Market Segmentation

Do I intend to segment the Market? Ya , I will .... I m not sure ...

Whats the use for it ? Do I get to understand my esteemed guests more...

Now I would be briefing you about how Segmentation can be a key ingredient to successful marketing.

It typically follows the concept of "Divide and Dominate"

Segmentation to the market serves the following purposes:

(i)to identify and analyse segments large enough to serve profitably.

(ii)to identify segments that can be efficiently reached by marketing initiatives.

(iii) To identify the best Guests so as to improve their buying experience.

(iv) Target your marketing mix to the customers most likely to want your products or services

(v) Identify behaviors and buying motives for your products.

(vi) Identify your most and least profitable customers.

There are four major segmentation variables used in segmenting Markets:

a) Geographic :

Segments the traffic by country, state,city,region,climate, population

density.

b) Demographic :

Segments the traffic by Age,Sex,Income,Marital Status,Family

LifeStage,Education,Occupation,Religion,Caste and Ethnicity.

c)Psychographic :

Segments the traffic Life-style, Personality,Values and Attitudes.

d)Behavioral :

Segments the market by Usage rate and Patterns,Purchase Occasion, Brand Loyalty, Response to effective campaigns and promotions,price sensitivity and benefits sought.

Possible Questions arising after Segmentation :

Measurability: Can we define and identify the statement?

Accessibilty : Is the segment reachable through advertising and promotions?

Sustainability : Is the segment large enough to bother with?

Profitability : Whether the segment is profitable ?