Definition of Marketing :

Marketing is the most common and usefull word in every business,

without it business can not take place. Maketing depent on these 4
times P, Product, Pricing, Promotion, and Place. I would like to explain
these four P one by one.

PRODUCT : Product should be select which is most useful for people

because by this way company can make more sales and profit to
provide wide range of productivity. Product should be useful the target
consumer, for expample : If you were trying to make your product
children toys to the public, your consumer market would probably not
appeal to children, so you would market your product to older
generation.

PRICING : Pricing plays very important roal in running business,

Product pricing must cover costs and profits. Before setting a price of
your product, you have to know the costs of running your business. If
the price for your product doesn't cover costs, your cash flow will be
cumulatively negative, you'll exhust your financial resources, and your
business will ultimately fail.

PROMOTION : There are many ways to promote a product in

different market areas. Promoters use internet advertisement, special
events like business fairs, endoresements, media, and newspapers to
advertise their product. It is also acceptable with the purchase of a
product there is an incentive like discounts, free of charge items, or a
general public contest. By this way company can increase the sales of
a given product.

PLACE : Place decision must be on logic and reasons where

customer easily can get the product, you should make it possible by
the support or tie up with wholesale dealers or retailors at various
places, For Exemple : your product is Hair jel you must know right sales
place for it, like barbers shops or medical store and various store which
is situable the best sales for your product.

Definition of Marketing Segmentation

Market segmentation is based on vast senario to unsderstand
customers and satisfying their needs better than the competition. But
different customers have different needs, and it rarely is possible to
satisfy every customers be treting them same way.

On the next door target marketing recognizes the diversity of

customers and does not try to follow all of them with the same
offering. The first step in target marketing is to identify different
market segments and their needs.

Various Types of Segmentation in Consumer Markets

Consumer markets can be segmented on the following customer
characteristics.

1 ) Geographic

2 ) Behavioralistic

3 ) Demograpic

4 ) Psychographic

Geographic Marketing Segmentation :

The following are most common examples of geographic variables

used in segmentation

i ) Region : This segment is useful for multinational compony

which spread business many countries like wallmart,sears, Roebuck &
Co. and Kmart all allow local managers to stock products that suit the
local community.

ii ) Siez of metropolitant areas : Grographicaly how long maket

area is convered you should be aware of this, By this way you can get
knowledg of population and how many pople get need your product
your should search out by market total population calculation

iii ) Climate : Region climate also paly important roal in market

segmentation because what kind of seasons on what time period in
perticular region ll comes it should be plan from the prior by marketing
experts, because without climate plan business cant get its success.

Behavioralistic Marketing Segmentation

Behavioralistic segmentation is based on acutal csustomer behaviour

toward products. Some behavioralistic variables include these points

i ) Benefits sought : This is an important form of

behavioual segmentation. Benefit segmentation require marketers to
understand and find the main benefits customers look in a product. A
very good example is the toothpaste market where research has
found main ''benefits segments'' - economic; medicinal, cosmetic and
taste.

ii ) Usage rate : This market segementation divides a

market by the price of product bought or consumed. Categories vary
with the product, but they are likely to include some combination of
the following: former users, potential users, first-time users, light or
irregular users, medium users, and heavy users. Segmenting by usage
rate enables marketers to focus their efforts on heavy users or to
develop multiple marketing mixes aimed at different segments.
Because heavy users often account for large volume of all product
sales, some marketers focus on the heavy user segment.

iii ) Brand loyalty : This product segmentation method groups

consumers according to the strengh of the brand loyalty they feel
toward a product. A classic example of brand loyalty segmentation is a
frequent purchase program - it might be frequent higher, frequent stay
for example Hollister Co : Its famous for clothing, consumer uses this
brand because from the long time it maintain product quality by this
way Hollister got consumer's loyalty. As per this segmentation
marketer can get fix group of consumer.

iv ) Readiness to buy : A marketer should try to make product

as if it will be usefull immediately or easy to use like ready food of
M&S, McDonalds. Because consumer alsways fell boar to understand
product to use.

v ) Special Occasions : On special occasions marketer must

keep eye and target to sale product like December month or Chrismas
period is very good occasion to sale product because cosumer have
trand to make shooping on this month thats why most of showroom
owner reduced the product prices and try to get maximum sales or
clear old stock to provide large valume of products.

Demographic Market Segmentation

The most common demographic market segmentation points is as

unde

i ) Family lifecycle : Family and life cycle chage with age. It

is depend on different age group, like Toothpaste brands such as
Pepsodent, Crest and Colgate offer three main lines of products to
target market kids, adults, and older consumers. Age and life cycle
segmentation can be even more refined. Pampers divides its market
into prenatal, newborn (0-1 months ), infant ( 2-5 months ), cruiser ( 6-
12 months ), toodler ( 13-18 months), explorer ( 19-23 months ), and
preschooler ( 24 months + ).

ii ) Income : In the society every person and family have

their own personal strength or feedback to earn money thats why
imbalance of income you can see clearly in the society. Some part of
market segmentation is also depend on income condition.If family have
heavy income their demand definetly will be high, against whose
family income low obiviously their need and purchase capacity will be
limited. So marketer should be understand local people income senario
and make the price of product as their income condition.

iii ) Education : In the market segmentation educatation

plays important roal, I suspect that some restaurants will sell more
meals to college graduates than others or in the showroom like
peacock can see special discount for student. This target market
follows by education segmentation.

Psychographic Market Segmentation

Psychographic segmentation consist with groups of customers

according to their lifestyle. Activities, interests, and opinions (AIO)
surveys are one tool for measuring lifestyle.

i ) Activities : Current people's lifestyle marketing depends

on psychographic segmentation, and marketer need to be values mind
over matter. Marketing segmentation based on lifestyle anyalysis
usually approaches the problem by gauging lifestyle according to data
that fall into three categeories activities, interest and openions.
Activities are divided into four parts: work, entertainment, sports, and
hobbies.

ii ) Interests : A human is social animanl said by

arristotal, so as a marketer you search out a product how actually
usefull for individual person and why should they pay for. Example :
Beauty cream product marketer aware of prouduct its chemical is good
for health and good for consumer. Marketer have to take personal
interest in product to get success on the market.

iii ) Openion : As a physcographic marketer you must

take review of customer or gain costomer's ideas by this way
marketer can understand what customer actually want. As a example
we can see in the bank a complain box or how can get better service
box or online customer review and openion. If any of idea marketer like
genuin given by customer should try to implementing.

Ref : 2002-2010 NetMBA.com,

www.netmba.com/marketing/market/segmentation

The Process of Market Segmentation and their

Progression
This process marketers decide which segmentation base - or bases-to
use ? Company or Firms may use management driven method, in
which segments are predefined by marketing managers based on their
observation of the behaviour and demographic characteristics of likely
users. Or they may use a market driven method, in which segments
are defined by the openions of marketing consultant or customers
which attributes are important. Then marketers follow stage of process
as under

Develop a Relevant Profile Step By Step For Each Market

Segmentation

After finding out promising segments, marketer should understand the

customer in each one. This in deep analysis of customers helps a
marketing managers accurately match buyers needs with the
company's marketing offers. The process must finding out
characterristics that both explain the similarities among customers
within each segment and account for various among segments. The
work on this stage is to develop a profile of typical customer in each
segment. Such a profile might include information about living lifestyle
pattern, interests, attitude or ideas toward poroduct attributes and
barnding product - use habits, geographic locations, and demographic
characteristics.
Plan and Work Out Market Potential

This stage market segmentation and market opportunity analysis

combine to produce a plan of market potential within every segment.
Market potential sets the upper limit on the need that competing firms
can expect from a segment. Multiplying by market share determines a
single firm's maximum sales potential for targetable profits. This step
should define a preliminary go or no go decision from management
because the total sales potential in each segment must justify
resources devoted for more analysis. For example, if cosmetic firms
are trying to determine what the demand for it would be and the
disposable income of that group.

Make a Plan of Probable Market Share

After forecast market potential a firm must make plan for its probable
market share. Competitors positions in targeted segments must be
analyzed, and a specific marketing strategy must be designed to reach
these segments. These two activities may be performed
simultaneously. Moreover, by settling on a marketing strategy and
tactics, a firm must determines the expected level of resources it must
commit- that is, the costs it will incur to trap potential demand in each
segment.

Finding Out Fix Market Segments

Collected information, analysis, and forecasts accumulated

thoroughout the entire market segmentation decision process allow
management to assess the potential for achieving company goals and
to justify commiting resources in developing one or more segments.
Demand forecasts with the cost projections, determine the profits and
the return on investment that the company can expect from each
segment. Marketing strategy and tectics must be designed to reinforce
the firm's image, yet keep with its unique organizational capabilities.
The firm may less experienced personnel to launch a successful attack
on an attractive market market segment.

Contemporary Marketing By David L. Kurtz, H.F. MacKenzie,

Kim Snow

Analysis of Market Segmentation and differentiation

The market segmentation and product differentiation are interelated
but clear conscepts. The marketing segmentation is the strategy of
conceptually and stastistically identifying the different market
segments with different characteristics, these includes the needs,
demands, preferences, buying habits, usage patterns and
communication exposure. The product differentiation involves the
strategy and tactics of offering products with distinctive characteristics
- based either on the product design and engineering, service features
or communication to these clear market segments. The market
differentiation is a commitment of resources to deliver top value to a
specific set of customers. No market researcher has the capability to
satisfy all the needs of all potential customers.

Differentiation of market segmentation is depend on firm's capacity

and reserch the new products, for example : TATA Group of Industries
has various car products but they launched new low price car named
NANO to see indian demographic and economy maximum number of
people are middle class. So market researcher realised that, If
company want to make maximum sales they must produce low price
new product to achieve india's middle class customers.

Characteristics of Market Differentiation

Differentiation is product cycle to adding more meaning to the product

by shining attributes beyond the central theme. Task of differentiation
is to highlight the relevant benefits in a distinctive manner which
theary is not easy to followed by competitors and provide profitable
benefits to the company

Offer Product Differentiation : There are many differentiation tools

available to the company to extract maximum benefits. The main
variables which offer differentiation are product, service, personnel,
channel and image, Product related attributes serve a good base of the
differentiation. but product differentiation varies based on the nature
of industries. For example, commodity products are difficult to
differentiate on look, but as automobiles present vast oppertunity of
differentiations. Like pepsi brand offer customer various product, pepsi
cola, pepsi max, pepsi diat, etc. This product differentiation target
various segmentation of market senario.

Service Differentiation : Service plays important differetiation tool

where differentiation is difficult based on physical attributes serve a
good base of the differentiation. Differetiation in service can be
achieved based on ordering ease, customer service during the sell,
after sell customer service and consulting product uses or new offers.
A marketer should go one step forward in service is differentiation by
personnel. By exhibiting a professional, reliable, quick and courtous
response to customer can differentiate companies from competitors.
For Example, Dominos piza in india provide extra service then other
compitetors like provide piz at the door step befor 30 minute otherwise
pizza will get free of charge this kind of gaurantee and customer
valuation make market differentiation to face competitor.

Differentiation on Image : Image differentation is also important

roal of the market differentiation, there are various ways to improve
achieve image differentiation depending on industy and market
segment sponsoring of event and causes is one way building up image
among consumers. For Example : TATA Group of industries to creat
Salt product they made expense 18Crores of indian Rs, To give product
quality and make brand image among customers.

Contemporary strategy analysis

Page 275, Robert M. Grant-2005