Investment in The Coconut Industry by Nancy Cheruiyot
08. market and market segmentation
1. Market and Market Segmentation
Rajeev Shrestha
Lecture 8 – March 28, 2012
2. Market and Market Segmentation
Topic Outline
Market and its types
Customer-Driven Marketing Strategy
Market Segmentation
Market Targeting
Differentiation and Positioning
3. Market
An actual or nominal place where forces of
demand and supply operate, and where buyers
and sellers interact (directly or through
intermediaries) to trade goods, services, or
contracts or instruments, for money or barter.
4. Market
Markets include mechanisms or means for
determining price of the traded item,
communicating the price information,
facilitating deals and transactions, and
effecting distribution.
The market for a particular item is made up of
existing and potential customers who need it and
have the ability and willingness to pay for it.
5. Types of Market
Consumer Markets
Business Markets
Global Markets
Non-Profit and Governmental Markets
6. Consumer Market
Companies selling mass consumer goods and
services.
E.g.: soft drinks, toothpaste, television, etc
This requires getting a clear sense of their target
customers and what needs their products will
meet and communicating brand positioning
forcefully and creatively.
7. Consumer Market
Consumer marketers decide on the features,
quality level, distribution coverage and promotion
expenditures that will help their brand achieve a
leading position in their target market.
8. Business Market
Companies selling business goods and services.
Business buyers buy goods and services for their
utility in enabling them to make a product or resell
a product to others and they purchase products to
make profits.
Businesses marketers must demonstrate how
their products will help customers to achieve
higher revenue or lower cost.
9. Global/ International Market
Companies selling business goods and services.
Business buyers buy goods and services for their
utility in enabling them to make a product or resell
a product to others and they purchase products to
make profits.
Businesses marketers must demonstrate how
their products will help customers to achieve
higher revenue or lower cost.
10. Non profit and government market
Companies selling their goods to non profit
organizations such as
churches, universities, charitable organizations
and government agencies.
11. Market Segmentation
Market segmentation is the process that
companies use to divide large, heterogeneous
markets into small markets that can be reached
more efficiently and effectively with products and
services that match their unique needs.
12. Market Segmentation
Segmenting consumer markets
Segmenting business markets
Segmenting international markets
Requirements for effective segmentation
14. Geographical Segmentation
Geographic segmentation divides the market into
different geographical units such as
Nations,
Regions,
Zones,
Districts,
Cities,
Climate,
Density
15. Demographic Segmentation
Demographic segmentation divides the market
into groups based on variables such as age,
gender, family size, family life cycle, income,
occupation, education, religion, race, generation,
and nationality
16. Demographic Segmentation
Age and Life-Cycle Stage
The process of offering different products or using
different marketing approaches for different age
and life-cycle groups
Eg. HDFC Standard Life PENSION PLANS