Post on 03-Jun-2018
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8/12/2019 Understanding Consumers & Mkt Segments
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Understanding Consumers &
Market Segments
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Market Segmentation, Targeting And
Positioning
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Market Aggregation:
Produce a single product and offer it to all
consumers with a single marketing
programme.
Although it is assumed that every consumer
will not buy the product, a number sufficient
for profitable operations are expected to beattracted.
This approach is also described as Mass
Marketing or undifferentiated marketing
Market and Alternate Strategies
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Market Segmentation:
Market segmenting is sub-dividing a market
into distinct subset of customers where any
subset may conceivably be selected as a
market target to be reached with a distinct
marketing mix
Market and Alternate Strategies
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Segmenting Consumer Markets
Geographic - physical size, Density, Climate
DemographicGender, Family size, Income
Occupation, Expenditure, Education, Religion,
Race, Nationality
Psychographic - Social class, Lifestyle,
Personality
Behavioural - Purchase occasion, Benefits
sought, User status, Usage rate, Loyalty status,
Readiness state, Attitude towards product
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Demographic Segmentation
3 elements provide the basis for segmentation
Market
1.People
2.Purchasing Power
3. Willingness to Buy
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Essential
Gender
Family size
Income
Occupation
Education
Religion
Race
Nationality
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Psychographic Segmentation
Activities Interests Opinions Demographic
s
Work Family Themselves Age
Hobbies Home Social Issues EducationSocial Events Job Politics Income
Vacation Community Business Occupation
Entertainmen
t
Recreation Economics Family Size
Club
Membership
Fashion Education Dwelling
Community Food Products Geography
Shopping Media Future City Size
Sports Achievements Culture Stage in LifeCycle
Lifestyle Dimensions
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Volume Segmentation
Brand-user Segmentation
Product-user Segmentation
Loyalty Segmentation
Situation Segmentation
Usage Segmentation
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It revolves around three step process
Preparing a list of benefits to be offered to consumers
Quantitative measurement of market through cluster
analysis
Benefit Segmentation
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Performing Market Segmentation
Define the Marketing Problem
Select a Segment Basis
Choose descriptors that defines, characterizes,
or relates to the segmentation basis
Select sample of consumers representing alarger population
Collect data on segment descriptors fromsample of consumers
Form segments based on chosen consumerdescriptors
Establish profile of segments
Translate results into marketing strategies
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Clear market segmentation helps in offering customized
supply to what consumer demands
Due to similarity of consumers in a particular segment,
market is able to gather detailed knowledge about theircharacteristics.
The result of understanding and relating to an increasingly
fragmented market is known as MICROMARKETING.
However, Research Costs, Manufacturing Costs, Inventory-
Carrying Costs are higher in case of segmentation.
Benefits & Costs of Market
Segmentation
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The market must be
Identifiable and measurable
Accessible Substantial, and
Responsive
Market Criteria for Effective
Segmentation