MARKET SEGMENTATION LEVELS

BY:- Chandresh Tank En. Roll:- 100530111039

 CONCEPT DEFINITION LEVELS OF MARKET SEGMENTATION

CONCEPT AND DEFINITION

The concept of market segment is based on the fact that the market of commodities are not homogeneous but they are heterogeneous. Market represent a group of customer having common characteristics but two customer are never common in their nature, habits, hobbies income and purchasing techniques.

 According to Philip kotler , Market segmentation is sub-dividing a market into distinct and homogeneous subgroups of customers, where any group can conceivably be selected as a target market to be met with distinct marketing mix.

 According to William Stanton , where common products are divided in to small segments reflecting the common characteristics are know as market segmentation

 Market Segmentation is a method of dividing a market (Large) into smaller groupings of consumers or organizations in which each segment has a common characteristic such as needs or behavior.

LEVELS OF MARKET SEGMENTATION

1. SEGNMET MARKETING
Consists of a group of customers who share a similar set of needs and wants. Identifiable Group with in a Market with Similar
Wants Purchasing Power Geographical Location Buying Attitudes

FLEXIBLE MARKET OFFERING

Even in segments 100 % needs are not same consists of two parts 1.Naked Solution :- products and services that
all members of the segment values. 2.Discretionary options :- that some segment members value. Each option might carry an additional charge. Ex: Automobile industry basic model is same but for A.C , power steering, power window buyer

has to pay extra price. Delta Airlines offers all economy passengers a seat and soft drinks. It charges economy passengers extra for alcoholic beverages.

 Market Segments can be defined in many different ways. One way to carve up a market is to identify Preference segments Suppose ice cream buyers are asked how much they value sweetness and creaminess as two product attributes. Three different patterns can emerge.

Homogeneous preference : where all the consumer have roughly the same preferences. We would predict that existing brand would be similar and cluster around the middle of the scale in both sweetness and creaminess. Diffused preference : consumers vary greatly in their preferences Clustered preference :

creaminess

sweetness

Homogeneous Preference -no natural segments -all buyers have same preference

creaminess

sweetness

Diffused Preference -no pattern (or poor research) -take center position

creaminess

sweetness

Clustered Preference -natural segments -increases as number of competitors increases

2. NICHE MARKETING

Group of customers seeking a distinctive mix of benefits who are ready to pay extra premium. Niche = segment sub segments Ex.-- Washing detergents hard & gentle washes . Surf excel for tough stains ( hard on clothes) & Ezee from Godrej for delicate clothes. -- Astha , Sanskar , Q TV focus on religion & spiritualism. DISTINCT NEEDS PAY PREMIUM SPECIALIZATION LESS COMPETITION POTENTIAL

3. LOCAL MARKETING
Marketing programs tailored to the needs & wants of local customer groups in trading areas, neighborhoods , etc. this trend is called grass roots marketing. Ex. Spiderman 3 was released in 5 different language in India including Bhojpuri.

4. INDIVIDUAL MARKETING
Ultimate segmentation segments of 1 or customized marketing or one to one marketing. Customerization empower the consumers to design the product or service offering of their choice.

Ex. Paint companies have started doing this- Asian Paint , Nerolac , Berger Paints Arvind mills launched Ruffn Tuff Jeans, branded ready to stitch

BIBLIOGRAPHY
The principal of marketing management; By : Philip kotler http://www.managementstudyg uide.com/