11Apr 8, 2023Apr 8, 2023

Presentation on Presentation on “Segmentation”“Segmentation”

bybyMMM (IV SEM.) studentsMMM (IV SEM.) students

22Apr 8, 2023Apr 8, 2023

SR.SR.NO.NO. NAMENAME ROLL NO.ROLL NO. SLIDE SLIDE

NOS.NOS.

11 Vijay L. PanchalVijay L. Panchal M080917M080917 1-61-6

22 Kunal S.OakKunal S.Oak M080923M080923 7-107-10

33 Archana H.MankarArchana H.Mankar M080959M080959 11-1411-14

44Prabhat Prabhat D.KhandalekarD.Khandalekar M080912M080912 15-2315-23

55 Santosh H.IyerSantosh H.Iyer M080916M080916 24-3024-30

66 Greesh H.LassiGreesh H.Lassi M080915M080915 31-3731-37

Presentation on “Segmentation”Presentation on “Segmentation”byby

MMM (IV SEM.) studentsMMM (IV SEM.) students

Apr 8, 2023Apr 8, 2023 33

Segmentation – IntroductionSegmentation – Introduction • ““Segmentation” is grouping consumers by Segmentation” is grouping consumers by

some criteria, such that those within a group some criteria, such that those within a group will respond similarly to a marketing action and will respond similarly to a marketing action and those in a different group will respond those in a different group will respond differently.differently.

• Consumer are of varying characteristics and Consumer are of varying characteristics and buying behavior. buying behavior.

• Many differing segments occur within a Many differing segments occur within a market. market.

Entire Market “Segment 1" “Segment 2"

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Segmentation – The Marketing Segmentation – The Marketing

StrategyStrategy

• Important elements of Important elements of each marketing strategy:each marketing strategy:

Market segmentation Market segmentation Identification of target Identification of target

markets markets

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Segmentation – The Marketing Segmentation – The Marketing StrategyStrategy

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Segmentation – The Specific Segmentation – The Specific

FocusFocus • Marketers must understand the diversity of Marketers must understand the diversity of

consumer needs in the broader market.consumer needs in the broader market.

• What current competition offers?What current competition offers?

• How to differentiate for a superior marketing How to differentiate for a superior marketing mix?mix?

• Fine-tuning of the elements of the marketing Fine-tuning of the elements of the marketing mix to the unique needs of the target mix to the unique needs of the target market.market.

• Screening of opportunities available in Screening of opportunities available in different target markets using SWOT different target markets using SWOT analysis.analysis.

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Reasons for Market Segmentation Reasons for Market Segmentation

Basis for developing targeted and effective marketing plans. Facilitates proper choice of target marketing. Higher Profits Facilitates tapping of the market, adapting the offer to the target e.g.Ford adapted its offer to suit the Indian target market. Stimulating Innovation

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Reasons for Market Segmentation Reasons for Market Segmentation

Makes the marketing effort more efficient and economic. Benefits the customer as well Sustainable customer relationships in all phases of customer life cycle Targeted communication Higher market Shares

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Levels of Market SegmentationLevels of Market Segmentation

• Mass MarketingMass MarketingStarting point of any segmentation Starting point of any segmentation

discussion.discussion.Mass production, mass distribution and Mass production, mass distribution and

mass promotion of one product for all mass promotion of one product for all buyers.buyers.

It creates the largest potential market, It creates the largest potential market, lowest costs, lower prices, higher margins.lowest costs, lower prices, higher margins.

However, it is difficult to practice “One Size However, it is difficult to practice “One Size Fits All” marketing.Fits All” marketing.

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Levels of Market SegmentationLevels of Market Segmentation

• Micro MarketingMicro MarketingCompanies are turning to micromarketing.Companies are turning to micromarketing.

Micromarketing has four levels:-Micromarketing has four levels:- SegmentsSegments NichesNiches Local areasLocal areas IndividualsIndividuals

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Segment MarketingSegment Marketing• Large identifiable group within a market.Large identifiable group within a market.• Group with similar wants, purchasing power, Group with similar wants, purchasing power,

geographical location, buying attitudes.geographical location, buying attitudes. e.g. an auto company may identify four broad e.g. an auto company may identify four broad

segments based on car buyer’s expectations segments based on car buyer’s expectations like :like :

Basic transportationBasic transportation High performanceHigh performance LuxuryLuxury SafetySafety• Buyers have similar wants & needs but they are Buyers have similar wants & needs but they are

not alike.not alike.• Segment wise pricing for target audience, fewer Segment wise pricing for target audience, fewer

competitors.competitors.

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Niche MarketingNiche Marketing

• A more narrowly defined group.A more narrowly defined group.• A small market whose needs are not well A small market whose needs are not well

served.served.• A group seeking a distinctive mix of benefits.A group seeking a distinctive mix of benefits.• Niche marketers understand customer’s needs Niche marketers understand customer’s needs

very well.very well.• Customer’s willingly pay a premium.Customer’s willingly pay a premium. For Example, Ramada Franchises Enterprises For Example, Ramada Franchises Enterprises

offers lodgings in a variety of niches like :offers lodgings in a variety of niches like : Ramada Ltd. For economic travelersRamada Ltd. For economic travelers Ramada Inn for those seeking a mid-price-full Ramada Inn for those seeking a mid-price-full

service hotelservice hotel Ramada Plaza for upper mid price nicheRamada Plaza for upper mid price niche Ramada Hotels giving three star services……Ramada Hotels giving three star services……

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Local MarketingLocal Marketing

• Local customer groups.Local customer groups.• Trading areas, neighborhoods, individual Trading areas, neighborhoods, individual

stores.stores.• Localizing marketing rather than national Localizing marketing rather than national

advertising.advertising. For Example : Soft drink with name “JOY” in For Example : Soft drink with name “JOY” in

Hyderabad. The sale is limited only for Hyderabad. The sale is limited only for villages in Hyderabad and city of Hyderabad.villages in Hyderabad and city of Hyderabad.

• Reduction in economies of scale.Reduction in economies of scale.• Dilution of brand’s image if different product Dilution of brand’s image if different product

and message in different localities.and message in different localities.

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Individual MarketingIndividual Marketing

• Segments of one.Segments of one.

• Customized marketing.Customized marketing.

• One-to-one marketing.One-to-one marketing.

For Example : B2B marketing.For Example : B2B marketing.

Customization of offers, logistics, Customization of offers, logistics, communications and financial terms for each communications and financial terms for each major account.major account.

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Bases for SegmentationBases for Segmentation

Number of variables which leads to market segmentation.

Segmentation is done for consumer market and industrial market.

Bases for segmentation in consumer market:-

Geographic Segmentation. Demographic Segmentation. Psychographic Segmentation. Behaviouralistic Segmentation.

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Bases for SegmentationBases for Segmentation

Geographic Segmentation

Region : - Segmentation by continent / country/ state / district / city.

Size : - Segmentation on the basis of size of a metropolitan area as per its population size.

Population density: - urban / sub-urban /rural

Climate: - climatic condition or weather.

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Bases for SegmentationBases for Segmentation

Demographic Segmentation

Age (dominant factor) Titan’s product segmentation on the bases of age:-

Titan Fastrack (for the Titan Fastrack (for the younger segment)younger segment)

Steel-1077SM01(for elder Steel-1077SM01(for elder person and professional)person and professional)

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Bases for SegmentationBases for Segmentation Demographic Segmentation

Income (dominant factor) Titan’s product segmentation on the bases of income:-

Titan Nebula (Luxury Titan Nebula (Luxury segment watch)segment watch)

Titan Sonata (for masses Titan Sonata (for masses and budget conscious)and budget conscious)

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Bases for SegmentationBases for Segmentation Demographic Segmentation

Purchasing Power (dominant factor) Different car segments based on purchasing power:-

Maruti 800 Maruti 800 (Budget car segment)(Budget car segment)

Mercedes Benz, BMW, Audi Mercedes Benz, BMW, Audi (for super luxury segment)(for super luxury segment)

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Bases for SegmentationBases for Segmentation

Demographic Segmentation

Occupation Gender Family size Family life cycle Nationality Religion Education

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Bases for SegmentationBases for Segmentation

Psychographic Segmentation

Segmentation according to customer’s life-style and psychology.

Activities. Interests. Opinions. Attitudes. Values

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Bases for SegmentationBases for Segmentation Behaviouralistic segmentation

Markets can be segmented on the basis of buyer behaviour as well. Variables of buyer behavior are:-

Benefit sought: - Quality / economy / service / look etc of the product. Usage rate: - Heavy user / moderate user / light user

User status: - Regular / potential / first time user / irregular/ occasional

Brand Loyalty: - Hard core loyal / split loyal / shifting / switches

Occasion: - Holidays and occasion stimulate customer to purchase products.

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Bases for SegmentationBases for Segmentation Bases for Segmentation in Industrial Market These characteristics apply to organizations such as manufacturers

and service providers, as well as resellers, governments, and institutions.

Industrial markets might be segmented on characteristics such as:

1. Location : Shipping cost 2. Company type : Company size (a large scale industry / a small scale industry) Industry (manufacturing / service) (public sector / private sector)3. Behavioral Characteristics : Usage rate Buying status (first time / potential) Purchase procedure (Sealed bids/ negotiations)

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Market Segmentation ProcessMarket Segmentation Process

1. Naming broad product-markets or disaggregating.

2. Breaking up all possible needs into some generic markets & broad product markets to operate profitably.

3. Segmenting broad product markets in order to select target markets & develop suitable marketing mixes.

It is an aggregating process – clustering people with similar needs into individual market segments.

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Market Segmentation ProcessMarket Segmentation Process

How Far should the Aggregating Go?

Product-market showing three segments

AB

C

Sta

tus

dim

ensi

on

Dependability dimension

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Criteria for Successful Criteria for Successful SegmentationSegmentation

1. Substantiality

2. Identifiability

3. Measurability

4. Accessibility

5. Operational

6. Responsiveness

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Steps in Segmenting a MarketSteps in Segmenting a Market

1. Select a market or product category.

2. Choose a basis or bases for segmenting the market.

3. Select segmentation descriptors.

4. Profile and evaluate segments.

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Evaluation of the SegmentsEvaluation of the Segments

Whether market segmentation is successful or not can be evaluated by the following questions:-

1. Is it sizeable?2. Is it growing?3. Is it profitable?4. Is it accessible?5. Is it compatible with the firm’s resources and

capabilities?

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Targeting Targeting

The process of evaluating segments and focusing marketing efforts on a country, region, or group of people that has significant potential to respond.

Signifies only those segments that a firm wants to adopt as its market.

The promotion, pricing and distribution - easier and more cost-effective.

A focus to all marketing activities.

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Positioning Positioning

A concept in marketing by Al Ries and Jack Trout in their bestseller book “Positioning - a battle for your mind".

Positioning is what you do to mind of the prospect.

The position of a product is the sum of attributes like:-

its standing its quality the type of people who use it its strengths its weaknesses

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MARKET SEGMENTATIONMARKET SEGMENTATION

TITANTITAN

WristwatchesWristwatches

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MARKET SEGMENTATION OF MARKET SEGMENTATION OF TITANTITAN• Titan took birth from TATA group in 1984 Titan took birth from TATA group in 1984

and today is India’s market leader in and today is India’s market leader in wristwatches and the sixth largest wristwatches and the sixth largest watchmaker in the world.watchmaker in the world.

• Effective Market segmentation has been a Effective Market segmentation has been a great boon of the company.great boon of the company.

• Today the company has a model for every Today the company has a model for every price segment and every market.price segment and every market.

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MARKET SEGMENTATION OF MARKET SEGMENTATION OF TITANTITAN

• Initially when mechanical technology Initially when mechanical technology was the norm, Titan went against the was the norm, Titan went against the norm and built-up its line with Quartz.norm and built-up its line with Quartz.

• Styling was not the factor initially in Styling was not the factor initially in Indian watch market but Titan Indian watch market but Titan brought the difference.brought the difference.

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MARKET SEGMENTATION OF MARKET SEGMENTATION OF TITANTITAN• Titan is also capturing rural market Titan is also capturing rural market

very efficiently. Its price range starts very efficiently. Its price range starts from Rs.475-1200 for the basic from Rs.475-1200 for the basic consumers.consumers.

• It has also appointed Mahendra Singh It has also appointed Mahendra Singh Dhoni (who belongs to Ranchi) as Dhoni (who belongs to Ranchi) as Brand Ambassador to reach out to rural Brand Ambassador to reach out to rural population for its sonata collection.population for its sonata collection.

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MARKET SEGMENTATION OF MARKET SEGMENTATION OF TITANTITAN• on the other hand, Aamir Khan is capturing urban on the other hand, Aamir Khan is capturing urban

minds.minds.

• It brought out “It brought out “AquaAqua” a trendy collection for ” a trendy collection for youthyouth..

• RagaRaga for for sophisticated Indian womensophisticated Indian women..

• DashDash for for kids segmentkids segment..

• SonataSonata for for masses and budget-consciousmasses and budget-conscious..

• FastrackFastrack for for cool and modern young cool and modern young populationpopulation

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MARKET SEGMENTATION OF MARKET SEGMENTATION OF TITANTITAN• Its brands like Its brands like BandhanBandhan were aimed at were aimed at

CouplesCouples and and EXCTAEXCTA and and SPECTRASPECTRA were were aimed at aimed at common class of office wearcommon class of office wear..

• Through its own retails outlet “World of Through its own retails outlet “World of Titan”; variety of Designs and price Titan”; variety of Designs and price variations Titan has reached to various variations Titan has reached to various classes of customers and cities.classes of customers and cities.

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Thank You!Thank You!