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    Identifying Market Segments & Selecting Target Markets

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    Arun Jhalani
    This document discusses how to identify and select target markets. It outlines several criteria that can be used to segment markets, including geographic, demographic, psychographic, and behavioral factors. The key steps are to examine segmentation levels and patterns, understand various segmentation procedures and bases, and ensure segments are measurable, substantial, accessible, differentiable, and actionable. Both consumer and business markets can be segmented using demographic, operational, purchasing, situational, and personal characteristics. The goal is to identify smaller, better defined target groups to serve effectively.

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    Identifying Market Segments & Selecting Target Markets

    Uploaded by

    Arun Jhalani
    140 views16 pages
    This document discusses how to identify and select target markets. It outlines several criteria that can be used to segment markets, including geographic, demographic, psychographic, and behavioral factors. The key steps are to examine segmentation levels and patterns, understand various segmentation procedures and bases, and ensure segments are measurable, substantial, accessible, differentiable, and actionable. Both consumer and business markets can be segmented using demographic, operational, purchasing, situational, and personal characteristics. The goal is to identify smaller, better defined target groups to serve effectively.

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    This document discusses how to identify and select target markets. It outlines several criteria that can be used to segment markets, including geographic, demographic, psychographic, and behavioral factors. The key steps are to examine segmentation levels and patterns, understand various segmentation procedures and bases, and ensure segments are measurable, substantial, accessible, differentiable, and actionable. Both consumer and business markets can be segmented using demographic, operational, purchasing, situational, and personal characteristics. The goal is to identify smaller, better defined target groups to serve effectively.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    140 views16 pages

    Identifying Market Segments & Selecting Target Markets

    Uploaded by

    Arun Jhalani
    This document discusses how to identify and select target markets. It outlines several criteria that can be used to segment markets, including geographic, demographic, psychographic, and behavioral factors. The key steps are to examine segmentation levels and patterns, understand various segmentation procedures and bases, and ensure segments are measurable, substantial, accessible, differentiable, and actionable. Both consumer and business markets can be segmented using demographic, operational, purchasing, situational, and personal characteristics. The goal is to identify smaller, better defined target groups to serve effectively.

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    IDENTIFYING MARKET SEGMENTS & SELECTING TARGET MARKETS

    Prof. Sharad Kamra Faculty of Marketing

    Chapter Objectives

    How to identify the segments that make up a market? What criteria can a company use to choose the most attractive target markets?

    Genesis

    We cannot serve all the customers in a broad market base The customer base is huge and diverse in terms of the requirements Hence a company needs to identify the market segments it serve effectively, atleast to start with..

    How to identify market segments


    Examine levels of segmentation Patterns of segmentation Market segmentation procedures Bases for segmenting the markets Requirements for effective segmentation

    The three major steps for marketers

    Levels of Market Segmentation

    Patterns of Market Segmentation- segment centered marketing

    Effective Segmentaation

    Measurable Substantial Accessible Differentiable Actionable

    Bases for Segmenting consumer Markets


    Geographic Segmentation State,region, country, cities or neighbourhoods Demographic Segmentation age, family, family life cycle, gender, income, occupation, education, religion, race, generation, nationality and social class Psychographic Segmentation Lifestyle, personality, values Behavioural Segmentation Occasions, benefits, user status, usage rate, loyalty status, readiness stage, attitude towards

    Multi Attribute segmentation (Geo clustering)


    Combining

    several variables in an effort to identify smaller better defined target groups


    Bank

    targeting Wealthy retired adults who are single, living in old age homes, having pension earnings/income/assets/savings seeking short term low risk investment opportunities

    Targeting Multiple Segments


    Tata

    Nano besides targeting income group of Rs. 10,000 -20,000 pm also intends to

    Bases for Segmenting Business Markets

    Demographic
    Industry-

    Which Industry company size- what size companies in terms of sccale/manpower Location what geographical area

    Operating Variables
    Technology

    what customer technology should we focus User-non user status- should we serve heavy/low/medium/ non user segment Customer capabilities should we serve customer serving many or few services

    Purchasing approaches
    Purchasing

    function Orgn- centralised vs decentralised Power structure dominated inside by technocrats/finance wizards/marketers Nature of relationships: desirable vs Close Purchase policies: Bids/service contracts/leasing

    Situational Factors
    Urgency

    seeking quick/time bound deliveries

    Personal Charactrstics:
    Buyer

    seller similarity- similar value system/stature Attitudes towards risk risk taking/vs risk avoiding customers Loyalty loyal towards supplier?

    Stages in purchase decision making process


    First time prospects Novices Sophisticates

    Business segments

    Programmed buyers routine purchase item Relationship buyers do not intend to chnge vendors often Transaction buyers Price and service sensitive Bargain hunters Demanding deeepest discount and highest service

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