Review of literature:

This review of the literature presents, concerning the concept and practice of market

segmentation. This key strategy is essential to the development of a strategic plan for a brand.

It is a decision-making tool for the marketing manager in the crucial tasks of selecting a

target market for a given product and designing an appropriate marketing mix.

The uses of this technique are discussed, together with the procedures for segmenting

markets. Possible bases for segmenting consumer markets are reviewed in detail. The more

straightforward objective bases have been briefly outlined whereas the more complex

subjective behavioral bases are discussed in more depth. The requirements for segmentation

to be effective are noted and some criticisms of the technique presented.

Market segmentation has long been "considered one of the most fundamental concepts of

modern marketing" (Wind 1978). Sheth (1967) has described it as "essential to marketing".

According to the definition found in the Oxford English Dictionary "to segment" is to "divide

into parts". In marketing terms these parts can either refer to groups of consumers with

similar requirements or to groups of goods or services with similar attributes. The term and

concept of "market segmentation" have been attributed to Wendell R. Smith, in a paper first

published in 1956. Smith 1956 commented "Segmentation is based upon developments on

the demand side of the market and represents a rational and more precise adjustment of

product and marketing effort to consumer or user requirements. In the language of the

economist, segmentation is disaggregative in its effects and tends to bring about recognition

of several demand schedules where only one was recognized before". In a brief

"Retrospective Note on Market Segmentation" published in the introduction to the special

edition of the Journal of Marketing Research edited by Wind, Smith (1978, p. 316) asserts

that "the roots of early market segmentation research, carried on almost a quarter of a century

ago, can be found in the writings of a group of marketing practitioners and scholars whose

undisputed leader was the late Wroe Alderson".

Baker (1984) considers the "concept of market segmentation rests upon recognition of a

differentiated demand for a product, while its use as a marketing tool depends upon

identification of the most appropriate variable or variables with which to subdivide total

demand into economically viable segments. Economically viable segment may be understood

as being of sufficient size to enable a marketer to earn an adequate profit by catering to the

specific needs of its members. In fact Haley (1968) considers that "the idea that all markets

can profitably be segmented has now received almost as widespread acceptance as the

marketing concept itself".

Howard and Sheth (1969) have noted market segmentation depends on the idea that "the

company should segment or divide the market in such a way as to achieve sets of buyers".

These sets of buyers, or sub segments of the market, would then become targets for the

company's marketing plans. The potential methods of subdividing total markets must be

validated by research. It is then the responsibility of management to devise marketing mixes

which are effective in the market segments. Thus market segmentation has as its aim the

identification and delineation of market segments with a view to providing more efficient and

satisfactory marketing service. "The strategy of market segmentation recognizes that people

differ in their tastes, needs, attitudes, motivations, life-styles, family size and composition

etc." (Chisnall 1985).

The concept of market segmentation has only been recognized recently. Historically sellers

engaged in mass marketing. That is they mass produced, mass distributed, and mass promote!

One product to all consumers in an attempt to obtain economies of scale. In the face of the

competition inevitably generated by this approach producers sought to obtain a differential

advantage through making their products or services different from those of competitors. This

product differentiation strategy is "designed to offer variety to buyers rather than to appeal to

different segments"

Statement of problem:

Problem discovery is the first step of any decision process and it is the main objective of

marketing research. Identification of problem is one of the objectives of the research.

Some target markets have not been reached. There are some gaps in market segment. The

gaps may be the customers’ needs and wants may not be fulfilled according to their demand.

There might be gaps between the demand and supply of the products of JK Tyre. Due to

problem of segmentation, the product is not extremely valuable. Also, there might be some of

the service gaps in the target market for JK Tyre.

The character and personality of humans are very dynamic and subject to the external

environment. The external environment is itself very unpredictable. Therefore, there is

constant change in consumer situations and conditions. This leads to problems arising in

already established segmentation techniques, which were created at one point of time in this

changing market.

In spite of offering a quality product, JK Tyres Company facing the problem of competition

and in improving market share.

The company is facing severe competition and lack of promotional activities in reaching

target. So, it has to study the consumer buying decision by segmenting the markets and

requirement of those segments.

It needs identification of hindrance in serving target market. A thorough and careful study of

the market segment is the need of the research.

shashiparamathma@gmail.com