MARKET SEGMENTATION

Is a process of identifying groups of buyers with different desires & requirements”.

Means to divide total market for product into small segments & is done on the basis of income, age, sex, etc.

Market means consumers &segmentation means to divide so it means to divide the total consumers into small groups

NATURE / CHARACTERISTICS

• Heterogeneous Market• Primary marketing Activity• Dividing the market• Bases of market segmentation• Continuous process• Consumer centric• Consumer satisfaction & fights competition• Process• Gives many benefits• Limitations

IMPORTANCE

• Identify & take advantages of market opportunities• Adjustments in marketing mix• Develop marketing programs & budget• Design the product• Media selection• Fix the timing of advertising / marketing efforts• Efficient use of Resources• Better services to consumers• Fix prices• Distribution stratergies

BASIS OF MARKET SEGMENTATION

GEOGRAPHIC DEMOGRAPHIC SOCIOGRAPHIC

Region Age Culture

Rural / Urban Sex Social class

Locality Income, etc Reference groups

PSYCHOGRAPHIC BEHAVIOURAL

Life Style Usage Rate

Personality User Status

NICHE MARKETING

• In market segmentation the full market is divided into small segments. Each segment is again subdivided into very small parts. Each part is called a niche market. It is a very selective market. It is very target market. It contains very small no. of consumers.

• Single niche strategy• Multiple niching strategy • Geographic specialist • Product specialist • Service specialist • Channel specialist • Quality / price specialist• Customer specialist• Job – shop specialist

CUSTOMER RELATIONSHIP MANAGMENT

• Better services to customer• Customized / tailor made offers• Reduces customers defection rate• Increases long – term relationships• Increases customer equity• Competitive advantage• Improves corporate image• Easy to introduce new products• Expansion • Low advertising budget

TECHNIQUES OF BUILDING CRM

• Data Warehousing and data mining• One – to – one marketing• Loyalty programs• Priority customer programs• Know customers by name• Spend quality time with customer• Provide Best Quality products & services• Invite suggestions & complaints from customers