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Understanding Consumers &

Market Segments

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Market Segmentation, Targeting And

Positioning

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Market Aggregation:

Produce a single product and offer it to all

consumers with a single marketing

programme.

Although it is assumed that every consumer

will not buy the product, a number sufficient

for profitable operations are expected to beattracted.

This approach is also described as Mass

Marketing or undifferentiated marketing

Market and Alternate Strategies

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Market Segmentation:

Market segmenting is sub-dividing a market

into distinct subset of customers where any

subset may conceivably be selected as a

market target to be reached with a distinct

marketing mix

Market and Alternate Strategies

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Segmenting Consumer Markets

Geographic - physical size, Density, Climate

DemographicGender, Family size, Income

Occupation, Expenditure, Education, Religion,

Race, Nationality

Psychographic - Social class, Lifestyle,

Personality

Behavioural - Purchase occasion, Benefits

sought, User status, Usage rate, Loyalty status,

Readiness state, Attitude towards product

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Demographic Segmentation

3 elements provide the basis for segmentation

Market

1.People

2.Purchasing Power

3. Willingness to Buy

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Essential

Gender

Family size

Income

Occupation

Education

Religion

Race

Nationality

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Psychographic Segmentation

Activities Interests Opinions Demographic

s

Work Family Themselves Age

Hobbies Home Social Issues EducationSocial Events Job Politics Income

Vacation Community Business Occupation

Entertainmen

t

Recreation Economics Family Size

Club

Membership

Fashion Education Dwelling

Community Food Products Geography

Shopping Media Future City Size

Sports Achievements Culture Stage in LifeCycle

Lifestyle Dimensions

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Volume Segmentation

Brand-user Segmentation

Product-user Segmentation

Loyalty Segmentation

Situation Segmentation

Usage Segmentation

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It revolves around three step process

Preparing a list of benefits to be offered to consumers

Quantitative measurement of market through cluster

analysis

Benefit Segmentation

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Performing Market Segmentation

Define the Marketing Problem

Select a Segment Basis

Choose descriptors that defines, characterizes,

or relates to the segmentation basis

Select sample of consumers representing alarger population

Collect data on segment descriptors fromsample of consumers

Form segments based on chosen consumerdescriptors

Establish profile of segments

Translate results into marketing strategies

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Clear market segmentation helps in offering customized

supply to what consumer demands

Due to similarity of consumers in a particular segment,

market is able to gather detailed knowledge about theircharacteristics.

The result of understanding and relating to an increasingly

fragmented market is known as MICROMARKETING.

However, Research Costs, Manufacturing Costs, Inventory-

Carrying Costs are higher in case of segmentation.

Benefits & Costs of Market

Segmentation

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The market must be

Identifiable and measurable

Accessible Substantial, and

Responsive

Market Criteria for Effective

Segmentation