Presented by : Sahil Mehta Tej Manohar Arjun Mohsin Hirani Vishal Singh Nitya Jaiswal

Dividing market into distinct groups of buyers on the basis of needs, characteristics or behaviour who might require separate products or marketing mixes. Subdividing markets into smaller groups within which broadly homogeneous pattern of needs. A segment is a group of customers who share certain relevant characteristics and respond in a similar way to given set of marketing efforts. Segmentation is the process of grouping people or organizations within a market according to similar needs, characteristics, or behaviours.

Measurable: It has to be possible to determine the values of the variables used for segmentation with justifiable efforts. This is important especially for demographic and geographic variables. For an organization with direct sales (without intermediaries), the own customer database could deliver valuable information on buying behaviour (frequency, volume, product groups, mode of payment etc). Relevant: The size and profit potential of a market segment have to be large enough to economically justify separate marketing activities for this segment.

Accessible: The segment has to be accessible and servable for the organization. That means, for instance, that there are target-group specific advertising media, as magazines or websites the target audience likes to use. E.g. : The marketing strategy changes according to different car segments. Promotional activities for volkswagon cars can be done through Websites , magazines etc. Promotional activities for commercial vehicles can be done through new papers.

Distinguishable: The market segments have to be that diverse that they show different reactions to different marketing mixes. Each segments should be identifiable with their different features. E.g. Tata NANO and Maruti Alto: Both the cars fall in the small cars segments but each have its own identity. Price of Tata NANO and Alto are different.

Feasible: It has to be possible to approach each segment with a particular marketing program and to draw advantages from that. E.g. Each product has its own marketing program. For Tata NANO different marketing program and for POLO volkswagon different marketing program as per the requirement of niche market.

Advantages:

Direct the appropriate amounts of promotional attention and money to the most potentially profitable segments of his market; Design a product line that truly parallels the demands of the market instead of one that bulks in some areas and ignores or scants other potentially quite profitable segments Catch the first sign of a major trend in a changing market and thus give him time to prepare to take advantage of it; Correct the timing of advertising and promotional efforts so that they are massed in the weeks, months, and seasons when selling resistance is least and responsiveness is likely to be at its maximum;

More efficient use is made of marketing resources less waste. - A competitive advantage can be gained in a particular part of a market. - It's beneficial for small firms as uses less resources. - Products can be modified to be exactly what the consumer wants. - Marketing mix can be more targeted. - Guides marketing research - Improves satisfaction - Improves forecasting - Identifies competition and opportunities

a) Helps in better understanding of the customers needs and wants. It is possible to satisfy a variety of customer needs with a limited product range by using different forms, bundles, incentives and promotional activities. b) Better targeting and position of the product. c) Encourages two-way communication among the potential buyer and the organization. d) Maintaining effective relationship with the customers. e) Retaining the existing customers and attracting new ones. f) Improving service delivery standards. g) Reducing cost / expenses on various marketing activities and increases market share; resulting in higher profits.

Higher Profits: It is often difficult to increase prices for the whole market. Nevertheless, it is possible to develop premium segments in which customers accept a higher price level. Such segments could be distinguished from the mass market by features like additional services, exclusive points of sale, product variations and the like. A typical segmentbased price variation is by region.

Opportunities for Growth: Targeted marketing plans for particular segments allow to individually approach customer groups that otherwise would look out for specialized niche players. By segmenting markets, organizations can create their own niche products and thus attract additional customer groups.

Targeted communication: It is necessary to communicate in a segment-specific way even if product features and brand identity are identical in all market segments. Such a targeted communications allows to stress those criteria that are most relevant for each particular segment (e.g. price vs. reliability vs. prestige).

Accounting

to 79%, Cars rule the passenger automobile in India. The chief players in this segment are Maruti Suzuki and Mahindra. While Maruti Suzuki enjoys full-fledged monopoly in multi-purpose automobiles sector with 52% of market share, Mahindra have 42% market share in utility vehicles. However in the area of commercial automobiles, Tata Motors rule the Automobile Industry of India with 60% of market share besides being the fifth biggest producer in the world of medium & heavy marketable vehicles.

In

the financial year 2010, Automobile Industry of India is expected to witness a 10 to 12% of massive growth in its vehicles sales. As per a research conducted by Indian Auto Sector Outlook, rivalry in the nation's Automobile sector is anticipated to grow due to escalating influx of international original equipment manufacturers (OEM).

Demographic Segmentation:Income:People can be classified into different price scales. 3 levels: 3 - 7 lacs: Hyundai Santro: 4 lacs aprx Tata indigo: chevrolet spark indica 8 - 15 lacs chevrolate tavera hyundai verna volkswegan Vento 20 lacs > toyota fortuner toyota camry Honda CRV

Psychographic Segmenation:The use of psychological attributes, lifestyles and attitudes in determining the behavioural profiles of different customers. Psychographic profiles on a target market segment are obtained by doing a lot of questionnaires and surveys to ask people if they agree/disagree with certain statements made about particular activities, interests or opinions AIO - activities, interests and opinions.

Benefit Segmentation:It is based on the Attributes (characteristics) of products, as seen by the customers. example: people buy something because it causes a benefit Many marketers now consider benefit segmentation one of the most useful methods of classifying markets.

Geographic Segmentation:

Location: Different location and environments have different feasibility for different vehicles. Like in mountain region people prefer to buy Jeeps and heavy vehicles Like in city people prefer different vehicles suitable for roads According to Urban and rural areas people have different demands The reason why we study geographic segmentation is because where people live has a big effect on their consumption patterns. Additionally, WHERE people live in a city is also a reflection of their income level and we can make certain assumptions about their ABILITY TO SPEND based upon their address.

Model Tata Nano Tata Indica Tata Winger Tata Indigo Tata Indigo Manza Range Rover 2010 Model Safari Tata Indigo Marina Tata Aria

TypeSmall Size Hatchback Cars

Price1.25-2.25 lacs 3-4.2 lacs

Purpose Personal Personal/ Commercial Commercial

MUV Sedan Car Premium car SUV SUV SUV MUV 4-5.5 lacs 5.5-7 lacs 1 crore and above 7-10.5 lacs 4.5-5.5 lacs 13-16 lacs

Personal/ Commercial Personal Personal Personal Personal/ Commercial Personal

Model Volkswagen Polo Volkswagen Phaeton Volkswagen Passat Volkswagen Touareg Volkswagen Jetta Volkswagen Beetle

TypePremium Car Luxury Cars

Price4-5 lacs 77 lacs

Purpose

Premium cars Premium cars Premium cars Premium cars

20 lacs 51 lacs 12.5-13.5 lacs 22-24 lacs 6-9.5 lacs 21 lacs

Volkswagen Vento Sedan Cars Volkswagen TiguanSUV