Market Segmentation

Market Segmentation 

—Identify the “potential and prospective consumers” in their marketing territory. Such prudent identification keeps the marketing process on up trend.

Thus, some marketing experts and researchers have described market segmentation as the strategy of “Dividing the market in order to conquer them”

As a management student and a marketer has to look for the best ROI-Return On Investment- if S/he does not do that, then it is great defeat of the object. Hence segmentation gives direct focus on the following narrated points to get more yield,

• To get more return on market-spending.
• To do niche marketing.
• Keep vibrant presence in market.
• Create brand equity in the market.
• Generate better stock turn-over-ratio.
• Register good sales performance year-after-year.
• Use of available resources in efficient way on potential & perspective consumers

These are the obvious reason why a business tycoon look for segmentation and it is very important tool of marketing to do best marketing. Now let us go into the application of the segmentation based on the various significant variables of the market.


Application of the Market Segmentation
The major market segment are based on the needs of the segments. When needs of segment is determined, the market will be targeted and products will be positioned in the market. Major Market Chart is shown below,

Basis for market segmentations
The further gridding market segmentation is based on the various variables, the significant variables are shown below,

• Geographic segmentation.
• Demographic segmentation.
• Economic Segmentation.
• Psychographic segmentation.
• Behavioral segmentation.
• Volume segmentation.
• Benefit segmentation.

Much use segmentations

• Demographic Segmentation is much in use, however it differ from product to product and subject to various market condition. 
• For the niche and brand sensitive customer the Psychographic Segmentation is used. 
• The Indian market has classified into Four Tier market based on the income, the same is depicted herein. 

Psychographic Segmentation

Psychographic is study of life style, personality traits, interest social status, society belongingness etc., One of the popular method of psychographic study is AIO Framework (Activities, Interest and Opinion) with profiling demographic explanation. Recently Stanford Research Institute has developed second popular model known as VALS ( Value and Life Style )
Now let us know what are effective element are required for the effective market segmentation. 

Effective element of market segmentation

Marketer need to do effective, productive and prudent market segmentation to fetch best results over the competitors and as well as to suit the requirement of the organization. The major criteria are,

• Identify. 
• Accessibility. 
• Responsiveness. 
• Size. 
• Nature of Demand. 
• Measurability. 
• Profitable.

*** MARKET SEGMENTATION ***