Sub: Marketing Management Class:II BBBA

It refers to variations in demand among various market segment.

 FORMULATIONS OF EFFECTIVE PROGRAMMES
The market segmentations should be made in such a way that effective programee can be formulated for
attracting and serving various segments.

ELEMENTS OF MARKET SEGMENTATION

The following are the elements.
 AVAILABILITY OF ENOUGH RESOURCES
Segmenting the market involves huge expenditure with all concerns cannot afford. Hence, the first element
which influences in deciding the strategy of segmentation is availability of enough resources.
 CHARACTERISTICS OF PRODUCTS
Market segmentation is possible only when the products are of heterogeneous in nature. For the products
which are of homogeneous in nature.
 VARIOUS STAGES OF A PRODUCT LIFE CYCLE
Market should be segmented only after considering the various stages of a product life cycle like
introduction, growth, maturity, saturation and decline.
 MARKETING STRATEGIES OF COMPETITORS
Market segments should always be in line with the market segmentation of the competitors. When
competitors are working with segmented market, or marketing with undifferentiated marketing cannot
succeed in his activities.

STAGES OF MARKET SEGMENTATION

There are at least three stages in the process of market segmentation. They are:

 SEARCH
 SELECTION
 STRATEGY

SEARCH
The first step in market segmentation is to conduct a survey by using exploratory interviews and focus
groups in order to have greater in sight into the motivation, attitude and behaviouer of consumer.

We consumer opinion on the attribute of the service package the ratings of importance, boand awareness
and ratings are collected for a sound base for segmentation.

SELECTION
Based on the search information and analysis segments are identified segments have to be given a name,
based on their dominant characteristics.
Each segment is full details relating to attitude behaviour, demographics, physiographic and media patterns
are studied.

STRATEGY
The formulation of a right strategy is essential for achieving success through market segmentation. While
formulating the strategy, three are given special focus:
 Value maximization
 Capacity utilization and
 Customer participation

VARIOUS FACTORS DETERMINING MARKET SEGMENTATION

The following are the factors
 RESOURCES AVAILABLE
Market segmentation involves heavy financial commitment unless the business has adequate financial
resources at its disposal, it will not be able to undertake such a task.
 NATURE OF THE PRODUCTS
The market should be of a diverse nature. That is, the tastes and preferences of the buyers must vary. If all
the buyers react in the same manner to the marketing strategies, there will not be any scope of segmentation.
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