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MARKET SEGMENTATION
Prepared By:- Ankur SinghalDevika SinghalHarender SinghSahil Chopra
Submitted To:-
Prof. Y.V.Gupta
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Marketing Plan - Many factors are involved
Consumer Analysis
Environmental Analysis
Steps Involved
1.To decide your target segment
2. Look at competitors,
what are they doing
3. Develop a unique marketing plan
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With a large country«.DIVERSITY is there
Many different types of people are there«..
It is too difficult to create a product that will
satisfy everybody, that is why
we focus on a
³Segment´ of the total market.
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What is Market Segmentation ? ? ?
´Grouping people according to their
simila rity related to a pa rticula r product
categor y ́
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Bases for Market
Segmentation
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GEOGRAPHIC
SEGMENTATIONBased upon where people live
(historically a popular way of dividing markets)
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because WHERE people live has a big effect on their
consumption patterns.
Additionally, WHERE people live in a city is also a
reflection of their income level and we can make
certain assumptions about their ABILITY TO SPEND
based upon their address.
This helps people plan store locations and the
location of other services.
Geographic Segmentation
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Climate:
winter equipment and recreation are effected by
geographic location
you will sell more snow shovels in Northern Ontario
than southern Ontario , BUT, population in Northern
Ontario is very small
clothing purchases are also effected by
climate/geography
Geographic Segmentation-- CLIMATE
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DEMOGRAPHIC
In Demographic Segmentation, Marketer differentiates
the consumer based on variables such as Religion,Language, Age, Gender, Marital status, Family size,Occupation, Income, Purchasing capacity , Socialstatus etc.
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1. Age
2. Gender
3. Income
4. Occupation
5. Education
Variables in the Demographic Segmentation(Most Commonly Used)
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Age
Marketer studies the market and tries to separateconsumers on the basis of their age.
Example: Amul has segmented its product in differentage groups
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For kids: Amul Kool, Chocolate Milk, NutramulEnergy Drink.
For Youth: Amul Cool Kafe.
For womens and older people: Amul Calci+, Amul Shakti Energy Drink
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Gender is an obvious way to divide the market intoSegments since so many products are Gender-Specific
1. Clothing
2. Medical products
3. Sports products/services
4. Entertainment
nGender Gender
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EMAMI segmented its Health Care Product on Gender
Womens: Naturally fair
Men: Fair and handsome
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IncomeIncome
Buying Capacity of the Consumers depend on theirIncome. Income Factor makes a huge difference inconsumers buying Decisions
Example: Nokia Mobiles almost cover the wholerange in the mobile segment in India.
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Occupation
Occupation
Market segmentation by occupations is also effectivebecause of associated lifestyles (e.g., business people
are targeted by the travel and clothing industriessince they do more traveling and purchase morebusiness clothing).
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EducationEducation
Marketer analyze a Sample of its target Market onthe Basis of the Educated Population as HigherEducation is associated with higher Income andHigher disposable Income .Seller of Products like Encyclopedias, ScientificCalculators, etc. target the educated Segment of theSociety
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Based on people¶s opinions, interests,
lifestyles
eg, people who like hard rock music probably
prefer beer to wine
Psychog raphic
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Psychographic profiles on a target market
segment are obtained by doing a lot of
questionnaires and surveys to ask people if they
agree/disagree with certain statements madeabout particular activities, interests or opinions
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Thompson Lightstone
Segments
1. Passive/Uncertain
2. Mature
3. Home Economists
4. Active/Convenience
5. Modern Shoppers
6. Traditional Home/Family Oriented
Psychographic Segmentation
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Psychographic Segmentationy This corresponds to the psychological traits of the
customers such as Personality , Beliefs, Values,Lifestyle and Attitudes. These are those personal
marketing segmentation characteristics that cannot bequantified but are important
y As the business evolves the idea is to move from simply fulfilling a need or solving a problem towards aligning
with the higher attributes of the customer base suchas lifestyle and values. A great representation of this ispsychologist Abraham Maslows famous Hierarchy Of Needs:
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Based on the different expectation that customershave about what a product/service can do for them
Segmentation on the Basis of BENEFITS
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³It is based on the Attributes (characteristics)
of products, as seen by the customers´people buy something because it causes a
benefit, examples are
Diet coke - less sugar, lose weight
Tata Salt Lite- for less sodium intake
Sensodyne- for customers suffering from
sensitivity
Sugar Free sweetners-for diabetes patients
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Benefit Segmentation of the Toothpaste Market
Segment Name
The Sensory The
Segment Sociables The Workers
Principal benefit sought Flavour, product Brightness Decay
appearance of teeth prevention
Demographic strengths Children Teens, young Large families
people
Special behavioural Users of Smokers Heavy users
characteristics spearmint-
flavoured
toothpaste
Brands disproportionately Colgate, MacLean¶s, Crest
flavoured Stripe Plus White,
Ultra Brite
Personality characteristics High self- High High
involvement sociability hypochondriasis
Lifestyle characteristics Hedonistic Active Conservative
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Using Segmentation in Customer
Retention The basic approach to retention-based segmentation
is that a company tags each of its active customers
with 3 values:
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y Tag #1: Is this customer at high risk of canceling
the company's service?
One of the most common indicators of high-riskcustomers is a drop off in usage of the company'sservice. For example, in the
credit card industry this could
be signaled through a customer's
decline in spending on his or her
card.
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yTag #2:
Is this customer worth retaining?
This determination boils down to whether the
post-retention profit generated from thecustomer is predicted to be greater than thecost incurred to retain the customer. ManagingCustomers as Investments.
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y Tag #3: What retention tactics should be usedto retain this customer?
For customers who are deemed
save-worthy, its essential for the
company to know which save
tactics are most likely to be successful.
Tactics commonly used range from
providing special customer discounts
to sending customerscommunications that reinforce the
value proposition of the given service.
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