Market Segmentation Phenomenon Getting Rehashed
Market segmentation is a concept in economics and marketing. A market segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function. The term is also used when consumers with identical product and/or service needs are divided up into groups so they can be charged different amounts. The people in a given segment are supposed to be similar in terms of criteria by which they are segmented and different from other segments in terms of these criteria. These can broadly be viewed as 'positive' and 'negative' applications of the same idea, splitting up the market into smaller groups. Strategic your offering is in some way important to the enterprise mission, objectives and operational oversight.
Prospects might be businesses that are downsizing, businesses that have products in the mature stage of their life cycle or individuals with credit rating problems.
Prospects might be businesses that have traditionally low profit margins, businesses that have traditionally high inventory costs or individuals that live in expensive urban areas.
Prospects might be businesses that have traditionally low profit margins, businesses that have recently experienced depressed earnings or individuals with large families.
Prospects might be service businesses in highly competitive markets, product businesses requiring considerable post-sale support or individuals in remote or rural areas.
Improved employee working conditions/benefits
Prospects might be businesses where potential employees are in short supply.
Improvement in market share/competitive position
Prospects might be new entrants to a competitive market.
Need for education
Prospects might be businesses or individuals looking for books on business planning, or seminars on Total Quality Management.
Involvement with social trends
Prospects might be businesses concerned with environmental protection, employee security, etc. or individuals who believe in say 'no' to drugs, anti-crime, etc.
Specific - relating to product/service characteristics
Prospects might be businesses or individuals interested in safety, security, economy, comfort, speed, quality, durability, etc.
Very shortly, what is market segmentation and why is it so important? Market segmentation is dividing the market into parts/segments that are then easier for you to target with your marketing. Why is it so important that you do market segmentation in India? India has over one billion people and believe me, even though they have similar income, they are very different. And those, right now still small differences, will become bigger and bigger as India evolves. And along that, market segmentation in India will become more and more important.
You for sure need to divide the India market in those two groups, since the rich part can be very big buyer because of lots and lots of cash they have.
The second very important segmentation by my opinion is segmentation by religion. India has many religions and with those religions many different cultures come. So you will need to adjust your marketing campaign to those cultures.
India also has a very different terrain, since it’s a big country. We all know that people in flat places and people in mountains want different products so market segmentation by location is in place in India.
Customers have different disposable income. They are, therefore, different in how sensitive they are to price. By segmenting markets, businesses can raise average prices and subsequently enhance profits
Market segmentation is a concept in economics and marketing. A market segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function. The term is also used when consumers with identical product and/or service needs are divided up into groups so they can be charged different amounts. The people in a given segment are supposed to be similar in terms of criteria by which they are segmented and different from other segments in terms of these criteria. These can broadly be viewed as 'positive' and 'negative' applications of the same idea, splitting up the market into smaller groups. Strategic your offering is in some way important to the enterprise mission, objectives and operational oversight.
Prospects might be businesses that are downsizing, businesses that have products in the mature stage of their life cycle or individuals with credit rating problems.
Prospects might be businesses that have traditionally low profit margins, businesses that have traditionally high inventory costs or individuals that live in expensive urban areas.
Prospects might be businesses that have traditionally low profit margins, businesses that have recently experienced depressed earnings or individuals with large families.
Prospects might be service businesses in highly competitive markets, product businesses requiring considerable post-sale support or individuals in remote or rural areas.
Improved employee working conditions/benefits
Prospects might be businesses where potential employees are in short supply.
Improvement in market share/competitive position
Prospects might be new entrants to a competitive market.
Need for education
Prospects might be businesses or individuals looking for books on business planning, or seminars on Total Quality Management.
Involvement with social trends
Prospects might be businesses concerned with environmental protection, employee security, etc. or individuals who believe in say 'no' to drugs, anti-crime, etc.
Specific - relating to product/service characteristics
Prospects might be businesses or individuals interested in safety, security, economy, comfort, speed, quality, durability, etc.
Very shortly, what is market segmentation and why is it so important? Market segmentation is dividing the market into parts/segments that are then easier for you to target with your marketing. Why is it so important that you do market segmentation in India? India has over one billion people and believe me, even though they have similar income, they are very different. And those, right now still small differences, will become bigger and bigger as India evolves. And along that, market segmentation in India will become more and more important.
You for sure need to divide the India market in those two groups, since the rich part can be very big buyer because of lots and lots of cash they have.
The second very important segmentation by my opinion is segmentation by religion. India has many religions and with those religions many different cultures come. So you will need to adjust your marketing campaign to those cultures.
India also has a very different terrain, since it’s a big country. We all know that people in flat places and people in mountains want different products so market segmentation by location is in place in India.
Customers have different disposable income. They are, therefore, different in how sensitive they are to price. By segmenting markets, businesses can raise average prices and subsequently enhance profits