Marketing Segmentation is one of the important strategies in Marketing world in order to eliminate the cost and complexity that exist in the real time world. To understand the segmentation we must be sure and thorough about Marketing mix or 4ps of Marketing.
What is Market Segmentation?
Market segmentation is a process of dividing a market into distinct groups of buyers with different needs, characteristics or behavior, who might require separate produces or marketing mixes.
Why you need Segmentation?
Markets consist of buyers, and buyers differ in one or more ways. They may differ
in their wants, resources, locations, buying attitudes and buying practices.
Levels Of Segmentation
Mass Marketing
Mass marketing Using almost the same product, promotion and distribution for all consumers. Henry Ford epitomized this marketing strategy when he offered the Model T Ford to all buyers; they could have the car in any color as long as it is black’. That cost Ford the world market leadership that it has never regained.
Why it is important?
The traditional argument for mass marketing is that it creates the largest potential market, which leads to the lowest costs, which in turn can translate into either lower prices or higher margins.
Segment marketing
Adapting a company’s offerings so they more closely match the needs of one or more segments. They recognizes that buyers differ in their needs, perceptions and buying behaviors. BMW has designed specific models for different income and age groups. In fact, it sells models for segments with varied combinations of age and income: for instance, the short wheelbase 3 for young urban drivers. Hilton markets to a variety of segments – business travelers, families and others – with packages adapted to their varying needs.
Why it is Important?
The company can market more efficiently, targeting its products or services, channels
and communications programs towards only consumers that it can serve best. Company can also market more effectively by fine-tuning its products, prices and programs to the needs of carefully defined segments. And the company may face fewer competitors if tower competitors are focusing on this market segment.
Niche Marketing
A niche is a more narrowly defined group, usually identified by dividing a segment into subsegments or by defining a group with a distinctive set of traits who may seek a special combination of benefits. For example, the utility vehicles segment might include light trucks and off-the-road vehicles. And the off-the road vehicles subsegment might be further divided into the utilitarian segment (Land Rover), light sports utility vehicles (Suzuki) and luxury sports utility vehicles (Range Rover and Lexus) niches.
Why it is important?
Niching offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger competitors.
Micro Marketing
Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. Micromarketing includes local marketing and individual marketing.
local Marketing
Local marketing involves tailoring brands and promotions to the needs and wants of local customer groups – cities, neighborhoods and even specific stores. Retailers such as Akia and G & A customize each store’s merchandise and promotions to match its specific element.
induvuidual marketing
Tailoring products and marketing programs to the needs and, preferences of individual customers. Mass customization is the ability to prepare on a mass basis individually designed products and communications to meet each customer’s requirements.