DIFINITION THE RECOGNITION THAT A MARKET IS COMPOSED OF DIFFERENT - PowerPoint PPT Presentation

Chapter No. Page No. 7 44 Marketing of Banking Services MARKET SEGMENTATION DIFINITION � THE RECOGNITION THAT A MARKET IS COMPOSED OF DIFFERENT BUYERS WHO HAVE DIFFERENT RESPONSES TO MARKET OFFERINGS. � NO ONE APPROACH TO MARKET WILL SATISFY ALL BUYERS. � EACH SEGMENT REPRESENTS A SOMEWHAT DIFFERENT OPPORTUNITY FOR THE ORGANIZATION. � IN ITS MOST FUNDAMENTAL FORM MARKET SEGMENTATION RECOGNIZES THAT, A COMPANY OR ITS PRODUCTS / SERVICE OFFERING CAN’T BE ALL THINGS TO EVERYONE. E.R.REIDENBACK AND R.E.PITTS

Chapter No. Page No. 7 45 Marketing of Banking Services MARKET SEGMENTATION DIFINITION � MARKET SEGMENTATION IS THE SUBDIVISION OF A MARKET INTO HOMOGENOUS SUBSETS OF CUSTOMERS WHERE ANY SUBSET MAY CONCEIVABLY BE SELECTED ON A MARKET TARGET TO BE REACHED WITH A DISTINCT MARKETING MIX. PHILIP KOTLER

Chapter No. Page No. 7 45 Marketing of Banking Services MARKET SEGMENTATION DIFINITION � MARKET SEGMENTATION IS A GROUP OF BUYERS WHO SHARE QUALITIES THAT MAKE THE SEGMENT DISTINCT AND WHICH HAS MARKETING SIGNIFICANCE. � EXISTENCE OF A GROUP OF INDIVIDUALS WITH COMMON CHARACTERISTICS DOES NOT ITSELF CONSTITUTE A MARKET SEGMENT. � ONLY WHEN THEY HAVE COMMON CHARACTERISTICS AS BUYERS DO THEY FORM A MARKET SEGMENT. FUNDAMENTALS OF MODERN MARKETING CUNDIFF, STILL AND GOVONI

Chapter No. Page No. 7 45 Marketing of Banking Services MARKET SEGMENTATION PURPOSE OF MARKET SEGMENTATION ACCORDING TO YENKELOVICH IN THE “NEW CRITERIA FOR MARKET SEGMENTATION” MARKET SEGMENTATION IS TO MEET THE NEEDS OF THE MARKET PROFITABLY. THE INTENTS ARE: � TO DIRECT THE RIGHT AMOUNT OF PROMOTION, ATTENTION AND MONEY TO THE MOST POTENTIALLY PROFITABLE SEGMENT. � TO DESIGN A PRODUCT LINE THAT TRULY PARALLELS THE DEMAND. � TO DETERMINE THE APPEALS THAT WILL BE THE MOST EFFECTIVE IN THE COMPANY’S ADVERTISING. CONT….

Chapter No. Page No. 7 46 Marketing of Banking Services MARKET SEGMENTATION PURPOSE OF MARKET SEGMENTATION � TO CATCH THE FIRST SIGN OF A MAJOR TREND IN A SWIFTLY CHANGING MARKET. � TO DETERMINE THE APPEALS WHICH ARE MOST RESPONSIVE AND IN WHICH SEGMENT. � TO CHOOSE ADVERTISING MEDIA MORE WISELY AND DETERMINE THE PROPORTION OF THE BUDGET IN ANTICIPATION OF ITS IMPACT. � TO CORRECT THE TIMING OF ADVERTISING AND PROMOTIONAL EFFORTS. � TO UNDERSTAND MEANINGLESS DEMOGRAPHIC MARKET.

Chapter No. Page No. 7 46 Marketing of Banking Services MARKET SEGMENTATION PURPOSE OF MARKET SEGMENTATION IT IS THE MARKET SEGMENTATION THAT HAS IDENTIFIED SEGMENTS LIKE PROFESSIONALS, SMALL AND MEDIUM ENTERPRISES (SME), HIGH NET WORTH INDIVIDUALS AND SENIOR CITIZENS. THIS MAKES IT EASIER TO IDENTIFY AND DETERMINE THEIR NEEDS AND TO CATER TO IT.

Chapter No. Page No. 7 47 Marketing of Banking Services MARKET SEGMENTATION SEGMENTATION HELPS � TO EXPLORE OPPORTUNITIES. � TO DEVELOP STRATEGY. � IN FORMULATING POLICY. � IN MANAGING BUDGETS. � DETERMINING THE RESOURCES REQUIRED. (AND ITS QUALITY) o MARKETING WITHOUT SEGMENTATION IS DIFFICULT.

Chapter No. Page No. 7 47 Marketing of Banking Services MARKET SEGMENTATION SEGMENTATION STRATEGIES � MASS MARKETING OR UNDIFFERENTIATED STRATEGY: THIS OCCURS WHEN ONE PRODUCT IS OFFERED TO THE ENTIRE MARKET. IT FOCUSES ON WHAT IS COMMON IN THE NEEDS OF BUYERS. � SELECTIVE MARKETING OR DIFFERENTIATED STRATEGY: WHERE A NUMBER OF PRODUCTS ARE SOLD TO SELECTED MARKET SEGMENTS TO INCREASE SALES. � CONCENTRATED OR NICHE MARKETING STRATEGY: WHEN A CERTAIN GROUP IS TARGETED LIKE HIGH NET WORTH INDIVIDUALS, PROFESSIONALS OR SALARIED.

Chapter No. Page No. 7 48 Marketing of Banking Services MARKET SEGMENTATION SEGMENTATION STRATEGIES � WHAT IS THE BASIS FOR SEGMENTATION? � HOW SHOULD IT BE DONE? o ECONOMIC SYSTEM IS ONE CRITERIA USED TO SEGMENT THE MARKET. � IT CAN ALSO BE DIVIDED INTO: o FAMILY WHERE ONLY THE HUSBAND WORKS. o FAMILY WHERE ONLY THE WIFE WORKS. o FAMILY WHERE BOTH THE HUSBAND AND WIFE WORKS. � PROFESSION IS IMPORTANT AS ITS NATURE OFTEN DETERMINES THE SAVINGS POTENTIAL.

Chapter No. Page No. 7 49 Marketing of Banking Services MARKET SEGMENTATION SEGMENTATION STRATEGIES � EFFORTS FOR SEGMENTATION MUST SATISFY THE FOLLOWING: o MEASURABILITY. o SUBSTANTIALITY. o ACCESSIBILITY. o ACTIONABILITY. o DEFENSIBILITY. KOTLER.