segments based on different criteria Not all the products in market are everything for everyone It is target marketing unlike mass market where we want everyone to buy our product We are focusing on particular group of buyers DEFINE MARKET SEGMENTATION The division of a market into different homogeneous groups is known as market segmentation
Market segmentation can be defined as
the subdivision of the market into compatible subsections of customers where any subsection may be selected as a market target to be reached with a unique marketing mix. NEED FOR MARKET SEGMENTATION The marketing concept calls for understanding customers and satisfying their needs better than the competition.
But different customers have different
needs and it is rarely possible to satisfy all customers by treating them alike A MARKET SEGMENT SHOULD BE Measurable Accessible by communication and distribution Different in its response to a marketing mix Durable (not changing too quickly) Substantial enough to be profitable MASS MARKETING Mass marketing refers to treatment of the market as a homogenous group and offering the same marketing mix to all customers. DRAWBACK OF MASS MARKETING Customer needs and preferences differ and the same offering is unlikely to be viewed as optimal by all customers If firms ignored the differing customer needs another firm likely would enter the market with a product that serves a specific group and the incumbent firms would lose those customers Tarket marketing Target marketing recognizes the diversity of customers and does not try to please all of them with the same offering First step in target marketing is to identify different market segments and their needs BASES FOR SEGMENTATION IN CONSUMER MARKETS Consumer markets can be segmented on the following customer characteristics
Prospective customers are in local, state, regional or national
marketplace segment. If a firm is selling a product such as a farm equipment, the geographic location will remain a major factor in segmenting the target markets because their customers are located in specific rural areas. Segmentation of customers based on geographic factors are Region Segmentation by continent / country / state / district / city. Size Segmentation on the basis of size of an urban area as per the population size. Population Density Segmentation on the basis of population density such as urban / sub-urban / rural etc. LOCATION REGIONAL ZIPCODE DEMOGRAPHIC SEGMENTATION
Market segmentation can be done
based on demographic factors such as Age. For example, Rico watches have segmented their product portfolio according to different age groups of people.
GENDER INCOME ETHINICITY
EDUCATION PSYCHOGRAPHIC SEGMENTATION Psychographic Segmentation focuses on group customers according to their life-style and purchasing psychology. Many businesses offer products based on the attitudes, beliefs and emotions, ideas, and perceptions of the target market. Psychographic segmentation includes variables such as Activities, Interests, Opinions, Attitudes, and Values.LIFESTYLE BEHAVIORAL SEGMENTATION
Markets can be segmented on the basis
of buyer behavior. It is because the buying behavior of consumers differ based on the geographic, demographic and psychographic factors. Marketers often find practical benefits in using buying behavior as a separate segmentation basis in addition to factors like geographic, demographics, and psychographics.