PSYCHOGRAPHIC SEGMENTATION

MARKET SEGMENTATION

Conservative, Liberal, Health and Fitness Conscious, Adventuresome, Status-

Life Style seekers

Social Class Lower Class, Lower- Middle Class, Middle Class, Elite Class

Cultural Values Continental, Mughlai, Chinese, India, Royal, South Indian, Hindu Culture

Personality Extroverts, Introverts, Aggressive, Authoritarian, etc.

CUSTOMER CLASSIFICATION: NEW PRODUCT ADOPTION

 INNOVATORS- These are cosmopolitan people who are eager to try new ideas. They are highly venturesome
and willing to assume the risk of an occasional bad experience with a new product.
 EARLY ADOPTERS- These are influential people with whom the average person checks out an innovation.
 EARLY MAJORITY- This group tends to deliberate before adopting a new product. It’s members are important
in legitimising an innovation but they are seldom leaders.
 LATE MAJORITY- This group is cautious and adopts new ideas after an innovation has received public
confidence.
 LAGGARDS- These are past-oriented people. They are suspicious of change and innovation. By the time they
adopt a product, it may already have been replaced by a new one.
EXAMPLES

Kellogs Wishes to do away with age old Indian Habits at breakfast

Tata Sell common salt as Desh ka Namak by providing a tinge of patriotism

Onida Appeals ‘Neighbours Envoy Owner’s Pride’

BEHAVIOURAL SEGMENTATION
SEGMENTATION

Behavioural Segmentation
Needs- Motivation Shelter, Safety, Security, Affection, Sense of self-worth

Perception Low Risk, Moderate Risk, High Risk

Learning- Involvement Low Involvement, High Involvement

Attitude Positive Attitude, Neutral, Negative Attitude

Occasions Regular Occasions, Special Occasions

Benefits Convenience, Prestige, Economy,Value-for-money, Quality,

Service Enthusiastic
Readiness Stage Unaware, Aware, Informed, Interested, Desirous,
Intending to Buy, Enthusiastic
 Use- Situational Segmentation
Time Leisure, Work, Rush, Morning, Night
Objective Personal use, Gift, Fun, Achievement
Location Home, Office, Friend’s Home, In- store
Person Self, Friends, Boss, Peers
Place New, Old
Use- Related Segmentation
Usage- Rate Heavy User, Medium User, Light User
Loyalty Status None, Medium, Strong, Absolute
User- Status Non-user, Co-user, Potential User, First Time User,
Regular User
EXAMPLES

It studied the psychological motivation of customers to identify segments- it

focused on those who were creatively inclined, looking for careers in
Aptech advertising, design, media, fashion, theatre, film-making, or textile-and-interior
designing and targeted the 18-25 age group.
VALUE-BASED SEGMENTATION
INTRODUCTION

 This postulate suggests that marketers must arm themselves with a new parameter for partitioning their
customers’ profitability. The marketers should really be segmenting their customers so as to isolate those who
contribute most to their profits.

Customers value:
Net present value of Customer = ( Annual Revenue from customers* Number of years of association- Cost of
Acquiring the customers)
 Advantages Limitations
No focus on market share except on most
Increased Returns from Lower Investments
profitable customers

Wrong Focus- Today’s most valuable

Focussing resources on most valuable
customers might not include prospective
customers
customers

Creation of product features and marketing Even this base calls for first gaining customer’s
strategies that target best customers value and then assess him.
VOLUME SEGMENTATION
Under this, consumers are classified as light, medium and heavy users of a product. In some cases, 80 per cent of the
product may be sold to 20 per cent of the consumers. Marketers can decide product features and advertising
strategies by finding common characteristics among heavy users. For example, airlines having ‘Frequent Flyer’ are
using user rate as the basis of market segmentation as the concentration on heavy user group increases profitability.
The marketers should also pay due attention to light users and even non-users. The non-users may consist of two
types of people- those who do not use the product, and those who might use it. Some may change over time from a
non user to a user. Those who do not use due to ignorance may be provided extensive information. Repetitive
advertising may be used to overcome inertia or psychological resistance. This is how non- users can gradually be
converted into users.