Presentation On Market Segments-Product,Customer

Presented By Roll No
Vipul Bhandari 06
Safiya Shaikh 04
Guided By
Prof.Charulata Kulkarni Madam
MBA-1
RMD SINHGAD SCHOOL OF MANAGEMENT
A market is a place which allows the purchaser and the seller
to invent and gather information’s and lets them carry out
exchange of various products and services. In other words the
Meaning of Market refers to a place where the trading of
goods takes place
Markets are Heterogeneous; Segmentation divides them
into Homogeneous Sub-Units
The market for a product is nothing but the aggregate of
the consumer of that product
Markets break up the heterogeneous market for product
into several sub units, or sub markets, each relatively more
homogeneous within itself, compared to market into a
number of sub markets/ distinct sub units of buyer , each
with relatively more homogeneous characteristics, is known
as market segmentation.
What is market segmentation?
It is the Consumer who are Segmented, Not Product, nor Price
It would be useful to provide one important clarification right
at the beginning.
Markets, sometime, speaks of product segments and price
segments and use these expressions as synonymous with
market segments.
This can leads to a wrong understanding of what market
segments, or for that matter, the process of market
segmentation as a whole, actually connote
We have to be clear that in market segmentation, it is the
consumers who are segmented, not the product, nor price.
Market is about people who consume the product, not about
the product that’s gets consumed
 Example of market segmentation?
Titan Watches For the youth /the outdoor
Arrives in three broad Segments lovers:
• The Rich
• The Middle
• The Lower
For the Gold lovers:
For Designer Segment
For Children Segment
Facilitates Right Choice of Target Market
Facilitates Effective Tapping of the Chosen Market
Makes the Marketing Effort More Efficient and Economic
Helps Identify Less Satisfied Segments and Concentrate on
Them
• A market/ consumer population for a product can be
segmented using several relevant bases. The major ones
include:
• Geographic
• Demographics
• Socio-cultural
• Psychographic
• Buying Behavior
Bases for segmentation
Bases for segmentation
Undifferentiated Marketing Mix Entire Market
Strategy

Concentrated Marketing Mix Target Market

Strategy

Differentiated Marketing Mix Segment 1

Strategy
Marketing Mix Segment 2

Marketing Mix Segment 3

Customer Segmentations
 What Is Customer ?

Customer segmentation is the practice of dividing a customer

base into groups of individuals that are similar in specific ways
relevant to marketing, such as age, gender, interests and
spending habits.
Companies employing customer segmentation operate under
the fact that every customer is different and that their marketing
efforts would be better served if they target specific, smaller
groups with messages that those consumers would find relevant
and lead them to buy something.

.
Customer segmentation procedures

Customer segmentation, also called consumer

segmentation or client segmentation,
procedures include:
Deciding what data will be collected and how it
will be gathered
Collecting data and integrating data from
various sources
Developing methods of data analysis for
segmentation
Establishing effective communication among
relevant business units (such as marketing and
customer service) about the segmentation
Implementing applications to effectively deal
with the data and respond to the information
it provides
 Benefits Of Customer Segmentation?

By enabling companies to target specific groups of

customers, a customer segmentation model allows
for the effective allocation of marketing resources
and the maximization of cross- and up-selling
opportunities.
When a group of customers is sent personalized
messages as part of a marketing mix that is designed
around their needs, it's easier for companies to send
those customers special offers meant to encourage
them to buy more products.
Customer Segementation Vs Market Segementation?

Companies can use marketing

automation software to define and
create customer segments.

The customer segments can be

based on demographic data,
psychographic data and activity-
based data such as actions that
users took on a website.
Companies use marketing
automation software to configure,
schedule and execute campaigns
for particular customer segments.
 Product
Segmentation
Production Segemnets Defined As :-

Being all things to all people isn't

always the best business strategy.

Sometimes, channeling slight

variations of different products and
services to different groups of your
customer base helps to increase
market share,
improve revenues and reduce
costs. This differentiation process is
called "segmentation," and when
done to products,
it can lead to several slightly
different product lines geared
toward dissimilar target markets.
Product Segmentation Strategy

The core theory of product segmentation is

that a company can produce a single product
with relatively minor variations, market it to
different customer groups -- sometimes under
different brand names.
and thereby increase market share while
reducing the cost of developing radically
different products. Segmentation relies on
market research to identify the product
characteristics that resonate with target
markets.
Product development engineers then provide
different iterations of the same basic model that
meet the preferred traits for each market
segment.
 Purpose?
Product segmentation provides a mechanism for a company
to distribute the risk of selling a high-cost product across
different target markets.
Instead of having one product with one market and one
supply-and-demand curve -- essentially putting all of the
manufacturer's eggs in a single basket -- the manufacturer
can sell sister models of the product at different prices to
different market segments.
Even if one segment reacts poorly, another segment may
respond better than expected.
Purpose To be Continued…

In addition, segmentation allows

for economies of scale. Although
there are differences associated
with manufacturing toasters, for
example, it's easier for a company
to sell five different types of
toasters than to sell one type of
toaster, one type of dishwasher
and one type of foam-rubber
action figure.
 Examples

Product segmentation proliferates at large

enterprises. For example, General Motors
segments its products into different brands --
Chevrolet, Buick, Hummer, Cadillac -- that are
aimed at different socioeconomic groups.
Although most of the parts in these different
brands are interchangeable, thus saving GM
money, the marketing strategy differs. Likewise,
smartphone manufacturers segment their
products. Apple's iPhone and Samsung's Galaxy
class Android phones come in different models --
different storage, different features, different
price.
Outcomes
The goal of a well-executed product segmentation
strategy is to sell more products to more people at lower
marginal production costs.
As sales progress, marketing professionals can evaluate
the profitability of individual items within the product family
to identify opportunities to discontinue specific products or
to further refine the segmentation model.
If a particular product outperforms expectations,
marketing analysts can learn what worked and apply the
lessons to other products.
Thank You