Market: The Market has been derived from the Latin word mercatus which means to trade.

 A market is essential a place where goods and services are offer to sales.

Definition of market: According to Pyle, market includes both place and region in which buyers and sellers are in free competition with one another .

Market segmentation: It is the process of taking the total market for a product and dividing it into several sub markets or segments each of which tends to be homogeneous in all significant respects.

Definition of Market segmentation: segmentation:



Define of R.S.DAVAR: Grouping of buyers or segmenting the market is described as market segmentation.

Levels of market segmentation:



Mass marketing Segment marketing Niche marketing Micro marketing

Levels of market segmentation:

a) b)

c)

d)

Mass marketing- mass producing- mass marketingproducingdistributing and mass promoting. Segment marketing- The aim is to target marketingthe company products or services, logistic channels communication program directly to those that it feels it can serve best. Niche marketing- One focus on subgroups marketingwithin already defined segments Micro marketing- opposite to mass marketingmarketing. -Products tailored to meet the specific needs and tastes of specific individuals and locations.

Bases for market segmentation



There are many ways by which market can be segmented. But methods of market segmentation will vary from product from product. Market can classified into two types they are: Consumer market Industrial market

Segmentation of consumer markets:



According to Philip Kotler, consumer market can be segmented on the basis of four variables namely, geographic variables, demographic, psychographic, and buyer behaviour variables.

Consumer markets
Market segmentation

Demographic

Geographic

Consumer markets

Psychographic

Behavioral

Demographic variables or sociosocioEconomic variables:



Demographic variables are most popular bases for segmenting consumer markets. Consumer wants or usage rates are often highly associated with demographic variables Demographic variables are easier to measure than most other types of variables

Demographic includes
1. 2. 3. 4. 5. 6. 7.

Age Sex Income Education Religion Occupation Family size

Geographic segmentation :


The market is divided into different locationslocations- nations, states countries cities or neighborhoods. Marketing strategies are to be prepared by considering the characteristics of each and every market.

Geographic segmentation includes:

1. 2. 3. 4. 5.

Regions Villages Cities Density Climate

Psychographic segmentation:


Psychological make up of customer. Studying customer value opinion activities and lifestyles to establish patterns.

Psychographic segmentation includes:

1. 2. 3. 4.

Social Class Life style Personality

Behavioral segmentation:


Many marketers are of the opinion that behavioral variables are the best starting point for constructing market segments. According to the benefit they expect from the product, they may be divided into groups of having consumers who require quality, service, economy, etc..

Behavioral segmentation includes: includes:

1. 2. 3. 4. 5. 6. 7.

Occasions Benefits User status Usage rate Loyalty status Readiness stage Attitude towards

Segmentation of industrial markets



Industrial markets consist of industrial users. If any organization buys some products not for resale in the same form but for using them in connection with its operation, it is called an industrial user. Industrial markets is large market.

Industrial segmentation bases are:

1. 2. 3. 4.

Type of business activity. Geographical location of the user. Usual purchasing procedure. Size of the user.

Basics Elements of market segmentation:

1) 2) 3)

4)

Availability of enough resources. Characteristics of products. Various stages of a product life cycle (PLC). Marketing strategies of competitors.

Requirements for successful segmentation:

1) 2) 3) 4) 5)

6)

Substantiality. Accessibility. Measurability. Nature of demand. Formulation of effective programmers. Difference in response rates.

Importance or benefits of market segmentation:

  

 

Effective use of resources. Gain a focus. Determines the most effective promotional appeals for the concern. Helps the manufacturer to face the competition effectively. Create value for a target market. Positioning.

BY LOGESH KUMAR.A 10MBA27 NIMS