Segmentation Consumer Final Ppt 1

8/3/2019 Segmentation Consumer Final Ppt 1

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SegmentationMarket Segmentation is theprocess of dividing a market into

distinct subsets of consumers withcommon needs or characteristicsand selecting one or moresegments to target with a distinctmarketing mix.


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WHY

SEGMENTATION?Rather than trying to compete with an

entire market, company must identify

parts of market that can serve betterthan competitionSegmentation helps sellers develop

the right product and adjust prices, setdistribution channels and advertising &promotions strategies effectively


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WHY SEGMENT

(..contd)Segmentation strategy

differentiates offerings through

styling, packaging, promo appeals,method of distribution

Segmentation helps sellers

develop the right product andadjust prices, set distributionchannels and advertising &

promotions strategies effectively


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HOW MARKET SEGMENTATIONWORKS

Segmentation studies

- to discover needs/wants on specificconsumer gaps

- to guide repositioning of existing products

and add new market segment


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Types of Segmentation


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BASE FORSEGMENTATION

Demographic segmentation

- identifiable, measurable states of a populationi.e

- Age : Choronological age, Cohort age

- Gender

- marital status: Married, Single, Divorce, Single

parent- Income

- Education,

- Occupation

- easier to measure to assess size of tar et


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BASE FOR SEGMENTATION(..contd)

Geographic segmentationmarket divided by location/localizing the

marketing strategy

- usually people in the same area share the

same needs and wants

- different spending patterns/demands


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BASE FOR SEGMENTATION

(..contd)Psychological segmentation

- intrinsic qualities of the individualsdesires: Motivation: shelter, safety,affection, self esteem

- Personality: extrovert, introvert

- Perception: Low risk, High risk- Learning: Low Involvement, High

Involvement

- Attitude: Positive or negative


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Psychographic segmentation

- lifestyle analysis- Activity: How the consumer spends

time

- Interest: Preferences andpriorities

- Opinion: How a consumer feels

about a variety of events


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Socio-cultural segmentation

- family life cycle i.e passing through similarphases in their formation

- social class: education, occupation, income- culture/subculture and cross-culture

affiliation


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BASE FOR

SEGMENTATIONUse-related segmentation

- categorizes consumers in term of product,brand or service usage characteristics,

- Rate of usage: Super heavy, heavy,Moderate, Light and non users

- Awareness: Unaware, aware, interested,enthusiatic

- Degree of brand loyalty: None, some,

strong


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User-situation segmentation

- Usage of product depends on occasion; i.e

greeting cards, drinks, airlines


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Benefit segmentation

- Rewarding consumers with productbenefits


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Hybrid segmentation

- Combination of two or more exciting

segmentation variables, commonly doneby marketers


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Hybrid SegmentationMarketers commonly segment markets by

combining several segmentations variables ratherthan relying on a single segmentation base.

Types of Hybrid segmentation covered

Psychographic-Demographic Profile

Geo-demographics

VALS


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Psychographic-Demographic

SegmentationWidely used in advertising campaigns to answer

three questions

Whom should we target

What should we say and

When should we say it.

E.g.. Newsweek audience profile-Newsweek Asia .doc

offering media buyers such carefully defined dual profiles of their audiences, massmedia publishers and broadcasters make it possible for advertisers to select media

whose audiences most closely resemble their target markets.


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Geo-DemographicSegmentation

This type of hybridsegmentation schemebased on the notion thatpeople who live close toone another are likely to

have similar financialmeans, tastes,preferences, lifestyles,aand consumption habits.


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Clusters are created basedon consumer lifestyles, and aspecific cluster includes pincodes that are composed of

people with similar lifestyleswidely scattered throughoutthe country.

This cluster data is useful fordirect mail campaigns,selecting retail sites,

appropriate merchandisemixes, to locate banks andrestaurants, designingmarketing strategies.


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VALS

Draws on Maslows

Need Hierarchy and concept of socialcharacter

Three major self-orientations

Principle oriented consumers whosechoices are driven by their beliefsrather than their desires

Status oriented- consumers whosechoices are guided by the actions,approvals and opinion of others

Action oriented-consumers who aredriven by a desire for social orphysical activity, variety and risktaking


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Each of these self-orientations representdistinct attitudes,andlifestyles, decision

making style.

Resources include therange of psychological,physical, demographicand material means the

consumer has to drawupon.


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Criteria for Effective Targeting ofMarketing Segments

Identifiable

Sufficient

Stable or growing

Accessible(reachable)in terms ofboth media and cost.


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THANKYOU

Documents

Segmentation Consumer Final Ppt 1