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4.1 Market Segmentation

 Buyers are too numerous, too widely scattered and
too varied in their needs and buying practices.
Companies vary widely in their abilities to serve
different segments of the market. Rather than trying
to compete in an entire market, sometimes against
superior competitors, each company must identity the
parts of the market that it can serve best.
market segmentation, companies divide large,
heterogeneous markets into smaller segments that
can be reached more efficiently with products and
services that match their unique needs.

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Benefits of Market Segmentation

• Market segmentation is a customer - oriented philosophy.

Some the benefits of market segmentations is stipulated as
follow;-
a) Channeling money to profitable markets
b) Designing and developing products for target market
c) Helps to determine an appropriate promotional appeal firms
d) Give chance to compete with big companies
e) Flexibility of organizational resources and programs
f) Helps to Chose best promotional activity and channel of
distribution

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Levels of Market Segmentation
o Buyers have unique needs and wants, each buyer is
potentially a separate market. Thus, market
segmentation can be carried out at many different
levels.
i. Mass Marketing
ii. Segmenting Markets
iii. Niche Marketing
iv. Micro marketing
Local marketing
Individual marketing

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Consumer Market Segmentation

Geographic

Segmenting
Behavioral Consumer Demographic
Markets

Psychographic

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Requirements for Effective Segmentation
Clearly there are many ways to segment a market, but not all segmentations
are effective. Indeed, there is quite a gap between the sophisticated approaches
to segmentation that are sometimes suggested and what is actually used by
practitioners.
To be useful, market segments must have the following characteristics:
 Measurability. The size, buying power and profiles of the segments need
measuring. Certain segmentation variables are difficult to measure. For
example, left-handed people
 Accessibility. The market segment can be effectively reached and served.
 Substantiality. The market segments are large or profitable enough to
serve. A segment should be the largest possible homogeneous group worth
pursuing with a tailored marketing program.
 Actionability. Effective programs need to attract and serve the segments.

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4.2. MARKET TARGETING
 Target marketing is the process of evaluating each market segment’s
attractiveness and selecting one or more segments to enter.
o Evaluating different market segments, a firm must look at two dimensions;
segment attractiveness and company fit.
Evaluating Market
Segments

Segment Attractiveness

Business Strength

 Selecting Market Segments:- After evaluating different segments, the

company must now decide which and how many segments it will target.

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4.3. POSITIONING
 A product's position is the way the product is defined by consumers on important
attributes - the place the product occupies in consumers' minds relative to competing
products.

Choosing Positioning Strategy

Identify possible competitive Advantage

Select the Right Competitive Advantage

How many and Which difference to promote evaluate which difference to promote in
terms of importance, distinctive, superior, communicable, pre-emptive, affordable and
profitable.
 Communicating and Delivering the Chosen Position all marketing-mix efforts must
support the positioning strategy. Thus a firm that seizes upon a 'high-quality
position' knows that it must produce high-quality products, charge a high price,
distribute through high-quality dealers and advertise in high quality media. This is
the only way to build a consistent and believable high-quality, high-service position.
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 ----End---

Thank you!

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