Aravali Institute of Management

Identifying Market
Segments and Targets

Presented to: Presented by:

Ms. Shalini Rai Atul Vashishtha
Faculty Guide Tapendra Purohit
Piyush Rathi
PGP - 1
 Target Marketing Steps
Market Market Market
Segmentation Targeting Positioning
1. Identify 5. Identify
3. Evaluate
segmentation possible
attractiveness positioning
variables and of each concepts for
segment the segment each target
market segment
4. Select the
2. Develop 6. Select,
target develop, and
profiles of segment(s) communicate
resulting the chosen
segments positioning
concept
Levels of Market Segmentation
 Segments
 Niches
 Local areas
 Individuals
Segment Marketing

 Divide customers according to their

needs and wants

Ex- Bata for old persons they have

slippers, for students they have school
shoes, for kids they have sandals
Niche Marketing
 Dividing the segment into sub segment

Ex- Firstly star plus for entertainment, than star

news for news, than star sports for sports, star
cricket for cricket
Local Marketing
 Marketing programs tailored to the needs and
wants of local customer groups

Ex- Local provision store, vegetable shops, tailor

Individual Marketing

 To design the product and service offering as

per choice of individuals
 It is also known as one to one or person to
person marketing
Segmenting Consumer Markets
 Geographic Segmentation
 Demographic Segmentation
 Psychographic Segmentation
 Behavioral Segmentation
Geographic segmentation
 Nations, states, regions, cities, rural, urban or
neighborhoods

Ex- Air-cooler – Northern Parts of India

Air-conditioner- Goa, Kerala and Mumbai
Demographic Segmentation
Divide the market into groups on the basis of
variables such as :

Age
Age and
and Life
Life Cycle
Cycle
Life
Life Stage
Stage
Gender
Gender
Income
Income
Generation
Generation
Social
Social Class
Class
 Age : Johnson’s baby soap for new born baby,
Doy soap for kids, Dove for youngsters
 Life stage : Child Policy, Retirement plans,

Newly weds
GENDER
INCOME
 Social Class : Luxury products, Jet Airways
Psychographics segmentation
 Lifestyle
 Personality traits, value

Ex- Early McDonalds came with beef but

McDonalds change their menu in India to
adopt the consumer preference
Behavioral Segmentation
Here marketer divide buyers into groups on the
basis of :
 Occasions
 Benefits
 User Status
 Usage Rate
 Buyer-Readiness
 Loyalty Status
 Attitude
Occasions
 Segmenting on the basis of special occasions
or situations
Benefit Segmentation
TOOTH DECAY
PREVENTION

FRESHNESS

GUM PROTECTION

ECONOMICAL

HERBAL
Loyalty Status

Hard-core

Split loyals

Shifting loyals

Switchers
 User Status
 Non users ( chik shampoo)
 Ex-users (blood banks,churned customers)
 Potential users
 First-time users (camera)
 Regular users (loyalty programs)
 Usage Rate
 Heavy users, light users, medium users
 Mobile plans
Behavioral Segmentation Breakdown
Selecting market segments
 Single segment concentration
 Selective specialization
 Products specialization
 Market specialization ( customer)
 Full market coverage
 Five Patterns of Target Market
Selection
Single-segment Selective Product
concentration specialization specialization
M1 M2 M3 M1 M2 M3 M1 M2 M3
P1 P1 P1

P2 P2 P2

P3 P3 P3
Market Full market
specialization coverage
M1 M2 M3 M1 M2 M3
P1 P1
P = Product
M = Market P2 P2
P3 P3
 Y o u
T h a nk