Market Segmentation
MARKET SEGMENTATION
BY- SUNIT KUMAR MISHRA
• CONCEPT AND DEFINITION The concept of market segment is based on the fact that the market of commodities are not homogeneous but they are heterogeneous. Market represent a group of customer having common characteristics but two customer are never common in their nature, habits, hobbies income and purchasing techniques.
• According to Philip kotler , “ Market segmentation is sub-dividing a market into distinct and homogeneous subgroups of customers, where any group can conceivably be selected as a target market to be met with distinct marketing mix.”
• Market Segmentation is a method of “dividing a market (Large) into smaller groupings of consumers or organisations in which each segment has a common characteristic such as needs or behaviour.”
Henry Ford epitomized this strategy when he offered the Model- T Ford in one colour , black.
LEVELS OF MARKET SEGMENTATION
1. SEGMENT MARKETING
Consists of a group of customers who share a similar set of needs and wants. Identifiable Group with in a Market with Similar
• Wants • Purchasing Power • Geographical Location • Buying Attitudes
FLEXIBLE MARKET OFFERING
• Even in segments 100 % needs are not same – consists of two parts 1.Naked Solution :- products and services that all members of the segment values. 2.Discretionary options :- that some segment members value. Each option might carry an additional charge. Example: Automobile industry – basic model is same but for A.C , power steering, power window buyer
has to pay extra price. Delta Airlines offers all economy passengers a seat and soft drinks. It charges economy passengers extra for alcoholic beverages.
Market Segments can be defined in many different ways. One way to carve up a market is to identify Preference segments Suppose ice cream buyers are asked how much they value sweetness and creaminess as two product attributes. Three different patterns can emerge.
Homogeneous
BY- SUNIT KUMAR MISHRA
• CONCEPT AND DEFINITION The concept of market segment is based on the fact that the market of commodities are not homogeneous but they are heterogeneous. Market represent a group of customer having common characteristics but two customer are never common in their nature, habits, hobbies income and purchasing techniques.
• According to Philip kotler , “ Market segmentation is sub-dividing a market into distinct and homogeneous subgroups of customers, where any group can conceivably be selected as a target market to be met with distinct marketing mix.”
• Market Segmentation is a method of “dividing a market (Large) into smaller groupings of consumers or organisations in which each segment has a common characteristic such as needs or behaviour.”
Henry Ford epitomized this strategy when he offered the Model- T Ford in one colour , black.
LEVELS OF MARKET SEGMENTATION
1. SEGMENT MARKETING
Consists of a group of customers who share a similar set of needs and wants. Identifiable Group with in a Market with Similar
• Wants • Purchasing Power • Geographical Location • Buying Attitudes
FLEXIBLE MARKET OFFERING
• Even in segments 100 % needs are not same – consists of two parts 1.Naked Solution :- products and services that all members of the segment values. 2.Discretionary options :- that some segment members value. Each option might carry an additional charge. Example: Automobile industry – basic model is same but for A.C , power steering, power window buyer
has to pay extra price. Delta Airlines offers all economy passengers a seat and soft drinks. It charges economy passengers extra for alcoholic beverages.
Market Segments can be defined in many different ways. One way to carve up a market is to identify Preference segments Suppose ice cream buyers are asked how much they value sweetness and creaminess as two product attributes. Three different patterns can emerge.
Homogeneous