Strategy of Segmenting the Market

For creating target market or segmenting the market, we can use following strategy :


1st Strategy

Undifferential Marketing or Mass Strategy

In this strategy, company does not make small segment of market and target the whole market in one offer. All marketing mix policy will be same for all parts of market.

2nd Strategy

Differentiated Segmented Marketing

In this strategy, company divides his products, services according to need of different consumers. Company's all market policy will be different for all market segmentation.

For example:

Company of refrigerator enters in differentiative marketing technique and divide his product on basis of income of consumers.

Ist Product - 165 liters. with two door advance refrigerator for rich consumers.

2nd Product - 165 liters. with one door simple for middle consumer.

3rd Strategy

Concentrated Marketing

This strategy is used when company has limited resources and wants high profit from specific segment of market, at that time company makes market policies for specific segment.

Market Segmentation

Market segmentation is a technique in which companies divide their large market into small parts. This small division is very helpful to reach the specific consumer and providing his best product according to his need. There are large number of buyers in the market and market has been made big. So, it is very necessary to segment or divide into small parts according to the needs, wants, location of consumers.

Major basis or Ways or Approaches for segmenting consumer and business market

[ A] Segmenting Consumer Market

1. Geographic Segmentation

If a company divides his business market according to the geographical location, then it will be geographic segmentation. Segmentation is done on the basis of nations, regions, states countries, cities and villages.

2. Demographic Segmentation

In this segmentation, company divide the market into small parts on the basis of age, gender, family size and income.

For example, we can divide market according to age of consumers

We can develop products for young - Segment A

We can also develop products for old - Segment B

3.Gender Segmentation

In this division company divides market according to male and female need. This division can be seen in clothing business.

4. Income Segmentation

This segmentation can be used for selling financial products and automobile industry.

Suppose a company makes cars. Then its price will be divided according to the income of consumers

a) Car for high income class
b) Car for middle income class

5. Psychological Segmentation

This division is done according to life style and personality of consumer. You can see different makeup and fashion products in the market which are affected with the psychology of consumers.

6. Behavioral Segmentation

This division is done according to a) knowledge of consumers b) attitude of consumers c) response of consumers

For example

i) products for first time users

ii) products for regular users

[B] Segmenting the Business Market

Business market can not divide only above basis but we can divide it on the basis of Zip codes, level of population and IP address of computer also.

[C] Segmenting of International Market

For segmenting our international market, we have to study international economy  and political environment of each country. After this, we can make and fix the target to sell specific product for specific country according to the need of consumer of that country. It is not necessary that same product will be sold in two or more country. Company should watch cultural factors of different country also.

Analyzing Consumer Market and Buyer Behavior

Q: What is  consumer behavior? What are main factors affecting consumer behavior and what are the stages or steps of buying decision process?

Definition of Consumer Behavior

Consumer behavior is the study of all factors which affect consumer's buying decision. It is the technique to analyze the psychology of consumer. It is very helpful for selling the products to all consumers and satisfy them. In simple words, with the study of consumer behavior, you can know:

a) When will our consumer buy the goods? - To know the correct time

b) Why will he buy the goods?  - Know the need of consumer

c) How will he buy the goods?  - Process of buying

d) Where will he buy the goods? - Place

Factor affecting consumer's behavior

1. Cultural factors

Culture affects consumer behavior very deeply. Following are the main components of cultural factors.

i) Nationality

Consumer buying decision is affected by nationality of consumer. Need of Indian consumer is different from need of USA consumers

ii) Religion

There are many religion In India. We can not do marketing of drinks for Hindu religious persons, because their behavior is affected by their religion. There religion teach them not to drink alcohols.

2. Social Factors

Consumer's behavior is also affected with many social factor whose list, we can make in following way

a) Reference group

friends, relatives, neighbours, co-workers and classmates

b) Family

father, mother, sister and brother

c) Role and status

peon,  clerk and manager

3. Personal Factors

Age of person, his stage in life cycle and his personal occupation also effect his behavior. Children age is age of fun and they can demand education and fun products. After marriage, young couple can demand house for living but at the old age, you can demand health products.

4. Psychological factors

Following are the psychological factors which affects consumer's behavior.

a) motivation b) love c) morality d) security of body e) security of employment

Steps Of Buying Decision Process

1st Step

To Identify the need of Product

This is the first step of buying decision process in which marketer estimates consumer's need of products. Consumer can buy the product for satisfying his basic and other needs.

2nd Step

Collection of Information

After this, consumer will search for buying best product, he can search on Internet or can take help of friends, neighbours and newspapers for find quality product.

3rd Step

Evaluation of Alternatives

After this, buyer will evaluate all alternatives from where he can buy the product. He will choose the best alternative for buying the product.

4th Step

Purchase decision

In this step, buyer buys the product by physically going to market or by giving the order online.

5th Step

Post Purchase Behavior

After purchasing, buyer uses the product and shows his behavior by following ways

a) He is satisfied from the product

c) He is not satisfied from product