Aravali Institute of Management

Identifying Market
Segments and Targets

Presented to: Presented by:

Ms. Shalini Rai Atul
Faculty Guide Tapendra Purohit
Piyush Rathi
 Target Marketing Steps
Market Market Market
Segmentation Targeting Positioning
1. Identify 5. Identify
3. Evaluate
segmentation possible
attractiveness positioning
variables and of each concepts for
segment the segment each target
market segment
4. Select the
2. Develop 6. Select,
target develop, and
profiles of segment(s) communicate
resulting the chosen
segments positioning
concept
Effective Targeting Requires…

 Identify and profile distinct groups of

buyers who differ in their needs and
preferences
 Select one or more market segments to
enter
 Establish and communicate the distinctive
benefits of the market offering
Levels of Market Segmentation
 Segments
 Niches
 Local areas
 Individuals
Segment Marketing

 Targeting a group of customers who

share a similar set of need and wants
Flexible Marketing Offerings

 Naked solution  Discretionary options

 Product and  Some segment
service elements members value
that all segment  Options may carry
members value additional charges
Niche Marketing
 More narrowly defined customer group
seeking a distinctive mix of benefits

 Premium. Less competition

 DC Designs
 itchguard
Local Marketing
 Marketing programs tailored to the needs
and wants of local customer groups
The Experience Economy
The new economic era in which all businesses
must orchestrate memorable events for their
customers.
 Experience : charging for the time customer
spends with you
 Services : charging for the activities
 Goods: charging for tangible things
 Commodity : charging for the stuff
Individual Marketing

 Combines operationally driven mass

customization with customized marketing in
a way that empowers consumers to design
the product and service offering of their
chocie
Segmenting Consumer Markets
 Geographic
 Demographic
 Psychographic
 Behavioral
Geographic segmentation
 Nations states regions cities or
neighborhoods
 Meera chembarathi thali
 M4marriages.com
 Regional dailies
Demographic Segmentation
 Age and Life Cycle
 Life Stage
 Gender
 Income
 Generation
 Social Class
 Age : Johnson’s baby soap, senior
citizen's deposits, Doy soap, Thirty plus,
Starz shampoo

 Lifestage : Child Policy, Retirement plans,

Newly weds
 Gender : shaving cream, Scooty, Whisper
 Income : Sachet products, Wheel, Nirma,Banks
 Generation : Liberalized Kid, MTV Generation
 Social Class : SEC, Luxury products, Jet
Airways.
Psychographics segmentation
 Lifestyle
 Personality traits, value

 Kingfisher,
NDTV Goodtimes, American
Express Platinum club, Club Mahindra, Wills
Lifestyle
 Bodyshop, Organic products
Behavioral Segmentation
 Decision Roles  Behavioral Variables
 Initiator  Occasions
 Influencer  Benefits
 Decider  User Status
 Buyer
 Usage Rate
 Buyer-Readiness
 User
 Loyalty Status
 Attitude
 Decision roles : Painters, plumbers
Behavioral Variables

 Occasions
 Archie’scards, Honeymoon
packages,Cadbury celebrations , Godrej
storewell, Titan
 Benefits
 Clinic All clear,Mediker,Parachute therapie
 User Status
 Non users ( chik shampoo)
 Ex-users (blood banks,churned customers)
 Potential users
 First-time users (camera)
 Regular users (loyalty programs)
 Usage Rate
 Heavy users, light users, medium users
 Mobile plans
 Buyer-Readiness
 Aware, unaware,informed,interested,desire, intended
to buy
 Loyalty Status
 Hardcore loyal
 Split loyals
 Shifting loyals
 switchers
 Attitude
Segmenting for Business Markets
 Demographic
 Industry, company size, location
 Operating Variable
 Technology, user/non user,customer capabilities
 Purchasing Approaches
 Organisation,power,existing relationships,policies,criteria
 Situational Factors
 Urgency,specific application,size of order
 Personal Characteristics
 Buyer seller similarity, attitude towards risk,loyalty
Models of Sequential Segmentation

 Stage of decision  Orientation

 First-time prospects  Price-oriented
 Novices  Solution-oriented
 Sophisticates  Strategic-value
Steps in Segmentation Process
 Needs-based segmentation
 Segment identification
 Segment attractiveness
 Segment profitability
 Segment positioning
 Segment acid test
 Marketing mix strategy
Effective Segmentation Criteria

 Measurable
 Substantial
 Accessible
 Differentiable
 Actionable
Selecting market segments
 Single segment concentration
 Products specialization
 Market specialization ( customer)
 Full market coverage
 Five Patterns of Target Market
Selection
Single-segment Selective Product
concentration specialization specialization
M1 M2 M3 M1 M2 M3 M1 M2 M3
P1 P1 P1

P2 P2 P2

P3 P3 P3
Market Full market
specialization coverage
M1 M2 M3 M1 M2 M3
P1 P1
P = Product
M = Market P2 P2
P3 P3
Segment-by-Segment Invasion Plan