1. MARKET SEGMENTATION
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

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.
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

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.”
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

4. Market Segmentation is a method of “dividing a market (Large) into smaller groupings of consumers or organisations in which each segment has a common characteristic such as needs or behaviour.”
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

5. Market segmentation Better marketing performance
Adjustment in the marketing mix
Better service to consumers
Designing products
Facilitates efficient use of resources
Appropriate price fixation
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

6. LEVELS OF MARKET SEGMENTATION
MARKETING
NICHES MARKETING
LOCAL MARKETING
INDIVIDUALS MARKETING
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

7. 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
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

8. 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 , power steering, power window buyer has to pay extra price.
Delta Airlines offers all economy passengers a seat and soft drinks. It charges economy passengers extra for alcoholic beverages
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

9. 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
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

10. ROLLS ROYCE
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

11. 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
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

12. 4. INDIVIDUAL MARKETING
Ultimate segmentation – segments of 1 or customized marketing or one to one marketing.
Customerization – 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
Arvind mills launched Ruff’n Tuff Jeans, branded ready – to – stitch
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

13. BASES OF MARKET SEGMENTATION
Geographic
Demographic
Sociographic
Psychographic
Behavioural
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

14. 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
Rural & urban basis-
Locality basis
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 chilli sauce is added and so on.
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

15. McDonald in Middle East McDonald offered any kind of chicken and beef
Geographical situation Individual needs / the specialization Reasons / services offered by McDonald 
McDonald in Middle East McDonald offered any kind of chicken and beef 
McDonald in the North countries provide dehumidifiers and air conditioning units  McDonald in Indonesia McDonald offered MCrice, PAKET PANAS (in Indonesian language), fried chicken, & mCsoup McDonald realized that Indonesian basic food is rice which server with egg and fried chicken 
McDonald in New Zealand McDonald offered kiwiburger  Which they bought from local fish and chips outlets Kiwi is a local basic food to its country 
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

16. GEOGRAPHIC SEGMENTATION :
In geographic segmentation, the market is sub divided on the basis of area.
—       Region : Regional segmentation is made because regional differences exist in respect of demand for products. For example, buyers from south India are different from the buyers in north.
—       Urban / Rural : There are differences in buying behaviour of urban and rural customers. Accordingly, marketing strategies must be designed depending upon their likes, dislikes, moods, preferences, fashions and buying habits.
—       Locality : Consumer’s buying behaviour is also reflected by the locality within a particular city. For instance, there are differences in terms of buying patterns of people residing at Parel and Parle, within a city like Mumbai.
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

17. DEMOGRAPHIC SEGMENTATION
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

18. DEMOGRAPHIC SEGMENTATION :
 Age : The primary method of analysing markets by age is to divide the total population into age groups and analyse the wants and needs of each group. for example  nappies for babies, toys for children, clothes for teenagers and so on.   
—      
 Gender : Marketers devote much attention to male and female differences in purchasing. Today, marketers segment female groups into college girls, working women, housewives, etc. Again, male groups can be further classified.  Gender segmentation is commonly used within the cosmetics, clothing , perfume, soaps, shoes, cycles and magazine industry.
In the UK we have also seen the introduction of Maxim, ( magazine.co.uk)  a male lifestyle magazine covering male fashion, films, cars, sports and technology
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

19. Income : Buying patterns depends on income of the consumers
Income : Buying patterns depends on income of the consumers. No two individuals or families spend money in exactly the same way. Branded and unbranded products.
Education : Market can be segmented on the basis of education – matriculation or less, under graduates, graduates, post- graduation, etc. Most studies show that the highly educated people spend more than the poorly educated in respect of housing, clothing, recreation, Newspapers, computers etc.
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

20. —       Family Size : The consumption patterns of certain products definitely vary with the number of people in the household. Manufacturers of certain products such as ice- cream market family packs, biscuits, cakes.
Family in mizoram
—    Race and Religion : Consumption patterns of certain products differ on the basis of religion and race, such as alcohol and meat products.
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

21. Family Life Cycle :  For selling tours and vacations, Life Insurance policies etc., this segmentation is of use.
Bachelor
Young married couple with no children
Young married couple with children
Older married couple with dependent children
Older married couple staying alone
Older single people – retired/service
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

22. PSYCHOGRAPHIC SEGMENTATION
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

23. designer clothes, jewellery, diamonds, cars etc.
Life-Style : Sellers study the life-styles of the consumers. For example, a manufacturer of readymade garments may design his clothes differently matching different life styles of college-students (more fashionable), office-goers (more sober) and so on.
designer clothes, jewellery, diamonds, cars etc.
Personality: Personality characteristics such as leadership, independence, masculine, impulsive, ambitious,-etc., do influence buying behaviour.
Bikes, cigarettes, perfume, clothes, hair gel, spectacles,
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

24. Influence of Social Class : Buying behaviour is reflected by the influence of social class to which the consumers belong. The social class can be segmented as – lower -lower, middle-lower, upper-lower, lower-middle, middle-middle, upper-middle, lower-upper, middle- upper and upper-upper. Firms dealing in clothing, home furnishing, automobiles, etc. can design products for specific social class.
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

25. High valued house/flat Good Salary Young branded car.
Lifestyle groups
Yuppie Associations
Mobile
High valued house/flat
Good Salary
Young branded car.
Third Agers Associations.
50's
Retired early from profession.
Time to spare
Adventure Seekers
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

26. BEHAVIOURAL SEGMENTATION
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

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 or first time user, ex-user, regular user.
LOYALTY STATUS- hardcore loyal , split loyal- loyal to 2-3 brand ,shifting loyal, switcher
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

28. State the elements of Integrated Marketing Communication.(IMC)
Explain the role of advertising in brand building
Write a note on green marketing
What are the various forms of unethical advertising
Write the features of advertising
Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce