Identifying Market Segments and

Selecting Target Markets

BY- LAZARUS CHETTIAR

DEVANAND.S.MENONPRATHAMESH PARAB

RONALD PATRICK

MARKET• Market is a physical place where buyers & sellers

gathered to buy and sell goods. Or Collection of buyers and sellers who transact over a particular product.

E.g 1. Consumer Market- Soft Drinks, cosmetics, air travel

2. Business Markets- Infosys, Huwai, BPO’s

3. Global markets- Import & Export companies, MNC;s

4. Nonprofit & Govt Markets-Temples, Universities, govt companies

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1. Identify Basesfor Segmenting the Market

2. Develop Profilesof Resulting Segments

3. Develop Measuresof Segment Attractiveness

4. Select TargetSegment(s)

5. Develop Positioningfor Each Target Segment

6. Develop MarketingMix for Each Target Segment Market

Positioning

MarketTargeting

Market Segmentation

STEPS IN SEGMENTING-TARGETING-POSITIONING

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Mass MarketingSame product to all consumers

(no segmentation)

Mass MarketingSame product to all consumers

(no segmentation)

Segment MarketingDifferent products to one or more segments

(some segmentation)

Segment MarketingDifferent products to one or more segments

(some segmentation)

MicromarketingProducts to suit the tastes of individuals or locations

(complete segmentation)

MicromarketingProducts to suit the tastes of individuals or locations

(complete segmentation)

Niche MarketingDifferent products to subgroups within segments

( more segmentation)

Niche MarketingDifferent products to subgroups within segments

( more segmentation)

LEVELS OF MARKET SEGMENTATION

SEGMENTATION-PRODUCT EXAMPLESSEGMENT MARKETING:Example: Automobile industry – basic model is same but for A.C , power steering, power window buyer has to extra priceNICHE MARKETING :- Group of customers seeking a distinctive mix of benefits who are ready to pay extra premium. Egs :- detergents :- surf excel on tough stains ,Ezee godrej for delicate clothes . Sanskar ,Shankara T.V ,TTD(Tiruapti tirumala Devasthanam) – focus on religion & spiritualismLOCAL MARKETING:Ex. – Spiderman 3 was released in 5 different language in India including bhojpuri.INDIVISUAL MARKETING:Ex. Paint companies have started doing this- Asian Paint , Nerolac , Berger PaintsArvind mills launched Ruff’n Tuff Jeans, branded ready to sitch

SEGMENTATION-PRODUCT EXAMPLES

HYNDAI EON-SEGMENT

ROLLS ROYCE-INCOME NICH-HIMALAYA

LOCAL

NICH-SPORTS CHANNEL

LOCAL

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Geographic

DemographicAge, gender, family size and life cycle, income

PsychographicSocial class, lifestyle, or personality

BehavioralOccasions, benefits, uses, or responses

Nations, states, regions or cities

The Classic Segmentation Variables for Consumer Markets & Customer

Population

GEOGRAPHICAL SEGMENTATION:• Ex.- Mcdonalds globally, sell burgers aimed at local markets, • for example, burgers are made from lamb in India rather then

beef because of religious issues. DEMOGRAPHIC SEGEMENTATION:

• Needs and wants change as people ages . Egs :- Nappies for babies, Toys for children , Clothes for teenagers, Gender segmentation is used within the cosmetics, clothing and magazine industry.

INCOME SEGMENTATION:• Stores like Big Bazar, Woodland are predominantly aimed at

the affluent market. • TATA aim their vehicles at price sensitive buyers who require a

bundle of benefits for the price. • Products and services are also aimed at different lifecycle.• Holidays are developed for families, the 18-30's singles,  and for

those in their 50's. (Kesari Or Mahindra Club)

SEGMENTATION-PRODUCT EXAMPLES

PSYCHOGRAPHIC:• Lifestyle groups  Yuppie Associations• Mobile, High valued house/flat, Good Salary, Young

branded car.• 50's , Retired early from profession, Time to spare,

Adventure Seekers

OCCASIONS - Archies and Hallmark, cards, Monaco at tea time.

• BENEFITS – Shampoo for hair conditioning, cleaning , hair fall defence dandruff control

• USER STATUS- light – medium – heavy user• LOYALTY STATUS- hardcore loyal , split loyal-

loyal to 2-3 brand ,shifting loyal, switcher

SEGMENTATION-PRODUCT EXAMPLES

SEGMENTATION-PRODUCT EXAMPLES

Demographic-AGEGender

PsychographicsOccasion- Behavioral

LOCAL

ANALYZE OF CUSTOMER BEHAVIOUR

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• Size, purchasing power, profiles of segments can be measured.

• Segments must be effectively reached and served.

• Segments must be large or profitable enough to serve.

Measurable Measurable

AccessibleAccessible

SubstantialSubstantial

DifferentialDifferential

ActionableActionable

• Segments must respond differently to different marketing mix elements & actions.

effective programs can be designed for attracting

and serving the segments.

MARKET TARGETINGEffective Segmentation Criteria

Patterns of Target Market Selection Product x Market Matrices

POSITIONING

• Positioning:– The place the product occupies in consumers’

minds relative to competing products.– Typically defined by consumers on the basis of

important attributes.– Involves implanting the brand’s unique

benefits and differentiation in the customer’s mind.– Positioning maps that plot perceptions of

brands are commonly used.

Goal 4: Realize how companies position their products

THANK YOU

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