1. Segmentation Strategy One Pillar of marketing

2. Identifying MarketSegments and Targets 3. Segment MarketingTargeting a group of customers who share a similar set of needs and wants. 4. Customerization Combines operationally drivenmass customization with customized marketing in a way that empowersconsumers to design the product and service offering of their choice. 5. Segmenting Consumer MarketsGeographical Demographical PsychographicBehavioral 6. Bases of segmentation1.Geographic region, city, density, climate2.Demographicage, sex, marital status, family size, income3.Psychologicalneed-motivation, personality, perception, attitude4.Psychographiclifestyle5.Socio-cultural culture, religion, language, family life-cycle6.Use-relatedusage rate, awareness status, brand loyalty7.Use-situationtime, objective, location, person8.Benefit9.Hybridmix of other bases of segmentation 7. Demographic Segmentation Age and Life CycleLife StageGenderIncomeGenerationSocial Class 8. Behavioral SegmentationDecision RolesBehavioral Variables Initiator Occasions Influencer Benefits Decider User Status Buyer Usage Rate User Buyer-Readiness Loyalty Status Attitude 9. Patterns of Target Market Selection 10. 11. 12. Effective Segmentation Criteria MeasurableSubstantial AccessibleDifferentiableActionable 13. In 2004, HLL (Now HUL) was thelargest FMCG company in India.It was present in manysegments.HUL is a highly consumer-focused company with differentbrands catering to differentconsumer segments with differentneeds and purchasing powerSurf high-end consumersRinmid-market segmentWheellower end marketAxemenPonds & Rexona womenElle 18 (Lakme)early teens & young adultsSunsilk(shampoo) hair expertClinic plushealthy hair (anti-dandruff) 14. Defining market segmentation The process of dividing the market on various criteria like age, sex, region, culture, etc. Segmentation can take place at various levels Segment marketing : dividing the market into large homogeneous segments on the basis of variables like common needs, purchasing power, region, or age. Lakme cosmetics, for e.g., caters to the basic need of women to look good. Niche marketing: is a specialized market segment, niches are quite small and have much less competition. E.g., magazines targeted at specific sports like golf (Golf Digest). Local marketing : involves customizing the global products to suit local tastes. E.g., McDonalds McAloo Tikki and McVeggie. Individual marketing : is the highest level of customization, where each product or service is tailor-made for an individual consumer. E.g.,designer cars by DilipC habria (DC)