CONSUMER BEHAVIOR PRESENTATION

INTRODUCTION

• Market segmentation is the process of diving a market into subsets of consumers with common needs or characteristics.• Targeting consists of selecting the

segments that the company views as prospective customers and pursing them.• Market segmentation, strategic targeting,

and product(service) positioning are the key elements of marketing consumer goods and services.

• They enable producers to avoid head on-competition in the market place by differentiating their products on the basis of such features as price , packaging and level of service.• Marketers use segmentation research to

identify the most appropriate media in which to place advertisements.• To be an effective target, a market must

be identifiable, sizeable, stable and growing, reachable with the marketers objective and resources.

IDENTIFIABLE:• Marketers divide consumers into separate

segments on the basis of common or shared needs by using demographics, lifestyles, and other factors. Some segmentation factors, such as demographics(e.g., age, gender) are easy to identify, and others can be determined through questioning.(e.g., education, income etc.)

SIZEABLE:• The size and profit potential of a market segment

have large enough to economically justify separate marketing activities for this segment. If a segment is small in size then the cost of marketing activities cannot be justified.

• Ex: Athletic and slim men with wide shoulders and narrow waists often have to buy suits with trousers that are larger than they need. Most American clothiers make suits only for men who have more generous waists than the relatively small segment of very athletic men.

STABLE AND GROWING:• The segments must be stable so that its

behavior in future can be predicted with a sufficient degree of confidence.

• EX: teenagers are a sizeable and easily identifiable market segment, eager to buy, able to spend, and easily reached. They are also likely to embrace fads, and by the time marketers produce merchandise for a popular teenage trend, interest in it may have waned.

REACHABLE:• A segment must be accessible, which means

that marketers must be able to communicate with its consumers effectively and economically. Marketers have significantly more avenues for reaching unique segments and can also do so with customized products and promotional messages.

Valid:• This means the extent to which the base is

directly associated with differences in needs and wants between the different segments. Given that the segmentation is essentially concerned with identifying groups with different needs and wants, it is vital that the segmentation base is meaningful and that different preferences or needs show clear variations in market behavior and response to individually designed marketing mixes.

CONGRUOUS:• The needs and chacteristics of each segment

must be similar otherwise the main objective of segmentation will not be served. If within a segment the behavior of consumers are different and that they react differently, then a unique marketing strategy cannot be implemented for everyone. This will call for a further segmentation.

ACTIONABLE:• It has to be possible to approach each segment

with a particular marketing program me and to draw advantages from that. The segments that a company wishes to purse must be actionable in the sense that there should be sufficient finance, personnel and capability to take them all. Hence, depending upon the reach of the company, the segments must be selected.

SOME GENERAL CONSIDERATIONS:• Apart from the above-mentioned chacteristics,

the segment must have some other features:1. Growth Potential.2. Profitable.3. Less risk prone.4. Less competition intensive.