Documente Academic
Documente Profesional
Documente Cultură
respect to consumer
behavior
Segmentation & Consumer
Behavior
• Segmentation defined:
– Dividing a large, heterogeneous market into
more homogenous groups of people who have
similar interests or desires, have similar
demographic characteristics or profiles or
behave in similar fashion
• Consumer Behaviour defined:
• Consumer Behavior Involves the process
by which people determine whether, what,
when, where, how, from whom, and how
often to purchase goods and services.
• Segmentation involves finding out what
kinds of consumers with different needs
exist. In the auto market, for example,
some consumers demand speed and
performance, while others are much more
concerned about roominess and safety. In
general, it holds true that “You can’t be all
things to all people,” and experience has
demonstrated that firms that specialize in
meeting the needs of one group of
consumers over another tend to be more
profitable.
TYPES OF SEGMENTATION
• Geographic Segmentation
• Geographic
– Climate
– Region
– City Size
– Density
Eg.The inclination of people of UK to buy small cars
owing to high population densities and narrow
lanes.So cars like Uno & Beetles was a success
there.
DEMOGRAPHIC
SEGMENTATION
• AGE
• FAMILY SIZE
• FAMILY LIFE CYCLE
• GENDER
• INCOME
• OCCUPATION
• Eg.The inclination towards trendy
products at young age and investment
products at older ages helps companies
choose a particular segment & target it.
PSYCHO GRAPHIC
SEGMENTATION
• Psychographics
– Personality
– lifestyles
• Eg.Whether a customer is style
oriented or value oriented.A customer
can choose between Kawasaki Ninja if
he thinks about style or a Maruti Alto if
he thinks of economy(5 people sitting
capacity) that come will within same
price range.
BEHAVIORAL SEGMENTATION
• Occasions
• Benefit
Segmentation :
• Geographic: rural and urban
-Rural for relatively less inclination
towards luxury/show offs & more
value driven.,Tata brand name
-Urban because of city traffic
congestion,good mileage,people
wanting to upgrade to 4 wheeler
(Psychological)
TAKING THE EXAMPLE OF TATA
NANO(Company’s perspective of
Consumer Behaviour)
• Demographic: family size & income.
• (Rising incomes,Good for 4 people
family,wish to upgrade to 4 wheeler)
• Behavioral: benefit & user status.
(Good in heavy traffic,”WE ALSO
OWN A 4 WHEELER NOW”
feeling,Good value,mileage)
SCOPE OF SEGMENTATION
WITH RESPECT TO
CONSUMER BEHAVIOUR
Convenience
• Higher Profits with less marketing costs
& effort –
Right Information At Right Time
• Stimulates innovation –
Better Product Offerings
• Retention of customer –
Satisfaction/ Choice
• Competitive edge –
Value
MARKET SEGMENTAION
MARKET SEGMENTATION
SEGMENTS TARGETTED PRICE RANGE NOKIA SETS
CONSUMER Rs.
ENTRY LOW INCOME 2500 – 6000 1200,1208,1100,1110,
PEOPLE, FIRST 1112
TIME USERS
CLASSIC DECENT PEOPLE 7000 – 17000 6300,6233,6120,3120
FUNCTIONALITY VARIABLES
• Voice
• Entertainment
• Imaging
• Media
• Business Application
NOKIA
SEGMENTATION
(THREE)
3 E ’s
N 96
N810 9210
Companies changing tactics
according to changing consumer
behavior