Segmentation and the Marketing Mix Fme 03

7/28/2019 Segmentation and the Marketing Mix Fme 03

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SEGMENTATION

AND

THEMARKETING MIX


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Many conditions need to be met

to constitute a market:1) There should be a genuine

need.

2) Customers should be willing

and able to buy the product

3) The total or the aggregatedemand should be sufficient to

enable a supplier to operate

profitably


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MASS MARKETING

Assumes that all customers in themarket are the same, customer needs

do not vary, and the company can offer

a standardized marketing mix thatmeets the needs of everyone.

The standard marketing mix means the

same product, method of distribution,

prices, and promotional effort aimed at

everyone in the market (basically

middle class, lower middle class and

segments below them).


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The reality is that fashion

products cannot be massmarketed because

consumers desire

individuality and expressionof the self.

Markets are therefore

segmented.


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MARKET SEGMENTATION

The marketing research necessary todescribe and segment a market leads toa deeper understanding of theconsumer that enables the most

effective design of a marketing mix, andthe ability to respond to changes in themarket.

It enhances marketing planning and inreturn forces management to considerthe relative costs, efficiency and

effectiveness of the alternatives.


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It forces fashion marketers to

consider competitors strengths

and weaknesses.SEGMENTATION BASES

Segments are groups of

customers with similarcharacteristics. It can be based

on many variables.

1) GENDER

2) AGE

3) MARITAL STATUS


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4) OCCUPATION

5) INCOME

6) EDUCATION 7) CUSTOMER SIZE

8) RELIGION

9) FAMILY LIFECYCLE 10) TYPE OF NEIGHBOURHOOD

11) REGION/COUNTRY

12) CLIMATE

13) LIFESTYLE Groupings based

on common activities, interests and

opinions of consumers (AIO).


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SEGMENTATION BASED ON

BENEFITS AND CUSTOMERBEHAVIOR

1) Customers may be heavyspenders, moderate spenders orlow spenders

2) There are varying degrees ofbrand loyalty

3) There are different purchasingmodes, from comparison shoppingto buying at convenience outlets.


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4) Usage rates define heavy,medium, light, occasional users andnon users.

5) Usage situation defines if it is

used at work, for leisure, evening,formal, weddings, etc.

6) Price sensitivity ranges from veryprice aware to least price sensitive.

7) Benefits to consumers rangefrom easy care to environmentalfriendliness to durability, etc.


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CRITERIA FOR

SELECTING SEGMENTS

There are four main criteria forselecting segments:

1) The segment should bemeasurable and easily identifiable.

2) The segment should be relativelystable. Though styles evolve over

successive seasons, and change isinevitable, the segment should remainrelatively loyal to the fashion marketerwho leads and reflects their fashion

tastes.


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3) The segment should be

accessible. This relates to

distribution as well as

promotional efforts.4) The segment should be

large enough to be profitable

for the scale of operations ofthe fashion marketer.


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SEGMENTATION

STRATEGIES

The segmentation strategy is

determined by:

1) COMPANY RESOURCES2) NATURE OF THE

COMPETITION

3) NATURE OF THE DEMANDIN THE PARTICULAR

FASHION MARKET STABLE

OR VOLATILE


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Segmentation strategies may be

concentration strategy, or multi

segment strategy.

Selection of only one segment isknown as concentration strategy.

It enables the company to become

expert in satisfying one segment ofcustomers, and to acquire prestige

and loyalty among that group of

customers.

The risk in the concentration strategy

is that a downturn in one market can

expose the company to considerable

financial risk.


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Selection of two or more

segments is called multi-

segment strategy.

Such a strategy provides a

measure of stability in timesof rapid market change by

spreading risk across

several segments.

The firm may enjoy

economies of scale.


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POSITIONING AND

PERCEPTUAL MAPPING

It has to do with the perception of the

firm and its marketing mix by the

target market. The main method of market position is

the use of marketing research to

conduct a perceptual map of the

market. A perceptual map is the

consumers view of the market. It is

hypothetical and has little to do with

realities of style and pricing.


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FASHION MARKETING MIX

Marketing Mix is the range of variables that

can be controlled by the fashion marketer to

meet the needs of the buyers profitably.

It is getting the right product to the chosen

market segment at the correct time in the

right place and for the right price.

The positioning statement is a strategicdecision taken by a company and the

marketing mix is concerned with turning that

decision into reality via specific activities.


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SEGMENTATION

MAKES THE DECISION

MAKING PROCESS ANDPOSITIONING VERY

ORGANISED IN THE

COMPANIES..

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Segmentation and the Marketing Mix Fme 03