MARKET

SEGMENTATION

Chhavi Jain
MASS MARKETING
Henry Ford was the first to mass-market
automobiles. Ford mass-produced by
assembly line, mass-distributed through
dealers, mass-promoted one product for all
buyers through just one ad.
MASS MARKETING
Mass
marketing
Largest
potential
market
Lower costs
Lower
prices
High
margins
MASS MARKETING
Mass
marketing
Mass
audience
Mass
promotion
More
expensive


Create value
for targeted
customers
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Segmentation Differentiation
Positioning Targeting
Create value
for targeted
customers
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Position the
market offering in
the minds of
target customers
Select the
segment or
segments to
enter
Differentiate the
market offering
to create superior
customer value
Divide the total
market into
smaller segments
Segmentation Differentiation
Positioning Targeting
Create value
for targeted
customers
D
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n

a

v
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p
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MICRO MARKETING
The practice of tailoring products and
marketing programs to the needs and
wants of specific individuals and local
customer groups.
Rather than seeing a customer in
every individual, micro-marketers see
the individual in every customer.
Micro
marketing
Segment
marketing
Niches
Local
areas
Individuals
MARKET SEGMENTATION BENEFITS
Facilitates right choice of target market
Facilitates effective tapping of the chosen market
Makes the marketing effort more efficient and
economic
Helps identify less satisfied segments and
concentrate on them
SEGMENT MARKETING
A market segment consists of a group of
customers who share a similar set of NEEDS
and WANTS.

Car buyer- low cost basic
transportation; luxurious driving
experience; adventurous driving

STARTS AT 1.58L

MAYBACH EXELERO 80,00,000$
SEGMENT MARKETING
It offers key benefits over mass marketing.
Company can Better design, Price, Disclose
and Deliver the product/ service to target
market
SEGMENT MARKETING
A flexible market offering consists of two
parts:
A naked solution: product/ service elements
that all segment members value.
Discretionary options: some segment members
value.
SEGMENT MARKETING
Car basic model, power steering, power
window, petrol diesel versions

Train sleeper, 3ac 2ac 1ac

Airline business class, economy class,
executive class
SEGMENT MARKETING
Homogenous preferences- all the consumers
have roughly the same preferences.
Diffused preferences- consumer preferences
may be scattered throughout the space.
Clustered preferences- market may reveal
distinct preference clusters.
NICHE MARKETING
A niche is a more narrowly defined customer
group seeking a distinctive mix of benefits.

Product
LOCAL MARKETING
Marketing programmes related to the
needs and wants of local customer
groups (trading areas, neighbourhoods,
individual stores).
CUSTOMERISATION/ INDIVIDUAL
MARKETING
It combines operationally driven mass customisation
with customised marketing in a way that empowers
consumers to design the product and service
offering of their choice.
A company is customerised when it is able to
respond to individual customers by customising its
products, services and messages on a one-to-one
basis.




Segmenting Consumer
Markets
GEOGRAPHIC SEGMENTATION
Countries
Cultures
Urban v/s Rural

THAILAND- Burgers with Thai Basil
JAPAN- Teriyaki Burger
INDONESIA- Rice Dishes
INDIA- Mc Aloo Burger, Veg Salad Sandwich, Mc Masala, Mc
Imli Sauces, Garlic free sauces, Eggless sandwich sauces, Veg
Pizza Mcpuff,
India 75% localised menu, 33% in Asian Countries, other
countries less than 5%

DEMOGRAPHICS
Gender
Age
Education
Income
Pantaloon, Carrefour, Shoppers Stop
target the high income group as compared
to Vishal Retail, Reliance Retail or Big
Bazaar who cater to the individuals
belonging to the middle income segment.

Marital Status
Market segmentation can also be as per the
marital status of the individuals. Travel agencies
would not have similar holiday packages for
bachelors and married couples.

Occupation
Office goers would have different needs as
compared to school / college students.
A beach house shirt or a funky T Shirt
would have no takers in a Zodiac Store as it
caters specifically to the professionals

Gillette- Razors for male and Gillette Venus
for female

PSYCHOGRAPHICS
It is the science of using psychology and
demographics to better understand consumers.
People within the same demographic group can
exhibit very different psychographic profiles.
PSYCHOGRAPHIC
Lifestyle-Activities, interest, opinion
Culture oriented, sports oriented, outdoor
oriented
Personality- compulsive, gregarious,
authoritarian, ambitious
PSYCHOLOGICAL
Attitude
Knowledge and awareness
Wants and needs
Affiliations
Traits- extrovert/ introvert
Expertise and involvement- hobbies
Brand attributes sought- premium quality/ low price
Risk orientation- financial investments, adventure travel


PSYCHOGRAPHIC
A popular tool for segmenting use of
psychographic data is called VALS.

VALS
Believers
Strivers
Makers
Survivors
HIGH RESOURCES
HIGH INNOVATION
LOW RESOURCES
LOW INNOVATION
INNOVATORS
IDEALS ACHIEVEMENT
SELF-
EXPRESSION
PRIMARY MOTIVATION
VALS
Innovators- sophisticated, high self esteem, image is important
Thinkers- conservative, practical, look for value
Achievers- goal oriented lifestyle, image very important
Experiencers- like cool stuff, high expenditure on fashion
Believers- conservative, like familiar and established brands
Strivers-trendy and fun loving, money defines success, concerned about
others opinions
Makers- practical, DIY, prefer value to luxury, unimpressed by material
possessions
Survivors few resources, buy at discount, little motivation to buy, loyalty
high


BEHAVIOURAL
Users v/s competitors users v/s non-users of brand/
category
Co purchase patterns- recommendation agents and
similar purchases
Media- magazines, cable, internet, movies
Loyalty programmes, purchase frequency
Occasions, benefits, usage rate, buyer-readiness stage,

Psychographic segmentation
The basis of such segmentation is the lifestyle of the individuals. The individuals attitude,
interest, value help the marketers to classify them into small groups.
Behaviouralistic Segmentation
The loyalties of the customers towards a particular brand help the marketers to classify them
into smaller groups, each group comprising of individuals loyal towards a particular brand.
Geographic Segmentation
Geographic segmentation refers to the classification of market into various geographical areas. A
marketer cant have similar strategies for individuals living at different places.
Nestle promotes Nescafe all through the year in cold states of the country as compared to places
which have well defined summer and winter season.
McDonalds in India does not sell beef products as it is strictly against the religious beliefs of the
countrymen, whereas McDonalds in US freely sells and promotes beef products.