Different levels of market segmentation, Marketing Management

Q. Described different levels of market segmentation?

Ans.: The beginning point for segmentation is mass marketing. In mass marketing,  the  seller  engages in  mass production, and  mass promotion and mass distribution  of one product for all buyer. for example: Henry ford lunched the model T-ford in one color For instance: black.

The argument for mass marketing is that it makes the largest potential market, which leads to lower price and proliferation of advertising media and distribution channels making it hard. Therefore more companies are turning to micro marketing at 1 of 4 levels:, niches, segments ,local & individual.

Segment Marketing: A market segment consists of a group of customers who   share a same set of requirement & wants .For example: We can distinguish among car buyers who are primarily seeking low price basic transportation, seeking a luxurious driving experience and those seeking driving thrills and performance, segment and sector should not be puzzled.  A car company may say that it will target to young, middle income car buyers. Young middle car buyers are just a sector, not a segment.

The marketer does not make the segments, the marketers task is to recognize the segments & decide 1 which to target. Segment marketing offers key profit over mass marketing. The company may design better price and deliver the product or service to convince the target market.

Niche Marketing: A niche is a narrowly described customer group seeking a distinctive mix of profit. Marketers typically identify niches by dividing a segment into sub segments. Customers in the niche have distinctive sets of requirement, they will pay a premium to the firm that best satisfies their requirement, the niche is not likely to draw other competitors and the niche has size, profit and growth potential.

(i)   Larger companies like IBM have lost cost of their market to nicher

(ii)  Ezee, the liquid detergent from godrej is a fabric washing product for woolen clothes

(iii) Crack and ointment for pain is another product having niche focus. This product is chiefly targeted at women for prevention of cracked heels.

(iv) Itch guard is focuses on niche requirement of treating itching sensation

(v)  Television channels specifically focusing on religion and spirituality.

(vi) Matrimonial websites like www.shadi.com. Niche Marketers are aware of their customer require so well that customer is willing to pay a premium and as  marketing  efficiency  increases  niches  that  were  so  small,  becomes more profitable.

Local Marketing: Target marketing is leading to marketing programs tailored to the needs & desire of local customers groups. Various banks in India have specialized branches that cater to the requirement of corporate customer. The in city courier companies in various cities specialize in delivering packets on the similar day.

The marketing activities focus on getting as near to the individual customers.

For example Nike

Customization: The final level of segmentations leads to 1 to one marketing. Today's customers are taking more individual initiative in determining what and how to buy.  They assess internet, look up information, evaluates the product or service and in several cases, design the product they desire. Companies see it more efficient as the marketers can gain more precision and effectiveness by addressing individual requirement.    

Posted Date: 10/15/2012 4:09:24 AM | Location : United States







Related Discussions:- Different levels of market segmentation, Assignment Help, Ask Question on Different levels of market segmentation, Get Answer, Expert's Help, Different levels of market segmentation Discussions

Write discussion on Different levels of market segmentation
Your posts are moderated
Related Questions
Describe in detail about Sales promotion   This refers to short-term and temporary incentives to purchase or induce trials of new goods. Tool includes contests, games, gifts, tr

Q. Give the distinguishing features of an consumer?  Ans.: A Broad sketch of consumer can be drawn on the basis of following issue:-   Demographic that includes size of

Method of determining prices or setting price: Cost of the production of a product is the most important determinant of its price. They may be many types of costs such as fi

Q. Explain diffrent types of advertisement copy? Types of advertisement copy: - Advertisement Copy perhaps of various types based on Appeal, functions, Purpose and Media of a

How is information in technology and organizational structure affected? Conversely, information systems have enabled companies to gain many benefits as like efficiency gains, q

Q. Explain the different Objectives of the advertising? Answer: Introduction of Objectives is those end points towards which every activity of an organisation is oriented. Wit

Describe in detail about the Nature of Market There are several aspects of market which determine choice of channel of distribution. Say for instance, where number of buyers

Question 1 Detail the process of marketing a product Question 2 Write a long note on the budgets of company advertising Question 3 Write a long note on advertising as in

What are the marketing communications programmes Contexts aren't independent or isolated sets of easily identifiable circumstances, however are interrelated and overlapping cir

How marketing efforts can be controlled and evaluated? Marketing Efforts with Implementation, Control and Evaluation: Marketing is not a controlled process within an insu