identifying market segments and targeting

IDENTIFYING MARKET SEGMENTS AND TARGETS

PREPARED BY:

Khushbu Degadwala(Roll No: 7)

Ayesha Fernandes(Roll No: 9)

Chintan Vyas(Roll No:40)

OVERVIEW• Meaning of market segmentation

• Levels of market segmentation• Mass marketing• Segment marketing• Niche marketing• Local marketing• Individual marketing

• Meaning of target market• Evaluating & selecting market segment• Pattern of target market

3

MARKET SEGMENTATION

MARKETMARKET

MARKETSEGMENT

MARKETSEGMENT

MARKETSEGMENTATION

MARKETSEGMENTATION

People or organizations with needs or wants and the ability and willingness to buy.

People or organizations with needs or wants and the ability and willingness to buy.

A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.

A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.

The process of dividing a market into meaningful, relatively similar, identifiable segments or groups.

The process of dividing a market into meaningful, relatively similar, identifiable segments or groups.

MARKET SEGMENTATION

IMPORTANCE OF MARKET SEGMENTATION

• Markets have a variety of product needs and preferences

• Marketers can better define customer needs

• Decision makers can define objectives and allocate resources more accurately

LEVELS OF MARKET SEGMENTATION

Mass Marketing

Segment Marketing

Niche Marketing

Local Marketing

Individual Marketing

MASS MARKETING

• “Mass marketing to attract all kinds of buyers by producing and distributing the one best product at the lowest possible price”.

• a. creates the largest potential market• b. lowest production costs• c. lower prices or higher margins.

Example: Coca-Cola at one time sold

only one kind of coke in 6.5 ounce bottle. 

SEGMENT MARKETING

• “A market segment consists of a group of customers who share a similar set of needs and wants, identify them and decide which one to target”.

• Identify preference segments

Homogenous preference

Diffused preference

Clustered preference

NICHE MARKETING

• “Concentrating all marketing efforts on a small but specific and well defined segment of the population”.

Aimed at being a big fish in a small pond instead of being a

small fish in a big pond.

• Example:-

Television channel in India

Pogo

StarPlus

Ten sports

Aastha

LOCAL MARKETING

•   ”Marketing programme tailored to the needs and wants of local customer groups in trading areas, neighbours, even individual stores.”

Example:-

McDonald’s introduce Vegetarian items in to menu when it enter into India.

INDIVIDUAL MARKETING• “Individual marketing aims to satisfy individual customers

by providing products that are precisely tailored to match individual means and tastes”.

• Customization

• Example:-

• Asian Paint

company follow mass customised strategy in paint retailer.

MARKET TARGETING

MARKET TARGETING• “A target market is a group of

customers that the business has decided to aim its marketing efforts and ultimately its  merchandise towards”.

• Effective Segmentation Criteria• Evaluating and selecting market

segment• Additional consideration

EFFECTIVE SEGMENTATION CRITERIA

• Not all segmentation schemes are useful.

• CRITERIA:

• Measurable• Substantial• Accessible• Differentiable• Actionable

EVALUATING & SELECTING MARKET SEGMENT

• Evaluation:-

2 factorsa) Segment attractivenessb) Company’s objective and resources

• Pattern of target market:-Single segment concentrationSelective specializationproduct specialisationmarket specialisationfull market coverage

PATTERN OF TARGET MARKET

Basis for Segmentation

• Usage Rate• Usage Rate

• Benefits Sought• Benefits Sought

• Psychographics• Psychographics

• Demographics• Demographics

• Geography• Geography

• Bases Used to Segment Consumer Markets

• Bases Used to Segment Consumer Markets

Geographic Segmentation

19

Segmenting markets by region of

the country or world, market size,

market density, or climate.

Geographic Segmentation

• Region of the country or world

• Market size

• Market density

• Climate

20

Benefits of Regional Segmentation

• New ways to generate sales in sluggish and competitive markets

• Scanner data allow assessment of best selling brands in region

• Regional brands appeal to local preferences

• React more quickly to competition

21

Demographic Segmentation

22

Segmenting markets by age,

gender, income, ethnic background,

and family life cycle.

Bases for Demographic Segmentation

• Age

• Gender

• Income

• Ethnic background

• Family Life Cycle

23

Ethnic Background

• Largest ethnic markets are:African-American

Hispanic-American

Asian-American

• Will comprise 1/3 of U.S. population by 2010 with buying power of a trillion dollars

24

Family Life Cycle

25

Age

MaritalStatus

Children

Psychographic Segmentation

26

Market segmentation on the basis

of personality, motives, lifestyles,

and geo demographics.

Bases for Psychographic Segmentation

27

PsychographicSegmentationPsychographicSegmentation

PersonalityPersonality

MotivesMotives

LifestylesLifestyles

GeodemographicsGeodemographics

Benefit Segmentation

28

The process of grouping customers

into market segments according to

the benefits they seek

from the product .

Usage-Rate Segmentation

29

Dividing a market by the amount of

product bought or consumed.

The 80/20 Principle

30

A principle holding that 20 percent

of all customers generate 80

percent of the demand.

THANK YOU