Marketing Segmentation Final Richa Eashani Tanvir

8/3/2019 Marketing Segmentation Final Richa Eashani Tanvir

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Marketing SegmentationEashani Prashar

Richa Keshari

Tanvir Singh


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With a large country

Many different types of people

- it is too difficult to create a product that willsatisfy everybody, that is why we focus ona segment of the total market


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So, What is Market Segmentation?Grouping people according to their

similarity related to a particular product

category

Segmentation allows you to chose which

buyers to target and provides importantinsights as to how to appeal to them.


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The Fundamental-Buyer Related Questions

Who are they?

What do they want to buy?How do they want to buy?

When do they want to buy?

Where do they want to buy?

Why do they want to buy?


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Characteristics: age gender geographic location

income spending patterns cultural background demographics

marital status education language mobility


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The Market Segementation can be segregated intothree major areas:

1. Segmenting Consumer Maket.

2. Segmenting Business Market.

3. Segmenting International Market


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Major Market Segmentation Variables

MarketSegmentation

Variables

BehavioralPsychographic

Geographic Demographic


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Geographic Segmentation

The reason why we study geographic segmentationis because WHERE people live has a big effect ontheir consumption patterns.

Additionally, WHERE people live in a city is also areflection of their income level and we can makecertain assumptions about their ABILITY TO SPENDbased upon their address.

This helps people plan store locations and thelocation of other services.


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Geographic Segmentation

Climate:

Winter equipment and recreation are effected bygeographic location

You will sell more snow shovels in Keylong, HP than

Chennai,TN. BUT, population in Keylong is verysmall.

Clothing purchases are also effected byclimate/geography.


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Demographic Segmentation

The Major Variables in DemographicSegmentation are:

There can also be some other variables likeoccupation, education and household (family -style) size


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Age and LifecycleSegmentation: Aspeople age, theirneeds and lifestyleschange.

A Child will like ateddy, a collegestudent could be a

sports fanatic, acouple may be intoadventure sports.


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Gender (Male/Female)

Gender is an obvious way to divide the market

into segments since so many products aregender-specific

clothing

medical products sports products/services

entertainment


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Age

Age is another obvious way to divide the market

into segments since so many products are based

upon time of life

diapers for babies

toys for children

entertainment for over 19


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Interstate Differences in Age Structure:

Less Developed, More Developed and the World Structures


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Population Projections by Age Group - Canada


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Income

The marketers of products and services such asautomobiles, clothing, cosmetics, financial services etc

have a lot to do with Income Segmentation.

BMW targets the segment of High earningprofessionals whereas Maruti targets the segment of

population with Low to High Income.


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Psychographic Segmentation


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Lifestyle:

Our lifestyle, our every days activities, our interest,opinions and beliefs on certain issues dictates who we

are. Marketers refer to these as AIOs (Activities,Interest and Opinions), and our AIOs dictate oureveryday behaviour from where we shop to what we buy.

Marketers develop and aim products/services atparticular lifestyle groups and develop lifestyleprofiles on their target market.


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In the early 1980s

within the UK as theeconomy was boomingthe City of Londonwere increasinglyemploying youngindependent staff onvery high salaries. The

media termed thisgroup as YUPPIES,they were youngupwardly mobileprofessionals,associated with mobilephones, money,expensive cars, andprestigious city jobs.

In the United States there are 70 million third-agers who are the fastestgrowing users of the internet, spending more time on the internet then

their younger counterpart.

Lifestyle Groups


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Personality Characteristics

Products and brands can also be aimed at particular

personalities.

Marketers try to analyse the personality trends andthen decide on what to launch depending on thetarget group.


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A person with a rugged personality will prefer an Enfield

whereas a simple person will go for a Bajaj Chetak.Ask yourself if Nike or Levis was a person, what type ofperson would they be?


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Social Class Segmentation

Divides society into 6 distinct groups based solely onoccupation.

Professional staff

Middle management

Junior management

Skilled manual

Semi-skilled and unskilled workers. Thosedependent on the state.


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Behavioral Segmentation:

Variables:

Benefits Sought

Occasions

User Status

Usage Rate

Loyalty Status


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The Benefits Sought from a Nokia 3310 areof simple usage i.e. Calls, SMS and acouple of simple games like Snake whereSony Xperia gives various benefits but canbe a little difficult to use for someone

obselete to technology

Occasional Offers:


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Occasional Offers:

User


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UserStatus:


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Usage Rate:How often the usage is made?

For Example: A Super Fan of KFC will eat a KFC ZingerBurger around 5-10 times a week whereas a casual userwill try any other burger once or twice a month. In caseof the ill fated addictions like Smoking the usage rate isvery high and the loyalty factor is also present.


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Loyalty Status:

Let us consider the scenario of in Desktop Computers

and Notebooks in India and US. India.

Apple Macbooks are not seen commonly in India but

they are very common is US. WHY?Budgetary constraint for a few. Loyalty to Windows OSfor most.

Consumers can be loyal to brands(Adidas),

stores(Walmart) and companies(Suzuki).Some time back in India, everyone almost everyoneused to own a Nokia phone. Reason being the Loyalty.

Which Camera would you buy?


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Which Camera would you buy?

Any Other? Philips/Casio/Opympus etc?


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And what it takes to make the consumers

loyal?Quality product, quality service, best technology,

delicious taste and numerous reasons.

Sony, Samsung and many other offer Digital Camerasbut the best ones used by professionals in the worldmarket are Canon and Nikon.

Ranking:

1. Canon 6. Fuji

2. Nikon 7. Pentax

3. Panasonic 8. Casio

4. Olympus 9. Kodak

5. Sony 10. Leica


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Using Multiple Segmentations:

As we saw in many of the examples stated above, thereis a very strong link in many of the them. For Example:Using a High End phone can be a behavioral reason or a

status reason. A person following his personality can gofor an Enfield, at the same time it could be a loyaltyreason.

Hence, to device a proper Marketing Plan, a mix ofvarious segmentations is taken.

The one which best suits all the constraints and can leadto maximum sales.


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Segmenting International Markets

Operations in many countries.

It poses many challenges

Different countries, even those that are close together

can vary greatly in their economic, cultural and

political makeup.


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Intermarket Segmentation

They form segments of consumers who have similarneeds and buying behaviour even though they are

located in different countries. E.g. Lexus, Coca Cola


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Requirements for Active Segmentation

To be useful, segmentation should be:

Measurable Size, purchasing power, profiles.

Accessible Effectively reached & served. Substantial Large & Profitable.

Differentiable Conceptually Distinguishable.

Actionable Effective program can be designed toimplement it.


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References:

Principles of Marketing - Philip Kotler

http://www.learnmarketing.net/segmentation.htm

http://www.thequickten.com

http://pn2media.com

http://wikipedia.com

http://populationcommission.nic.in/facts1.htm

http://www.marketingcharts.com

http://www.crmtrends.com/analytics.html

Kimberly Clark Professional


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Thank You!!!

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Marketing Segmentation Final Richa Eashani Tanvir