MARKET SEGMENTATION

 Definition
Dividing a market into distinct groups
with distinct needs, characteristics, or
behaviour who might require separate
products or marketing mixes.

Dividing a big heterogeneous market into

small homogenous unit.
 FEATURES OF MARKET SEGMENTATION

1. It must be identifiable.
2. It must be accessible.
3. It must be optimum in size.
4. It must be profitable.
5. It must be durable.
6. It must be compatible.
STEPS IN MARKET SEGMENTATION

Steps involved in Market Segmentation are:-

Identify the current and the potential needs of the

customer existing already in the market to be segmented.

Identify the unique and distinguishable features that may

divide the market into segments.

Select those segments which offer higher potential and

which will also be amenable to the offering of the firm.
  BASES FOR
SEGMENTATION
Market Segmentation

Consumer Market Industrial Market

Region, Population size,

Climatic condition, Population Location
Geographical density

Age, Income, Purchasing power, Company Type:- Size, Type of

Demographical Gender, Education, Religion, Industry, Decision Unit
Nationality ,Family Size

Psychographical Activities, Interest, Opinion, Behavioural:- Usage rate,

Attitudes, Values Buying status,
Purchase procedure
Benefit sought, Usage rate, User
Behavioural status, Brand Loyalty, Readiness
to buy
 TARGET MARKETING

 Definition
Target Marketing involves breaking a market into
segments and then concentrating the marketing efforts
on one or a few key segments. Target marketing can
be the key to a business’s success.
Segmentation is actually the prelude to target market
selection.
 FACTORS TO BE CONSIDERED WHILE
TARGET MARKET SELECTION

 Attractiveness of a Market Segment

3. Size of the segment (number of customers and/or number of units).

4. Growth rate of the segment.
5. Competition in the segment.
6. Brand loyalty of existing customers in the segment.
7. Sales potential for the firm in the segment.
8. Expected profit margins in the segment.

 Suitability of Market Segments to the Firm

12. Whether the firm can offer superior value to the customers in the segment.
13. The impact of serving the segment on the firm's image.
14. Access to distribution channels required to serve the segment.
15. The firm's resources vs. capital investment required to serve the segment.
TARGET MARKET STRATEGIES

 Single-segment strategy- Also known as a concentrated

strategy. One market segment (not the entire market) is served
with one marketing mix.
 Selective specialization- This is a multiple-segment strategy,
also known as a differentiated strategy. Different marketing
mixes are offered to different segments.
 Product specialization- The firm specializes in a particular
product and tailors it to different market segments.
 Market specialization- The firm specializes in serving a
particular market segment and offers that segment an array of
different products.
 Full market coverage - The firm attempts to serve the entire
market.
 POSITIONING

 Definition
It is all about placing a product / brand in the minds
of the customer to occupy a stable, distinct and
permanent place in their rational and conscious mind
set.
According to Al Ries and Jack Trout, “Positioning
is not what you do to your product, but what you
do to the mind of your prospective customer”.
Thus it is all about winning a distinct place in the
minds of the customer.
 DIFFERENT POSITIONING PLANKS / BASES

 Economy.
 Benefit.
 Gender .
 Luxury and exclusiveness.
 Fashion for elite class.
 Technology and value added features.

 CRITERIA OF SUCCESSFUL POSITIONING

 Clarity .
 Consistency .
 Credibility.
 Competitiveness.
 REPOSITIONING

Definition
Repositioning involves changing target market or
distinct positioning claim/differences advantages or both
to bring the saturated attention of the existing customers
back into the limelight once again to survive safely and
happily in the market. In some cases, the products that
are faring well are repositioned. Example- Maruti Omni
repositioning.
  Conclusion

Thus we can say that the total

process of market
segmentation, targeting and
positioning is a very
important attribute of
marketing mix. All these three
process is very closely
interrelated with each other.
To make this three marketing
process effective a thorough
SWOT analysis of the firm is
very important. Keeping in
mind the strength, weakness,
opportunity and threat the
firm can formulate and
implement its total marketing
mix.