itft- marketing
DESCRIPTION
market segmentationTRANSCRIPT
Market Segmentation
What is Segmentation ?
• process of bifurcating or dividing a large unit into various small units
• which have more or less similar or related characteristics.
Market Segmentation
• divides the complete market set up
into smaller subsets comprising of consumers with a similar taste, demand and preference.
• a small unit within a large market comprising of like minded individuals.
• One market segment is totally distinct from the other segment.
• comprises of individuals who think on the same lines and have similar interests.
• individuals from the same segment respond in a similar way to the fluctuations in the market.
Need of market segmentation:
• helps the marketers to devise appropriate marketing strategies and promotional schemes according to the tastes of the individuals of a particular market segment.
• helps the marketers to understand the needs of the target audience and adopt specific marketing plans accordingly.
• gives the customers a clear view of what to buy and what not to buy.
• helps the organizations to target the right product to the right customers at the right time.
• Segmentation helps the organizations to know and understand their customers better
Basis of Market Segmentation
• A) Gender
• B) Age Group
• C) Income
• D) Marital Status
• E) Occupation
Types of Market Segmentation
• 1) Psychographic segmentation
The individual’s attitude, interest, value help the marketers to classify them into small groups.
• 2) Behaviouralistic Segmentation
The loyalties of the customers towards a particular brand help the marketers to classify them into smaller groups
• 3) Geographic Segmentation
A marketer can’t have similar strategies for individuals living at different places.
Segmentation strategies
• Types of segmentation
• Demographic segmentation
• Psycho-demographic segmentation
• Two programmes used to segment consumers are the VALs 1 and VALs 2
• While the first programme just divided consumers based on their values and lifestyles, the second version is also based on relatively stable psychological characteristics
• VALs 2 system
This type of segmentation is advantageous because it:
• provides rich data concerning the psychological make-up of consumers.
• enables marketers to better understand the reasons behind consumers' purchases
• can be used to develop customer profiles that will guide promotional efforts and ultimately strengthen a brand.
• This segmentation strategy divides markets into consumer groups based on their uses, responses, knowledge and attitudes towards products and services.
• Occasions: Segmenting a market according to the occasions when consumers use a product or service can provide rich insight to expand market possibilities.
• Benefits sought: Grouping consumers based on the benefits they seek from a product or service