MARKET SEGMENTATION AND MARKET TARGETING I

DR MANOJ MISHRA

Why?

Market segmentation

Dividing the market by grouping the

customers with similar

tastes and preferences into one segment

Why segmentation?

Different people have different needs

Helps to design suitable marketing strategies for

a specific group of customers

Useful for companies not able to cater to the whole market

Levels of segmentation

Segment marketing
Individual marketing Niche marketing Local marketing

Segment marketing

Division of market on the basis of homogenous needs

Special products suitable for a segment

Individual marketing

Each individual considered

as a segment Marketers design or customize products as per individual requirements

Mostly done in case of B2B marketing

Niche marketing

A small group of
customers having specific unsatisfied needs

Local marketing

Global player offering customized products to suit local markets

Bases For Segmentation

Geographic Segmentation

Based on geographic location Location specific products and services Catering to local requirements

Demographic Segmentation

Age Gender Income Occupation Religion Family size Social class

Demographic Segmentation: Products

Factor Age Gender Purchasing capacity Occupation Religion Family size Social class Generation Product Clothes, Shoes, Bicycles Clothes, Bicycles, Shaving products Tea, detergents Computers, Tools Hair fixer, Burkah Car, House Hotels Music