Market Segmentation

Topics: BusinessMarketing


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Last updated: October 9, 2019

MARKET SEGMENTATION A market is made up of people with one or more characteristics that make them to demand homogeneous product or service based on qualities of those products such as price or function. People in the same segment have similar needs and quality and therefore possess similar products and are charged similar prices, but they are different from other segments. Segmentation variables can be * Gender * Price * Location * Religion * Income * Interests * Size of the household Similarly, my product is laptop and I will divide my segmentation on the basis of the above points.Mainly I will divide my consumer market into: GEOGRAPHIC SEGMENTATION: Geographical segmentation can be in the form of urban areas versus rural areas, north area versus south area.

Rural versus urban areas- the consumption of laptops in urban areas is higher than in rural areas due to the educational institutions and multi national companies and offices there. The students now have switched to laptops and therefore do all their work on the pc than manually. Therefore, urban areas have more demand for laptops than rural areas.For examples, in metropolitan cities like New Delhi, Mumbai, and Bangalore it has become a necessity unlike places like Rajasthan, Orissa and Bihar. North versus south-Cities of the north that have a high demand for the laptops can be divided into one group for e. g. , cities like new Delhi, Gurgaon, Kanpur, Dehradun, Varanasi, Agra have more demand and thus can be categorize into one group and the rural places into one segment. The cities like Bangalore, Thiruvananthapuram, Hyderabad, and Chennai into another segment.

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Similarly, there is east and west India that too we can divide into similar segments. DEMOGRAPHIC SEGMENTATION- could be a person’s age, income, housing type, and educational level. Some laptops are only targeted for women for e. g. Sony Vaio’s colorful notebooks are targeted only for women. People with higher income fall will buy expensive laptops, so there is a different segment where only expensive laptops are bought by that segment.

Middle class people will prefer the laptops according their purchasing power and so will the low class people.Literate people will fall into one category whereas the illiterate into another. PSYCHOLOGICAL SEGMENTATION-This is clearly based on the attitude, values, behavior, emotions, perception, beliefs and interests of the consumer.

TARGETING THE CONSUMER MARKETS By targeting the consumer markets we mean achieving maximum profit by satisfying the needs of the most wanted. Since a target market is a group of people toward whom a firm markets it products, services, ideas, with a strategy designed to satisfy their needs and preferences. Therefore, after segmentation we will select the target market.In our case, we will select the target markets such as urban areas, cities of the south and the people with more purchasing power that is the rich and the middle class .

Our goal now would be to get as much information as we can about the prospective and existing customers. The more we get to know our customers the better we will be able to make decisions that will enhance our ability to communicate and connect with them. Who do you think will benefit the most from your products?? This is the question you must ask yourself. POSITIONINGPositioning includes- * Developing a marketing strategy which is aimed at influencing how a particular market segment will perceive a product in comparison to the competition * Strategy may also consider creating a “barrier to entry” for competitors * In this step, we try analyzing the position of the competitors in the market and accordingly sell a product with a competitive advantage.

For example we will sell the laptops at price lesser than the competitors. Then we finalize the marketing mix (price, product, distribution, promotion).The marketing mix is a broad concept, which includes several aspects of marketing which all, inquires to obtain a similar goal of creating awareness and customer loyalty. The marketing mix is not only an important concept, but also a guideline to reference back to when implementing the price, promotion, product, and distribution. A Positioning Strategy try in creating a brand personality for a product – a distinctive image that will capture its character and benefits * How do marketers determine where their products actually stand in the minds of consumers? Marketing mix will create awareness as well as brand name in the minds of the consumers. * CONCLUSIONS: The importance of market segmentation results from the fact that consumers of a product are no homogeneous groups.

Every individual has a different taste, preference, resources and behaviors, therefore it is virtually impossible to cater for every individual’s characteristics to market segment by variables they have in common. Thus STP is also known as “the essence of strategic marketing” as quoted by Philip Kotler(1994,page 93. ) INFORMATION COLLECTED- internet, and workshops

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