MARKETING CUSTOMER SEGMENTATION
Dr. Girish Jaiswal
Buyers in any market differ in their wants, resources, locations, buying attitudes, and buying practices. Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs.
Segmenting Consumer Markets
There is no single way to segment a market. A marketer has to try different segmentation variables and in combination, to find the best way to view the market structure. The ...view middle of the document...
In contrast, other retailers are developing new store concepts that will give them access to higher-density urban areas. For example, Wal-Mart has been complementing its supercenters by opening small, super-market style market side grocery stores in markets where full-size stores are impractical. Market side stores are a third the size of Wal-Mart’s other small-store format, neighborhood market supermarkets, and a 10th the size of one of its supercenters.
Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. This division is done to make marketing easier and avoid wastage of resources. Demographic factors are the most popular bases for segmenting customer groups. One reason is that consumer needs, wants and usage rates often vary closely with demographic variables. Another is that demographic variables are easier to measure than most other types of variables as there is often much more data available to help with the demographic segmentation process. Even when marketers first define segments using other bases, such as benefits sought or behavior, they must know segment demographic characteristics in order to assess the size of the target market and to reach it efficiently.
Age and Life-Cycle Segmentation
Consumer needs and wants change with age although they may still wish to consume the same type of product. So Marketers design, package and promote products differently to meet the wants of different age groups. Some companies use age and life-cycle segmentation offering different products or using different marketing approaches for different age and life-cycle groups.
For example, Leo Toys offers different toys for kids in different age groups. It acknowledges the fact that a toy that amuses a 4-year-old may fail to attract a 12-year-old.
Example: - HDFC Standard Life Insurance has launched pension plans for retired people so that they do not have to depend on any one for their financial needs.
Example: - Amul has segmented its products for different age groups. Like for kids – Amul kool, chocolate milk, Nutramul energy drink. For Youth – Amul cool kafe and for women and older people – Amul calci+, Amul Shakti energy drink.
Men are from mars and women are from Venus. So naturally their preferences differ. Where men might want the latest in technology, women might desire the latest in Fashion (point is debatable nowadays) There are several products which are gender focused such as deodorants, clothing, accessories, footwear and even automobiles. Women are gaining acceptance even in under developed economies and this has seen an increasing focus on women along with men as customers.
Example: - 10 Years ago, two wheelers were mainly targeted at men and were looked at as a means of transportation. Today, marketers like Bajaj and Hero Honda...