MARKET SEGMENTATION

2. MARKET SEGMENTATION • Market segmentation is based on fact that markets are heterogeneous & not homogeneous. • Homogeneous market refer to a market situation where the prospective buyers of any product are found to be uniform in their needs, habits ,choices, nature, etc.

3. CONT------- • Heterogeneous market refer to a market situation where the prospective buyers of any product are not found homogeneous in their needs, habits, choices, nature, etc. • Market segmentation refers to dividing the heterogeneous markets into smaller customer groups having certain homogeneous characteristics. Such as income, age, sex, etc.

4. DEFINITION OF M.S • Market segmentation is the sub-dividing of a market into homogeneous subset of consumers , where any subset may conceivably be selected as a market target to be reached with a distinct marketing mix. (Philip Kotler )

5. OBJECTIVES OF M.S • To make grouping of customers on the basis of their homogeneous characteristics. • To identify the needs, tastes, buying-motives of target customers. • To determine marketing strategies, targets & goals of the firm. • To make the activities of the firm consumer oriented.

6. CONT------- • To identify the areas where the customers may be created and market area can be expanded. the main aim of market segmentation is to prepare separate marketing programmesor strategies for each segment so that maximum satisfaction to consumers of different segments may be provided.

7. APPROACHES OF M.S The marketeers adopt several app. To segment a market. App. To market segmentation Mass marketing Product differentiation marketing Target marketing

8. MASS MARKETING • In this total market is considered as one segment. • Under mass marketing only one product is produced & sold in the market for all customers with help of common marketing programme. • It assumes that there is no significant difference amongst Consumers in terms of their need & wants e.g. coca-cola

9. PRODUCT DIFFERENTIATION MARKETING • In this marketing, marketeers uses product differentiation app. • Once marketeers learnt that consumers would not accept one quality product, the marketeers try to provide different size, colours, shapes, features & qualities in his product as per the needs & wants of the customer of different segments.

10. CONT-------- • It provide different product to different segment • E.g. marutiudyog ltd.

11. TARGET MARKETING • It defined as a set of actual potential buyers of a product, service or idea . • Target marketing help the marketeer to correctly identify the market- the groups of consumers for whom the product is designed. • It has 3 steps :- • Market segmentation • Market targeting • Product positioning

12. BASIS OR CRITERIA OF M.S • The step towards developing a segmentation strategy is to locate the bases or basis for segmenting the market. • There are two simple division of product market. • Consumer market • Industrial market

13. ON THE BASIS OF INDUSTRIAL PRODUCT • Type of business activities basis • Geographical location basis • Usual purchasing procedure basis • Size of user

14. On the basis of consumer market • Geographical basis • Demographic basis • Psychological basis • behavioral basis • Marketing basis

15. 1- GEOGRAPHICAL BASIS • It is the most simple, convenient, popular, and usual base for mkt segmentation. • It includes : • Region • City size • Density • Climate

16. 2- DEMOGRAPHIC BASIS • Under this basis, a market tries to differentiate between groups of customers on the basis of demographic variables. • It includes:- • Age • Family size • Family life-cycle • Gender

17. CONT------ • Income • Occupation • Education • Religion • Race • Generation • Nationality

18. 3-PSYCHOGRAPHIC SEGMENTATION • It describe the human characteristics of consumers. • It segment the market on the basis that how people act. • These include:- • personality • life-style • social class

19. 4-BEHAVIORAL SEGMENTATION • Consumer behavior may also form the basis of market segmentation. • It includes:- • Occasions • Benefits • Users status • User rate • Loyality status

20. 5-MARKETING BASIS • Marketing conditions also form an important basis for market segmentation. • There are latest variables used by modern marketeers. • This include:- • Degree of competition • Channels of distribution • Buyer with price consciousness

21. IMPORTANCE OF MS • Knowledge of marketing opportunities • Knowledge of customer needs • Adopting effective marketing programme • Proper allocation of resources • Adjustment in products • Increasing sales volume