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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. . Market segment
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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.
Market segment • 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.
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 • 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.
