1. CHAPTER # 2ND
UNDERSTANDING CONSUMERS &
MARKET SEGMENTS:
• INTRODUCTION AND OBJECTIVES OF
• THIS CHAPTER:
•IN THIS CHAPTER WE ARE GOING TO
DISCUSS IN DETAIL THAT HOW A MARKETER
SEGMENTS THE OVERALL MARKET IN TO
SMALLER BUT HOMOGENIOUS SEGMENTS,
WHAT ARE THE DIFFERENT RULES FOR
SEGMENTATION, WHAT IS THE CRITERIA FOR
SEGMENTATION, AND HOW PRODUCT
POSITIONING EFFORTS ARE BEING
PERFORMED.

2. WHAT IS MARKET
SEGMENTATION?
THE PROCESS OF DIVIDING
A MARKET INTO DISTINCT
SUBSETS OF CONSUMERS
WITH COMMON NEEDS OR
CHARACTERISTICS AND
SELECTING ONE OR MORE
TO TARGET”

3. EXAMPLES
CARS
Luxury
Cheap
Sporty
Spacey/Specious

4. EXAMPLES
FOOD
Continental
Chinese
Indian/Pakistani
Italian
Arabian

5. EXAMPLES
CLOTHES
Formal
Informal
Party Wear
Male
Female
Traditional
Fusion
Bridal Wear

6. MUSIC
PoP
Jazz
Salsa
Disco
Rock
R&B

7. WHO IS USING MARKET
SEGMENTATION
Marriott
 13 lodging brand
 Fairfield Inns (prices conscious people)
 Spring Hill Suites (modestly priced)
 Residence Inns (apartment like accommodation)
 Courtyard (price conscious Business people)
 Marriott Hotels (full service business travelers)
 Marriott Resorts (leisure & vocational
accommodation)

8. BASES FOR SEGMENTATION
Geographic Factors
Demographic Factors
Geo Demographic
Psychographic (lifestyle)
Sociocultural
Use Situation Factors
Use Related Characteristics
Benefit Segmentation
Hybrid Segmentation Approaches
Psychographic-Demographic Geodemographic

9. GOEGRAPHIC
SEGMENTATION
GEOGRAPHIC SEGMENTATION THE MARKET
IS DIVIDED BY LOCATION.
PEOPLE WHO LIVE IN THE SAME AREA
SHARE SOME SIMILAR NEEDS AND WANTS
DIFFER FROM THOSE OF PEOPLE LIVING IN
OTHER AREAS.
CERTAIN FOOD PRODUCTS
STARBUCKS COFFEE (
WWW.STARBUCKS.COM), WHOSE FIRST
STORE OPENED SEATTLE IN 1971. NEARLY 20
YEARS LATER, AFTER A RAPID EXPANSION
INTO THE EASTERN STATES DURING THE
1990’S, STARBUCKS DECIDED TO INTRODUCE
THE MILDER DIMENSIONS LINE COFFEES IN
1998 TO BETTER SATISFY ITS EAST COAST
CONSUMERS WHO TEND TO PREFER A
MILDER COFFEE THAN THEIR WEST COAST

10. SOME MARKETING SCHOLARS HAVE ARGUED
THAT DIRECT-MAIL MERCHANDISE
CATALOGS, NATIONAL TOLL-FREE
TELEPHONE NUMBERS, SATELLITE
TELEVISION TRANSMISSION, GLOBAL
COMMUNICATION NETWORKS, AND
ESPECIALLY THE INTERNET HAVE ERASED
ALL REGIONAL BOUNDARIES AND THAT
GEOGRAPHIC SEGMENTATION SHOULD BE
REPLACED BY A SINGLE GLOBAL MARKETING
STRATEGY.

11. TABLE 3-2 MARKET SEGMENTATION
CATEGORIES & SELECTED VARIABLES
SEGMENTATION BASE SELECTED SEGEMENTATION VARIALBES
GEOGRAPHIC SEGMENTATION
REGION SOUTHWEST, MOUNTAIN STATES,
ALASKA, HAWAII
CITY SIZE MAJOR METROPOLITAN AREAS, SMALL
CITIES, TOWNS
DENSITY OF AREA URBAN, SUBURBAN, EXURBAN, RURAL
CLIMATE TEMPERATE, HOT, HUMID, RAINY
DEMOGRAPHIC SEGMENTATION
AGE UNDER
12,12-17,18-34,35-49,50-64,65-74,75-99, 100+
GENDER MALE, FEMALE
MARITAL STATUS SINGLE, MARRIED, DISCOVERED,
LIVING TOGETHER, WIDOWED
INCOME UNDER $25,000, $25,000-$34,999,
$34,999-$49,999, $50,000-$74,999,
$75,000-$99,999, $100,000 & OVER
EDUCATION SOME HIGH SCHOOL, HIGH
SCHOOL GRADUATE, SOME COLLEGE,
COLLEGE GRADUATE, POSTGRADUATE
OCCUPATION PROFESSIONAL, BLUE-COLLAR,
AGRICULTURE, MILITARY
PSYCHOLOGICAL SEGMENTATION
NEEDS- MOTIVATION SHELTER, SAFETY,
SECURITY, AFFECTION, SENSE OF SELF-WORTH
PERSONALITY EXTROVERTS, NOVELTY SEEKERS,

12. PSYCHOGRAPHIC
(LIFESTYLE) SEGMENTATION ECONOMY-MINDED, COUCH POTATOES, OUT
DOORS ENTHUSIASTS,
STATUS SEEKERS
SOCIO CULTURAL SEGMENTATION
CULTURES AMERICAN, ITALIAN, CHINESE, MEXICAN,
FRENCH, PAKISTANI
RELIGION CATHOLIC, PROTESTANT, JEWISH, MOSLEM,
OTHER
SUBCULTURES (RACE/ETHNIC) AFRICAN AMERICAN, CAUCASIAN, ASIAN,
HISPANIC
SOCIAL CLASS LOWER, MIDDLE, UPPER
FAMILY LIFE CYCLE BACHELORS, YOUNG MARRIED, FULL
NESTERS, EMPTY NESTERS
USE-RELATED SEGMENTATION
USAGE RATE HEAVY USERS, MEDIUM USERS, LIGHT USERS,
NONUSERS
AWARENESS STATUS UNAWARE, AWARE, INTERESTED,
ENTHUSIASTIC
BRAND LOYALTY NONE , SOME, STRONG
USE-SITUATION SEGMENTATION
TIME LEISURE, WORK, RUSH, MORNING, NIGHT
OBJECTIVE PERSONAL, GIFT, SNACK, FUN, ACHIEVEMENT
LOCATION HOME, WORK, FRIEND’S HOME, IN-STORE
PERSON SELF, FAMILY MEMBERS, FRIENDS, BOSS,
PEER
BENEFIT SEGMENTATION CONVENIENCE, SOCIAL ACCEPTANCE, LONG
LASTING, ECONOMY, VALUE-
FOR-THE-MONEY
HYBRID SEGMENTATION
DEMOGRAPHIC/PSYCHOGRAPHIC COMBINATION OF DEMOGRAPHIC AND

13. DEMOGRAPHIC SEGMENTATION
AGE, GENDER, MARITAL STATUS, INCOME,
OCCUPATION AND EDUCATION, ARE MOST
OFTEN USED AS THE BASIS FOR MARKET
SEGMENTATION.
REFERS TO THE VITAL AND MEASURABLE
STATISTICS OF A POPULATION.
HELP TO LOCATE A TARGET MARKET.
DEMOGRAPHIC INFORMATION IS OFTEN THE
MOST ACCESSIBLE AND COST-EFFECTIVE
WAY TO IDENTIFY A TARGET MARKET.
MOST SECONDARY DATA, INCLUDING
CENSUS DATA, ARE EXPRESSED IN
DEMOGRAPHIC TERMS.

14. AGE
PRODUCT NEEDS AND INTERESTS
OFTEN VARY WITH CONSUMERS’ AGE.
FOR EXAMPLE, ALTHOUGH CHILDREN
OFTEN CONSUME BOXED JUICE
DRINKS, MINUTE MAID COMPANY (
WWW.MINUTEMAID.COM) OFFERS
SINGLE-SERVE DRINKS IN POUCHES,
RATHER THAN BOXES, IN ORDER TO
BETTER APPEAL TO THE “TWEEN”
MARKETS.

15. GENDER
GENDER IS QUITE FREQUENTLY A
DISTINGUISHING SEGMENTATION
VARIABLE. WOMEN HAVE
TRADITIONALLY BEEN THE MAIN
USERS OF SUCH PRODUCTS AS
HAIR COLORING AND
COSMETICS, AND MEN HAVE
BEEN THE MAIN USERS OF TOOLS
AND SHAVING PREPARATIONS.

16. MARITAL STATUS
TRADITIONALLY, THE FAMILY HAS BEEN THE
FOCUS OF MOST MARKETING EFFORTS, AND
FOR MANY PRODUCTS AND SERVICES, THE
HOUSEHOLD CONTINUES TO BE THE
RELEVANT CONSUMING UNIT.
MARKETERS ARE INTERESTED IN THE
NUMBER AND KINDS OF HOUSEHOLDS THAT
BUY AND/OR OWN CERTAIN PRODUCTS.
MARKETERS HAVE DISCOVERED THE
BENEFITS OF TARGETING SPECIFIC MARITAL
STATUS GROUPINGS, SUCH AS SINGLES
DIVORCED INDIVIDUALS, SINGLE PARENTS
AND DUAL-INCOME MARRIED COUPLES.

17. INCOME, EDUCATION &
OCCUPATION
INCOME HAS LONG BEEN AN IMPORTANT VARIABLE
FOR DISTINGUISHING BETWEEN MARKET SEGMENTS.
MARKETERS COMMONLY SEGMENT MARKETS ON
THE BASIS OF INCOME BECAUSE THEY FEEL THAT IT
IS A STRONG INDICATOR OF THE ABILITY (OR
INABILITY) TO PAY FOR A PRODUCT OR SPECIFIC
MODEL OF THE PRODUCT. FOR INSTANCE, INITIALLY
MARKETERS OF HOME COMPUTERS UNDER $1,000
FELT THAT SUCH PRODUCTS WOULD BE
PARTICULARLY ATTRACTIVE TO HOMES WITH
MODEST FAMILY INCOMES. HOWEVER, THESE LOW-
PRICED PCS ALSO PROVED TO BE QUITE POPULAR
WITH HIGHER-INCOME FAMILIES WHO WANTED
ADDITIONAL COMPUTERS FOR YOUNGER FAMILY
MEMBERS.

18. INCOME IS OFTEN COMBINED WITH OTHER
DEMOGRAPHIC VARIABLES TO MORE
ACCURATELY DEFINE TARGET MARKETS. TO
ILLUSTRATE, HIGH INCOME HAS BEEN
COMBINED WITH AGE TO IDENTIFY THE
IMPORTANT AFFLUENT ELDERLY SEGMENT.
IT ALSO HAS BEEN COMBINED WITH BOTH
AGE AND OCCUPATIONAL STATUS TO
PRODUCE THE SO-CALLED YUPPIE
SEGMENT, A SOUGHT-AFTER SUBGROUP OF
THE BABY BOOMER MARKET.

19. EDUCATION, OCCUPATION, AND
INCOME TEND TO BE CLOSELY
CORRELATED IN ALMOST A CAUSE-
AND-EFFECT RELATIONSHIP. HIGH-
LEVEL OCCUPATIONS THAT
PRODUCED HIGH INCOMES USUALLY
REQUIRE ADVANCED EDUCATIONAL
TRAINING. INDIVIDUALS WITH LITTLE
EDUCATION RARELY QUALIFY FOR
HIGH-LEVEL JOBS.

20. PSYCHOGRAPHIC
SEGMENTATION
PSYCHOGRAPHIC PROFILE OF A
CONSUMER SEGMENT CAN BE
THOUGHT OF AS A COMPOSITE OF
CONSUMERS MEASURED ACTIVITIES,
INTERESTS AND OPINIONS (AIOS). AS
AN APPROACH TO CONSTRUCTING
CONSUMER PSYCHOGRAPHIC
PROFILES, AIO RESEARCH SEEDS
CONSUMERS RESPONSES TO A LARGE
NUMBER OF STATEMENTS THAT
MEASURE ACTIVITIES.

21. E.G., GOLFING, VOLUNTEERING AT A
LOCAL BLOOD BAND, GARDENING,
INTERESTS (THE CONSUMER’S OR
FAMILY’S PREFERENCES AND
PRIORITIES, E.G., HOME, FASHION,
FOOD) AND OPINIONS (HOW
CONSUMER FEELS ABOUT A WIDE
VARIETY OF EVENTS AND POLITICAL
ISSUES, SOCIAL ISSUES, THE STATE
OF THE ECONOMY, ECOLOGY.

22. SOCIOCULTURAL
SEGMENTATION
FAMILY LIFE CYCLE SEGMENTATION IS
BASED ON THE PREMISE THAT MANY
FAMILIES PASS THROUGH SIMILAR PHASES
IN THEIR FORMATION, GROWTH AND FINAL
DISSOLUTION. AT EACH PHASE, THE FAMILY
UNIT NEEDS DIFFERENT PRODUCTS AND
SERVICES. YOUNG SINGLE PEOPLE, FOR
EXAMPLE, NEED BASIC FURNITURE FOR
THEIR FIRST APARTMENT, WHEREAS THEIR
PARENTS, FINALLY FREE OF CHILD
REARING, OFTEN REFURNISH THEIR HOMES
WITH MORE ELABORATE PIECES.

23. EACH OF THE STAGES IN THE
TRADITIONALLY FAMILY LIFE
CYCLE (BACHELORHOOD,
HONEYMOONERS, PARENTHOOD,
POSTPARENTHOOD, AND
DISSOLUTION) REPRESENTS AN
IMPORTANT TARGET SEGMENT
TO A VARIETY OF MARKETERS.

24. USE-RELATED SEGMENTATION
AN EXTREMELY POPULAR AND EFFECTIVE
FORM OF SEGMENTATION CATEGORIZES
CONSUMERS IN TERMS OF PRODUCT,
SERVICE, OR BRAND USAGE
CHARACTERISTICS, SUCH AS LEVEL OF
USAGE, LEVEL OF AWARENESS, AND
DEGREE OF BRAND LOYALTY.
RATE OF USAGE SEGMENTATION
DIFFERENTIATES AMONG HEAVY USERS,
MEDIUM USERS, LIGHT USERS, AND
NONUSERS OF A SPECIFIC PRODUCT,
SERVICE OR BRAND.

25. HEAVY USERS OF TRAVEL AGENTS IN SINGAPORE
WERE MORE INVOLVED WITH AND MORE
ENTHUSIASTIC ABOUT VACATION TRAVEL, MOTE
INNOVATIVE WITH REGARD TO THEIR SELECTION OF
VACATION TRAVEL PRODUCTS, MORE LIKELY TO
TRAVEL FOR PLEASURE AND MORE WIDELY
EXPOSED TO TRAVEL INFORMATION FROM MASS
MEDIA.
AWARENESS STATUS ENCOMPASSES THE NOTION OF
CONSUMER AWARENESS OF THE PRODUCT,
INTEREST LEVEL IN THE PRODUCT, READINESS TO
BUY THE PRODUCT, OR WHETHER CONSUMERS NEED
TO BE INFORMED ABOUT HE PRODUCT. AD FOR
CAMPBELL’S TOMATO SOUP THAT DESIGNED TO
CREATE BOTH AWARENESS AND INTEREST AMONG
CONSUMERS WHO ARE INTERESTED IN REDUCING
THEIR RISK OF CANCER.

26. SOMETIMES BRAND LOYALTY IS USED AS THE BASIS
FOR SEGMENTATION. MARKETERS OFTEN TRY TO
IDENTIFY THE CHARACTERISTICS OF THEIR BRAND-
LOYAL CONSUMERS SO THAT THEY CAN DIRECT
THEIR PROMOTIONAL EFFORTS TO PEOPLE WITH
SIMILAR CHARACTERISTICS IN THE LARGER
POPULATION.
INCREASINGLY, MARKETERS STIMULATE AND
REWARD BRAND LOYALTY BY OFFERING SPECIAL
BENEFITS TO CONSISTENT OR FREQUENT
COSTUMERS. SUCH FREQUENT USAGE OR
RELATIONSHIP PROGRAMS OFTEN TAKE THE FORM
OF A MEMBERSHIP CLUB (E.G. HERTZ NUMBER 1
CLUB GOLD, AMERICAN AIRLINES, PLATINUM LEVEL,
OR MARRIOTT'S REWARDS.)

27. USAGE-SITUATION
SEGMENTATION
OCCASION OR SITUATION OFTEN
DETERMINES WHAT CONSUMERS WILL
PURCHASE OR CONSUME.
WHEN I AM AWAY ON BUSINESS FOR A
WEEK OF MORE, I TRY TO STAY AT SUITES
HOTEL.
I ALWAYS BUY MY WIFE FLOWERS ON
VALENTINE’S DAY.
THE GREETING CARD INDUSTRY, FOR
EXAMPLE, STRESSES SPECIAL CARDS FOR
A VARIETY OF OCCASIONS THAT SEEM TO
BE INCREASING ALMOST DAILY
(GRANDPARENTS DAY, SECRETARIES DAY
ETC.)

28. DIAMOND INDUSTRY PROMOTE
DIAMOND RINGS AS AN ENGAGEMENT
SYMBOL.
THE GODIVA CHOCOLATE AD IN
FIGURE 3-4 (WWW.GODIVA.COM) IS AN
EXAMPLE OF SITUATIONAL, SPECIAL
USAGE OF SEGMENTATION. IT
APPEARED IN MAGAZINES A WEEK
PRIOR TO VALENTINE’S DAY AND
SUGGEST THAT A BOX OF GODIVA
CHOCOLATE “WILL MAKE HER HEART
SKIP A BEAT.”

29. BENEFIT SEGMENTATION
MARKETING AND ADVERTISING EXECUTIVES
CONSTANTLY ATTEMPT TO IDENTIFY THE
ONE MOST IMPORTANT BENEFIT OF THEIR
PRODUCT OR SERVICES THAT WILL BE
MOST MEANINGFUL TO CONSUMERS.
EXAMPLES OF BENEFITS THAT ARE
COMMONLY USED INCLUDE FINANCIAL
SECURITY (PRUDENTIAL FINANCIAL) DATE
PROTECTION (IOMEGA) GOOD HEALTH
(WHEATIES) FRESH BREATH (ECLIPSE GUM)
AND PEACE OF MIND (HEFTY ONE ZIP BAGS).
CREST WHITENING PLUS SCOPE
TOOTHPASTE (WWW.CREST.COM ARE
WHITER TEETH AND FRESH BREATH.

30. HYBRID SEGMETATION
APPROACHES
MARKETERS COMMONLY SEGMENT
MARKETS BY COMBINING SEVERAL
SEGMENTATION VARIABLES RATHER
THAN RELYING ON A SINGLE
SEGMENTATION BASE.
• PSYCHOGRAPHIC-DEMOGRAPHIC
PROFILES
DEMOGRAPHIC-PSYCHOGRAPHIC PROFILING HAS
BEEN WIDELY USED IN THE DEVELOPMENT OF
ADVERTISING CAMPAIGNS TO ANSWER THREE
QUESTIONS:
a) WHOM SHOULD WE TARGET?
b) WHAT SHOULD WE SAY?
c) WHERE SHOULD WE SAY IT?

31. GEODEMOGRAPHIC
SEGMENTATION
PEOPLE WHO LIVE CLOSE TO ONE
ANOTHER ARE LIKELY TO HAVE
SIMILAR FINANCIAL MEANS, TASTES,
PREFERENCES, LIFESTYLES AND
CONSUMPTION HABITS.
CLUSTERS ARE CREATED BASED ON
CONSUMER LIFESTYLES, AND
SPECIFIC CLUSTER INCLUDES ZIP
CODES THAT ARE COMPOSED OF
PEOPLE WITH SIMILAR LIFESTYLES
WIDELY SCATTERED THROUGHOUT
THE COUNTRY

32. MARKETERS USE THE CLUSTER DATE FOR
DIRECT-MAIL CAMPAIGNS, TO SELECT
RETAIL SITES AND APPROPRIATE
MERCHANDISE MIXES, TO LOCATE BANKS
AND RESTAURANTS, AND TO DESIGN
MARKETING STRATEGIES FOR SPECIFIC
MARKET SEGMENTS.
GEODEMOGRAPHIC SEGMENTATION IS
MOST USEFUL WHEN AN ADVERTISER’S OR
MARKETER'S BEST PROSPECT (IN TERMS OF
CONSUMER PERSONALITIES, GOALS AND
INTERESTS) CAN BE ISOLATED IN TERMS OF
WHERE THEY LIVE.

33. CRITERIA FOR EFFECTIVE
TARGETING OF MARKET
SEGMENTS
TO BE AN EFFECTIVE TARGET, A
MARKET SEGMENT SHOULD BE:
• IDENTIFIABLE
• SUFFICIENT (IN TERMS OF SIZE)
• STABLE OR GROWING
• ACCESSIBLE (REACHABLE) IN
TERMS OF BOTH MEDIA AND
COST.

34. 1. IDENTIFICATION
TO DIVIDE THE MARKET INTO SEPARATE
SEGMENTS ON THE BASIS OF A SERIES OF
COMMON SHARED NEEDS OR
CHARACTERISTICS THAT ARE RELEVANT TO
THE PRODUCT OR SERVICE.
SEGMENTATION VARIABLES, SUCH AS
GEOGRAPHY (LOCATION) OR DEMOGRAHICS
(AGE, GENDER, OCCUPATION, RACE) ARE
RELATIVELY EASY TO IDENTIFY OR ARE
EVEN ABSERVABLE.
EDUCATION INCOME OR MARITAL STATUS,
CAN BE DETERMINED THROUGH
QUESTIONNAIRIES.

35. 2. SUFFICIENCY
FOR MARKET SEGMENT TO BE A
WORTHWHILE TARGET, IT MUST
CONSIST OF A SUFFICIENT NUMBER
OF PEOPLE WARRANT TAILORING A
PRODUCT OR PROMOTIONAL
CAMPAIGN TO ITS SPECIFIC INTEREST.
CENSUS BUREAU (AVAILABLE AT
MANY LIBRARIES AND ONLINE VIA THE
INTERNET)

36. 3. STABILITY
MOST MARKETERS PREFER TO
TARGET CONSUMER SEGMENTS
THAT ARE RELATIVELY STABLE
IN TERMS OF DEMOGRAPHIC AND
PSYCHOLOGICAL FACTORS AND
NEED AND THAT ARE LIKELY TO
GROW LARGER OVER TIME.

37. 4. ACCESSIBILITY
A FOURTH REQUIREMENT FOR
EFFECTIVE TARGETING IS
ACCESSIBILITY, WHICH MEANS
THAT MARKETERS MUST BE
ABLE TO REACH THE MARKET
SEGMENTS THEY WANT TO
TARGET IN AN ECONOMICAL
WAY.

38. MARKET SEGMENTATION
PROCESS
IDENTIFYING SEGMENTS
SELECTING TARGET SEGMENTS
CREATING MARKETING MIX FOR
EACH TARGET SEGMENTS.

39. CRITERIA FOR EFFECTIVE
TARGETING OF MARKET
SEGMENTS
TO BE AN EFFECTIVE TARGET, A
MARKET SEGMENT SHOULD BE:
• IDENTIFIABLE
• SUFFICIENT (IN TERMS OF SIZE)
• STABLE OR GROWING
• ACCESSIBLE (REACHABLE) IN
TERMS OF BOTH MEDIA AND
COST.

40. MARKET TARGETING AND
TARGET MARKETS
MARKET TARGETING IS THE PROCESS OF
SELECTING CUSTOMERS FROM THE
IDENTIFED SEGMENTS, AND THE SELECTED
GROUP OF CUSTOMERS ARE CALLED
TARGET MARKETS, AND TARGET MARKET IS
THE GROUP OF CUSTOMERS WHO HAVE GOT
MONEY, AUTHORITY AND NEED FOR A
PRODUCT OR GROUP OF PRODUCT, AND
THEY ARE WIILLING TO PURCHASE OR USE A
PRODUCT .SO MARKET TARGETING IS THE
PROCESS AND THE TARGET MARKETS ARE
THE RESULT OF THAT PROCESS.

41. TARGET MARKET STRATEGIES
WE HAVE GOT 3 TARGET MARKET
STRATEGIES:
AGGREGATION STRATEGY:
HERE A MARKETER TREATS THE
WHOLE MARKET AS A SINGLE
SEGMENT, THIS STRATEGY IS ALSO
KNOWN AS “MASS MARKET STRATEGY”
OR UNDIFFERENTIATED MARKET
STRATEGY, SO THE COMPANY DEVISE
THE SAME MARKETING MIX FOR THE
WHOLLY SELECTED

42. MARKET. E.G GASOLINE, (FUEL),
SALT, SUGAR, VEGETABLES,
SUGAR, ETC,THIS STRATEGY IS
SUITABLE FOR THOSE FIRMS
WHICH ARE PRODUCING
UNDIFFERENTIATED PRODUCTS.
THE ADVANTAGE OF THIS
STRATEGY IS THAT, A FIRM CAN
MINIMIZE ITS OVERALL COST,
INCLUDING PROMOTIONAL COST,

43. WAREHOUSING COST,
TRANSPORTATION COST, AND LOWER
PRODUCTION COSTS, BECAUSE THE
TOTLA MARKET IS HERE IS BEING
TREATED AS A SINGLE SEGMENT.
SINGLE SEGMENT STRATEGY:
IT REFERS TO SELECTING A SINGLE
SEGMENT AS A TARGET MARKET
FROM THE WHOLE MARKET, AND ONE
MARKETING MIX IS BEING DEVELOPED
FOR

44. THEM,THIS STRATEGY ENABLES
MARKETERS TO ACQUIRE
SPECIALIZATION OR REPUTATION AS A
SPECIALIST IN MARKET. E.G
MERCEDEZ CAR TARGETING UPPER
CLASS, SUZUKI TARGETING MIDDLE
CLASS, THE DISADVANTAGE OF THIS
STRATEGY IS THAT THE MARKETER
HAS GOT ALL THE EGGS IN A SINGLE
BASKET,

45. MEANS ALL THE BUSINESS SUCCESS
IS DEPENDING UPON THE SINGLE
SEGMENT WITH LIMITED PRODUCTS
AND OTHER POTENTIAL MARKET
SEGMENTS ARE NOT CONSIDERED AS
TARGET MARKETS.
MULTIPLE SEGMENT STRATEGY
UNDER THIS STRATEGY TWO OR THAN
2 SEGMENTS OF CONSUMERS ARE
TREATED AS

46. TARGET MARKETS, AND A
SEPARATE MARKETING MIX IS
BEING DEVELOPED FOR EACH
SELECTED TARGET MARKET,E.G
SUNSILK SHAMPOO OFFERS 5
VARAITIONS IN ITS PRODUCT
LINE, (FOR NORMAL, DULL, DRY,
SHINNY, AND DAMAGED HAIR).

47. THIS STRATEGY RESULTS IN GREATER
VOLUME OF SALES, AS MORE
SEGMENTS ARE BEING TARGETED,
BUT ITS INEFFECTIVE IN TERMS OF
“COST” AND “MARKET COVERAGE”
GUIDELINES FOR SELECTING A
TARGET MARKET:
DEMAND, PURCHASING ABILITY AND
WILLING NESS TO BUY.

48. COMPANY SHOULD HAVE
ENOUGH RESOURCES TO FULFILL
THEIR DEMAND.
SUFFICINCY
COMPETITION SHOULD NOT BE
THAT MUCH TOUGH.
STABILITY.

49. POSITIONING
POSITIONING STRATEGIES:
POSITIONING IN RELATION TO
COMPETITORS
POSITIONING IN RELATION TO A
PRODUCT CLASS SPECIAL ATTRIBUTE:
POSITIONING BY PRICE AND QUALITY
BY:
ADIL ADNAN.
IQRA UNIVERSITY