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Marketing Consider As Nonprofit Organization / Importance Of Marketing Can Be Studied As Follows:

!" Marketing #elps in $ransfer% &'c(ange and Mo)ement of *oods:

Marketing is very helpful in transfer, exchange and movement of goods. Goods and services are made

available to customers through various intermediaries viz., wholesalers and retailers etc. Marketing is

helpful to both producers and consumers.

To the former, it tells about the specific needs and preferences of consumers and to the latter about the

products that manufacturers can offer. ccording to !rof. "aney "ansen #Marketing involves the design

of the products acceptable to the consumers and the conduct of those activities which facilitate the transfer

of ownership between seller and buyer.$

+" Marketing Is #elpful In ,aising And Maintaining $(e Standard Of -i)ing Of $(e Communit.:

Marketing is above all the giving of a standard of living to the community. !aul Mazur states, #Marketing

is the delivery of standard of living$. !rofessor Malcolm Mc%air has further added that #Marketing is the

creation and delivery of standard of living to the society$.

&y making available the uninterrupted supply of goods and services to consumers at a reasonable price,

marketing has played an important role in raising and maintaining living standards of the community.

'ommunity comprises of three classes of people i.e., rich, middle and poor. (verything which is used by

these different classes of people is supplied by marketing.

)n the modern times, with the emergence of latest marketing techni*ues even the poorer sections of society

have attained a reasonable level of living standard. This is basically due to large scale production and

lesser prices of commodities and services. Marketing has infact, revolutionised and modernised the livingstandard of people in modern times.

" Marketing Creates &mplo.ment:

Marketing is complex mechanism involving many people in one form or the other. The ma+or marketing

functions are buying, selling, financing, transport, warehousing, risk bearing and standardization, etc. )n

each such function different activities are performed by a large number of individuals and bodies.

Thus, marketing gives employment to many people. )t is estimated that about - of total population is

directly or indirectly dependent upon marketing. )n the modern era of large scale production andindustrialization, role of marketing has widened.

This enlarged role of marketing has created many employment opportunities for people. 'onverse, "uegy

and Mitchell have rightly pointed out that #)n order to have continuous production, there must be

continuous marketing, only then employment can be sustained and high level of business activity can be

continued$.

0" Marketing as a Source of Income and ,e)enue:

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The performance of marketing function is all important, because it is the only way through which the

concern could generate revenue or income and bring in profits. ny activity connected with obtaining

income is a marketing action. )t is all too easy for the accountant, engineer, etc., to operate under the broad

assumption that the 'ompany will realise many dollars in total sales volume.

"owever, someone must actually go into the market place and obtain dollars from society in order to

sustain the activities of the company, because without these funds the organisation will perish.$

Marketing does provide many opportunities to earn profits in the process of buying and selling the goods,

by creating time, place and possession utilities. This income and profit are reinvested in the concern,

thereby earning more profits in future. Marketing should be given the greatest importance, since the

very survival of the firm depends on the effectiveness of the marketing function.

1" Marketing Acts as a Basis for Making 2ecisions:

businessman is confronted with many problems in the form of what, how, when, how much and for

whom to produce/ )n the past problems was less on account of local markets. There was a direct link

between producer and consumer.

)n modern times marketing has become a very complex and tedious task. Marketing has emerged as new

specialised activity along with production.

s a result, producers are depending largely on the mechanism of marketing, to decide what to produce

and sell. 0ith the help of marketing techni*ues a producer can regulate his production accordingly.

3" Marketing Acts as a Source of New Ideas:

The concept of marketing is a dynamic concept. )t has changed altogether with the passage of time. 1uchchanges have far reaching effects on production and distribution. 0ith the rapid change in tastes and

preference of people, marketing has to come up with the same.

Marketing as an instrument of measurement, gives scope for understanding this new demand pattern and

thereby produce and make available the goods accordingly.

4" Marketing Is #elpful In 2e)elopment Of An &conom.:

dam 1mith has remarked that #nothing happens in our country until somebody sells something$.

Marketing is the kingpin that sets the economy revolving. The marketing organisation, more scientificallyorganised, makes the economy strong and stable, the lesser the stress on the marketing function, the

weaker will be the economy.

15 6(at is marketing en)ironment7 #ow does it (elps in marketing management decision making

process7

The market en)ironmentis a marketingterm and refers to factors and forces that affect a firm2s ability

to build and maintain successful relationships with customers. Three levels of the en)ironmentare 34

Micro 5internal6 en)ironment7 small forces within the company that affect its ability to serve its

customers.

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ccording to 8(ilip 9otler, # companys marketing environment consists of the internal factors 8

forces, which affect the companys ability to develop 8 maintain successful transactions 8 relationships

with the companys target customers$.

MARKETING ENVIRONMENT AFFECT MARKETING DECISION-MAKING

marketing environment contains the elements that influence how businesses and individuals buy and

sell products and services. These elements may vary by location, industry, product and market, but theyusually include social influences, such as demographics and culture9 economics9 and political and

legislative trends. &usinesses try to anticipate trends and changes in the marketing environment to

establish positions in new markets, withdraw from shrinking markets and introduce new products and

services to emerging markets. &usinesses that fail to adapt to changes in the marketing environment often

struggle to compete effectively. )t helps in taking decision regarding factors affecting the marketing

environment. These are

$(e &n)ironmental Factors ma. e classified as:

:. )nternal ;actor

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a6 Brand Competition:)t is a competition between various companies producing similar products.

(g4 The competition between &!@ 8 Aidecon companies.

b6 $(e 8roduct Form Competition:)t is a competition between companies manufacturing products,

which are substitutes to each other (g4 'ompetition between coffee 8 Tea.

c6 $(e 2esire Competition: )t is the competition with all other companies to attract consumers

towards the company. (g4 The competition between the manufacturers of TA sets 8 all othercompanies manufacturing various products like automobiles, washing machines, etc.

15 8ulic: 'ompanys obligation is not only to meet the re*uirements of its customers, but also to

satisfy the various groups. public is defined as #any group that has an actual or potential ability toachieve its ob+ectives$. The significance of the influence of the public on the company can be

understood by the fact that almost all companies maintain a public relation department. positive

interaction with the public increase its goodwill irrespective of the nature of the public. company hasto maintain cordial relation with all groups, public may or may not be interested in the company, but

the company must be interested in the views of the public.

8ulic ma. e )arious t.pes5 $(e. are:

a5 8ress:This is one of the most important group, which may make or break a company. )t includes+ournalists, radio, television, etc. !ress people are often referred to as unwelcome public.

marketing manager must always strive to get a positive coverage from the press people.

5 Financial 8ulic:These are the institutions, which supply money to the company. (g4 &anks,insurance companies, stock exchange, etc. company cannot work without the assistance of theseinstitutions. )t has to give necessary information to these public whenever demanded to ensure that

timely finance is supplied.

c5 *o)ernment:!oliticians often interfere in the business for the welfare of the society 8 for other

reasons. prudent manager has to maintain good relation with all politicians irrespective of theirparty affiliations. )f any law is to be passed, which is against the interest of the company, he may

get their support to stop that law from being passed in the parliament or legislature.

d5 *eneral 8ulic:This includes organisations such as consumer councils, environmentalists, etc. asthe present day concept of marketing deals with social welfare, a company must satisfy these

groups to be successful.

&'ternal Macro &n)ironment: These are the factors=forces on which the company has no control.

"ence, it has to frame its policies within the limits set by these forces4

!5 2emograp(.:)t is defined as the statistical study of the human population 8 its distribution. This is

one of the most influencing factors because it deals with the people who form the market. company

should study the population, its distribution, age composition, etc before deciding the marketing

strategies. (ach group of population behaves differently depending upon various factors such as age,status, etc. if these factors are considered, a company can produce only those products which suits the

re*uirement of the consumers. )n this regard, it is said that #to understand the market you must

understand its demography$.

+5 &conomic &n)ironment: company can successfully sell its products only when people have enough

money to spend. The economic environment affects a consumers purchasing behavior either byincreasing his disposable income or by reducing it. (g4 ?uring the time of inflation, the value of

money comes down. "ence, it is difficult for them to purchase more products. )ncome of the consumermust also be taken into account. (g4 )n a market where both husband 8 wife work, their purchasing

power will be more. "ence, companies may sell their products *uite easily.5 8(.sical &n)ironment or Natural Forces: company has to adopt its policies within the limits set

by nature. man can improve the nature but cannot find an alternative for it.

%ature offers resources, but in a limited manner. product manager utilizes it efficiently. 'ompanies

must find the best combination of production for the sake of efficient utilization of the availableresources. Btherwise, they may face acute shortage of resources. (g4 !etroleum products, power,

water, etc.

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05 $ec(nological Factors: ;rom customers point of view, improvement in technology means

improvement in the standard of living. )n this regard, it is said that #Technologies shape a !ersons@ife$.

(very new invention builds a new market 8 a new group of customers. new technology improves

our lifestyle 8 at the same time creates many problems. (g4 )nvention of various consumer comfortslike washing machines, mixers, etc have resulted in improving our lifestyle but it has created severe

problems like power shortage.

&g:)ntroduction to automobiles has improved transportation but it has resulted in the problems like air

8 noise pollution, increased accidents, etc. )n simple words, following are the impacts oftechnological factors on the market4a5They create new wants . They create new industries c5They

may destroy old industries d5They may increase the cost of >esearch 8 ?evelopment.15 Social < Cultural Factors:Most of us purchase because of the influence of social 8 cultural factors.

The lifestyle, values, believes, etc are determined among other things by the society in which we live.

(ach society has its own culture. 'ulture is a combination of various factors which are transferred

from older generations 8 which are ac*uired. Bur behavior is guided by our culture, family,educational institutions, languages, etc5

&5g5:)n )ndia, we have different cultural groups such as ssamese, !un+abis, Cashmiris, etc. The

marketing manager should take note of these differences before finalizing the marketing strategies.'ulture changes over a period of time. "e must try to anticipate the changes new marketing

opportunities.

UNIT-2

!5 6(at is consumer e(a)ior7 6(at is t(e use of consumer decision making process7

Consumer e(a)ior refers to the selection, purchase and consumption of goods and services for the

satisfaction of their wants.ccording to &ngel% Blackwell consumer behavior 7=Those actions directly involved in obtaining,

consuming and disposing of products and services including the decision processes that precede and

follow these actions>. 7The American Marketing Associationhas defined consumer behavior as% =The dynamic interaction of

affect and cognition, behavior, and the environment by which human beings conduct the exchange aspects

of their lives5>8?,C#AS& 2&CISION 8,OC&SS

Initiall.the consumer tries to find what commodities he would like to consume, t(en (e selects only

those commodities that promise greater utility. After selecting t(e commodities, the consumer makes anestimate of the available money which he can spend. -astl.%the consumer analyzes the prevailing prices

of commodities and takes t(e decision aout t(e commodities he should consume. The purc(asedecision process is the stages a buyer passes through in making choices about which products andservices to buy. 4$(ree components of purc(ase decision process: Input% 8rocess and Output5

!5 Input: The input component of consumer decision7making model comprises of marketing7mix

activities and socio7cultural influences.+5 8rocess@: The process component of model is concerned with Dhow consumer makes decisions. This

involves understanding of the influences of psychological factors on consumer behaviors. The process

component of a consumer decision7making model consists of three stages4 %eed recognition,

5 Output: The output component of the consumer decision7making model concerns two more stages ofpurchase process activity4 !urchase behavior and post7purchase behavior.

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Consumer Buying Decision Process

!5 Need ,ecognition

+5 Information Searc(

5 &)aluation of Alternati)es

05 8urc(ase Be(a)iour

15 8ost@8urc(aser &)aluation

!5 Need ,ecognition@:The need recognition is the

first and most important step in the buying

process. )f there is no need, there is no purchase. This recognition happens when there is a lag between

the consumers actual situation and the ideal and desired one.

The recognition of need its likely to occur when a consumer is faced with a problem, and if the problem

is not solved or need satisfied, the consumer builds up tension. (xample4 need for a cooking gas for

busy house wife. The needs can be triggered by internal 5hunger, thirst, sex6 and external stimuli

5neighbors new 'ar or TA6. The marketers need is to identify the circumstance that trigger the

particular need or interest in consumers. The marketers should reach consumers to find out what kindsof felt needs or problem arose, what brought them about how they led to this particular product.

+5 Information Searc(@: The consumer will search for re*uired information about the product to make a

right choice. "ow much search he undertakes depends upon the strength of his drive, the amount of

information he initially has, the ease of obtaining additional information, the value he places onadditional information and the satisfaction he gets from search.

The following are the sources of consumer information4

!ersonal 1ources 4 ;amily, friends, neighbors, past experience.'ommercial 1ources 4 dvertising, sales people, dealers, displays

!ublic 1ources 4 Mass media, consumer welfare organization.

Then the consumer will seek to make his opinion to guide his choice and his decision7making process

with4 Internal information4 this information is already present in the consumers memory. )t comes from

previous experiences he had with a product or brand and the opinion he may have of the brand.

)nternal information is sufficient for the purchasing of everyday products that the consumer knows

E including ;ast7Moving 'onsumer Goods 5;M'G6 or 'onsumer !ackaged Goods 5'!G6. &ut

when it comes to a ma+or purchase with a level of uncertainty or stronger involvement and theconsumer does not have enough information, he must turns to another source4

&'ternal information4 This is information on a product or brand received from and obtained by

friends or family, by reviews from other consumers or from the press. %ot to mention, of course,official business sources such as an advertising or a sellers speech.

?uring his decision7making process and his 'onsumer &uying ?ecision !rocess, the consumer

will pay more attention to his internal information and the information from friends, family or

other consumers. )t will be +udged more #ob+ective$ than these from advertising, a sellers speechor a commercial brochure of the product.

5 &)aluation of Alternati)es@: Bnce the information collected, the consumer will be able to evaluate

the different alternatives that offer to him, evaluate the most suitable according to his needs andchoose the one he think its best for him. )n order to do so, he will evaluate their attributes on two

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aspects. The oecti)e c(aracteristics5such as the features and functionality of the product6 but alsosuecti)e5perception and perceived value of the brand by the consumer or its reputation6.The higher the level of involvement of the consumer and the importance of the purchase are stronger,

the higher the number of solutions the consumer will consider will be important. The criteria used by

the consumers in evaluating the brands are usually expressed in terms of product attributes that areimportant to them. The attributes of interest to buyers in some familiar products are4

Two7wheeler 4 ;uel economy, pulling capacity, price

'omputers 4 Memory capacity, graphic capability, software availability

Mouthwash 4 'olour, effectiveness, germ7killing, capacity, price, taste= flavor'onsumers will pay the most attention to those attributes that are concerned with their needs.

05 8urc(ase Be(a)iour74 %ow that the consumer has evaluated the different solutions and products

available for respond to his need, he will be able to choose the product or brand that seems mostappropriate to his needs. Then proceed to the actual purchase itself. "is decision will depend on the

information and the selection made in the previous step based on the perceived value, products

features and capabilities that are important to him.'onsumers make two types of purchases trial purc(ases and repeat purc(ases. )f the product is

found satisfactory during trial, consumers are likely to repeat the purchase. >epeat purchase behavior

is closely related to the concept of brand loyalty. ;or certain products such as washing machine orrefrigerator, trial is not feasible and the consumer usually moves directly from evaluation to actual

purchase. consumer who decides to purchase will make brand decision, *uantity decision, dealerdecision, timing decision and payment method decision.

F. 8ost@purc(ase e(a)ior@: Bnce the product is purchased and used, the consumer will evaluate theade*uacy with his original needs 5those who caused the buying behavior6. nd whether he has made

the right choice in buying this product or not. "e will feel either a sense of satisfaction for the product

5and the choice6. Br, on the contrary, it leads to disappointment if the product has fallen far short ofexpectations.

The post7purchase evaluation may have important conse*uences for a brand. satisfied customer is

very likely to become a loyal and regular customer. (specially for everyday purchases with low levelof involvement E such as ;ast7Moving 'onsumer Goods 5FMC*6 or 'onsumer !ackaged Goods

5C8*6. loyalty which is a ma+or source of revenue for the brand when you combine all purchases

made by customer throughout his entire life 5called #lifetime customer value$6.

(xample74 8urc(ase 2ecision 8rocess Acti)ities of Car

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!roblem >ecognition

1tage%eed for a %ew 'ar

es

%o

)nformation 1earch

1tage )nformation 'ollection

about the 'ars

utomobile magazines

utomobile companies!romotion literature and

advertisements friends

and family

lternative

(valuation 1tage'riteria for 1election

!rice

'olour and appearance

Cilometers per litre

(xpert opinion

!urchase ?ecision1tage

!urchase ?ecision&uy?o not buy

0hat Type of 'ar

(conomy

?eluxe version

@uxury versions

Timing of !urchase%ow

@ater

0hich 'ar

Model

Model &

Model '

Bther ?ecisions 0here to !urchase?ealer

?ealer &

"ow to ;inance

Bwn funds

@oan able funds

?egree of 1atisfaction1atisfied

dissatisfied

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+5 #ow does marketing segmentation (elps in marketing planning7 &'plain t(e steps in

Market Segmentation7

Market segmentation is the process of dividing consumers or customers into groups with similar needs and

wants. Marketing relies heavily on segmentation because different groups of consumers have different

needs. Bnce the market is segmented, the firm then decides which segments to target. Market

segmentation allows for a better allocation of a firms finite resources. ?ue to limited resources, a firm

must make choices in servicing specific groups of consumers. 0ith growing diversity in the tastes of

modern consumers, firms are realizing the benefit of servicing a multiplicity of new markets.

Market segmentation means dividing the total market for a product into different parts i.e segments on

certain bases and using each segment fully for the purpose of marketing and sales promotion. ?ue to

segmentation, each segment will have uniform features and suitable marketing mix can be introduced for

promoting sales in each segment.

!5 ccording to 8(ilip 9otler, market segmentation means Hthe act of dividing a market into distinct

groups of buyers who might require separate products and/or marketing mixes.H

+5 ccording to 6illiam 5 Stanton, HMarket segmentation in the process of dividing the totalheterogeneous market for a good or service into several segments. Each of which tends to behomogeneous in all significant aspects.H

IM8O,$ANC& OF MA,9&$IN* S&*M&N$A$ION IN MA,9&$IN* 8-ANNIN*

!5 Facilitates consumer@oriented marketing:Market segmentation facilitates formation of marketing7

mix which is more specific and useful for achieving marketing ob+ectives. 1egment7wise approach is

better and effective as compared to integrated approach for the whole market.

+5 Facilitates introduction of suitale marketing mi':Market segmentation enables a producer to

understand the needs of consumers, their behavior and expectations as information is collected

segment7wise in an accurate manner. 1uch information is purposefully usable. ?ecisions regarding

;our !s based on such information are always effective and beneficial to consumers and the producers.

5 Facilitates t(e selection of promising markets:Market segmentation facilitates the identification of

those sub7markets which can be served best with limited resources by the firm. firm can concentrate

efforts on most productive= profitable segments of the total market due to segmentation techni*ue.

Thus market segmentation facilitates the selection of the most suitable market.

05 Facilitates e'ploitation of etter marketing opportunities:Market segmentation helps to identify

promising market opportunities. )t helps the marketing man to distinguish one customer group from

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another within a given market. This enables him to decide his target market. )t also enables the

marketer to utilize the available marketing resources effectively as the exact target group is identified

at the initial stage only.

15 Facilitates selection of proper marketing programme:Market segmentation helps the marketing

man to develop his marketing mix programme on a reliable base as ade*uate information about the

needs of consumers in the target market is available. The buyers are introduced to marketing

programme which is as per their needs and expectations.

35 8ro)ides proper direction to marketing efforts:Market segmentation is rightly described as the

strategy of Hdividing the markets in order to conquer themH. ?ue to segmentation, a firm can avoid the

markets which are unprofitable and irrelevant for its marketing purpose and concentrate on certain

promising segments only. Thus due to market segmentation, marketing efforts are given one clear

direction for achieving marketing ob+ectives.

45 Facilitates effecti)e ad)ertising:dvertising media can be more effectively used because only the

media that reach the segments can be employed. )t makes advertising result oriented.

5 8ro)ides special enefits to small firms:Market segmentation offers special benefits to small firms.

The resources available with them are limited as they are comparatively new in the market. 1uch firms

can select only suitable market segment and concentrate all efforts within that segment only for better

marketing performance. 1uch firms can compete even with large firms by offering personal services to

customers within the segment selected.

D5 Facilitates optimum use of resources: Market segmentation facilitates efficient use of available

resources. )t enables a marketing firm to use its marketing resources in the most efficient manner in the

selected target market. The marketing firm selects the most promising market segment and

concentrates all attention on that segment only. This offers best results to the firm in terms of sale,

profit and consumer support as compared to the results available from spending such resources on the

total market.

S$&8S IN MA,9&$ S&*M&N$A$ION

!5 Step One E 2efine t(e market74 )n the first step in this more detailed model is to clearly define the

market that the firm is interested in. This may sound relatively straightforward but it is an important

consideration. ;or example, when 'oca7'ola looks at market segmentation they would be unlikely to

look at the beverage market overall. )nstead they would look at what is known as a sub7market 5a more

product7market definition6. possible market definition that 'oca7'ola could use might be diet cola

soft drinks in 1outh merica. )t is this more precise market definition that is segmented, not the overall

beverage market, as it is far too generic and has too many diverse market segments.

+5 Step $wo E Create market segments74 Bnce the market has been defined, the next step is to segment

the market, using a variety of different segmentation bases=variables in order to construct groups of

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consumer. )n other words, allocate the consumers in the defined market to similar groups 5based on

market needs, behavior or other characteristics6.

5 Step $(ree E &)aluate t(e segments for

)iailit.74 fter market segments have been

developed they are then evaluated using a set

criteria to ensure that they are useable and

logical. This re*uires the segments to beassessed against a checklist of factors, such as4

are the segments reachable, do they have

different groups of needs, are they large enough,

and so on.

05 Step Four E Construct segment profiles74 Bnce viable market segments have been determined,

segment profiles are then developed. 1egment profiles are detailed descriptions of the consumers in

the segments E describing their needs, behaviors, preferences, demographics, shopping styles, and so

on. Bften a segment is given a descriptive nickname by the organization. This is much in the same way

that the age cohorts of &aby &oomers, Generation I and Generation have a name.

15 Step Fi)e E &)aluate t(e attracti)eness of eac( segment74 vailable market data and consumer

research findings are then are added to the description of the segments 5the profiles6, such as segment

size, growth rates, price sensitivity, brand loyalty, and so on. Jsing this combined information, the

firm will then evaluate each market segment on its overall attractiveness. 1ome form of scoring model

will probably be used for this task, resulting in numerical and *ualitative scores for each market

segment.

35 Step Si' E Select target market/s74 0ith detailed information on each of the segments now available,

the firm then decides which ones are the most appropriate ones to be selected as target markets. There

are many factors to consider when choosing a target market. These factors include4 firms strategy, the

attractiveness of the segment, the competitive rivalry of the segment, the firms ability to successfully

compete and so on.

45 Step Se)en E 2e)elop positioning strateg.74 The next step is to work out how to best compete in the

selected target market. ;irms need to identify how to position their products=brands in the target

market. s it is likely that there are already competitive offerings in the market, the firm needs to work

out how they can win market share from established players. Typically this is achieved by being

perceived by consumers as being different, uni*ue, superior, or as providing greater value.

5 Step &ig(t E 2e)elop and implement t(e marketing mi'74 Bnce a positioning strategy has been

developed, the firm moves to implementation. This is the development of a marketing mix that will

support the positioning in the marketplace. This re*uires suitable products need to be designed and

developed, at a suitable price, with suitable distribution channels, and an effective promotional

program.

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D5 Step Nine E ,e)iew performance74 fter a period of time, and on a regular basis, the firm needs to

revisit the performance of various products and may review their segmentation process in order to

reassess their view of the market and to look for new opportunities.

3. 6(at are t(e different ases of market segmentation7 6(at ases .ou adopt in

segmenting following products A5 &dile Oil B5 Cosmetic C5 Marketing of Books

BAS&S OF MA,9&$ S&*M&N$A$ION5

There are several ways or methods to segment a market. 1uch ways or methods depend upon consumer

characteristics and their responses to the products or services.

paradigm shift has taken place in the way the )ndian corporate 5is6 viewing customers. There has been a

shift from organizing by7products to organizing by7market segments. ;or example, Maruti is segmenting

is customers on the basis of economic and premium class, which was not done previously.

I5 *&O*,A8#IC S&*M&N$A$ION:

)n geographic segmentation, the market is sub divided on the basis of area.

,egion:>egional segmentation is made because regional differences exist in respect of demand for

products. ;or example, buyers from south )ndia are different from the buyers in north.

?ran / ,ural:There are differences in buying behaviour of urban and rural customers. ccordingly,

marketing strategies must be designed depending upon their likes, dislikes, moods, preferences, fashions

and buying habits.

-ocalit.:'onsumers buying behaviour is also reflected by the locality within a particular city. ;or

instance, there are differences in terms of buying patterns of people residing at !arel and !arle, within a

city like Mumbai.

II5 2&MO*,A8#IC S&*M&N$A$ION:

?emography refers to studyabout the different aspects of population. Markets can be divided on

demographic factors like age, gender, education etc. The various demographic factors are

a5 Age:The primary method of analysing markets by age is to divide the total population into age groups

and analyze the wants and needs of each group.

Age: )t is essentially a case of age based segmentation of a market. &'ample:

Amul (as segmented (is product in different age group

For kids: mul kool, chocolate milk, %utramul energy drink.

For out(: mul cool kafe.

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For women;s and older people: mul calciK, mul 1hakti energy drink.

5 *ender:Marketers devote much attention to male and female differences in purchasing. Today,

marketers segment female groups into college girls, working women, housewives, etc. gain, male

groups can be further classified.

0omen tend to be slower to make decisions and exhibit greater uncertainty about

their decisions. nd, they are also more persuadable.&'ample: Adidas targetswomen in India

German shoe maker didas is trying to develop the women segment in )ndia for its

products.

&mami segmented its product in gender: 0omens4 %aturally fair

Men4 Fair and (andsome

8urc(asing capacit.: )n the segmentation context of several elements of

demographic, purchasing capacity is perhaps the most significant one. &uyers

preferred price range is often related to purchasing capacity. &'ample: Nokia7 )t

deals with wild variety and wild range. Nokia +3GG price ,s5+41G

c5 Income:&uying patterns depends on income of the consumers. %o two individuals or families spendmoney in exactly the same way. )f a researcher knows a persons income, he can predict with some

accuracy wants and needs of that person and how those wants are likely to be satisfied

&'ample @:Budget car segment@ )t is the largest segment in )ndian market.

"ere the entry level starts from >s :.F to 3 lakh. Maruti GGand Omniare

the dominant players in these segments. 0ith the launch of $ata Nanowith a

price range of :lakh the outlook of this segment has changed. This segment is

sometimes referred to as the small car segment. 'ompetition in this segmentis extreme in )ndian market.Maruti GG Budget Car Segment"

Compact car segment7 )t lies between budget car and family car. !referred

price range is between >s 3 to .F lakh. Maruti Hen% Fiat ?no% $ata Indica%

Santro% Matiz is some of the dominant players in this segment. Maruti Hen

Compact car segment"

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&ducation:Market can be segmented on the basis of education E matriculation or less, under graduates,

graduates, post7graduation, etc. Most studies show that the highly educated people spend more than the

poorly educated in respect of housing, clothing, recreation, etc.

&'ample@:Marketing of Books

d5 Famil. Size:The consumption patterns of certain products definitely vary with the number of people

in the household. Manufacturers of certain products such as ice7cream market family packs.

&'ample@: 8remium Car Segment7 This segment represents the buyer who re*uire true world class

luxury car. !rice ranges between >s L to lakh. Ford &scort% #onda Cit.,

#onda Cit.% Mitsuis(i -ancer% Audi !GG, Opel Astraetc are some of the

ma+or cars in this segment. Opel Astra 8remium car segment"

e5 Famil. -ife C.cle:The market can be segmented as bachelors, newly

married couples, married with grown up children, older married couples, etc. ;or selling tours and

vacations, @ife )nsurance policies etc., this segmentation is of use.

f5 ,ace and ,eligion:'onsumption patterns of certain products differ on the basis of religion and race,

such as alcohol and meat products.

III5 SOCIO*,A8#IC S&*M&N$A$ION:

The market can be segmented on the basis of sociological factors such as 4

Cultural Influences:The marketer must consider cultural influences while segmenting markets. !eople in

urban areas are influenced to a certain extent by western culture, whereas, many people in villages follow

more or less traditional culture. 'ulture is influenced by our socio7cultural institutions like family,

religion, language, education, and so on.

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Influence of Social Class:&uying behaviour is reflected by the influence of social class to which the

consumers belong. The social class can be segmented as E lower 7lower, middle7lower, upper7lower,

lower7middle, middle7middle, upper7middle, lower7upper, middle7upper and upper7upper. ;irms dealing in

clothing, home furnishing, automobiles, etc. can design products for specific social class.

Influence of ,eference *roups: reference group may be defined as a group of people who influence a

persons attitudes, values and behaviour. 'onsumer behaviour is influenced by the small groups to which

they belong or aspire to belong. These groups include family, religious groups, a circle of close friends orneighbours, etc. (ach group develops its own set of attitudes and beliefs that serve as guidelines for

members behavior.

$(e influences of cultural and social factor are on consumer e(a)ior5 So products are segmented on

t(e asis of social and cultural factor5

&'ample:

Hee $ele)isions deals wit( )ariet. of c(annels regional c(annel% sports c(annel% mo)ie

c(annel5

Mc2onald (as ot( )eg and non )eg urger5 Mc2onald (as )eg urger for )egetarian and

non)eg urger for non )egetarian5

I5 8SC#O*,A8#IC S&*M&N$A$ION:

)t refers to individual aspects like life style and personality.

a5 -ife@St.le:1ellers study the life7styles of the consumers. ;or example, a manufacturer of readymade

garments may design his clothes differently matching different life styles of college7students 5more

fashionable6, office7goers 5more sober6 and so on.

&'ample: CafJ Coffee 2a.They choose lifestyle oriented, urban consumers as target with youth.They make coffee an Dexperience and provide a special experience to chosen

segment. ''? has estimated that presently L- of the footfalls in its 3-- outlets

belong to students between the ages of :F to

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?ser Status:Market can be segmented on the basis of user status such as4 non7user, ex7user, potential

user, first7time user, regular7user, 8 so on.

,eadiness Stage:Market can be segmented on the basis of peoples readiness to buy the product. 1ome

people are well informed and are interested to buy the product. 1ome other may be well informed but not

interested to buy the product.

Buying Motives:Buyers buy !e "ro#uc $i! #i%eren buying moi&es suc! 's economy(con&enience( "resige( ec) Accor#ing*y "romoion'* '""e'*s c'n be #irece# o !e 'rge

'u#ience)

Benefit soug(t: @ Nuality = economy = service = look etc of the product.

&'ample:%estle has found a separate segment atta noodles as distinct from the maida noodles.

?sage rate: @ "eavy user = moderate user = light user of a product.

?ser status: @ >egular = potential = first time user = irregular =occasional.

-o.alt. to rand: @ "ard core loyal = split loyal = shifting = switches.

OccasionOccasion: @ "olidays and occasion stimulate customer to purchase products.

Attitude toward offering:Attitude toward offering:7 (nthusiastic = positive attitude = negative attitude = indifferent = hostile.

&'ample: 1hampoos, soap and all ;M'G products buying behavior segmentation is used.