Segmentation

and
Targeting
 What?

Group of customers/consumers sharing a similar set of needs

and wants
 Rural segmentation
• More precision required since heterogeneity is
higher
Socio cultural differences
Population size and population density of villages
Infrastructural development levels
Income levels
Education levels
Differences in consumer behaviour (e.g. place of
purchase)
 How?
• Geographic, Demographic, Psychographic
• Behavioural (Includes lifestyle)
• Usage occasion, Usage situation (gift or for own use)
• Culture and race
• Occupational
 The bases for segmentation
• Geographic
Village populations and density
Climate (May include soil types)
Socio-cultural regions
• Demographic
Age and lifecycle
Family structure
Landownership
Occupational
Income levels
• Behavioural
Benefits sought
Usage rate
User status: Whether already using or non user (product
category)
• Psychographic
Concerned with how people/consumers actually describe
themselves
Self values: The goals of one’s life
Self concept: Images consumers have of themselves
Lifestyles: The way consumers live
Personality
 Targeting strategies
• Aggregation or mass market
Whole market one offer
Low costs (esp. R&D)
• Multiple segments
Selection of subsets of all possible segments
Marketing mix customized according to the segments
Separate offering for each sub segment
• Concentrated/Single segment
Niche marketing
Mainly for luxury products