market segmentation.ppt

7/27/2019 market segmentation.ppt

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Market Segmentation

Subu Shrestha

Director, Business Advantage


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Why?

You cant target everybody

Your product/service is not for everybody

You dont have enough funds You dont have enough time


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What do you do?

Identify a common group of people

Aggregate their mutual interests and needs


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How?

Behavioristic

Geographic

Demographic

Psychographic


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Behavioristic

User Status

Non-user, ex-user, first-time user, regular user

Usage Rate

Light, medium, heavy

Purchase occasion

Regular, special

Benefits Sought Economy, Convenience, Low fat


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Geographic

Region

Terai, Hills, Mountain

Climate Cold, Moderate, Hot

Population

Dense, Medium, Sparse

Urban, Suburban, Rural


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Demographic

Age

Gender

Family size

Income

Occupation

Education

Nationality Religion

Ethnicity


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Psychographic Emotional

Appeal

Values

Truly Asia

A diamond is Forever

Attitudes

Be Stupid Impossible is Nothing

Lifestyle

Lifes good

If it wasnt in VOGUE, it wasnt in Vogue

Personalities

Think Different

A Sharper Bite


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Target Market

Narrow down to one or more target a company

wishes to appeal to, design products for, and

tailor its marketing activities toward.

For advertisers, it helps determine the content,look and feel of advertising


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Criteria for Target Markets

Size

The current size of the market and potential for growth

Competitive position

Who are the players currently in this market

Cost of reaching the market

Can the available budget reach this market effectively

Compatibility with the organizations objectives and

resources.

Ethical issues


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Product Lifecycle


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Introductory

Educate customers

Create a need

Significant expenses

Growth

Sales rise

Repeat purchases

Competitors crop up

Maturity

Saturated market

Very less new

customers

Innovation required

Decline

Obsolete

Losses


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Product Positioning

What the product does and who it is forDavid Ogilvy

What makes you unique

Who should be buying it

Purpose: Product Differentiation


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Positioning Strategies

Product Attributes Formulation (Complan), Ingredients (FAL Ayurvedic),

Technology (Apple)

Benefits Health (Lifebuoy), Safety (Volvo), Sex appeal (Axe),

Confidence (CloseUp), Satisfaction (Snickers)

Usage Occasions

Time (After 8), Wedding (Tanishq)


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Product Branding

Branding enables advertising andthus, choice

Name, Symbols, Packaging, Imageand Personality that distinguishes it

from the competition Offers instant recognition and

identification

Promise consistent, reliable standardsof quality, taste, size, etc.

Ultimate goal: Brand Equity Customer loyalty

Long term profits


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Brand Equity

Intangible, yet worlds top brands have value worth billions of

dollars

When people consciously make a choice of one product

over another, they are exercising their brand preference

which are instilled by advertising.

Then image of the Marlboro Man has endured over 50

years


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Types of Brands

Individual brand

Unilever markets toothpastes with individual

brands such as Close-Up and Pepsodent

Bajaj wants to go for individual brands instead ofFamily/Umbrella Brand.

Family brand

Dabur and TATA markets all its products underone umbrella ofDabur


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Top 10 Brands (Global) 2012

10. Toyota 30 billion dollars

9. Samsung 32 billion dollars

8. Intel 39 billion dollars

7. McDonalds 40 billion dollars

6. GE 44 billion dollars

5. Microsoft 58 billion dollars

4. Google 70 billion dollars

3. IBM 75 billion dollars

2. Apple 76 billion dollars

1. Coke 78 billion dollars

Source: Interbrand


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Thank You!

[email protected]

market segmentation.ppt

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