1 segmentation

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5/5/12Segmentation: Product Services

Segmentation

Presented by:

Dwijesh NathTiwari

FC10134

Mayank Jain

FC10143

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The Segmentation Process

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Segmentation: Product Services


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What is Market?To marketers, markets are people, plain and simple. Product markets

Market segments

The market segments that a company decides to servewith their marketing efforts are referred to as target

markets.

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Segmentation : What?and Why? Converting a heterogeneous demanding markets into

homogenous groups based on similar characteristics ortraits.

By excluding groups of people who are less likely to buya firms brand, the firm has additional resources tofocus on groups with the greatest potential to becomecustomers.

Decisions to overlook certain groups are meant toincrease the efficiencywith which a firm can serve itscustomers as well as the profitabilityof serving them.

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Major SegmentationDecision

Product Category Decision

A product category is simply a group of products that, onsome level, provide similar sets of benefits.

From the basic level, product categories may be

superordinated (made more abstract or general) orsubordinated (made more specific).

The main reason why product category decisions are soimportant is that they help marketers define their

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Major Subgroup Decisions

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Desired benefits :

Positive consequences that result from

purchasing or using a product. Understandingwhy people buy products is critical to effectivelypromoting the product. Second, understandingwhy people buy can be terribly complicated.

Four Types of Desired Benefits are:


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Be

ne

fitPr

ofi

lefor

TwoM

ob

ileBr

an

ds

Functional Psychological

Motivational

Communication

Preferential

EconomicalEase of operation

Sense of SecurityPeace-of-mind

Functional PsychologicalMotivational

Need for VarietyStylish

Preferent

ial

Luxury

Higher Performance

Brand Status

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Demographic variables Demographic variables include such physical

characteristics as sex, ethnicity, and age.Social demographic characteristics includeincome, occupation, religion, and education.

It is the most popular variable used whilesegmentation.

Geographic variables Geographic variable plays an important role

and presents a big challenge for marketers in

India. The sheer size and diversity of thegeography of the country also affects thedemographics of the country.

The big divide between rural and urban in India

is a critical factor in India as the two arecharacteristicall ver different from each 5/5/12

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Geographical Variable

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Psychographic Variables

PsychographicSegmentation

Describe people interms of their life

style

Activity (Whatthey do)

Interests(What they

like)

Opinion( What they think)

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Abundantresources

Minimalresources

tyleClassifica

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Describing segments usingthe traditional segmentationbases.

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Target Market Decisions

Qualities of good target markets

Measureable

Compatible

Accessible

Substantial

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Process for describing MarketSegmentation

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Product(Fine Dining Restaurant)

Demographic

Age(25-45)Income(high)

Gender(Maleand Female)

Geographic

Metropolitan(Posh Area)

Actualizers

Achievers

Experiencers

Psychographic

(Lifestyle)Status, Luxury, Quality

New Experience

BenefitSought

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"Thank You"

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1 segmentation

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