Research and develop a marketing strategy

Research and develop a marketing strategy


Defining the market segment

The process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment.
Few companies are big enough to supply the needs of an entire market; most must breakdown the total demand into segments and choose those that the company is best equipped to handle.

Four basic factors that affect market segmentation are

• clear identification of the segment,
• measurability of its effective size,
• its accessibility through promotional efforts, and
• its appropriateness to the policies and resources of the company.

The four basic market segmentation-strategies are based on

behavioral,
demographic,
psychographic, and
geographical differences.


Market segmentation is done basis what is the USP of your product. Segmentation criteria are - Geography, Age group, Income level, unmet need in market. Your product targets which age group, gender, premium, mid premium, value, rural, urban, youth, old, housewife segment etc.

the difference between market segment and customer classification

Market segmentation is done basis what is the USP of your product. Segmetation criteria are - Geography, Age group, Income level, unmet need in market. Your product targets which age group, gender, premium, mid premium, value, rural, urban, youth, old, housewife segment etc. Segmentation can alos be done basis consumption ocassion - morning, evening, afternoon, during night, breaks etc. School/college/office goers.

For example in case of hotel segment one can look at luxary, premium, mid premium, low cost hotels. Now if the business opportunity is good enough in value segment then you need to build a product for value hotel market. So in this case in the hotel industry the segment we have chosen is value hotels. Segment can be done basis the unmet needs of consumer. For example in India Nokia created a mobile phone which had a light in it, it was a gap in need satiafaction for rural people. Geographic consumer behaviour like Rural or urban or metro. The chinese mobile phone companies, are targetting indan market basis the selfie camera as there is high demand for low cost selfie camera phones in India. In rural india Micromax is a leader as Rs 6k to 8k smartphones are highly in demand in rural India.

Customer classification is done basis demographic & psychograhic parameters. Demographic talks about Age, Income, Occupation of the consumer. Psychographic talks about the behaviour, attitude, benefits for which consumer is looking. For example among the women there is a hidden need to look beautoful as it makes a woman confident. But the research says that only 2% of world’s women believe they are beautiful. Dove worked on this insight which a attitude related issue among women. Women will feel high on self estewm if they are confident about looking beautiful. Thats why Dove has positioned itself as a beauty soap. It has become a requirement for women today.

how identify the characteristics, motivations and behaviours of potential target customers 

Larger markets are most typically divided into smaller target market segments on the basis of geographic, demographic, psychographic and behavioristic characteristics:

1. Geographic. Potential customers are in a local, state, regional or national marketplace segment. ...
2. Demographic. ...
3. Psychographic. ...
4. Behavioristic.