market segmentation
DESCRIPTION
market segmentaiton and needTRANSCRIPT
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Chapter : 8
Market Segmentation and Targeting
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Objectives of the lesson
• Need for market segmentation
• Market segmentation levels
• The selection of segmentation
• Effective segmentation
• Target market selection process
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Maruti Udyog Limited
• Maruti800• Alto • Zen• Wagon R• Versa• Esteem• Baleno• Swift
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Market Segmentation
• Dividing the market by grouping
the customers with similar tastes,
preferences into one segment is
called segmentation
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Market Segmentation Levels
• Segment marketing
• Individual marketing
• Niche marketing
• Local marketing
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Market Segmentation Levels
• Segment marketing – Dividing the market into different segments on the basis of homogenous need.
• Segmented on basis of broad similarity with regard to some attributes
• Segmentation is also sometimes identifying, capturing & retaining potential new markets
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Market Segmentation Levels• Individual marketing – Extreme
marketing in which marketers focus on individual customers.
• Keep track of individual tastes & preferences of individual customers
• Many companies are approaching individuals through e-mails to promote their products.
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Market Segmentation Levels• Niche marketing – Marketers effort
to position their product or service in smaller markets that have similar attributes and have been neglected by other marketer
• Segment further divided into sub segments to cater unsatisfied needs of small group is called as niche.
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Market Segmentation Levels• Local marketing – marketers
offer customized products to suit the local markets.
• THINK GLOBAL ACT LOCAL
• McDonald’s introduced Indianized products such as AlooTikka, Chicken, Patties, Paneer Salsa, Chicken Mexican...
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Bases for Consumer Market Segmentation
Market Segementation
GeographicalRegions, cities,
states, countries
DemographicAge,
gender,income,
occupation,religion,
social class,family size
PsychographicLife style,
personality,values,beliefs
BehavioralOccasions,Benefits,
Usage rate,Loyalty status
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Bases for Organizational Market Segmentation
Market Segementation
DemographicsOperating Variables
PurchasingApproaches
Situational
Personal Characteristics
Of thePurchaser
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Bases for Organizational Market Segmentation
Demographics:Industry-Certain industry can segment their markets
IndustryFinancial service
Insurance firms Banks Stock brokerage firms
Company size Small & Large
Customer location Proximity
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Bases for Organizational Market Segmentation
• Operating Variables:
Company technology
Product and brand use status
Customer capabilities
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Bases for Organizational Market Segmentation
• Purchasing approaches:Organization’s purchasing function
Relationships among the buyers and sellers
General purchasing policies
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Bases for Organizational Market Segmentation
• Situational factors
Urgency of order fulfillment
Product application
Size of the order
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Effective Segmentation
• Measurable
• Substantial
• Accessible
• Differential
• Actionable
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Target Market Selection Process
• Evaluating the Market Segments
• Selecting the Market Segments
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Selecting the Market Segments
• Single Segment Concentration: Focusing on a single segment gives the marketer the advantage of high sales as all the efforts are concentrated on that one segment
Example: Mercedes concentrates on upper income group
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Selecting the Market Segments
• Selective Specialization:
Process in which the company focuses its resources on a few segments and develops its expertise in fulfilling the needs of those segments
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Selecting the Market Segments
• Product Specialization :The firm makes a certain product that it sells to
several segments
Example: Microscope manufacturer who sells to university, government, and commercial laboratories.
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Selecting the Market Segments
• Market specialization:
The firm concentrates on serving many needs of a particular segment
Example: A firm sells assortment of product to university laboratories.
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Selecting the Market Segments
• Full market coverage:
Company targets the full market rather than any specific segment.
Example: Hewlett-Packard targets the full market for its printers.
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Other Consideration
• Ethical choice of market targets
• Segment interrelationships and super segments
• Segment-by-segment invasion plans
• Inter segment cooperation