Unit-2 Market Segmentation Benefits
Unit-2 Market Segmentation Benefits Mahindra Scorpio is the SUV in the Indian market first of its kind that delivers power, performance and looks. The target audience for the SUV is upper middle class to affluent class who prefers to go on adventure trip, have an attitude of displaying power, proving their mettle and enjoy freedom over anything else. These are the psychographic characteristics print ad is trying to target hence the print ad shows SUV on a dangerous rides. This sends a message of adventurous, freedom and power. Adventurous and free life attitude is preferred by both male and female in the upper middle class and affluent society hence the ad is targeted at both the gender. This is the reason print ad does not carry any image of driver. The primary age group for this will be from 26 to 55 but the primary target audience in that age bracket will be the one who loves the pleasure of 4×4 driving and adventure. In the social society like India, freedom is one of the quality which is pursued by few but desired by many. Hence by this ad it is trying to connect to those audience as well who wants to pursue freedom and power. The feature mention technical details like HP, engine capacity and warranty. This communicate to the target audience who is aware of various technical features of the car and is assured of warranty as persona plans for lot of adventurous rides.
Market Segmentation and its Benefits
Market segmentation is the process that organization use to identify and focus the target market on the basis of demographic, psychographic and geographic segmentation. Organization needs a data based on the potential demand for the product available in the market and to understand that demand first it needs to understand for which segment in the society does the product cater to and what are the potential benefits organization can provide to this segment. Demographic segmentation divides the market into different segments based on age group, income group and gender. It is important to know that product is targeted for which demographic segment as it will decide the promotion and communication strategy. Also, it will decide the pricing strategy for the product. The psychographic segmentation divides the market based on the lifestyle, attitude and behavior of the individual. The focus is more on identifying the internal self of the customer and communicating the association of product with internal self of the target customer. This is a very diverse segmentation and based on various lifestyle, changing trends in the society this segment changes and requires the company to revisit the market environment frequently. Geographic segmentation is the segmenting the market based on the geography. With globalization and evolution of internet, physical boundaries and geographical constraints have reduced but it is important to know the geography company is targeting as the other segmentation strategy will vary based on different geography. Even psychographic segmentation varies in the same country based on rural and urban market. Once the market segmentation is identified it has several benefits to the organization. It becomes easier to focus on product innovation, product differentiation and developing competitive advantages. The primary three benefits of market segmentation are as follows.
Unit-2 Market Segmentation Benefits
- Focus and Clarity: Market segmentation provides organization the required focus and clarity regarding its target market. Better focus also means that energy and resources are directed towards the right direction in turn providing the maximum return for the investments. Clarity about the target customers also facilitates the organization to focus on product differentiation and product innovation.
- Better Communication: With clear market segmentation, it helps marketing and promotion team to clearly communicate product attribute to its target audience.
- Competitive advantage: Market segmentation provides competitive advantage to the company by clear communication, better profitability and increased product innovation.
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