Download - Segmentation Consumer Final Ppt 1
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8/3/2019 Segmentation Consumer Final Ppt 1
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SegmentationMarket Segmentation is theprocess of dividing a market into
distinct subsets of consumers withcommon needs or characteristicsand selecting one or moresegments to target with a distinctmarketing mix.
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WHY
SEGMENTATION?Rather than trying to compete with an
entire market, company must identify
parts of market that can serve betterthan competitionSegmentation helps sellers develop
the right product and adjust prices, setdistribution channels and advertising &promotions strategies effectively
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WHY SEGMENT
(..contd)Segmentation strategy
differentiates offerings through
styling, packaging, promo appeals,method of distribution
Segmentation helps sellers
develop the right product andadjust prices, set distributionchannels and advertising &
promotions strategies effectively
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HOW MARKET SEGMENTATIONWORKS
Segmentation studies
- to discover needs/wants on specificconsumer gaps
- to guide repositioning of existing products
and add new market segment
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Types of Segmentation
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BASE FORSEGMENTATION
Demographic segmentation
- identifiable, measurable states of a populationi.e
- Age : Choronological age, Cohort age
- Gender
- marital status: Married, Single, Divorce, Single
parent- Income
- Education,
- Occupation
- easier to measure to assess size of tar et
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BASE FOR SEGMENTATION(..contd)
Geographic segmentation- market divided by location/localizing the
marketing strategy
- usually people in the same area share the
same needs and wants
- different spending patterns/demands
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BASE FOR SEGMENTATION
(..contd)Psychological segmentation
- intrinsic qualities of the individualsdesires: Motivation: shelter, safety,affection, self esteem
- Personality: extrovert, introvert
- Perception: Low risk, High risk- Learning: Low Involvement, High
Involvement
- Attitude: Positive or negative
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BASE FOR SEGMENTATION(..contd)
Psychographic segmentation
- lifestyle analysis- Activity: How the consumer spends
time
- Interest: Preferences andpriorities
- Opinion: How a consumer feels
about a variety of events
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BASE FOR SEGMENTATION(..contd)
Socio-cultural segmentation
- family life cycle i.e passing through similarphases in their formation
- social class: education, occupation, income- culture/subculture and cross-culture
affiliation
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BASE FOR
SEGMENTATIONUse-related segmentation
- categorizes consumers in term of product,brand or service usage characteristics,
- Rate of usage: Super heavy, heavy,Moderate, Light and non users
- Awareness: Unaware, aware, interested,enthusiatic
- Degree of brand loyalty: None, some,
strong
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BASE FOR SEGMENTATION
User-situation segmentation
- Usage of product depends on occasion; i.e
greeting cards, drinks, airlines
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BASE FOR SEGMENTATION
Benefit segmentation
- Rewarding consumers with productbenefits
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BASE FOR SEGMENTATION(..contd)
Hybrid segmentation
- Combination of two or more exciting
segmentation variables, commonly doneby marketers
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Hybrid SegmentationMarketers commonly segment markets by
combining several segmentations variables ratherthan relying on a single segmentation base.
Types of Hybrid segmentation covered
Psychographic-Demographic Profile
Geo-demographics
VALS
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Psychographic-Demographic
SegmentationWidely used in advertising campaigns to answer
three questions
Whom should we target
What should we say and
When should we say it.
E.g.. Newsweek audience profile-Newsweek Asia .doc
offering media buyers such carefully defined dual profiles of their audiences, massmedia publishers and broadcasters make it possible for advertisers to select media
whose audiences most closely resemble their target markets.
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Geo-DemographicSegmentation
This type of hybridsegmentation schemebased on the notion thatpeople who live close toone another are likely to
have similar financialmeans, tastes,preferences, lifestyles,aand consumption habits.
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Clusters are created basedon consumer lifestyles, and aspecific cluster includes pincodes that are composed of
people with similar lifestyleswidely scattered throughoutthe country.
This cluster data is useful fordirect mail campaigns,selecting retail sites,
appropriate merchandisemixes, to locate banks andrestaurants, designingmarketing strategies.
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VALS
Draws on Maslows
Need Hierarchy and concept of socialcharacter
Three major self-orientations
Principle oriented consumers whosechoices are driven by their beliefsrather than their desires
Status oriented- consumers whosechoices are guided by the actions,approvals and opinion of others
Action oriented-consumers who aredriven by a desire for social orphysical activity, variety and risktaking
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Each of these self-orientations representdistinct attitudes,andlifestyles, decision
making style.
Resources include therange of psychological,physical, demographicand material means the
consumer has to drawupon.
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Criteria for Effective Targeting ofMarketing Segments
Identifiable
Sufficient
Stable or growing
Accessible(reachable)in terms ofboth media and cost.
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THANKYOU