Understanding Consumers &

Market Segments
Market Segmentation, Targeting And
Positioning
Market Aggregation:
Produce a single product and offer it to all
consumers with a single marketing
programme.
Although it is assumed that every consumer
will not buy the product, a number sufficient
for profitable operations are expected to be
attracted.
This approach is also described as Mass
Marketing or undifferentiated marketing
Market and Alternate Strategies
Market Segmentation:
Market segmenting is sub-dividing a market
into distinct subset of customers where any
subset may conceivably be selected as a
market target to be reached with a distinct
marketing mix
Market and Alternate Strategies
Segmenting Consumer Markets
Geographic - physical size, Density, Climate
Demographic Gender, Family size, Income
Occupation, Expenditure, Education, Religion,
Race, Nationality
Psychographic - Social class, Lifestyle,
Personality
Behavioural - Purchase occasion, Benefits
sought, User status, Usage rate, Loyalty status,
Readiness state, Attitude towards product
Demographic Segmentation
3 elements provide the basis for segmentation
Market
1.People
2.Purchasing Power
3. Willingness to Buy

Essential
Gender
Family size
Income Occupation
Education
Religion
Race
Nationality
Psychographic Segmentation
Activities Interests Opinions Demographic
s
Work Family Themselves Age
Hobbies Home Social Issues Education
Social Events Job Politics Income
Vacation Community Business Occupation
Entertainmen
t
Recreation Economics Family Size
Club
Membership
Fashion Education Dwelling
Community Food Products Geography
Shopping Media Future City Size
Sports Achievements Culture Stage in Life
Cycle
Lifestyle Dimensions
Volume Segmentation
Brand-user Segmentation
Product-user Segmentation
Loyalty Segmentation
Situation Segmentation
Usage Segmentation
It revolves around three step process
Preparing a list of benefits to be offered to consumers
Quantitative measurement of market through cluster
analysis
Benefit Segmentation
Performing Market Segmentation
Define the Marketing Problem
Select a Segment Basis
Choose descriptors that defines, characterizes,
or relates to the segmentation basis
Select sample of consumers representing a
larger population
Collect data on segment descriptors from
sample of consumers
Form segments based on chosen consumer
descriptors
Establish profile of segments
Translate results into marketing strategies
Clear market segmentation helps in offering customized
supply to what consumer demands
Due to similarity of consumers in a particular segment,
market is able to gather detailed knowledge about their
characteristics.
The result of understanding and relating to an increasingly
fragmented market is known as MICROMARKETING.

However, Research Costs, Manufacturing Costs, Inventory-
Carrying Costs are higher in case of segmentation.
Benefits & Costs of Market
Segmentation
The market must be
Identifiable and measurable
Accessible
Substantial, and
Responsive
Market Criteria for Effective
Segmentation