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What Is Market Segmentation

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MARKETIING PROJECT MARKETING SEGMENTATION PROJECT Content * Introduction * What is Marketing Segmentation ? * Types of Marketing Strategies * Marketing Segmentation Analysis * Consumer Characteristics Approach * Consumer Response Approach * Marketing Segmentation of McDonald’s * My Product * Market Segmentation Analysis * Picture Gallery * Conclusion * Acknowledgement * Bibliography Introduction As a part of the Marketing Project of 11. com. c Indian High School, Dubai. Here I am presenting the various aspects of Marketing Segmentation and My product which is segmented into various variables.

Starting with my project my first topic is about what is Marketing Segmentation.

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What is Marketing Segmentation? The process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment. Types of Marketing Strategy 1. Differentiated Marketing Strategy Approach under which a firm aims to develop and market unique products for different customer segments. Usually employed where a firm has clear ompetitive advantages, and can sustain an expensive advertising campaign.

It is one of three generic marketing strategies that can be adopted by any firm. See also segmentation strategies. 2. Undifferentiated Marketing Strategy Undifferentiated marketing is a marketing strategy that works as if all consumers have similar tastes and motivations. It is sometimes known as mass marketing. There are distinct advantages and drawbacks to undifferentiated marketing. 3. Concentrated Marketing Strategy A strategic approach in which a business focuses on a single market or product.

This allows the company to invest more resources in production and marketing in that one area, but carries the risk of significant losses in the event of a drop in demand or increase in the level of competition. Marketing Analysis Consumer Characteristics Approach Consumer characteristics or Personal segment basis measure in terms of demographic, Geographic, and Psychographic features of consumers. These characteristics portray the consumers in terms of where they live, who are they and how do they behave. There are 3 kinds of consumer characteristics approach: . Geographic 2. Demographic and Socio-Economic 3. Psychographic 1. Geographic variables Consumer markets also have different geographic characteristics. These geographic characteristics are often based on market size, region, population density and even climate. A small retailer may find opportunities in a small market in which larger competitors have no interest. Companies that sell beachwear will likely sell more products in warmer climates. Consumers in different regions of the country also have different tastes in food and style. 2. Demographic Variables

Characteristics of consumer markets based on demographics include differences in gender, age, ethnic background, income, occupation, education, household size, religion, generation, nationality and even social class. There are 7 types of Demographic Variable: 1. Age 2. Sex 3. Education 4. Income 5. Religion 6. Occupation 7. Family Size 3. Psychographic Variable Consumer market characteristics can also be psychographic in nature. Psychographic characteristics of consumers include interests, activities, opinions, values and attitudes. Obviously, many magazines are geared toward a consumer’s interest.

For example, prenatal magazines target expectant mothers who are interested in learning more about caring for a baby. Additionally, consumer activities can include participation in martial arts or basket weaving. Opinions and attitudes can be both specific and general. A company may better understand consumer opinions and attitudes after conducting a focus group, and can use that information to tailor advertising or marketing campaigns. Consumer values can pertain to how a group of individuals feels about certain social issues, which can be of interest to non-profit or charitable organizations.

Consumer Responses Approach Unlike consumer characteristic approach, the consumer responses approach believes in why a consumer buys a product than asking us who is the customer. Customer responses are much more important which can be made as the basis for segmentation. 1. Benefit Response 2. Usage Response 3. Loyalty Responses 4. Occasion Response Market Segmentation of McDonald’s McDonald’s Corporation is the world’s largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries.

Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. * Geographic segmentation Dividing the market into different geographical units such as Nation, State etc. * Local taste and needs. * Employing local people. * Designing the restaurant based on local tradition. * MC DONALD-INDIA Locally owned and managed company run by Indians, employing local staff, procures from local suppliers to serve its customers. * There are 169 McDonald’s family restaurants in India with about 5,000employees. * MCDONALD AUSTRALIA * McCafe is a concept created by McDonald’s Australia, starting with Melbourne in 1993. * To accommodate the current trend for high quality coffee and the popularity of coffee shops in Australia * most McDonald’s in Australia have McCafes located within the existing McDonald’s restaurant * Demographic segmentation Market is divided into groups on the basis of variables such as age, ducation, family size, income, sex, Occupation, Religion etc. * Income * Value addition to the restaurant for higher income groups- Rs. 85/- * The “linger” zone offers armchairs, sofas, and free Wi-Fi connections * Hamburger for middle class-Rs 40-50 * They have just launched Hamburger for Rs20/-for lower class * Age * Happy meal for kids * Music and Dancing floor for youth * Sugar free products for diabetic patients * Family Size * The “flexible” zones are targeted toward families and have booths featuring fabric cushions with colourful patterns and flexible seating. Behavioural Segmentation * The “grab and go” zone features tall counters with bar stools for customers who eat alone * Plasma TVs offer them news and weather reports. MY PRODUCT Nova Market Segmentation of Nova Watches The market can be divided into segments by using four “segmentation basis”: Psychographic, behaviouristic, geographic, and demographic basis. To find the basic criteria for segmenting a market is are customer needs. To find the needs of the customers in the market it is important to undergo a market needs of the customers in the market it is important to undergo a market research.

Psychographic and behaviouristic bases are used to determine preferences and demand for a product and advertising content, while geographic and demographic criteria are used to determine product design and region. On the basis of consumer Characteristics Approach * Geographic variable Geographic basis focus on preferences contingent on regional factors, such as region (e. g. , North or South), county, population density, urban or rural location, and climate. * Demographic Variable Demographics include personal characteristics such as gender, age, marital status, social attributes (such as ethnicity and religion), and income level etc. Age and Life-Cycle Stage Consumer wants and abilities change with age. Age and life cycle can be tricky variables. It then realized that its target market was not the chronologically young but the psychologically young * For the age group 12-20, brands like Bloopers, sigma, etc. * For the age group 18-30, brands like Speed Track, Techno, Sigma, etc. * For the age group 30-55, brands like Sigma, Neva, Radar, Step, Rega, Bandhan, etc. * Gender Men and women tend to have different attitudinal and behavioural orientations, based partly on genetic makeup and partly on socialization practices. * Both male and female have different choices Gents have separate flip watches * Ladies have separate collection of watches like Rega and Neva * Married couple have collection of watches called Bandhan which gives two watches for each. * Social class Social Class segmentation is influenced by customer choices of automobiles, interior decoration, clothing preferences etc. The tastes and preferences of the social class also change according to time. * First segment: For this segment, watch is a fashion statement. Nova has Royale, Aurum, and Neva for this segment. These products have specialties like European leather, sapphire crystal, scratch resistant, crafted with 18 ct. olid gold &inlaid with precious stones * Second Segment: For this segment also, watch is all about fashion but price does matter to them. In this range, Nova has, Techno, Speed Track etc. These products have digital technology & of trendy shapes. * Third segment For this segment, watch is just an device to show the time. They invest after a lot of thoughts. In this category, Nova has Bloopers, Sigma. * Income Income segmentation is long- standing practice in such products and services categories as automobiles, boats, clothing, cosmetics, and travel. However, income does not always predict the best customers for a given products. Nova offers its products with a price range to suit the different income groups such as:- Below Rs 500- Between Rs (500-1500) Between Rs (1500-3000) Between Rs (3000-5000) Between Rs (5000-10000) Above Rs 10000 * Generation Generation plays a major role in segmenting markets. Every generation is deeply influenced by various activities. Such influences deeply impact their product purchase pattern. * Nova has to produce more Products to satisfy all the generations. And through constant innovation Nova have to develop many products for new generations so that they can cope up with the competitors. Behavioural segmentation Organizations can divide markets on the basis of behaviour. Various variables for segmenting market on the basis of purchase behaviour of customers are occasions, benefits, user status, usage rate, loyalty, etc. * Occasion Markets can be classified on the basis of various occasions that customers encounter because people need different products for different occasions. * Nova also offers occasion specific products like Formal (Neva, Step, Radar, Gold steel) Dress wear (Rega, Radar, Gold steel, Royale), Fashion(Techno, Step, Radar, Gold steel, Speed Track) * Usage Rate

The usage rate of a particular product/service can be divided into heavy, medium and light. Marketers are usually attracted to heavy users than other type of users. * Loyalty Status The loyalty status of a particular market can be divided into different groups, according to the intensity of their loyalty to these brands. * Benefits Market is divided on the basis of the benefits customers seek from the products. Benefit segmentation can be used to position various brands within the same product category. * Psychographic segmentation Buyers are divided into different groups based on personality, values, belief, lifestyle, motivation, etc.

People within the same demographic group can exhibit very different psychographic profiles. * Lifestyle People generally exhibit different lifestyle depending upon their income, social group etc. People usually buy the product which suit their lifestyle * Personality Marketers can use personality variables to segment markets. They endow their products with brand personalities that correspond to consumer personalities. * Values Values affect customer behaviour in the long run. Marketers can use values and beliefs to segment the markets Picture Gallery Conclusion

From this project we can conclude that Segmentation is a necessity for all the companies and organisations in the market as it plays a very important role in the development and technological improvement. It also helps the satisfaction of the customers . Acknowledgement First of all I would like to thank my Marketing teacher Mrs Mary john and my school, The Indian High School for giving me this opportunity to carry out this project. I would also like to thank my parents for supporting me throughout this project. Last, I would like to thank all my friends for their encouragement and help.

Cite this What Is Market Segmentation

What Is Market Segmentation. (2016, Oct 02). Retrieved from https://graduateway.com/what-is-market-segmentation/

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