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By:Alan Abhishek Noah Anurag Sihag Deepika Singh Jyoti Kumari Mamta Singh Nikita T. Jose

CONCEPT AND DEFINITION The concept of market segment is based on the fact that the market of commodities CONCEPT AND DEFINITION are not homogeneous but they are Theheterogeneous. concept of market segment is based on the Market represent a group fact the market of commodities are not ofthat customers having common homogeneous butbut they are heterogeneous. characteristics two customers are neverrepresent common a in their nature, habits, Market group of customer having hobbies income and purchasing common characteristics but two customer are techniques. never common in their nature, habits, hobbies

income and purchasing techniques.

According to Philip Kotler , Market segmentation is sub-dividing a market into distinct and homogeneous subgroups of customers, where any group can conceivably be selected as a target market to be met with distinct marketing mix.

Market isis aa method of dividing MarketSegmentation Segmentation method of a market (Large) into smaller groupings dividing a market (Large) into smaller of consumers orconsumers organisations in which eachin groupings of or organisations segment hassegment a common characteristic which each has a common such as needs or behaviour. characteristic such as needs or behaviour.

Henry Ford epitomized this strategy when he offered the ModelT Ford in one colour , black.



Consists of a group of customers who share a similar set of needs and wants. Identifiable Group with in a Market with Similar
Wants Purchasing Power Geographical Location Buying Attitudes


Even in segments 100 % needs are not same consists of two parts 1.Naked Solution :- products and services that all
members of the segment values. 2.Discretionary options :- that some segment members value. Each option might carry an additional charge. Example: Automobile industry basic model is same but for A.C , power steering, power window buyer

has to pay extra price. Delta Airlines offers all economy passengers a seat and soft drinks. It charges economy passengers extra for alcoholic beverages.

Patterns of market segmentation

Market Segments can be defined in many different ways. One way to carve up a market is to identify Preference segments Suppose ice cream buyers are asked how much they value sweetness and creaminess as two product attributes. Three different patterns can emerge.

Homogeneous preference :

where all the consumer have roughly the same preferences. We would predict that existing brand would be similar and cluster around the middle of the scale in both sweetness and creaminess


Diffused preference :

consumers vary greatly in their preferences



Clustered preference :

the market might reveal distinct preference clusters, called natural market segments.



1.A niche is a more narrowly defined group, typically a small market whose needs are not well served. 2. Marketers usually identify niches by dividing a segment into sub-segments or by defining a group seeking a distinctive mix of benefits. 3. Niche marketers understand their customers needs so well that the customers willingly pay a premium.

An attractive niche is characterized as follows: 1.Customers have a distinct set of needs 2. They are willing to pay a premium 3.The Nicher is not likely to attract other competitors.


Marketing programs tailored to the needs & wants of local customer groups in trading areas, neighborhoods , etc. this trend is called grass root marketing. Ex. Spiderman 3 was released in 5 different language in India including bhojpuri.


Ultimate segmentation segments of 1 or customized marketing or one to one marketing. Customerization empower the consumers to design the product or service offering of their choice. Ex. Paint companies have started doing this- Asian Paint , Nerolac , Berger Paints Arvind mills launched Ruffn Tuff Jeans, branded ready to stitch

Bases for segmenting consumer markets

1. Geographic 2. Demographic 3. Psychographic 4. Behavioral

Divide the market into different group based on : Region South India , North , Western Region, East City metro cities, cities with population more than 1 million World Density Climate States Ex.- Mcdonalds globally, sell burgers aimed at local markets, for example, burgers are made from lamb in India rather then beef because of religious issues. In Mexico more chilli sauce is added and so on.


As people age their needs and wants change, some organisations develop specific products aimed at particular age groups for example nappies for babies, toys for children, clothes for teenagers and so on.

Gender segmentation is commonly used within the cosmetics, clothing and magazine industry.
In the UK we have also seen the introduction of Maxim, ( a male lifestyle magazine covering male fashion, films, cars, sports and technology. \

Income segmentation is another strategy used by many organisations. Stores like Harrods, Harvey Nicohals are predominantly aimed at the affluent market. Daewoo aim their vehicles at price sensitive buyers who require a bundle of benefits for the price. In today's globally competitive environment brands are specifically developed and positioned within particular income segments inorder to maximise turnover. Products and services are also aimed at different lifecycle segments. Holidays are developed for families, the 18-30's singles, and for those in their 50's.


Lifestyle groups Yuppie Associations Mobile High valued house/flat Good Salary Young branded car. Third Agers Associations. 50's Retired early from profession. Time to spare Adventure Seekers


OCCASIONS - Archies and Hallmark cards, Monaco at tea time. BENEFITS Shampoo for hair conditioning, cleaning , hair fall defence dandruff control USER STATUS- light medium heavy user LOYALTY STATUS- hardcore loyal , split loyalloyal to 2-3 brand ,shifting loyal, switcher