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Sem 1 Topic 6 Seg TGT

The document discusses different types of market segmentation including niche marketing, local markets, and individual markets. It also covers market segmentation patterns such as homogeneous, diffused preferences, and clustered preferences. Additionally, it outlines the methodology for market segmentation including conducting surveys, analyzing data, and profiling segments. Key criteria for segmentation are also presented such as geographic, demographic, psychographic, behavioral, and loyalty status.

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anuragmehta1985
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© Attribution Non-Commercial (BY-NC)
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127 views

Sem 1 Topic 6 Seg TGT

The document discusses different types of market segmentation including niche marketing, local markets, and individual markets. It also covers market segmentation patterns such as homogeneous, diffused preferences, and clustered preferences. Additionally, it outlines the methodology for market segmentation including conducting surveys, analyzing data, and profiling segments. Key criteria for segmentation are also presented such as geographic, demographic, psychographic, behavioral, and loyalty status.

Uploaded by

anuragmehta1985
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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MARKET SEGMETATION

MARKET SEGMENT
--A LARGE IDENTIFIABLE GROUP WITHIN A MARKET WITH SIMILAR PREFRENCES AND CHARACTERSTICS EG. PURCHASING POWER,ATTITUDES ETC. --THE CO,HOWEVER,DOES NOT CUSTOMISE ITS PRODUCTS OR SERVICES TO INDIVIDUAL CUSTOMERS --TRIES TO ISOLATE A BROAD GROUP THAT CONSTITUTES A MARKET

--HENCE SEGMENTATION LIES BETWEEN MASS MARKETING AND INDIVIDUAL MARKETING

NICHE MARKETING
A SMALL SPECIALIED GROUP WITH SPECIAL NEEDS. SUB SEGMENTS

SEGMENTS

SUB SEGMENTS
SUB SEGMENTS

CUSTOMERS HAVE DISTINCT NEED CUSTOMERS ARE WILLIN TO PAY A PREMIUM DOES NOT ATTRACT CUSTOMERS GAINS ECONOMIES THROUGH SPECIALIZATION.

HAS FEW,BUT LARGE, COMPETITORS


NICHE IS ASSOCIATED WITH SIZE, PROFIT AND GROWTH POTENTIAL

LOCAL MARKET
TAILORING YOUR PRODUCTS TO LOCAL NEEDS i.e TRADING AREAS, NEIGHBOURHOOD, INDIVIDUAL STORES. UNLIKE NATIONAL ADVERTISING, LOCAL ADVERTISING ADDRESSES ITSELF TO LOCAL NEEDS

INVARIABLY INCREASES THE MARKETING AND MANUFACTURING COSTS AS ECONOMIES OF SCALE ARE NOT AVAILABLE
DISADVANTAGES --LOGISTICAL PROBLEMS IN MEETING DIFFERENT LOCAL NEEDS. --HOW CAN YOU PROJECT THE SAME BRAND DIFFERENTLY IN DIFFERENT LOCATIONS

INDIVIDUAL MARKET
THE MOST EXTREME FORM OF SEGMENTATION IS INDIVIDUAL MARKETING. I.E. B-TO-B MARKET PRODUCTS LIKE LOGISTICS, COMMUNICATIONS, FINANCIAL TERMS CUSTOMISED FOR EACH CUSTOMER. VERY EXTENSIVE USE IS MADE OF E MAIL, NUERAL NETWORKS, DATABASES, AUTOMATED PRODUCTION MASS CUSTOMISATION MEANS THE ABILITY TO PREPARE ON A LARGE SCALE, INDIVIDUALLY DESIGNED PRODUCTS AND COMMUNICATION TO MEET INDIVIDUAL CUSTOMERS NEED

MARKET SEGMENTATION PATTERNS.


(A) HOMOGENEOUS-A SEGMENT WITH MORE OR LESS SIMILAR PREFERENCE. NO NATURAL SEGMENT DIFFUSED THE CONSUMER PREFERENCES ARE SCATTERED ALL OVER THE PLACE. IE THE CUSTOMERS CHOICES ARE VERY DIFFERENT. THE BRAND THAT COMES IN FIRST HAS THE FIRST MOVER ADVANTAGE. CLUSTERED PREFRENCEIN THIS CASE THE MARKET REVEALS DISTINCT CLUSTERS EACH HAVING ITS OWN PREFERENCR (B)

(C)

HOMOGENEOUS MARKET
CONSUMERS HAVE SAME PREFRENCE NO NATURAL SEGMENTS PREVALANT BRANDS WILL BE SIMILAR

DIFFUSED PREF
CONSUMERS PREF SCATTERED ALL OVER. CONSUMERS CHOICES ARE DIFFERET FIRST BRANDS HAS FIRST MOER ADVANTAGE.

CLUSTERED PREFRENCE
MARKET SHOWS DISTINCT CLUSTERS. COS HAVE FOLLOWING CHOICES. 1) POSITION IN CENTRE 2) POSITION IN LARGEST SEGMENT 3) DEVELOP A PRODUCT FOR EACH SEGMENT.

MARKET SEGMENT-METHODOLOGY
MARKET SEGMENTATION PROCEDURE INVOLVES A 3-STAGE PROCESS A) B) C) SURVEY ANALYSIS PROFILING

A SURVEY IS CONDUCTED OF CONSUMER ATTITUDES, MOTIVATIONS & BEHAVIOR THE RESEARCHER THEN PREPARES A QUESTIONNAIRE COVERING - ATTRIBUTE IMPORTANCE - BRAND AWRENESS - RATINGS - USAGE PATTERNS - PRICE PREFRENCE - DEMOGRAPHICS

ANALYSIS
SEGREGATION OF HIGHLY CORRELATED VARIABLE USING FACTOR ANALYSIS. IDENTIFICATION OF VARIOUS SEGMENTS THRU CLUSTER ANALYSIS

PROFILING
A PROFILE OF EACH CLUSTER IS PREPARED ON THE BASIS OF CUSTOMER ATTITUDES BEHAVIOR DEMOGRAPHICS PSCHOGRAPHICS MEDIA PATTERN

PROFILING
FOR EACH CLUSTER A DOMINANT ATTRIBUTE IS IDENTIFIED WHICH HELPS IN DIFFERENTIATING THE CLUSTERMARKET SEGMENTATION SHOULD BE DONE REGULARLY AS CONSUMER NEEDS CHANGE VERY FAST STUDY HIERARCHY OF ATTRIBUTES WHICH CONSUMERS EXAMINE HELPS IN DISCOVERING NEW SEGMENTS.

CRITERIA FOR SEGMENTATION


GEOGRAPHIC DEMOGRAPHIC PSYCHOGRAPHIC BEHAVIORAL LOYALTY STATUS

GEOGRAPHIC
THE MARKET IS DIVIDED INTO COUNTRIES/ STATES REGIONS ETC. QUITE OBVIOUSLY A CO MAY OPERATE IN MORE THAN ONE GEOGRAPHICAL AREA WHILE A CO MAY OPERATE IN SEVERAL AREAS IT MAY PAY ATTENTION TO LOCAL CONDITIONS

DEMOGRAPHIC
AGE INCOME GENDER GENERATION SOCIAL CLASS EDUCATION RACE RELIGION NATIONALITY

DEMOGRAPHIC FACTORS
AGE/ LIFE CYCLE STAGE GENDER-MAGZINES,CLOTHING,COSMETICS,HAIRSTYLE INCOME-MAY NOT REFLECT A PERSONS MONETARY CONDITIONS PLAYS A ROLE IN PROPDUCTS LIKE CARS, ACs, TRAVELLING GENERATION-MUSIC, POLITICS,LITERATURE, ENTERTAINMENT SOCIALISING etc

SOCIAL CLASS-INFLUENCES LIESURE ACTIVITIES, DCOR,DRESSING READING ETC

PSYCHOGRAPHIC
IN PSYCHOGRAPHIC SEGMENTATION CONSUMERS ARE DIVIDED INTO GROUPS ON THE BASIS OF

LIFESTYLE PERSONALITY--GIVING THE PRODUCT PERSONALITY


ATTRIBUTES OF CONSUMER

VALUES--INVESTING THE PRODUCTS WITH CORE VALUES /


BELIEFS. INFLUENCING CORE BELIEFS AND VALUES IS ONE OF THE STRONGEST WAYS OF BONDING WITH PEOPLE

BEHAVIORAL SEGMENT
BEHAVORIAL SEGMENTATION IS BASED ON THE CONSUMERS KNOWLEDGE,ATTITUDE AND RESPONSE TO A PRODUCT
SEGMENTATION IS POSSIBLE ON THE BASIS OF OCCASIONS,BENEFITS,USER STATUS. USAGE RATE,LOYALTY ETC OCCASIONS DUSSHERA BENEFITS -PEOPLE BUY ON SPL OCCASIONS DIWALI,

- TOOTHPASTE / SHAMPOO

USER STATUS - EX USERS/ POTENIAL USERS/ NON USERS

USAGE RATE-CAN BE CLASSIFIED INTO HEAVY/LIGHT/MEDIUM

LOYALTY STATUS
BASED THE BEHAVIOR OF LOYALTY DISPLAYED HARD CONSUMERS CAN BE CLASSIFIED AS

HARD CORE LOYALISTS ALWAYS PURCHASE THE


SAME BRAND

SPLIT LOYALS LOYAL TO TWO/THREE BRANDS SHIFTING LOYALTYKEEP SHIFTING THEIR LOYALTIES TO
OTHER BRANDS

SWITCHERSCONSUMERS WHO DO NOT HAVE ANY


LOYALTY

MULTI ATTRIBUTE MARKET


COMBINING SEVERAL VARIABLES IN AN EFFORT TO IDENTIFY SMALLER AND MORE FOCUSED GROUPS BY USING STATISTICAL TOOLS LIKE GEO CLUSTERING.

FOR SEGMENTATION TO BE EFFECTIVE IT MUST BE


I) MEASURABLE THE SIZE, PURCHASING POWER, DEFINING CHARACTERISTICS II) SUBSTANTIALTHE SEGMENT MUST BE SUBSTANTIALLY LARGE AND PROFITABLE III) ACCESSIBLEIT MUST BE EASY FOR THE CO TO REACH AND SERVICE THE SEGMENT

DIFFERENTIABLETHE SEGMENT MUST BE DISTINCT


CONCEPTUALLY AND MUST RESPOND DIFFERENTLY TO DIFFERENT MARKETING INPUTS

ACTIONABLETHE SEGMENT SHOULD BE SUCH THAT


VARIOUS MEASURES CONTEMPLATED BY THE CO SHOULD BE POSSIBLE ETHICAL CHOICESTHE COS MUST ADHERE TO BASIC ETHICS WHEN ADDRESSING TO CERTAIN VULNERABLE GROUPS SEGMENT INTERRELATIONSHIPSTHE COS MUST STUDY THE COST PERFORMANCE ETC

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