IN WHAT WAYS CAN A COMPANY DIVIDE A MARKET INTO SEGMENTS?

BASES FOR SEGMENTING CONSUMER MARKETS

Shivam Verma || IIT Delhi

• Geographic

Segmentation

• Demographi

c Segmentation

• Psychograph

ic Segmentation

BehaviouralSegmentation

GEOGRAPHIC SEGMENTATION Divides into geographical units such as nations, states, regions, countries, cities or neighbourhood

There are differences in consumer preferences, purchase patterns, and behaviours across regions

Hence different market effortsShivam Verma || IIT Delhi

DEMOGRAPHIC SEGMENTATION

Age and life cycle stage Lifestage

Gender Income Shivam Verma || IIT Delhi

AGE AND LIFE CYCLE STAGE

Titan’s Zoop targets 6-14 year-old-children by using design elements that reflect the preferences of the target segment

Shivam Verma || IIT Delhi

LIFE STAGE

iBall Aasaan, targeted at citizens, has features that are compatible with the needs of the segment

Shivam Verma || IIT Delhi

GENDER

Today, many companies are targeting women, and not just men, for their two-wheeler brands. Mahindra Rodeo, for example, uses Kareena Kapoor as its brand ambassador, suggesting the brand’s qualities of power and style

Shivam Verma || IIT Delhi

INCOME

With the increase in income, luxury wristwatch brands such as TAG Heuer are increasing their visibility and presence in the Indian market

Shivam Verma || IIT Delhi

SOCIO-ECONOMIC CLASSIFICATION

Rural areas are emerging as important markets for many products and services.

Shivam Verma || IIT Delhi

PSYCHOGRAPHIC SEGMENTATION Psychographics is the science of using psychology and demographics to better understand consumers

Buyers are divided into different groups on the basis of psychological/personality traits, lifestyle, or values

Popular and commercially available classification system is Strategic Business Insight’s (SBI) VALS framework.

Shivam Verma || IIT Delhi

BEHAVIOURAL SEGMENTATION

Shivam Verma || IIT Delhi

BEHAVIOURAL SEGMENTATION

Shivam Verma || IIT Delhi

Marketers divide buyers into groups on the basis of their knowledge of, attitude toward, use of, or response to a product.

•Occassions•User Status•Usage Rate•Buyer Readiness Stage•Loyalty Status•Attitude•Multiple Bases

Needs and Benefits

Decision Roles

User and Usage- Real user and Usage-Related Variables

BUYER-READINESS STAGE

LifeCell uses celebrity endorsements to introduce umbilical cord stem cell banking in India.

Shivam Verma || IIT Delhi

BUYER-READINESS STAGE

Example of Marketing Funnel

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LOYALTY STATUS

Shivam Verma || IIT Delhi

Hard-core loyals- Consumers who buy only one brand all the time

Split loyals- Consumers who are loyal to two or three brands

Shifting loyals- Consumers who shift loyalty from one brand to another

Switchers- Consumers who show no loyalty to any brand

CREDITS

All Photos are taken from google images and Book on ‘Marketing Management’ by Kotler

Shivam Verma || IIT Delhi

THANK YOU