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Segmentation with respect to consumer behavior

segmentation with repect to consumer behaviour

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segmentation with repect to consumer behaviour

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Page 1: segmentation with repect to consumer behaviour

Segmentation with respect to consumer

behavior

Page 2: segmentation with repect to consumer behaviour

Segmentation & Consumer Behavior

• Segmentation defined:– Dividing a large, heterogeneous market into more

homogenous groups of people who have similar interests or desires, have similar demographic characteristics or profiles or behave in similar fashion

• Consumer Behaviour defined:• Consumer Behavior Involves the process by

which people determine whether, what, when, where, how, from whom, and how often to purchase goods and services.

Page 3: segmentation with repect to consumer behaviour

• Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some consumers demand speed and performance, while others are much more concerned about roominess and safety. In general, it holds true that “You can’t be all things to all people,” and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable.

Page 4: segmentation with repect to consumer behaviour

TYPES OF SEGMENTATION

• Geographic Segmentation• Geographic

– Climate– Region– City Size– DensityEg.The inclination of people of UK to buy small cars

owing to high population densities and narrow lanes.So cars like Uno & Beetles was a success there.

Page 5: segmentation with repect to consumer behaviour

DEMOGRAPHIC SEGMENTATION

• AGE• FAMILY SIZE• FAMILY LIFE CYCLE• GENDER • INCOME• OCCUPATION• Eg.The inclination towards trendy products at

young age and investment products at older ages helps companies choose a particular segment & target it.

Page 6: segmentation with repect to consumer behaviour

PSYCHO GRAPHIC SEGMENTATION

• Psychographics– Personality– lifestyles

• Eg.Whether a customer is style oriented or value oriented.A customer can choose between Kawasaki Ninja if he thinks about style or a Maruti Alto if he thinks of economy(5 people sitting capacity) that come will within same price range.

Page 7: segmentation with repect to consumer behaviour

BEHAVIORAL SEGMENTATION

• Occasions• Benefit

• for example, like scented soap (eg.Lux,Liril), while others prefer the “clean” feeling of unscented soap (eg.Dettol).

Page 8: segmentation with repect to consumer behaviour

BEHAVIORAL-Usage rates

• Usage rate– “80/20”principle – For example, research conducted by the wine

industry shows that some 80% of the product is consumed by 20% of the consumers—presumably a rather intoxicated group.

Page 9: segmentation with repect to consumer behaviour

TAKING THE EXAMPLE OF TATA NANO(Company’s perspective of

Consumer Behaviour)

Segmentation :• Geographic: rural and urban-Rural for relatively less inclination towards

luxury/show offs & more value driven.,Tata brand name

-Urban because of city traffic congestion,good mileage,people wanting to upgrade to 4 wheeler (Psychological)

Page 10: segmentation with repect to consumer behaviour

TAKING THE EXAMPLE OF TATA NANO(Company’s perspective of

Consumer Behaviour)

• Demographic: family size & income.• (Rising incomes,Good for 4 people family,wish

to upgrade to 4 wheeler)• Behavioral: benefit & user status. (Good in heavy traffic,”WE ALSO OWN A 4

WHEELER NOW” feeling,Good value,mileage)

Page 11: segmentation with repect to consumer behaviour

SCOPE OF SEGMENTATION WITH RESPECT TO

CONSUMER BEHAVIOUR

• Better serving customer needs and wants –

Convenience Convenience

Page 12: segmentation with repect to consumer behaviour

• Higher Profits with less marketing costs & effort – Right Information At Right TimeRight Information At Right Time

• Stimulates innovation – Better Product OfferingsBetter Product Offerings

Page 13: segmentation with repect to consumer behaviour

• Retention of customer –

Satisfaction/ ChoiceSatisfaction/ Choice

• Competitive edge – ValueValue

Page 14: segmentation with repect to consumer behaviour

MARKET SEGMENTAION

Page 15: segmentation with repect to consumer behaviour

MARKET SEGMENTATION

SEGMENTS TARGETTED CONSUMER

PRICE RANGE Rs.

NOKIA SETS

ENTRY LOW INCOME PEOPLE, FIRST TIME USERS

2500 – 6000 1200,1208,1100,1110,1112

CLASSIC DECENT PEOPLE 7000 – 17000 6300,6233,6120,3120

N GAGE GAME LOVERS –PLAYSTATION, XBOX, PSP

8000 – 16000 SETS WITH PLAYSTATION, XBOX, PSP

XPRESS MUSIC MUSIC LOVERS 15000 – 33000 5220,5310,5610,5320

N SERIES MULTIMEDIA USERS

18000 – 50000 N70,N73,N95,N80,N81,N91

E SERIES BUSINESS PEOPLE

18000 – 60000 E51,E66,E71,E61,E90

PREMIUM VISUAL STATUS PEOPLE

80000 – 150000 SEPHIRA ARET, 8800 GOLD, 8800 ARTS.

Page 16: segmentation with repect to consumer behaviour

NOKIA PHONE USER SEGMENTATION

Page 17: segmentation with repect to consumer behaviour

NOKIA PHONE LIFESTYLE SEGMENTATION

STYLE VARIABLES• Basic / Entry• Expression• Active• Classic• Fashion• Premium

Page 18: segmentation with repect to consumer behaviour

Nokia Phone Functionality Variables

FUNCTIONALITY VARIABLES• Voice• Entertainment• Imaging• Media• Business Application

Page 19: segmentation with repect to consumer behaviour

NOKIA SEGMENTATION

(THREE) 3 E ’s

EXPRESSION ENTERTAINMENT ENTERPRISE

Page 20: segmentation with repect to consumer behaviour

NOKIA SEGMENTATION• EXPRESSION PHONES

– Affordable prices– Voice and text message– Top-down innovation - the feature set is carefully chosen along with the cost

point. Design alternatives and technology choices are then carefully evaluated with respect to this overall goal.

FEW NOKIA PHONE MODELS :-1100/1101 • 1110/1110i • 1011 • 1112 • 1200 • 1208 • 1209 • 1600 • 1650 • 16802100 • 2110i • 2115i • 2125i • 2126i • 2135 • 2300 • 2310 • 2600 • 2600 classic • 2610 • 2626 • 2630 •

2650 • 2651 • 2652 • 2660 • 2680 • 2760 • 2865i 3109 • 3109 classic • 3100/3100b/3105 • 3110 • 3110 classic • 3120 • 3120 classic • 3155 •

3200/3200b/3205 • 3210 • 3220 • 3230 • 3250 • 3250 Xpress Music • 3300 • 3310 • 3315 • 3330 • 3410 • 3500 classic • 3510/3590/3595 • 3510i • 3555 • 3600/3620/3650/3660 • 3600 slide

NOKIA 2310 NOKIA 3310 NOKIA 1100

Page 21: segmentation with repect to consumer behaviour

• ENTERTAINMANT PHONES– Media formats, screens, LCD.– FM radio, Java based games, image (Camera, Picture gallery), music (MIDI ring

tones, MP3, AAC) and video (MP4)– Flash memory cards, mini-SD cards or memory cards.– video telephony , Mobile TV and IP based media (like Internet radio)– Top-down innovation - the feature set is carefully chosen along with the cost

point. Design alternatives and technology choices are then carefully evaluated with respect to this overall goal.

FEW NOKIA PHONE MODELS :-7070 • 7100 Supernova • 7110 • 7160 • 7200 • 7210 • 7210 Supernova • 7250 • 7280 • 7310 Supernova

• 7360 • 7380 • 7390 • 7500 Prism • 7510 Supernova • 7600 • 7610 • 7610 Supernova • 7650 • 7700 • 7710 • 7900 Prism 8110 • 8210 • 8250 • 8310 • 8600 Luna • 8800 • 8810 • 8850 • 8890 • 8910 • 8910i

– NOKIA5300 NOKIA 6265 NOKIA 7280

NOKIA SEGMENTATION

Page 22: segmentation with repect to consumer behaviour

• ENTERPRISE PHONES– mobile enterprise work force– Connectivity to PCs or laptops - Data cable, Infrared, USB, Bluetooth and WiFi– Internet access, email facility, office applications like Word, Excel and

Powerpoint - will replace the PC or the laptop

FEW NOKIA PHONE MODELS :-9000/9110/9110i • 9210/9290 • 9210i • 9300/9300i • 9500 E50 • E51 • E55 • E60 •

E61/E61i • E62 • E63 • E65 • E66 • E70 • E71 • E75 • E90 Communicator N70 • N71 • N72 • N73 • N75 • N76 • N77 • N78 • N79 • N80 • N80 Internet Edition • N81 • N81 8GB • N82 • N85 • N86 8MP • N90 • N91 • N91 8GB • N92 • N93 • N93i • N95 • N95 8GB • N96 • N97 D-211 • 610 • 770 • N-Gage • N-Gage QD • N800 • N810

N 96

N810 9210

NOKIA SEGMENTATION

Page 23: segmentation with repect to consumer behaviour

Companies changing tactics according to changing consumer

behavior

• Product(Sony vaio, Windows)• Price(sales)• Promotion(Through internet in US, ad

campaigns in India)• Place(Dell)• Packaging(Lux soap)• Positioning(McDonalds)

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Thank you!!!