MARKET SEGMENTATION

SUBMITTED BY

SUBMITTED TO

BHAWANI SINGH RAWAT

NEELU SHARMA MAM

INTRODUCTION
Target marketing includes 3 activities:

1. Market segmentation, 2. Market targeting, 3. Market positioning.

The STP process

Segmentation is the process of classifying customers into

groups which share some common characteristic

Targeting involves the process of evaluating each segments

attractiveness and selecting one or more segments to enter

Positioning is arranging for a product to occupy a clear,

distinctive and desirable place relative to competing products in the mind of the consumer

WHAT IS MARKET SEGMENTATION?

Market

segmentation is the sub-dividing of a market into homogeneous sub-sects of customers where any sub-sect may conceivably be selected as a target market to be reached with a distinct marketing mix -Philip Kotler

WHY SEGMENT THE MARKET? 1. Facilitates proper choice of target market 2. Facilitates Tapping of the market, Adapting the Offer to the market 3. Makes the Marketing Effort more Economic and Efficient 4. Benefits the customer as well

MARKET SEGMENTATION
Geographic

Demographic

SocioCultural

Market segmentation

Buying Behavior

PsychoGraphics

MAJOR BASES FOR SEGMENTATION

SEGMENTATION APPROACHES

CONSUMER CHARACTERISTICS

BEHAVIOURAL

GEOGRAPHIC

DEMOGRAPHIC

PSYCHOGRAPHIC

1.REGION 2.CITY SIZE 3.DENSITY 4.CLIMATE

1.AGE 2.GENDER 3.FAMILY SIZE 4.INCOME& EDUCATION 5.OCCUPATION 6.SOCIAL CLASS 7.RELIGION

1.PERSONALITY 2.LIFE STYLE

1.OCCASSIONS 2.BENEFITS 3.USER STATUS 4.USAGE RATE 5.READINESS STAGE

Effective Segmentation
1.Must be measurable in terms of both purchasing power & size 2. Must be able to effectively promote to & serve a market segment 3. Must be sufficiently large to be potentially profitable 4. The number of market segments must match the firm's capabilities

MARKET TARGETING

Market targeting is the selection of segments Evaluation of segments: 1. Is it sizeable? 2. Is it growing? 3. Is it profitable? 4. Is it accessible? 5. Is it compatible with firms resources & capabilities?

MARKET POSITIONING
Positioning is the strategy that enables a firm to competitively and strongly place its brand in the customers mind Positioning Strategies: Approaches of positioning Strategies : 1. Customer Benefits. 2. Price & Quality. 3. Product Users. 4. Product class. 5. Cultural Symbols. 6. Competitors.

Selecting the Positioning Platform:

Superior
Communicable Affordable Profitable to the company

Steps to Choosing a Positioning Strategy

Step 1. Identify the strategic group. Step 2. Understand the customers perception of brands of

strategic group.
Step 3. Determine Customers needs , aspirations. Step 4. Select the best one for advertising campaign.

Perceptual Map for Soft Drinks:

Cola

Diet Pepsi Tap

Coca-Cola Pepsi

Diet
Fresca Diet 7-up Sprite 7-Up

Non-Diet

Non-Cola

THANK YOU