CB-segmentation Final.ppt

7/27/2019 CB-segmentation Final.ppt

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MARKET SEGMENTATION

Presented by:

Annaji sarma.M


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Market segment

The process of dividing a market intodistinct subsets of consumer with

common needs or characteristics andselecting one or more segments totarget with a distinct marketing mix.


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Need of segmentation

Need, want and desire are not same.

The primary advantage is cost

reduction. It avoids head on competition in the

market place.


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How segmentation operates

Segmentation studies are designed todiscover the needs and wants ofspecific groups of consumer, so thatspecialized goods and services can bedeveloped and promoted to satisfy eachgroups needs.

It is also used to guide the redesign,the reposition, or extending the product

targeting to a new consumer segment.


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Segmentation strategies

The first step in developing asegmentation strategy is to select themost appropriate base on which to

segment the market. Eight majorcategories of consumer characteristicsprovide the most popular bases formarket segmentation.

Geographic factor

Demographic factors

Psychological characteristics


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Sociological variables

Use related characteristics

Use-situation factors

Benefit sought

Hybrid segmentation.


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Geographic segmentation

In geographic segmentation, the marketis divided by location. The theory

behind this strategy is that people wholive in the same area share some similarneeds and wants and that these needs

and wants differ from those of peopleliving in other areas.


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Demographic segmentation

Demographic characteristics, such asage sex, marital status, income,

occupation and education are most oftenused as the basis for marketsegmentation. Demographics refers to

the vital and measurable statistics of apopulation. Demographics help to locatea target market.


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Psychographic segmentation

Psychographic characteristics refers tothe inner qualities of the individualconsumer. Consumer segmentationstrategies are often based on specificpsychological variables.

1. need and motivation

2. personality

3. perception

4. attitude, etc.


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Socio-cultural segmentation

Socio-cultural variables such as groupand culture, provide further bases for

market segmentation. For example,consumer markets have beensuccessfully subdivided into segments

on the basis of stages in the family life-cycle, social class, core culture values,etc


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Use related segmentation

An extremely popular and effectiveform of segmentation categorizes

consumers in terms of product, service,or brand usage characteristic, such asusage rate, awareness status, and

degree of brand loyalty.


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Usage-situation segmentation

Marketers recognize that the occasionor situation often determines what

consumers will purchase or consume. Forthis reason, they sometimes focus onthe usage situation as a segmentation

variable.


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Benefit segmentation

Marketing and advertising executivesconstantly attempt to isolate the one

particular benefit that they shouldcommunicate to consumers. Changinglifestyle plays a major role in

determining the product benefits thatare important to consumers and providemarketers with opportunities for new

product and services.


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Hybrid segmentation

Marketers commonly segment marketsby combining several segmentation

variables rather than relying on asingle segmentation base.

1. psychographic-demographic2. geo-demographic

3. VALS 2


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VALS II

VALS 2 is a marketing and consulting toolthat helps businesses worldwide develop and

execute more effective strategies. Thesystem identifies current and futureopportunities by segmenting the consumermarketplace on the basis of the personality

traits that drive consumer behavior. VALSapplies in all phases of the marketing process,from new-product development and entry-stage targeting to communications strategy

and advertising.


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Implementing segmentation

Concentrated marketing

Differentiated marketing

Counter-segmentation


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THANK YOU

Documents

CB-segmentation Final.ppt