Transcript Slide 1

Massu's 1BHK room at Amboli.
Both houses are duplexes
Wife, two sons and a daughterin- law share the apartment
with him.
Rs 1000 to 1500.
Rs 30 lakh in just properties.
One son makes and sells
brooms, while the other hawks
knick-knacks near Andheri
station. He has substantial
savings, but would not reveal
details. , he has a complete
sway over the area. You will
never find another beggar in
his vicinity. He takes an auto on
his way home too. Stops at
Yashraj Studios for a change of
clothes.
Subject:
FW: The Beggars of Mumbai...
Lokhandwala. Mostly outside high-end
restaurants visited by TV and film stars.
8 pm to 3 am.
A one BHK at Amboli in Andheri (west). He
owns another 1 BHK nearby.
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Market segment
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Market segmentation is the process in marketing of dividing a market into
distinct subsets (segments) that behave in the same way or have similar
needs. Because each segment is fairly homogeneous in their needs and
attitudes, they are likely to respond similarly to a given marketing strategy.
That is, they are likely to have similar feelings and ideas about a marketing
mix comprised of a given product or service, sold at a given price,
distributed in a certain way and promoted in a certain way.
Broadly, markets can be divided according to a number of general criteria,
such as by industry or public versus private sector. Small segments are
often termed niche markets or specialty markets. However, all segments fall
into either consumer or industrial markets. Although it has similar objectives
and it overlaps with consumer markets in many ways, the process of
Industrial market segmentation is quite different.
The process of segmentation is distinct from targeting (choosing which
segments to address) and positioning (designing an appropriate marketing
mix for each segment). The overall intent is to identify groups of similar
customers and potential customers; to prioritise the groups to address; to
understand their behaviour; and to respond with appropriate marketing
strategies that satisfy the different preferences of each chosen segment.
Revenues are thus improved.
Improved segmentation can lead to significantly improved marketing
effectiveness. With the right segmentation, the right lists can be purchased,
advertising results can be improved and customer satisfaction can be
increased.
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The requirements for successful segmentation are:
homogeneity within the segment
heterogeneity between segments
segments are measurable and identifiable
segments are accessible and actionable
segment is large enough to be profitable
These criteria can be summarized by the word
DAMAS:
D Differential: it must respond differently to a different
marketing mix
A Actionable: you must have a product for this segment
to be accured
M Measurable: size and purchasing power can be
measured
A Accessible: it must be possible to reach it efficiently
S Substantial: the segment has to be large and profitable
enough
The variables used for
segmentation include
• Geographic variables
– region of the world or country, East, West, South, North, Central,
coastal, hilly, etc.
– country size/country size : Metropolitian Cities, small cities, towns.
– Density of Area Urban, Semi-urban, Rural.
– climate Hot, Cold, Humid, Rainy.
• Demographic variables
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age
gender Male and Female
sexual orientation
family size
family life cycle
Education Primary, High School, Secondary, College, Universities.
income
occupation
education
socioeconomic status
religion
nationality/race
language
• Psychographic variables
– personality
– life style
– value
– attitude
• Behavioural variables
– benefit sought
– product usage rate
– brand loyalty
– product end use
– readiness-to-buy stage
– decision making unit
– profitability
Segmentation Based On Paying Capacity And
Characteristics
• 1)Budget Car segment.:-largest segment Indian market.60% share
in mkt.
• Its an entry level car, Prefered price range is 2 to 2.50 lakh
• E .g. maruti 800,alto,omni.
• This segment wants low price car basically not necessarily a small
car.
• 2) Compact car Segment: - it lies between budget car and family car
segment. Price range 3 to 4 lakhs.e.g. Zen, santro, matiz ,fiat uno
,indica are major players.15% share in the mkt.
• 3) Family car segment. - Reasonably sizable segment of the market
around 10 % share in the mkt .Cannot come near to compact
segment. Preferred price range 4 to 5 lakhs.An easy segment to
enter but already crowded e.g. maruti esteem, Daewoo Cielo.
• It is only becoz the cars that are sold in India as Budget car and
compact car doesn’t meet the purpose, especially in terms of space,
that they turn to the family car.
• 4) Premium car segment.:- segment represents
buyers those who need a real world-class and
are willing to pay high price. Price range-6 lakh.
Relatively sizable segment of mkt this is mainly
pent-up demand. Likely to saturate soon.
• 5)Super luxury saloon :- Tiny segment in the
Indian context look for real super premium car.
• Actually in this segmentation consumer are
classified not the product again price is one of
the consideration and consumer characteristics
of purchasing capacity/price preference. The
marketer offer product that match the price
preference of the different segment of consumer.