Marketing

What is Segmentation and Targeting..??

• Market Segmentation• Process of dividing a large market into smaller

target markets, or customer groups with similar needs and/or desires.

• Targeting• Selection of potential customers to whom a

business wishes to sell products or services.• The targeting strategy involves segmenting the

market, choosing which segments of the market are appropriate, and determining the products that will be offered in each segment.

Dr. Rosenbloom

Market SegmentationMass Market

Niche Micro-marketing The

Individual

Personal-izationMicro-

marketingNicheStandardized Marketing Mix

Continuum of Market Segmentation Size

Dr. Rosenbloom

Segmentation VariablesSegmentation Variables

Situation Segmentation

Psychographic Segmentation

Geographic Segmentation

Behavior/Usage Segmentation

Demographic Segmentation Benefits-Sought Segmentation

iPhone 4 AND 4S

Segmentation Strategy-- iPhone

i. Geographic

ii. Usage Status

Profile of iPhone users

47%

35%

18%15-25 25-40

40-60 60 & Above

Age

GENDER

53%47%

MaleFemale

35%

41%

6%6% 12%

Students

Working Prof.

Home Maker

Self Employed

Service

OCCUPATION

24%

29%

47%

Income

<5 Lakhs5-8 Lakhs8-12 Lakhs> 12 Lakhs

Benefits/ features in a phone

Sleekn

ess

Light

Weig

ht

User I

nter

face

Opera

ting

Syste

m

Good

Proce

ssor

Good

Camer

a

Batte

ry L

ife

Smar

t App

s

After S

ales

Servic

e0

10

20

30

40

50

60

70

80

Total

Total

Factors influencing buying behavior

Product Features Status Symbol Quality assurance62

64

66

68

70

72

74

76

78

Total

Total

Other findings

• All the respondents are satisfied with iPhone.

• 80% of the respondents would recommend others to purchase iPhone.

• 95% of the respondents are heavy internet users. ( Monthly usage in excess of 1 GB)

Non iPhone usersReasons for not buying

Pricing User Interface (iOS)

Lack of After Sales Service

Lack of Supporting Infrastructure (4G Facilities/ Faster Net Speed, etc.)

Dislike towards iPhone

Other0

5

10

15

20

25

30

35

Total

Total

Factors influencing purchase decision

Bette

r Use

r Int

erfa

ce

Bette

r Afte

r Sale

s Ser

vice

Suppo

rting

Infra

stru

ctur

e is

prov

ided

Priced

Com

petit

ively

Financ

ing S

chem

es m

ade

Availa

ble0

20

40

60

80

100

120

140

160

180

Total

Total

Retailer’s Views

• Target Audience: High Income Group, Working Class, Age Group: 26-39

• Influencing Factors: Product Features, Technology and Brand Positioning.

• Maximum Sales : New Launch, Festival- Diwali• Who buys : a.) Interested only in Apple.

b.) High end Products

c.) Price not a concern• Apple customer, generally sticks to Apple.

Target Segment

• Geographic : Urban India• Demographic : High Income Group, Youth and Working

Class. • Behavioral :

1. User Status : Users and Non-users

2. Benefits : All in one Phone

3. Usage rate : Heavy Internet users

4. Occasions : New Launch, Festivals • Psychographic : Quality conscious, Status Symbol.

Statistical analysis

• From the Data Collected we found that 86% of the consumers feel that I-phone 4 and 4S are overpriced.

• From the sample of 60 people that we have taken 43 are non I-phone users.

• Since the sample size is more than 30 we would use z test to test our hypothesis.

• n=60, P=43/60= 0.7• p=0.86, q=1-p = 0.14• Ho: There is no significant difference

in the proportion of people buying iPhone 4 or 4S.

• Ha: There is a significant difference in the proportion of people buying iPhone 4 or 4S.

Thank You