logesh.ppt.segment

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Market:Market:

The Market has been derivedThe Market has been derivedfrom the Latin word mercatus whichfrom the Latin word mercatus whichmeans to trade.means to trade.

A market is essential a place whereA market is essential a place wheregoods and services are offer to sales.goods and services are offer to sales.


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Definition of market:Definition of market:

According toAccording toPyle, market includes bothPyle, market includes both

place and region in which buyersplace and region in which buyersand sellers are in freeand sellers are in freecompetition with one another .competition with one another .


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Market segmentation:Market segmentation:

It is the process ofIt is the process of

taking the total market for a producttaking the total market for a productand dividing it into several suband dividing it into several submarkets or segments each of whichmarkets or segments each of whichtends to be homogeneous in alltends to be homogeneous in all

significant respects.significant respects.


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Definition of Market segmentationDefinition of Market segmentation::

Define ofR.S.DAVAR: Grouping ofDefine ofR.S.DAVAR: Grouping ofbuyers or segmentingthemarketisbuyers or segmentingthemarketisdescribedas market segmentation.describedas market segmentation.


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Levels of market segmentation:Levels of market segmentation:

Mass marketingMass marketing

Segment marketingSegment marketing

Niche marketingNiche marketing

Micro marketingMicro marketing


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Levels of market segmentation:Levels of market segmentation:

a)a) Mass marketingMass marketing-- mass producingmass producing-- massmassdistributing and mass promoting.distributing and mass promoting.

b)b) Segment marketingSegment marketing-- The aim is to targetThe aim is to targetthe company products or services, logisticthe company products or services, logistic

channels communication program directly tochannels communication program directly tothose that it feels it can serve best.those that it feels it can serve best.c)c) Niche marketingNiche marketing-- One focus on subgroupsOne focus on subgroups

within already defined segmentswithin already defined segmentsd)d) Micro marketingMicro marketing-- opposite to massopposite to mass

marketing.marketing. --Products tailored to meet theProducts tailored to meet thespecific needs and tastes of specificspecific needs and tastes of specificindividuals and locations.individuals and locations.


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Bases for market segmentationBases for market segmentation

There are many ways by which marketThere are many ways by which marketcan be segmented. But methods of marketcan be segmented. But methods of marketsegmentation will vary from product fromsegmentation will vary from product from

product.product. Market can classified into two types theyMarket can classified into two types they

are:are:

Consumer marketConsumer market

Industrial marketIndustrial market


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Segmentation of consumerSegmentation of consumer

markets:markets:

According to Philip Kotler, consumerAccording to Philip Kotler, consumer

market can be segmented on themarket can be segmented on thebasis of four variables namely,basis of four variables namely,geographic variables, demographic,geographic variables, demographic,psychographic, and buyer behaviourpsychographic, and buyer behaviour

variables.variables.


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Consumer marketsConsumer markets

Demographic

Psychographic Behavioral

Geographic

Marketsegmentation

Consumer markets


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Demographic variables or socioDemographic variables or socio--

Economic variables:Economic variables:

Demographic variables are mostDemographic variables are most

popular bases for segmentingpopular bases for segmentingconsumer markets.consumer markets.

Consumer wants or usage rates areConsumer wants or usage rates areoften highly associated withoften highly associated with

demographic variablesdemographic variables Demographic variables are easier toDemographic variables are easier to

measure than most other types ofmeasure than most other types of

variablesvariables


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Demographic includesDemographic includes

1.1. AgeAge

2.2. SexSex

3.3. IncomeIncome

4.4. EducationEducation

5.5. ReligionReligion

6.6. OccupationOccupation

7.7. Family sizeFamily size


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Geographic segmentationGeographic segmentation ::

The market is divided into differentThe market is divided into differentlocationslocations-- nations, states countriesnations, states countriescities or neighborhoods.cities or neighborhoods.

Marketing strategies are to beMarketing strategies are to beprepared by considering theprepared by considering thecharacteristics of each and everycharacteristics of each and every

market.market.


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Geographic segmentationGeographic segmentation

includes:includes:

1.1. RegionsRegions

2.2. VillagesVillages

3.3. CitiesCities4.4. DensityDensity

5.5. ClimateClimate


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Psychographic segmentation:Psychographic segmentation:

Psychological make up of customer.Psychological make up of customer.

Studying customer value opinionStudying customer value opinionactivities and lifestyles to establishactivities and lifestyles to establishpatterns.patterns.


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Psychographic segmentationPsychographic segmentation

includes:includes:1.1. SocialSocial

2.2. ClassClass

3.3. Life styleLife style4.4. PersonalityPersonality


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Behavioral segmentation:Behavioral segmentation:

Many marketers are of the opinionMany marketers are of the opinionthat behavioral variables are the bestthat behavioral variables are the beststarting point for constructing marketstarting point for constructing market

segments.segments. According to the benefit they expectAccording to the benefit they expect

from the product, they may befrom the product, they may be

divided into groups of havingdivided into groups of havingconsumers who require quality,consumers who require quality,service, economy, etc..service, economy, etc..


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Behavioral segmentationBehavioral segmentation

includesincludes::

1.1. OccasionsOccasions

2.2. BenefitsBenefits

3.3. User statusUser status4.4. Usage rateUsage rate

5.5. Loyalty statusLoyalty status

6.6. Readiness stageReadiness stage7.7. Attitude towardsAttitude towards


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Segmentation of industrialSegmentation of industrial

marketsmarkets

Industrial markets consist ofIndustrial markets consist ofindustrial users.industrial users.

If any organization buys someIf any organization buys someproducts not for resale in the sameproducts not for resale in the sameform but for using them inform but for using them inconnection with its operation, it isconnection with its operation, it is

called an industrial user.called an industrial user.

Industrial markets is large market.Industrial markets is large market.


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Industrial segmentation basesIndustrial segmentation bases

are:are:

1.1. Type of business activity.Type of business activity.

2.2. Geographical location of the user.Geographical location of the user.

3.3. Usual purchasing procedure.Usual purchasing procedure.4.4. Size of the user.Size of the user.


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Basics Elements of marketBasics Elements of market

segmentation:segmentation:

1)1) Availability of enough resources.Availability of enough resources.

2)2) Characteristics of products.Characteristics of products.

3)3) Various stages of a product lifeVarious stages of a product lifecycle (PLC).cycle (PLC).

4)4) Marketing strategies of competitors.Marketing strategies of competitors.


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Requirements for successfulRequirements for successful


1)1) Substantiality.Substantiality.

2)2) Accessibility.Accessibility.

3)3) Measurability.Measurability.4)4) Nature of demand.Nature of demand.

5)5) Formulation of effectiveFormulation of effective

programmers.programmers.6)6) Difference in response rates.Difference in response rates.


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Importance or benefits of marketImportance or benefits of market


Effective use of resources.Effective use of resources.

Gain a focus.Gain a focus.

Determines the most effectiveDetermines the most effectivepromotional appeals for the concern.promotional appeals for the concern.

Helps the manufacturer to face theHelps the manufacturer to face the

competition effectively.competition effectively. Create value for a target market.Create value for a target market.

Positioning.Positioning.


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BY LOGESH KUMAR.ABY LOGESH KUMAR.A

10MBA2710MBA27

NIMSNIMS

logesh.ppt.segment

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