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DEFINITION
1. SEGMENT MARKETING
Consists of a group of customers who
share a similar set of needs and wants.
Wants
Purchasing Power
Geographical Location
Buying Attitudes
2. NICHE MARKETING
Group of customers seeking a distinctive mix of benefits
Niche = segment
sub segments
DISTINCT NEEDS
PAY PREMIUM
SPECIALIZATION
LESS COMPETITION
POTENTIAL
ROLLS ROYCE
3. LOCAL MARKETING
Pune
sarees
Kashmiri silk
4. INDIVIDUAL MARKETING
5. GEOGRAPHIC SEGMENTATION
Divide the market into different group based on :
Region South India , North , Western Region, East
6. DEMOGRAPHIC SEGMENTATION
As people agetheir needs and wants change, some organizations develop specific
products aimed at particular age groups forexamplenappiesforbabies,toysfor
children,clothesforteenagersandsoon.
Gendersegmentation is commonly used within the cosmetics, clothing and magazine
industry.
In the UK we have also seen the introduction of Maxim, (www.maximmagazine.co.uk) a male lifestyle magazine covering male fashion, films, cars, sports
and technology. \
7. BEHAVIOURAL SEGMENTATION
1. Substantiality
The choice of market size alone does not differentiate segmentation from
other activities; size is a factor when defining any market. It is more
critical to segmentation, though, owing to its focus on parts or fragments
of a market. If segments are small in relation to a companys current
operation their contribution to overall corporate results may be meagre,
but large segments may tax company resources and strain cash flows.
As with any marketing strategy, the optimum ratio between resources
and market size must be found.
2. Differential Response
An absolute requirement for segmentation is that each defined segment
must have unique market response characteristics. The fact that a
market segment or a mailing list represents households with selective
traits is of no use if the response from it is not substantially different
from that of other segments or lists.
3. Identification
Any segment used in a marketing program must be capable of
being identified quantitatively. If a segment cannot be reduced
to statistics there is no way of knowing if the marketing program
targeted to it is successful.
4. Stability
segments must be relatively stable over time. Segments that
change radically in a short time are precarious investments.
Shortening the payback period reduces risk, but long-term
returns are still unreliable. Unstable segments are often
attractive to marketers wishing to cash in quickly on a trend, but
they generally hold little attraction for prudent, long-term
investors. Some marketing segments are more volatile than
others.
5. Accessibility
Accessibility dictates that direct marketers must be
capable of reaching their chosen segments efficiently
through one or more media. Each firm determines
its own level of efficiency by correlating its resources
and objectives with certain factors common to all
marketing programs.
PROCESS OF SEGMENTATION
Four step market segmentation process
To develop a successful marketing strategy, it is
important to identify the appropriate consumer
segments. There are four steps you should perform to
conduct the market segmentation process effectively.
Step 1: Identify segmented markets
The first step of the market segmentation process is
to identify the segmented markets. It is important to
select the segmenting strategy that most accurately
categorizes consumers according to your product or
service.
MARKETING TARGETING
Definition