Lecture 3 & 4 Segmentation & case study

Session -3

Segmentation

Definition :- Segmentation is classifying market by studying consumer behavior pattern based on preferential , socioeconomic , demographic aspects & relating it to consumer needs, wants & desires.

Opposite of Segmentation is Mass marketing . This prevailing till year 2000 . When there is mass marketing then the other concepts of marketing do not play a role.

Example 1:-  Discussed Promotion of Egg by NECC to classify this into Segmentation / Mass marketing. Although Egg is a product which is consumed by most of the product. It is advertised as “ Sunday ho ya Monday Roj Kao Ande” as a healthy food against the  food supplements like Pediasure. 

Cannibalization:- This is defined as eating away or replacing market share of one product by another product of the same company which are positioned for the same market segment.

Example 2 :- Coke reducing the price of its 250ml from Rs.10 to Rs.8 and competing  with ThumsUP which is also its own product which are positioned for the same market segment.

Touched upon positioning:- Positioning is creating an image which is occupies in the mind  of the target customer.

Example 3:- Lifeboy  Jingle “ Lifeboy hai Jahan Thandurusti hai Wahan”  created an image of Lifeboy to be a toilet soap than bath soap ( hygiene segment) .  The Product  satisfied core benefit of Hygiene , had a basic look and feel ,but could not move ahead in the product cycle .

Viability Chart:- S.C.A

1.       Is my segment Sustainable .

2.       Are We Competitive

3.       Do we have an Advantage.

Discussed examples of :-

•       Federer  Vs Nadal In Tennis.
•       Bajaj Vs Honda in 2 wheelers.
•      Gavaskar Vs Tendulkar Cricket.

In every market segment chosen the product has to evolve through the viability chart.

Relative market share = Trial rate x Repeat Purchase.

Mraketing Mix :-

4 P’s of marketing

1.   Product
2.  Price
3.   Place
4.  Promotion

In service industry another 3 P’s play a role 

5.       People 

6.       Process 

7.       Physical evidence

Example 4:-

Insurance works on physical evidence as operating principle.

Session 4

Case study on Nirdhos Bidi A herbal smoking device done.

Market segments were identified as below:-

•   New Smokers:-
•  Already smokers ( Quit smoking)
•  Health
•  International Market

Operating Principle of each segment to be analysed and viability chart to be worked for each of the segments.