Market segmentation strategy involves dividing the market into groups, where individuals have similar needs and

wants for services and products. It could also be a segmentation of people on the basis of behavior, culture, and economic status.

It is defined as, "Process of defining and sub-dividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics".

Strategies for Market Segmentation How a market is segmented is based on certain variables. Variables used for segmentation include; behavioral, demographic, psychographic, and geographical differences.

Why Segment a Market? Before marketing the products or services, one needs to understand their customers, and find ways and means to satisfy their wants. This is imperative to stay ahead of the competition and build the brand. This is done through extensive market research. Although it is not possible to satisfy individual needs and understand all of them, a clearly defined market segmentation strategy will help create a market to cater to groups of individuals that will make economic sense to mass produce and distribute. The concept of target market segmentation strategy also falls under this blanket, except the former recognizes and understands the diversity of customers and provides them with products and services that suit their specific requirements. A successful market strategy strives to understand different segments and its different needs; works on the exhibited common wants; and responds immediately.

Segmenting people according to their lifestyle and values, and how they translate into consumption or purchases of products or services is what psychographic segmentation is all about. How one's interest, opinions, values, attitude, and the activities they perform, affect their choices and why a group of people would lean towards one product more than others. A high status would translate into an expensive flying habit, while a thrift value will translate into an economy flight.

Geographical segmentation is done by dividing people (markets) into different geographical locations. The country, state, or neighborhood, the king of gentry, climate, size of a place segmented into size of its age wise population, etc., all play a role in devising market strategies. This helps the producer and the marketers to understand what will sell and what won't. For example, a market for winter wear would definitely not work in warm regions.

Demographic segmentation refers to a wide study of potential customers. While marketing a product, many variables like age, gender, education, income, family size, occupation, socioeconomic status, culture, religion, language, and nationality are taken into account. There are many instances where such a segmentation has worked very profitably. This segmentation plays a vital role in determining whether a product can be mass marketed or designed for a specific clientele.

Behavioral segmentation is based on the customer's needs and subsequent reaction to those needs or towards the purchase of intended products and/or services. This study is conducted on all variables that are closely related to the product itself, like loyalty to a particular brand, cost-effectiveness in terms of benefits and usage, circumstances responsible for the purchase, whether the customer is a regular, a first timer, or and has the potential to become a customer, and whether the readiness to buy is linked to status.

Target market is nothing but that specific set of audience to whom the product manufactured is meant to cater to. Target market is more like dividing the vast sea of customers into smaller segments and using the 4Ps of marketing (Product, Price, Place and Promotion) on this segment effectively to achieve maximum sales and profits.

Single Segment Strategy: This strategy involves the use of only one marketing mix for one market segment. Usually small scale companies with limited budget and resources opt for this form of target marketing strategy.

Selective Specialization Strategy: In this strategy, several marketing mixes are implemented in different segments. The same product is marketed differently in different segments, which is why this target marketing strategy is also known as differentiated strategy.

Product Specialization: The product manufactured is customized and then marketed, so as to cater to different market segments.

Market Specialization Strategy: In this form of target marketing, the company first finalizes the market segment they wish to cater to and then manufacture a variety of products exclusively for this segment.

Full Market Coverage Strategy: The company uses this strategy when they wish to serve the mass market. This means a single marketing mix combination can be used or even several marketing mixes are used to cater to segments made in this entire market.

. Mono segment positioning. As the name suggests, mono segment positioning involves developing a product-andmarketing program tailored to the preferences of a single market segment. Successful implementation of this strategy would give the brand an obvious advantage within the target segment, but would not generate many sales from customers in other segments. This strategy is best used with mass-marketing.eg:-after shave lotion

2. Multi segment positioning. This consists of positioning a product so as to attract consumers from different segments. This is an attractive strategy since it provides higher economies of scale, requires smaller investments, and avoids dispersion of managerial attention. It is particularly appropriate when individual segments are small, as is generally the case in the early stages of the product's life cycle. E.g.:Savlon

3. Standby positioning. It may not be in the best economic interest of a firm to switch from a multi segment positioning strategy to a mono segment strategy (assuming the use of several brands, each positioned to serve the needs of only one segment) even if it increases total market share. In such a case, the firm may decide to implement a mono segment positioning strategy only when forced to do so. E.g:- Tata indicom and airtel

4. Imitative positioning. This is essentially the same as a head-on strategy where a new brand targets a position similar to that of an existing successful brand. It may be an appropriate strategy if the imitative firm has a distinctive advantage beyond positioning, such as better access to channels of distribution, a more effective sales force, or substantially more money to spend on promotion, including price deals. E.g. Olay and ponds age miracle

5. Anticipatory positioning. A firm may position a new brand in anticipation of the evolution of a segment's needs. This is particularly appropriate when the new brand is not expected to have a fast acceptance, and market share will build as the needs of consumers become more and more aligned with the benefits being offered. At its best, this strategy enables a firm to preempt a market position that may have a substantial long-term potential. At its worst, it may cause the firm to face a difficult economic situation for an extended period if the needs of a segment do not evolve as expected. E.g - Sanitizer and fabric comfort conditioner for clothes

6. Adaptive positioning. This consists of periodically repositioning a brand to follow the evolution of the segment's needs. E.g. Horlicks, Hairdye

7. Defensive positioning. When a firm occupies a strong position in a market segment with a single brand, it is vulnerable to imitative positioning strategies. The firm may preempt competitive strategies by introducing an additional brand in a similar position for the same segment. This will reduce immediate profitability, but it may allow the firm to better protect itself against competitors in the long term. For example, Procter & Gamble has seven brands of laundry detergents, such as Tide and Bold, several of which occupy similar positions in consumers' minds.

Differentiation - Definition: is the act of designing a set of meaningful differences to distinguish the company's offering from competitor's offerings.

Regarding the tools of differentiation, five dimensions can be utilized to provide differentiation. Product Services that accompany marketing, sales and after sales services. Personnel that interact with the customer Channel Image

Features Quality: performance and conformance Performance - the performance of the prototype or the exhibited sample, Conformance - The performance of every item made by the company under the same specification Durability Reliability Repair ability Style Design

Ordering ease Delivery Installation Customer training Customer consulting Miscellaneous services

Competence Courtesy Credibility Reliability Responsiveness Communication

Channel differentiation Coverage Expertise of the channel managers Performance of the channel in ease of ordering, and service, and personnel

Image differentiation First distinction between Identity and Image - Identity is designed by the company and through its various actions company tries to make it known to the market. Image is the understanding and view of the market about the company. An effective image does three things for a product or company. 1. It establishes the product's planned character and value proposition. 2. It distinguishes the product from competing products. 3. It delivers emotional power and stirs the hearts as well as the minds of buyers. The identity of the company or product is communicated to the market by Symbols Written and audiovisual media Atmosphere of the physical place with which customer comes into contact Events organized or sponsored by the company.