, medium or light user
of a product. The users can also be segmented on the basis of the
knowledge and awareness of the product.
 Lifestyle –
Marketers also segment the market on the basis of lifestyle apart
from the physical factors. Lifestyle includes divisions like martial
status, interest, hobbies, religion, values and other psychographic
factors which affect the decision of an individual.
Types of market segmentation/variables:
1. Geographic Segmentation –
When the market is divided on the basis of geography, it is called
geographic segmentation. This type of segmentation is important as
people belong to various regions and may have different
requirements. For example, water might be scarce in some regions
which expands the demand for bottled water but on the other hand,
it might be available in abundance in other regions resulting in less
demand for bottles water.
Reasons for using different products as well as same products may
be different for people living in different regions. Thus, geographic
segmentation helps a marketer to segment the market and provide
personalised marketing campaign to everyone.
2. Demographic Segmentation –
 When the market is divided on the basis of demographic variables
like age, gender, marital status, family size, income, religion, race,
occupation, nationality, etc is called demographic segmentation.
This is one of the most common and highly used segmentation
practices among the marketers.
In every field or industry be it automobile, beauty products, mobile
phones, apparels, etc. one can see demographic segmentation. This
segmentation is built on the premise that customers’ buying
behaviour is highly influenced by their demographics
3. Behavioural Segmentation –
This market is also based on customers behaviour, usage,
preferences, choices and decision making. This segment is divided
on the basis of individuals knowledge of the product and usage of
the product. Individuals are segmented into :
 Those who know about the product
 Those who don’t know about the product
 Current users
 First time users
 Potential users
 Non-existing users
People can also be labelled as brand loyal, brand neutral, or
competitor loyal.
4. Psychographic Segmentation –
When the individuals are divided on the basis of their personality,
lifestyle and attitude is known as psychographic segmentation.
Consumer buying behaviour can be influenced by his personality
and lifestyle, this is the process work on which this segmentation
works. Where personality is the combination of characteristics which
forms an individual’s distinctive character, on the other hand,
lifestyle is how a person lives his life.
Habits and buying decisions are the influencing factors that segment
the market. For example, a person having or living a lavish lifestyle
may consider having an air-conditioner in every room need, where
 as a person living in the same city but having different lifestyle may
be consider it to be a luxury.
Thus, Balwana can expand and flourish his gymkhana if he understands
the market thoroughly and segments it on the basis of response received.

2.
Balwana Gyms and Akhadas is a new enterprise started by two young
fitness freaks Mr. Balraj and Mr. Balbuddhi. They wish to promote their
gymkhana online. Online marketing is marketing done via the use of the
internet using company Web sites, online ads, e-mail, online video and
blogs, etc. The following five online platforms can be used in order to
promote Balwana Gyms and Akhadas online:
1) Online advertising:
The advertising that appears on the screen of the customers
computer while he/she is browsing online is called online
advertising. This includes display of ads, search-related ads, online
classifieds and other forms. Display and search ‘related ads’ account
for the largest portion of all digital marketing spending. Online
display ads may appear anywhere on the user’s screen and are often
related to the information being viewed. So, an online advertising
ad must incorporate animations, videos, sound, etc.
2) E-mail marketing:
When one wants to send highly targeted, highly personalised,
relationship building marketing messages it is send via e-mail. This
is termed as E-mail marketing. E-mail marketing remains an
important and growing digital marketing tool. In one of the survey
it was concluded that e-mail is 40 times more effective at capturing
customers than other methods. E-mail subscribers are alerted to
various deals and promotions with e-mail.
3) Online videos:
Online video marketing involves posting of digital video on certain
brand websites or social media sites such as YouTube, Facebook
 and others. Some videos so posted may get viral and result in a
huge market capturization and increase in the number of people
enrolling for the gym. For example, google android launched a video
called ‘Friends Furever’ which captured more than 24 million
YouTube views and was shared by more than 6.4 million times
across Facebook and Twitter.
4) Blogs and other online forums:
An online forum where people and companies post their thoughts
and other content related to defined topics is called blogs. Timely
updating and posting about the Gym and Akhadas on these bogs
and informing people about the same can be of a great help in order
to promote the Gym online across the nation. For example, a 23-
year old Danielle Bernstein started the We Wore What Fashion blog.
She posts images that contain sponsored products from small
brands such as Schultz Shoes, Nike, Lancôme, Nordstrom.
5) Good websites:
Creating a website for the gym should be visually appealing. It must
be user friendly and should given good enough information about
the gym to the people reading it. Creating website also helps in
reducing the cost of advertising. For creating a good website no
programming or design skills needed. Make it simple and easy to
access.
Thus, using the above-mentioned methods of online promotion, of
Balwana Gyms and Akhadas can be done on a larger scale. This will help
them not to increase their members registering with the gym but also
gradually help in building a brand image.

3.(a)
The product level models is a way to show the different levels of need of
customers have for a product. These needs range from core needs to
psychological needs. Following are the various product level with respect
to Balwana Gyms and Akhadas:
 1. Core product – As balwana is a fusion of modern and traditional
bodybuilding methods, this makes the gym stand out and different
from its competitors. It uses modern machines and equipment’s
along with traditional machines and methods like yoga and
kickboxing etc.
2. Actual – the infrastructure and quality of machinery provided by
them is of high quality. The akhada and trainers of the gym are
highly skilled and trained. They also provide private lockers and
health care services to all its members provided for which they have
to pay extra cost.
3. Augmented – Not only do they provide good services in the gym but
on regular basis organise various fitness related programmes such
as marathon, wrestling, cycling, etc. they also organise Zumba and
yoga classes for inner peace and calmness. This helps in keeping
the customers attracted towards their gyms. During festivals the
gym is decorated and special offers are also given in order to attract
more members. Taking care about the health and safety of its
members is their prime mote for which they also organise regular
health check ups and blood donation camps.

3.(b)
The celebrity to be the brand ambassador of Balwan Gym and Akhada is
Sonu Sood. Following are the reasons for the selection:
1. He is known to maintain a healthy life style and is an inspiration and
role model for many young boys/girls in India.
2. He is also indulged in various fitness promoting activities among the
people across the country.
3. He is a part of many fitness camps not only in India but also abroad.
4. He interacts with people and creates awareness among them
regarding disciplined diets and strict workout regime.
5. He is also a brand ambassador of Fit India Movement making him
more apt for the selection as a brand ambassador for the Balwan
Gyms and Akhadas.