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Marketing Segmentation

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MarketingMarketing is a social and managerial process where by individuals and groups obtain what they need and want through creating and exchanging products and value with others.

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Marketing ConceptThe core concepts of marketing are needs, wants and demands (buying power).Products and service.Value, satisfaction and quality.Exchange, transactions and relationships.

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MarketMarket is a set of all actual and potential buyers.

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Characteristics of ServiceIntangibilityHeterogeneity service is differ from customer to customer. Ex: Bank.Perishability cannot be stored or saved or resold. Ex: Barber Haircut.

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Types of ServiceCore serviceSupplementary Service

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7Ps of Service MarketingProduct Intangible (Customization)Price Very difficult to fix the price Promotion Place Cannot be stored or transportedPeople Service different from customer to customer Ex: Bank.Process Service delivery (standard is essential)Physical evidenceInterior design and decoration restaurant.

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ProductProduct variation : A product can be sold in different variations of the same product, for example in different colors and sizes. Product differentiation: It is the process of distinguishing a product or offering from others( such as benefits, price, quality style, service etc.)

Product innovation : The development of new products, changes in design of established products, or use of new materials or components in the manufacture of established products[1] Development of new products Improvement of existing products.Product elimination : To drop a weak product.

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Product ClassficationBased on durability and tangibility e.g. Durability fan, TVNon durable soap2. Based on use - Consumer goodsConvenience goods riceShopping goods TVSpecialized goods Unsort goods (unknown by customers)Industrial goodsMaterials and spares paintsCapital items factory equipmentsSupplies (marinating repair and operation) oil lubericants

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Product MixProduct line A group of related products manufactured by a single company- comprise related products of various sizes, types, colors, qualities, or prices- TATA motors-Passenger vehicles, commercial vehicles, transport vehicles etcProduct line Width - number of lines in product mixProduct line Length number of brands in the line lux, lifeboy, bearsProduct line depth The amount of sub-products offered by a business within a particular line of products Adding new, related products to an existing product line or increasing the number of varieties of a particular product offered.Procter & Gamble markets 250 brands organized into many product lines.Product mix: The total number of products sold in all product lines is referred to as length of product mix

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Product stretchingAdding more productsUpward stretch- lux, lux internationalDownward stretch nirma, wheelLine fillingWhere fill up the gaps with in your product line-UpwardDownwardVideocon AC introduced two items initially then they increased twelve models (two spilt AC model etc)Line modernization

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ProductPositioningBrandDesignFeaturesPackagingQualitySizeServiceReturnsWarranties

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BrandingBundles of promisesBundles of benefitsit reflects set of valuesBrand name should be simple and Easy to spell and have meaning- duracell(durable cell), lux, aquacard

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PackagingPrimarySecondaryTertiaryIt gives self service-package must sell the productsIt gives standardization annapurna atta, maggi

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LabelingTwo components Essential components it is essential and must be printed as per government rules MRP, warnings in cigarette.Optional components-direction for use e.x. How to use medicine

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Product life cycleintroductionGrowthDecline

There are nearly 22000 products introduced every year. Out of them 80% failed in the introduction stage itself. 10% will survive only for five years. Only 10% survive even after 5 years.

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PricingCost recovery pricingPenetration pricingPrice skimming

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PricingAllowancesCredit termsDiscountList pricePayment period

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Promotion Individual communicationMass communicationBrand managementCorporate identity

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Promotion AdvertisementDirect marketingSales promotionPublic relation

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Place/Physical DistributionDistribution channelsDirect salesIndirect salesE-commerce

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Place/Physical DistributionChannelsCoverageInventoryLocationTransportation

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Marketing mix in Wallmart.comConsumer Customized functionalityWide product choiceVariety of purchase and delivery operationCostLowest price always match or lower price than competitors like amazon.com.Free shipping to retail stores when orderedConvenienceMultiple channel of purchaseConcept like site to storeCommunicationFresh ad campaigns to change consumersInnovation like showcase storesSpoke for lot more improvement in this aspects.

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It involves defining a clear company mission, objectives, designing a sound business portfolio, and coordinating functional strategy.Strategic Planning

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Marketing strategyMarketing strategy serve as the foundation on marketing plan

1.size of the market has been determined2. the target market narrow down the total market segmentation factors3. projecting marketing share- increasing industrial growth and user analysis

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Marketing StrategyMarketing Strategy is the marketing logic where by the company hopes to achieve its marketing objectives.

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Marketing StrategyStrategic MarketingOperations MarketingLong term planningShort term planningMarketing environmentProductStrategic marketing managementPrice Market researchPlaceConsumer behaviorPromotionB2BServiceMarket segmentationInternetInternationalisation

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Marketing StrategySegmentation Segmentation is a process of classifying customers into groups which share some common characteristics.Targeting Targeting involves process of evaluating each segment and selecting one or more segment to enter.PositioningPositioning is arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the mind of the customer.

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SegmentationSegmentation is a process of classifying customers into groups which share some common characteristics.

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Marketing SegmentationMass Marketing (Same product to all customers) Segment Marketing Some segmentation(Different product with one or more segments)Nitchi Marketing more segmentation(Different product to subgroup within segments)Micro Marketing Complete segmentation(Product to suit the taste of individual and location)

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Marketing SegmentationGeographic segmentation CountryNeighborhoodStateCity climateDemographic segmentationAgeGenderOccupationEducationMarital statusFamily sizeFamily lifestyleIncomeNationalityPsychographic segmentationBehavioral segmentation

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Industrial Market SegmentationGeographicEconomicCulturalPoliticalLegal

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