Market Segmentation Selecting Target Customer

Market Segmentation Selecting Target Customer By:- Avinash Kumar Asst. Professor Market Actual and potential buyer of a product or services. Market Segmentation The process of dividing the market into subgroup of similar customers. Market Segment Subgroup of people that share similarities which can be used for more efficient seller/buyer relationships. Target Market Subgroup of people the presents the greatest opportunity for targeting. Why do we segment? • Increase understanding of customer wants and needs • Different products for different groups • Better match between customer wants and product benefits. • Maximize the use of available resources. • Focused marketing expenditures. • Competitive advantage. The market segments are not created by company, but it exists in the market. The marketer needs to identify the segment and then decided as to which one he/she will target. How to segment? • No single way to segment a market. • Few common variables documented in literature. Geographic Demographic Psychographics Behavioral Common segmentation variables for consumer markets Geographic Demographic Psychographic Behavioral Country Age Social class Occasions Regions Gender Life style Benefits City size Family size Personality User status Density Life cycle Loyalty Climate Income Attitude Education Religion E.g. “customer E.g. “A level & E.g. “Customer E.g. “Customer Within 10 miles University Wanting a value Who prefer to buy of KIIT” Students” for money Organic food” impulse buy” Product according to segmentation variables for consumer markets • Colgate® Cibaca Toothpaste. • Colgate® Active Salt Toothpaste. Mint. • Colgate® Active Salt Neem • Colgate® Active Salt Healthy White Toothpaste. Fluoride. • Colgate® Barbie Toothpaste. Fruit. • Colgate Cibaca® Vedshakti • Colgate® Herbal Toothpaste. • Colgate MaxFresh® Spicy Fresh • Maruti 800 • Maruti Alto • Maruti Grand Vitara XL-7 • Maruti Gypsy King • Maruti Omni • Maruti Suzuki SX4 • Maruti Swift • Maruti Versa • Maruti Vitara • Maruti Wagon-R • Maruti Zen • Maruti Suzuki Baleno • Maruti Suzuki Ciaz • Maruti Suzuki Dzire STP • STP model is used when creating marketing communication plan, since it helps marketers to priorities propositions and the develop and deliver personalized, and relevant messages to engage with different audiences. Target Market • Target Market is a group of customers towards which a business has decided, to aim its marketing efforts and ultimately its merchandise. • A well defined target market is the first element to a marketing strategy. Database Marketing • Learn about their customers • Find new customers • Establish a target market • Create new products for their target customer • Find new target markets for existing products • Help find new ways to advertise to these markets • Keep them focused on their customer Positioning Promotion Positioning • Develop a product and brand image in the minds of consumers. • In order to develop a clear brand image, you need to differentiate your brand or product. • Involve a good understanding of competing products, and the benefits that are bought by the target market. • Identify a differentiate advantage with which, it will deliver the required benefits to the market effectively against the competition. Benefits of Market Segmentation 1. Determining market opportunities 2. Adjustments in marketing appeals 3. Developing marketing programmers 4. Designing a product 5. Media selection 6. Timing of marketing efforts 7. Efficient use of resources 8. Better service to customers 9. Helps in fixing prices 10. Assist in distribution strategies By:- Avinash Kumar Asst. Professor.

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