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Marketing Segmentation

Marketing
• Marketing is a social and managerial
process where by individuals and
groups obtain what they need and
want through creating and
exchanging products and value with
others.

Marketing Concept
• The core concepts of marketing are
needs, wants and demands (buying
power).
• Products and service.
• Value, satisfaction and quality.
• Exchange, transactions and
relationships.

.Market • Market is a set of all actual and potential buyers.

Ex: Barber – Haircut.Characteristics of Service • Intangibility • Heterogeneity – service is differ from customer to customer. • Perishability – cannot be stored or saved or resold. . Ex: Bank.

Types of Service • Core service • Supplementary Service .

• Process – Service delivery (standard is essential) • Physical evidence – Interior design and decoration restaurant. .7P’s of Service Marketing • Product – Intangible (Customization) • • • • Price – Very difficult to fix the price Promotion Place – Cannot be stored or transported People – Service different from customer to customer Ex: Bank.

price. quality style. • Product elimination : To drop a weak product. changes in design of established products.) Product innovation : The development of new products. service etc.Product • Product variation : A product can be sold in different variations of the same product. or use of new materials or components in the manufacture of established products[1] Development of new products Improvement of existing products. • Product differentiation: It is the process of distinguishing a product or offering from others( such as benefits. for example in different colors and sizes. .

Materials and spares – paints Capital items – factory equipments Supplies (marinating repair and operation) – oil lubericants .g. 2.Product Classfication 1. Based on use a. Based on durability and tangibility e. Consumer goods 1. 4. Industrial goods a. 3. Durability –fan. TV Non durable – soap 2. b. Convenience goods – rice Shopping goods – TV Specialized goods – Unsort goods (unknown by customers) b. c.

qualities.number of lines in product mix Product line Length – number of brands in the line –lux. lifeboy. or pricesTATA motors-Passenger vehicles.Product Mix • Product line – A group of related products manufactured by a single companycomprise related products of various sizes. colors. types. bears Product line depth –The amount of sub-products offered by a business within a particular line of products Adding new. Product mix: The total number of products sold in all product lines is referred to as length of product mix . Procter & Gamble markets 250 brands organized into many product lines. related products to an existing product line or increasing the number of varieties of a particular product offered. transport vehicles etc Product line Width . commercial vehicles.

lux. Adding more products – Upward stretch. lux international – Downward stretch – nirma. wheel Line filling Where fill up the gaps with in your product lineUpward Downward Videocon AC introduced two items initially then they increased twelve models (two spilt AC model etc) Line modernization .Product stretching 1.

Product • • • • • • • • • • Positioning Brand Design Features Packaging Quality Size Service Returns Warranties .

aquacard . lux.Branding • • • • Bundles of promises Bundles of benefits it reflects set of values Brand name should be simple and Easy to spell and have meaningduracell(durable cell).

maggi .Packaging • Primary • Secondary • Tertiary It gives self service-package must sell the products It gives standardization – annapurna atta.

• Optional components-direction for use e.x.Labeling • Two components • Essential components– it is essential and must be printed as per government rules – MRP. warnings in cigarette. How to use medicine .

.Product life cycle • introduction • Growth • Decline • There are nearly 22000 products introduced every year. Only 10% survive even after 5 years. 10% will survive only for five years. Out of them 80% failed in the introduction stage itself.

Pricing • Cost recovery pricing • Penetration pricing • Price skimming .

Pricing • • • • • Allowances Credit terms Discount List price Payment period .

Promotion • • • • Individual communication Mass communication Brand management Corporate identity .

Promotion • • • • Advertisement Direct marketing Sales promotion Public relation .

Place/Physical Distribution • • • • Distribution channels Direct sales Indirect sales E-commerce .

Place/Physical Distribution • • • • • Channels Coverage Inventory Location Transportation .

– Free shipping to retail stores when ordered • Convenience – Multiple channel of purchase – Concept like site – to – store • Communication – Fresh ad campaigns to change consumers – Innovation like “showcase stores” – Spoke for lot more improvement in this aspects. .Marketing mix in Wallmart.com • Consumer – Customized functionality – Wide product choice – Variety of purchase and delivery operation • Cost – Lowest price – always – match or lower price than competitors like amazon.com.

Strategic Planning • It involves defining a clear company mission. objectives. . and coordinating functional strategy. designing a sound business portfolio.

the target market narrow down the total market – segmentation factors • 3.size of the market has been determined • 2. projecting marketing shareincreasing industrial growth and user analysis .Marketing strategy • Marketing strategy serve as the foundation on marketing plan • 1.

Marketing Strategy • Marketing Strategy is the marketing logic where by the company hopes to achieve its marketing objectives. .

Marketing Strategy Strategic Marketing Operations Marketing Long term planning Short term planning Marketing environment Product Strategic marketing management Price Market research Place Consumer behavior Promotion B2B Service Market segmentation Internet Internationalisation .

distinctive and desirable place relative to competing products in the mind of the customer. . • Targeting – Targeting involves process of evaluating each segment and selecting one or more segment to enter.Marketing Strategy • Segmentation – Segmentation is a process of classifying customers into groups which share some common characteristics. • Positioning – Positioning is arranging for a product to occupy a clear.

.Segmentation • Segmentation is a process of classifying customers into groups which share some common characteristics.

Marketing Segmentation • Mass Marketing – (Same product to all customers) • Segment Marketing – Some segmentation – (Different product with one or more segments) • Nitchi Marketing – more segmentation – (Different product to subgroup within segments) • Micro Marketing – Complete segmentation – (Product to suit the taste of individual and location) .

Marketing Segmentation • Geographic segmentation – Country – Neighborhood – State – City climate • Demographic segmentation – Age Gender Occupation – Education Marital status – Family size Family lifestyle – Income Nationality • Psychographic segmentation • Behavioral segmentation .

Industrial Market Segmentation • • • • • Geographic Economic Cultural Political Legal .