6. mm module - 4m

7/30/2019 6. Mm Module - 4m

1/24

Amity Business School

Process of Segmentation

1. Survey

2. Formation of segments

3. Customer profile

4. Analysis & Evaluation

5. Selection of target markets

EFFECTIVE SEGMENTATION

Measurable Substantial Accessible

Differentiation Actionable

7/30/2019 6. Mm Module - 4m

2/24

7/30/2019 6. Mm Module - 4m

3/24


PATTERNS OF

MARKET SEGMENTATION

1. Based on PREFERENCESHOMOGENOUS DIFFUSED CLUSTEREDNo branding Many brand Mkt for shoes, cars,

is based ondifferent attributes.

2. NEED BASED MARKET SEGMENTATION

MARKET PARTITIONING : Hierarchy of attributes consumer follow inchoosing a brand. Eg : Washing powder

NEED Cheap Moderate Expensive

SIZE Small Medium Large Super large Family Pack

BRAND Local Dealer Surf Surf Excel Ariel Nirma

FORMS Bar Cake Powder Liquid

7/30/2019 6. Mm Module - 4m

4/24


1. Manufacturing the product with the market demand.

2. Working for economic functioning.

3. Tapping opportunity and doing away with the threat.

4. Enables the company for appropriate marketing mix.

5. Overall monitoring of all marketing operations.

6. Increased sales & market share.

7. Providing growth opportunities to smaller firm.

8. Improving the products.

Significance ofSEGMENTATION

7/30/2019 6. Mm Module - 4m

5/24


SEGMENTING

CONSUMER MARKET

GEOGRAPHIC SEGMENTATION : Nations, states, regions, countries,cities or neighborhood.

DEMOGRAPHIC SEGMENTATION : Based on age, family size, family lifecycle, gender, income, occupation, education, religion, race, generation,

nationality & social class.PSYCHOGRAPHIC SEGMENTATION: Based on Lifestyle, value &personality.

BEHAVIORAL SEGMENTATION: On basis of decision roles, occasions,benefits, user status, usage rate loyalty status, readiness stage, attitude

towards product.MULTI-ATTRIBUTE SEGMENTATION (GEOCLUSTERING): Combiningseveral variables for identifying smaller better defined target group.

TARGETING MULTIPLE SEGMENTS

7/30/2019 6. Mm Module - 4m

6/24

Amity Business SchoolBENEFITSMOBIL Classifications

1. Road Warriors: 16% (Premium Products & Quality)

2. Generations F: 27% Fast

3. True Blues: 16% Branded

4. Home Bodies: 21 % Convenience

5. Price Shoppers: 20% Low Price

LOYALITY [Competition Based Segmentation]

1. Hard-Core Loyal

2. Split loyals

3. Shifting loyals

4. Switchers

7/30/2019 6. Mm Module - 4m

7/24


Psychographic Segmentation(Psychology +Demographics)

SRI Consulting Business Intelligence (SRIC-BI) VALS TM

Based on responses derived from questionnaire featuring 4demographic and 35 attitudinal questions. 80,000 surveys per year.

INNOVATORS High ResourcesHigh Innovation

Ideals Achievement Self-Expression

Thinkers Achievers Experiences

Believers Strivers Makers

SURVIVORS Low Resources

Low Innovation

PrimaryMotivation

7/30/2019 6. Mm Module - 4m

8/24


7/30/2019 6. Mm Module - 4m

9/24


Product-Related SegmentationDividing a consumer population intohomogeneous groups based oncharacteristics of their relationships to

the product Can take the form of segmenting based on:

Benefits that people seek when they buy

Usage rates for a product

Consumers brand loyalty toward a product

7/30/2019 6. Mm Module - 4m

10/24


Benefits Focuses on the attributes that people seek in a good

or service and the benefits that they expect to receivefrom that good or service

Groups consumers into segments based on what

they want a product to do for them

Usage Rates

Segmenting by grouping people according to the

amounts of a product that they buy and use

Markets often divided into heavy-user, moderate-

user, and light-user segments

The 80/20 principle (Praedos Law)

7/30/2019 6. Mm Module - 4m

11/24


Brand Loyalty

Segmenting consumers grouped according

to the strength of brand loyalty felt toward a

product

Frequent flyer programs of airlines and

many hotels

7/30/2019 6. Mm Module - 4m

12/24

7/30/2019 6. Mm Module - 4m

13/24


Using Multiple Segmentation Bases

Increase accuracy in reaching the right

markets

Combine multiple bases

Geographic and Demographic

Product-related with income and expenditure

patterns

Others

7/30/2019 6. Mm Module - 4m

14/24


SEGMENTINGBUSINESS MARKET

DEMOGRAPHIC: Industry, Company size, Location.OPERATING VARIABLES: Technology, User or Non-user status, Customercapabilities.

PURCHASING APPROACHES: Purchasing function organization, Powerstructure, Nature of existing relationships, General purchase policies,Purchasing criteria.

SITUATIONAL FACTOR: Urgency, Specific application, Size of order.

PERSONAL CHARACTERSTICS: Buyer-seller similarity, Attitudes towards risk& Loyalty.

BUSINESS BUYERS can be FIRST TIME PROSPECTS, NOVICES, SOPHISTICATES.

INDUSTRIAL BUYERS can be PROGRAMMED, RELATIONSHIP, TRANSACTION &BARGAIN HUNTERS.

7/30/2019 6. Mm Module - 4m

15/24


TARGETING

1. Standardization

2. Differentiation

4 Ps, People, Images, Service, Channel

3. Focus

7/30/2019 6. Mm Module - 4m

16/24

Amity Business SchoolStrategies for Reaching

Target Markets

Undifferentiated Marketing: when afirm produces only one product or product

line and promotes it to all customers with asingle marketing mix.

Differentiated Marketing: when a firmproduces numerous products & promotes

them with a different marketing mix designed

to satisfy smaller segments.

7/30/2019 6. Mm Module - 4m

17/24


Concentrated Marketing (nichemarketing): when a firm commits all of itsmarketing resources to serve a single

market segment

Micromarketing: involves targeting

potential customers at a very basic level,such as by ZIP code, specific occupation,lifestyle, or individual household

7/30/2019 6. Mm Module - 4m

18/24


Selecting and Executing a Strategy

No single, best choice strategy suits all

firms Determinants of a market-specific strategy:

Company resources

Product homogeneity

Stage in the product life-cycle

Competitors strategy

7/30/2019 6. Mm Module - 4m

19/24


Positioning: a marketing strategy thatemphasizes serving a specific market

segment by achieving a certain position in

buyers minds

Attributes

Price/quality

Competitors

Application

Product user

Product class

7/30/2019 6. Mm Module - 4m

20/24


Positioning mapGraphic illustration that shows differences in

consumers perceptions of competing

products

Reposition

Marketing strategy to change the position ofits product in consumers minds relative to the

positions of competing products

7/30/2019 6. Mm Module - 4m

21/24


Trout and Ries suggest a six-step questionframework for successful positioning:

1. What position do you currently own?

2. What position do you want to own?3. Whom you have to defeat to own the position

you want.

4. Do you have the resources to do it?

5. Can you persist until you get there?

6. Are your tactics supporting the positioningobjective you set?

7/30/2019 6. Mm Module - 4m

22/24


7/30/2019 6. Mm Module - 4m

23/24


HypotheticalCompetitivePositioningMap forSelectedRetailers

P iti i St t i

7/30/2019 6. Mm Module - 4m

24/24


Positioning Strategies

1. Product Attributes

2. Benefits3. Usage Occasions4.Users5. Against a Competitor6. Away from a Competitor7. Product Classes

Positioning Differences1. Important

2. Distinctive3. Superior4. Communicable5. Preemptive

6. Affordable7 Profitable

6. mm module - 4m

Documents