market segmentation
MODULE 3: MARKET SEGMENTATION AND POSITIONING
Lecture - 5
FAQS (FREQUENTLY ASKED QUESTIONS):
Ques 1
Define Market Segmentation
Ans 1
Market segmentation is the process of identifying distinct groups and or sub
groups of customers in the market, who have distinct needs, characteristics, preferences and/or behaviors, and require separate product and service offerings and corresponding marketing mixes. “Market segmentation can be defined as the process of dividing a market into distinct subsets of consumers with common needs or characteristics and selecting one or more segments to target with a distinct marketing mix”.
- Schiffman and Kanuk
Ques 2
Differentiate between the following:
a) Mass marketing and Segmentation
b) Concentrated Marketing (Niche) and Individual marketing
Ans 2 a) Mass marketing and Market Segmentation
Mass Marketing
Market Segmentation
Assumption: - Customers have similar needs and - There exist diverse customer groups wants and can be satisfied with a standardized homogenous on certain bases within, but product/service offering. heterogenous among each other.
- Customers are unique; They have different needs, wants and preferences.
Standardized product is produced and distributed So, instead of a single standardized product with a single marketing program or the same offering, the product and service offerings are marketing mix. designed according to the needs and wants of the segment so as to satisfy them better.
- Mass production and distribution: Lower costs; - Leads to higher customer satisfaction
Results in lower prices and higher margins.
- Also called mass marketing, aggregate - It has various forms: Single Segment, marketing and undifferentiated marketing.
Differentiated segment, Concentrated segment or
Niche, Micro-marketing: local, individual.
1
b) Concentrated Marketing (Niche) and Individual marketing
Concentrated Marketing (Niche)
Individual marketing
- The
Lecture - 5
FAQS (FREQUENTLY ASKED QUESTIONS):
Ques 1
Define Market Segmentation
Ans 1
Market segmentation is the process of identifying distinct groups and or sub
groups of customers in the market, who have distinct needs, characteristics, preferences and/or behaviors, and require separate product and service offerings and corresponding marketing mixes. “Market segmentation can be defined as the process of dividing a market into distinct subsets of consumers with common needs or characteristics and selecting one or more segments to target with a distinct marketing mix”.
- Schiffman and Kanuk
Ques 2
Differentiate between the following:
a) Mass marketing and Segmentation
b) Concentrated Marketing (Niche) and Individual marketing
Ans 2 a) Mass marketing and Market Segmentation
Mass Marketing
Market Segmentation
Assumption: - Customers have similar needs and - There exist diverse customer groups wants and can be satisfied with a standardized homogenous on certain bases within, but product/service offering. heterogenous among each other.
- Customers are unique; They have different needs, wants and preferences.
Standardized product is produced and distributed So, instead of a single standardized product with a single marketing program or the same offering, the product and service offerings are marketing mix. designed according to the needs and wants of the segment so as to satisfy them better.
- Mass production and distribution: Lower costs; - Leads to higher customer satisfaction
Results in lower prices and higher margins.
- Also called mass marketing, aggregate - It has various forms: Single Segment, marketing and undifferentiated marketing.
Differentiated segment, Concentrated segment or
Niche, Micro-marketing: local, individual.
1
b) Concentrated Marketing (Niche) and Individual marketing
Concentrated Marketing (Niche)
Individual marketing
- The