1. MARKET SEGMENTATION

2. CONCEPT AND DEFINITION
The concept of market segment is based on the fact that the market of commodities are not homogeneous but they are heterogeneous.
Market represent a group of customer having common characteristics but two customer are never common in their nature, habits, hobbies income and purchasing techniques.

3. According to Philip Kotler , “ Market segmentation is sub-dividing a market into distinct and homogeneous subgroups of customers, where any group can conceivably be selected as a target market to be met with distinct marketing mix.”

4. LEVELS OF MARKET SEGMENTATION
MARKETING
NICHES MARKETING
LOCAL MARKETING
INDIVIDUALS MARKETING

5. 1. SEGMENT MARKETING Identifiable Group with in a Market with Similar
Consists of a group of customers who share a similar set of needs and wants.
Identifiable Group with in a Market with Similar
Wants
Purchasing Power
Geographical Location
Buying Attitudes

6. FLEXIBLE MARKET OFFERING
Even in segments 100 % needs are not same – consists of two parts
Naked Solution :- products and services that all members of the segment values.
Discretionary options :- that some segment members value. Each option might carry an additional charge.
Example: Automobile industry – basic model is same but for A.C in the Car , power steering, power window buyer

7. has to pay extra price.
Delta Airlines offers all economy passengers a seat and soft drinks. It charges economy passengers extra for alcoholic beverages.

8. Market Segments can be defined in many different ways
Market Segments can be defined in many different ways. One way to carve up a market is to identify Preference segments
Suppose ice cream buyers are asked how much they value sweetness and creaminess as two product attributes. Three different patterns can emerge.

9. Homogeneous preference :
where all the consumer have roughly the same preferences.
We would predict that existing brand would be similar and cluster around the middle of the scale in both sweetness and creaminess.
Diffused preference :
consumers vary greatly in their preferences
Clustered preference :

10. Homogeneous Preference -no natural segments
creaminess
sweetness
Homogeneous Preference
-no natural segments
-all buyers have same preference

11. -no pattern (…or poor research) -take center position
creaminess
sweetness
Diffused Preference
-no pattern (…or poor research)
-take center position

12. -increases as number of competitors increases
creaminess
sweetness
Clustered Preference
-natural segments
-increases as number of competitors increases

13. 2. NICHE MARKETING
Group of customers seeking a distinctive mix of benefits who are ready to pay extra premium.
Niche = segment sub – segments
Eg. Washing detergents hard & gentle washes . Surf excel for tough stains ( hard on clothes) & Ezee from Godrej for delicate clothes.
--- Astha , Sanskar , Q TV – focus on religion & spiritualism.
DISTINCT NEEDS
PAY PREMIUM
SPECIALIZATION
LESS COMPETITION
POTENTIAL

14. 3. LOCAL MARKETING Chitle Pune sarees Kashmiri silk
Marketing programs tailored to the needs & wants of local customer groups in trading areas, neighborhoods , etc.
This trend is called grass roots marketing.
Ex. – Spiderman 3 was released in 5 different language in India including bhojpuri.
Chitle
Pune sarees
Kashmiri silk

15. 4. INDIVIDUAL MARKETING
Ultimate segmentation – segments of 1 or customized marketing or one to one marketing.
Customization – empower the consumers to design the product or service offering of their choice.
Ex. Paint companies have started doing this- Asian Paint , Nerolac , Berger Paints, Dell.

16. Segmenting Consumer Market

17. GEOGRAPHIC SEGMENTATION
Divide the market into different group based on :
Region – South India , North , Western Region, East
City – metro cities, cities with population more than 1 million
World
Density
Climate
States
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. In Mexico more chili sauce is added and so on.

18. DEMOGRAPHIC SEGMENTATION

19. No Market Segmentation

20. Segmented by Gender

21. Segmented by Age

22. As people age their needs and wants change, some organizations develop specific products aimed at particular age groups for example  nappies for babies, toys for children, clothes for teenagers and so on.   
Gender segmentation is commonly used within the cosmetics, clothing and magazine industry.
In UK we have also seen the introduction of Maxim, ( a male lifestyle magazine covering male fashion, films, cars, sports and technology.

23. Income segmentation
It is another strategy used by many organizations.
Daewoo aim their vehicles at price sensitive buyers who require a bundle of benefits for the price.
In today's globally competitive environment brands are specifically developed and positioned within particular income segments in order to maximize turnover.
Products and services are also aimed at different lifecycle segments. Holidays are developed for families, the 18-30's singles,  and for those in their 50's.      

24. PSYCHOGRAPHIC SEGMENTATION

25. Lifestyle groups
Mobile
High valued house/flat
Good Salary
Young branded car.
Third Agers Associations.
50's
Retired early from profession.
Time to spare
Adventure Seekers

26. BEHAVIOURAL SEGMENTATION

27. 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

28. Segmentation
The most important base for segmentation is the Lifestyle as travelling decisions can be greatly influenced by the same.
Other factors such as Level of Income, Availability of leisure time, etc.
are secondary.

29. Targeting Mass Market:
Consists of Vacationists that travel in large groups
They prefer all-inclusive tours
Generally Conservative
Popular Market:
Smaller Groups going for inclusive or semi-inclusive tours
Groups include pensioners, retired people
Individual Market:
Consists of Chairmen, Sr. Executives, people on business visits.
As lifestyle changes, preferences might change

30. SWOT Analysis Strengths:
Geographical Diversity – Desert, Mountains, Forests and Beaches
Cultural Diversity
Wealth of archaeological sites and historic monuments
Manpower costs are low
World class hotels present
Weaknesses:
Lack of adequate infrastructure
Xenophobic attitude among certain sections
No proper marketing tools used

31. SWOT Analysis Opportunities:
Proactive role of govt. in framing proper policies
Allowing entry of more multinational companies
Growth of Domestic Tourism
Threats:
Economic Conditions of the other countries
Political turbulence in Kashmir, Gujarat
Aggressive strategies approached by other countries for tourism