Market Segmentation Class 11
Meaning of Segmentation
Refer to the meaning done in Class 10 Also. Market Segmentation – Class 10
Importance of Market Segmentation
A firm benefits from the process of segmentation in the following ways:
1. Improved Customer Relations:
Segmentation will enable the buyer to get maximum satisfaction as it helps to meet the customer needs, expectations and aspirations separately for each category.
- Proper Marketing Mix:
As market segmentation helps in defining shopping habits, price sensitivity and the benefits required by the customers, it helps in making marketing mix more accurate.
- Better Resource Allocation:
The objective of Segmentation is to serve customers better and earn more profits. Segmentation helps in proper targeting the right customers and not targeting the others which further helps in taking the business to those customer groups which will be the best recipients of resources.
- Competitor Analysis:
With the help of Segmentation, firm can compete better in the market with complete knowledge of the competitors, the segments being served by them, and their working practices. It enables to know the segment which our organisation can serve better. Segmentation increases awareness of external market trends and competition.
- Taking care of Dynamic Environment:
Firms can plan better to meet the changes required in some Customer segments due to changing environment.
- Focus Marketing Communication:
Segmentation establishes commitment and single-mindedness with the organisation: one vision, one voice, harmonised messages. It helps an organisation to identify the relevant media channels to reach the target group.
- Measurement:
Segmentation is also required to measure the market share, growth, target customers and nature and degree of competition, to formulate marketing objectives and strategies.
Market Segmentation Class 11
Bases of Market segmentation
Or
Types of Segmentation:
(Also Refer to Types of Market Segmentation Class 10.)
The variables on which segmentation can be done are numerous like demography, geography and behaviour or any other basis.
Every business firm will use basis of segmentation depending on their own factors like the nature of product, their own philosophy etc.
- Geo-Demographics Segmentation.
- Demographics means Geography and Demographics clubbed together. It consists of defining customers according to:
- Country of birth and their location, dividing a country into regions, states.
- Important variables according to Geography may be global, global regional, national, National regional, city/state, neighbourhood/ local, topography, and climate.
- Regions may be further subdivided into sizes –small, medium, and large.
- In case of international marketing or global business different countries might be taken up as different market segments.
- Another basis may be geographical density-urban, suburban, and rural, Climate-warm, cold, and rainy, Locality etc.
2. Personal Demographics segmentation.
Populations are often broken down on the basis of age, gender, family structure, ethnic origin, education, income, occupation, Religion, Family size, Stage of family life cycle, social status/class etc.
- Socioeconomic Segmentation.
The populations are broken down according to income, employment, education, social class, home/car ownership, etc.
- Behavioural Segmentation.
It’s also called Product-related segmentation. Different bases can be:-
Usage status: like ‘light’, ‘medium’, and ‘heavy’ users of a product. There can be non-users, first-time users and regular users.
Brand Loyalty Levels: ‘Hard Core Loyals’, ‘Soft Core Loyals’, ‘Shifting Loyals’ and ‘Switchers’ .
Some other basis in this category can be Benefit sought, Occasions for Purchase, Frequency of purchasing, Willingness to buy, Season, Tribal.
- Psychographic Segmentation:
Psychographic segmentation is based on mental characteristics and predispositions connected with purchasing habits. It is concerned with interests, activities and opinions of consumers, and is often related to values and their life styles.
On the basis of personality characteristics customers have been defined differently by different persons like Mainstreamers, Reformers, Aspirers and success achievers or Extrovert/introvert, Sensitive/intuitive, Thinking/feeling, Judging/perceptive etc.
Marketing Environment Class 11