1. Market and Market Segmentation Rajeev ShresthaLecture 8 March 28, 2012

2. Market and Market SegmentationTopic Outline Market and its types Customer-Driven Marketing Strategy Market Segmentation Market Targeting Differentiation and Positioning 3. Market An actual or nominal place where forces of demand and supply operate, and where buyers and sellers interact (directly or through intermediaries) to trade goods, services, or contracts or instruments, for money or barter. 4. Market Markets include mechanisms or means for determining price of the traded item, communicating the price information, facilitating deals and transactions, and effecting distribution. The market for a particular item is made up of existing and potential customers who need it and have the ability and willingness to pay for it. 5. Types of Market Consumer Markets Business Markets Global Markets Non-Profit and Governmental Markets 6. Consumer Market Companies selling mass consumer goods andservices.E.g.: soft drinks, toothpaste, television, etc This requires getting a clear sense of their targetcustomers and what needs their products willmeet and communicating brand positioningforcefully and creatively. 7. Consumer Market Consumer marketers decide on the features, quality level, distribution coverage and promotion expenditures that will help their brand achieve a leading position in their target market. 8. Business Market Companies selling business goods and services. Business buyers buy goods and services for their utility in enabling them to make a product or resell a product to others and they purchase products to make profits. Businesses marketers must demonstrate how their products will help customers to achieve higher revenue or lower cost. 9. Global/ International Market Companies selling business goods and services. Business buyers buy goods and services for their utility in enabling them to make a product or resell a product to others and they purchase products to make profits. Businesses marketers must demonstrate how their products will help customers to achieve higher revenue or lower cost. 10. Non profit and government market Companies selling their goods to non profit organizations such as churches, universities, charitable organizations and government agencies. 11. Market Segmentation Market segmentation is the process that companies use to divide large, heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs. 12. Market Segmentation Segmenting consumer markets Segmenting business markets Segmenting international markets Requirements for effective segmentation 13. Segmenting Consumer Market Geographic DemographicsegmentationsegmentationPsychographicBehavioralsegmentationsegmentation 14. Geographical Segmentation Geographic segmentation divides the market into different geographical units such as Nations, Regions, Zones, Districts, Cities, Climate, Density 15. Demographic Segmentation Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality 16. Demographic Segmentation Age and Life-Cycle Stage The process of offering different products or using different marketing approaches for different age and life-cycle groups Eg. HDFC Standard Life PENSION PLANS 17. Demographic Segmentation Gender segmentation Divides the market based on sex (male or female) Hero Honda Pleasure 18. Demographic Segmentation Income segmentation divides the market into affluent or low-income consumers