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TOPICS

1. MARKET

SEGMENT

ATION

PROCESS2. MARKET

ING STRATE

GIES

Market ?

MARKET

“A market is a place where buyers and sellers gather to exchange of goods and services”. It’s the root word of marketing.

Requirements of a Market

1.Need2.Ability3.Willingness4.Authority

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MARKET SEGMENTATION

MARKET SEGMENTATION

According to kotler, “market segmentation is the subdividing of market into homogeneous subsections of customers ,where any subsection may conceivably be selected as a target market to be reached with a distinct marketing mix”.

Market segmentation have 6 steps as follows:

1.Establish overall objectives.

2.Decide the bases for segmenting the market.

3.Select segmentation variables.

4.Profile the segments.

5.Evaluate segment attractiveness.

6.Select segment/s(or target marketing)

1.Establishing overall objectives.

The first step in the segmentation process is to establish the objectives of the firm’s marketing strategy clearly. It will also helps to identifying strength , weakness , threats, and opportunities of a firm.

2.Decide the bases for segmenting the market.

There are several methods or bases by which a market can be segmented namely demographic ,psychographic , geographic etc. For deciding this , the firm must have a clear idea about consumer buying behaviour .

3.Select segmentation variables.

After deciding the basis of segmentation , the firm has to select the segmentation variables like age , occupation ,gender etc.

4.Profile the segments.

Profiling helps to marketing manager to characterize large , identifiable groups within a market . Through the analysis of each segments , the marketing manager obtains detailed buyer profile information for each segment.

5.Evaluate segment attractiveness.

This is done by estimating profit contribution expected from each segment. Several kinds of informations are needed for this process such as demand potential within each segment , marketing expenditure , responsiveness of customers etc.

6.Select segment/s

In this phase , the firm selects only the most suitable segment where it can serve more effectively . The selection of more profitable segment is known as target marketing.

Establish

overall objectiv

es

Decide the bases

for segment

ation

Selection of

variables

Selection of

segment

Evaluate

attractiveness

Profile the

segments

PROCESS OF MARKET SEGMENTATION

The manufactures can adopt 4 important strategies are ;

1.Undifferentiated marketing

2.Differentiated marketing

3.Concentrated marketing

4.Customised marketing

1.Undifferentiated marketing

Under this strategy, the producer does not differentiate between different consumers . ie , one marketing mix is used for whole market. eg ; soft drinks like Thumps – Up etc.

2.Differentiated marketing

Under this strategy, a number of market segments are identified and a different marketing mix is developed for each of the segments . It is one of most popular approach.

3.Concentrated marketing

It deals with the concentration of all marketing efforts on one selected segment within the total market . The producer selects a market where there is a little or no competition.

4.Customised marketing

Under this , the firms view each customer as a separate segment & customise marketing programmes to that individual’s specific requirements like interior design.

Different Marketing Strategies

1.Undifferentiated

marketing

2.Differentiated

marketing

3.Concentrated

marketing

4.Customised

marketing

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