BENEFITS OF MARKET SEGMENTATION Gautam S Rashingkar Market Segmentation ● Dividing a market into smaller groups of consumers or organisations in which each consumer has a common characteristic such as a need or a want. ● It involves building up or breaking down of potential buyers into groups called market segments. ● By doing so the marketers will have a better understanding of their target audience and thereby make their marketing more effective BASIS OF MARKET SEGMENTATION 1. 2. 3
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Anderson Bauman Tourtellot Vos & Co. An ABTV Industry Watch Report The American Furniture Industry: What Will It Take to Survive? The first decade of the 21st century has not been kind to the American furniture industry. Having experienced the “Asian Invasion‚” which rapidly eliminated nearly all domestic wood production and disrupted upholstery production‚ the industry is now facing a severe economic slowdown‚ with incoming orders 20 to 40 percent below normal levels. The combined impact
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6 Market Segmentation and Positioning Positioning is not what you do to a product; it is what you do to the mind of a prospect. Ries and Trout (1972) Learning outcomes After reading this chapter‚ you will be able to: ✔ Describe the principles of market segmentation and the STP process. ✔ Explain the characteristics and differences between market segmentation and product differentiation. ✔ Explain how market segmentation can be undertaken in both consumer and business-to-business
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Indian Capital Markets Since 2003‚ Indian capital markets have been receiving global attention‚ especially from sound investors‚ due to the improving macroeconomic fundamentals. The presence of a great pool of skilled labour and the rapid integration with the world economy increased India’s global competitiveness. No wonder‚ the global ratings agencies Moody’s and Fitch have awarded India with investment grade ratings‚ indicating comparatively lower sovereign risks. The Securities and Exchange
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Like firms in a competitive market‚ a firm with market power maximises its profits choosing the quantity of goods (or services) at which marginal revenues equal the marginal cost. However‚ unlike firms in a competitive market‚ a firm with market power (whose excess is represented by a monopolist) faces a downward sloping demand curve and therefore is able‚ to some extent‚ to choose the price at which it is selling its products. Thus‚ the price of a firm with market power is greater than MC (P>MC=MR)
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MARKET SEGMENTATION Identify and profile distinct group of buyers who might require separate products and/or marketing mixes. Market segmentation can be segmented in different ways. MASS MARKETING- is when the seller engages in the mass production‚ mass distribution \and mass promotion of one product for all buyers it is also create s the largest potential market which leads to the lowest costs‚ which in turn can translate into either lower prices or higher margins. LEVELS OF SEGMENTATION
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of subsets of buyers within a market who share similar needs and who demonstrate similar buyer behavior. The world is made up from billions of buyers with their own sets of needs and behavior. Segmentation aims to match groups of purchasers with the same set of needs and buyer behavior. Such a group is known as a ’segment’. Think of you r market as an orange‚ with a series of connected but distinctive segments‚ each with their own profile. Of course you can segment by all sorts of variables. The
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CHAPTER 5 MARKET SELECTION: DEFINITION AND STRATEGIES INTRODUCTION The marketer has a key role in the strategic planning process: many planning tools depend upon concepts of market share‚ market definition‚ segmentation‚ positioning‚ product life cycles and customer relationship management (CRM). Key steps in formulating an international marketing strategy are: Export market selection: determining the markets in which to compete‚ and the sequence of entries. Export market direction:
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Market Targeting Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. The key steps in target marketing are market segmentation‚ market evaluation‚ and product positioning. Market segmentation means dividing mass markets into distinct groups of buyers with relatively homogeneous preferences‚ attitudes‚ or behaviors‚ which distinguish them from the rest of the market. Second step after Market segmentation is market
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19t7‚1‚ No. 3. 301-335 Market Segmentation A. Caroline Tynan Lecturer‚ Department of Business Studies‚ University of Edinburgh AND Jennifer Drayton lecturer‚ Department of Marketing‚ University of Strathctyde‚ Gtasgew Market segmentation is a crucial marketing strategy. Its aim is to identify and delineate market segments or "sets of buyers" which would then become targets for the company ’s marketing plans. The advantage to marketing management is that Ais technique divides total
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