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.

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

GEOGRAPHIC SEGMENTATION
Divide the market into different group based on : Region South India , North , Western Region, East City metro cities, cities with population more than 1 million World Density Climate States Ex.- Mcdonalds globally, sell burgers aimed at local markets, for example, burgers are made from lamb in India rather then beef because of religious issues. In Mexico more chilli sauce is added and so on.

DEMOGRAPHIC SEGMENTATION

As people age their needs and wants change, some organisations develop specific products aimed at particular age groups for example nappies for babies, toys for children, clothes for teenagers and so on. Gender segmentation is commonly used within the cosmetics, clothing and magazine industry. In the UK we have also seen the introduction of Maxim, (www.maximmagazine.co.uk) a male lifestyle magazine covering male fashion, films, cars, sports and technology. \

 Income segmentation is another strategy used by many organisations. Stores like Harrods, Harvey Nicohals are predominantly aimed at the affluent market. Daewoo aim their vehicles at price sensitive buyers who require a bundle of benefits for the price. In today's globally competitive environment brands are specifically developed and positioned within particular income segments inorder to maximise turnover. Products and services are also aimed at different lifecycle segments. Holidays are developed for families, the 18-30's singles, and for those in their 50's.

PSYCHOGRAPHIC SEGMENTATION

 Lifestyle groups Yuppie Associations Mobile High valued house/flat Good Salary Young branded car. Third Agers Associations. 50's Retired early from profession. Time to spare Adventure Seekers

BEHAVIOURAL SEGMENTATION

OCCASIONS - Archies and Hallmark cards, Monaco at tea time. BENEFITS Shampoo for hair conditioning, cleaning , hair fall defence dandruff control USER STATUS- light medium heavy user LOYALTY STATUS- hardcore loyal , split loyal- loyal to 2-3 brand ,shifting loyal, switcher