Market Segmentation
BENEFITS OF MARKET SEGMENTATION
Gautam S Rashingkar
Market Segmentation
● Dividing a market into smaller groups of consumers or organisations in which each consumer has a common characteristic such as a need or a want. ● It involves building up or breaking down of potential buyers into groups called market segments. ● By doing so the marketers will have a better understanding of their target audience and thereby make their marketing more effective
BASIS OF MARKET SEGMENTATION
1. 2. 3. 4. 5. Geographic Segmentation Demographic segmentation Income segmentation Behavioral segmentation Psychographic segmentation
Benefits Of Market Segmentation
OBJECTIVES:
● Better serve the needs of the customers. ● Improve company’s competitive position. ● Increase sales, improved market-share, enhanced image. 1. Facilitates the right choice of Target market: It helps the marketer to identify potential buyers and pickup their target market effectively. 2. Facilitates effective tapping of the Chosen market segment: It helps to know and analyse the demands of each customer group and make offers that match them.
Toyota India
3. Helps identify less satisfied segments and concentrate on them:
● Segmentation also helps the marketers to know the segment still waitingto be served and grabs them as a unique opportunity.
4. Helps to concentrate efforts on most productive and profitable market segment instead of frittering over irrevelant, unproductive /unprofitable segment.
5. FOCUS OF THE COMPANY
● Segmentation is an effective method to increase the focus of a firm on market segments. ● This helps a company in changing its focus for better returns. ● Thus companies base their strategy completely on a new segment which increases its focus and profitability. e.g. Automobile companies have started focusing on small car segments.
6.CUSTOMER RETENTION
Segmentation ensures customer retention. e.g. Titan watches. ● A watch is available for any customer who
Gautam S Rashingkar
Market Segmentation
● Dividing a market into smaller groups of consumers or organisations in which each consumer has a common characteristic such as a need or a want. ● It involves building up or breaking down of potential buyers into groups called market segments. ● By doing so the marketers will have a better understanding of their target audience and thereby make their marketing more effective
BASIS OF MARKET SEGMENTATION
1. 2. 3. 4. 5. Geographic Segmentation Demographic segmentation Income segmentation Behavioral segmentation Psychographic segmentation
Benefits Of Market Segmentation
OBJECTIVES:
● Better serve the needs of the customers. ● Improve company’s competitive position. ● Increase sales, improved market-share, enhanced image. 1. Facilitates the right choice of Target market: It helps the marketer to identify potential buyers and pickup their target market effectively. 2. Facilitates effective tapping of the Chosen market segment: It helps to know and analyse the demands of each customer group and make offers that match them.
Toyota India
3. Helps identify less satisfied segments and concentrate on them:
● Segmentation also helps the marketers to know the segment still waitingto be served and grabs them as a unique opportunity.
4. Helps to concentrate efforts on most productive and profitable market segment instead of frittering over irrevelant, unproductive /unprofitable segment.
5. FOCUS OF THE COMPANY
● Segmentation is an effective method to increase the focus of a firm on market segments. ● This helps a company in changing its focus for better returns. ● Thus companies base their strategy completely on a new segment which increases its focus and profitability. e.g. Automobile companies have started focusing on small car segments.
6.CUSTOMER RETENTION
Segmentation ensures customer retention. e.g. Titan watches. ● A watch is available for any customer who