MODULE 5

• Market segmentation: It is the process of dividing a target market into smaller, more precisely defined groups of consumers or organizations who have common needs and are expected to respond similarly to a marketing action.
• 3 Benefits of Market Segmentation

  1. Improved focus on the important customers
  2. Improved product development
  3. Improved brand loyalty
• 4 Methods of Segmenting Consumer Markets

  1. Geographic Segmentation
  2. Demographic Segmentation
  3. Behavioral Segmentation
  4. Psychographic Segmentation
• Improved Product Development. Market segmentation allows marketers to better understand what consumers want in a product or service, and that knowledge enables the marketer to make recommendations for refinements to existing products and services to meet those needs.
• Improved Brand Loyalty. When customers feel that your company’s products or services are a good fit for them, they are more likely to stick with your brand and recommend it to others.
• Geographic Segmentation: Dividing the market based on where your customers or potential customers live.
• With demographic segmentation, the marketer will divide the market into smaller groups, generally on the basis of common demographic factors such as gender, income, age, educational level, race, religion, ethnicity, occupation or job type, and even family structure.
• Behavioral segmentation divides consumers into market segments depending on their behavior patterns when interacting with a product or service.
• Psychographic segmentation breaks down consumer groups into segments that influence buying behaviors, such as lifestyle, personality variables, and values.
• Innovators: High-income individuals with distinct preferences who seek luxury.
• Thinkers: Knowledgeable consumers with resources who make their own decisions.
• Believers: Seek affirmation from peers, have fewer resources than Innovators or Thinkers.
• Achievers: High-resource consumers focused on success, prefer established brands.
• Strivers: Lower-resource consumers with similar values as Achievers.
• Experiencers: Young adults with resources, seek uniqueness.
• Makers: Desire self-expression but lack resources, prioritize family over spending.
• Survivors: Least resources, brand loyal, unlikely to adopt innovation.
• 5 Methods of B2B Market Segmentation

  1. Firmographics
  2. Technographics
  3. Need-Based Segmentation
  4. Value-Based Segmentation
  5. Behavioral Segmentation
• International Market: It is the buying and selling of goods and services between countries. It involves trade across borders, where companies in one country engage in business activities with customers or other businesses in different countries.
• 7 Challenges of Segmenting International Markets

  1. Cultural Differences
  2. Economic Variability
  3. Political Environment
  4. Diverse Consumers
  5. Income Disparity
  6. Population Diversity
  7. Lifestyle Variations
• Cultural Differences: Varying cultures make it hard to use one-size-fits-all marketing.
• Economic Variability: Fluctuating economies affect pricing and product strategies.
• Political Environment: Different regulations and policies can impact business operations.
• Diverse Consumers: International markets have varied preferences and

  lifestyles.
• Income Disparity: Wide income gaps require flexible pricing.
• Population Diversity: Larger and diverse populations need targeted segmentation.
• Lifestyle Variations: Diverse lifestyles demand customized strategies.
• 4 Methods of Segmenting International Markets:

  1. Geographical Factors
  2. Economic Factors
  3. Political/Legal Factors
  4. Cultural Factors
• 5 Essential Factors in Effective Marketing Segmentation

  1. Accessible
  2. Differentiable
  3. Actionable
• The target market is the specific group of people or businesses a company wants to sell its products or services to. They share similar traits and preferences, making them likely customers.
• 4 Target Market Strategies

  1. Undifferentiated Marketing
  2. Differentiated Marketing
  3. Concentrated Marketing
  4. Micromarketing
• Undifferentiated Marketing: Also known as Mass Marketing. This is a strategy where a company decides to ignore market segmentation and target the entire market with a single product or service offering.
• Differentiated Marketing: Also known as Targeted Marketing. This is a strategy where a company targets different segments of the market with different product or service offerings.
• Concentrated Marketing: This is a strategy where a company targets a specific segment of the market with a highly specialized product or service offering.
• Micromarketing: Customizing products or services for individual customers or small groups. It's about making things personal for better customer satisfaction and loyalty.
• Product Positioning: It is the process of deciding and communicating

  how an organization wants its market to think and feel about a product or service.
• Head-to-Head Positioning: Competing directly by highlighting similarities.
• Differentiation Positioning: Standing out by emphasizing uniqueness.
• 2 Approaches of Product Positioning:

  1. Head-to-Head Positioning
  2. Differentiation Positioning