Market Segmentation

Paramjit Sharma

Market Segmentation

Paramjit Sharma

Market
Market is People or Organisation with Needs or Wants with The Ability and Willingness To Buy

Paramjit Sharma

Market Segment
Within a Market a •Segment is a Sub-Group of •People Or Organizations •Sharing one or More Characteristics •That Cause them to have Similar Needs
Paramjit Sharma

Market Segmentation The Process of Dividing a market into •Relatively Similar •And Identifiable •Segments or Groups •Called Market Segmentation
Paramjit Sharma

LEVELS OF MARKET SEGMENTATION

Segment Marketing

Individual Customer Marketing

Niche Marketing

Local Marketing
Paramjit Sharma

LEVEL OF MARKET SEGMENTATION

Segment Marketing

Identifiable Group with in a Market With Similar •Wants •Purchasing Power •Geographical Location •Buying Attitudes

ALTO

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Narrowly defined Group (Small) Whose needs are Not well served

•Distinct Needs Niche •Pay Premium Marketing •Specialization •Less Competition •Size, Profit & Growth • Potential Paramjit Sharma

LEVEL OF MARKET SEGMENTATION

Individual Customer Marketing Marketing According To Individual’s Order •Customized Marketing •Cars /Tailors •Designer’s Clothes •Architects •Software
Paramjit Sharma

LEVEL OF MARKET SEGMENTATION

Local Marketing Marketing Programmes Serving Needs & Wants Of Local Customers •Local •Region •State Chitle
Kashmiri Paramjit Sharma Silk Pune Sarees

Criteria's for Effective Segmentation

4 Purpose Of Segmentation
1 Identifying Groups Of Customers with similar Needs 2 Analyze Their Characteristics & Buying Behaviors 3 Providing Products Matching with Needs 4 Satisfying Needs While Meeting Org. Objectives Paramjit Sharma

Segmenting Consumer Markets

Geographic Demographic Psycho graphic Behavioral Multi-attributable
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Geographic

Nations States Regions Cities World M-Size Density Climate

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Demographic
Age Family Size Family life cycle Gender income Occupation Education Religion Generation Nationality Social ClassParamjit Sharma

Psychographic

Life Styles Personality Values

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Behavioral Occasions Benefits User Status Usage Rate Loyalty Status Readiness Stage Attitude

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Multi-attributes-Geoclustering PRIZAM(Potential Rating Index by Zip Markets)

•Education & Affluence •Family Life Cycle •Urbanization •Race & Ethnicity •Mobility
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Market Targeting

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M1

M2

M3

Single Segment Concentration
•Volkswagen—small cars •Porsche----sports car

P1 P2 P3

Can be Risky at Times
Paramjit Sharma

M1

M2

M3

SELECTIVE SPECIALIZATION
•No of Segments •Type Of Cars

P1 P2 P3

Risk is divided
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M1

M2

M3

PRODUCT SPECIALIZATION
•Several Segments •Microscope-colleges, labs

P1 P2 P3

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Market Segments-Evaluation &
Selection M1 M2 M3

MARKET SPECIALIZATION
•Particular Customer Group •Different Products to Univ Books, labs, Computers, sports goods.

P1 P2 P3

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M1

M2

M3

FULL MARKET COVERAGE
•General Motors-Cars for every purse,purpose and personality

P1 P2 P3

Paramjit Sharma

Market Segments-invasion Plan
Customer Groups Airlines Railroads Truckers

Product Varieties

Large Comp Midsize Comp Pers comp

A

B Paramjit Sharma

C

Market Segments-Intersegment Coop

A

B
Market

C

D
Paramjit Sharma

Market Segments-Inter-segment Coop

A

B
HQ Market

C

D
Paramjit Sharma