<br /> PRESENTATION <br /> ON<br /> MARKET SEGMENTATION<br />153035728980<br />Submitted to: Submitted by:<br />Miss. Surbhi ma’m Ritu<br /> MBE 1st SEM
<br /> PRESENTATION <br /> ON<br /> MARKET SEGMENTATION<br />153035728980<br />Submitted to: Submitted by:<br />Miss. Surbhi ma’m Ritu<br /> MBE 1st SEM. <br /> Roll. No- 8122<br />What is MARKET? <br />A market is a place which allows the purchaser and the seller to invent and gather information’s and lets them carry out exchange of various products and services. In other words the Meaning of Market refers to a place where the trading of goods takes place. The place can be a market place or a street market. A market is thus by definition comprises people or business with potential interest, purchasing power and willingness to spend the money to buy a product or service that satisfies need. The following diagram illustrates this concept.<br />Example: Tata’s have started producing a Mercedes Benz car here in India. Many individuals have a need for car but they may not need a luxury car like Mercedes. They are happy with a santro or Chevy spark or Maruti. Some might be interested in a luxury car, but may not be interested in Mercedes as it may attract the attention of tax authorities. They may prefer luxury cars like Honda city, Ford Fiesta, Octavia and so on. Some may be interested in Mercedes but they are not able to afford a price of Rs.32lakh. Thus, the market for Mercedes is a very small portion of luxury car markets, which is a small portion of the total car markets<br />MARKET SEGMENTATION-<br />Market segmentation can be defined as the process of dividing a market into different homogeneous groups of consumers.<br />According to Philip kotler “market segmentation is the subdividing of market into homogenous sub set of customers, where any subset may conceivably be selected as market target to be reached with distinct marketing mix.<br />Benefits of Market segmentation-<br />Market segmentation offers the following potential benefits to a business:<br />Better matching of customer needs: Customer needs differ. Creating separate products for each segment makes sense.<br />Enhanced profits for business: Customers have different disposable incomes and vary in how sensitive they are to price. By segmenting markets, businesses can raise average prices and subsequently enhance profits<br />Better opportunities for growth: Market segmentation can build sales. For example, customers can be encouraged to “trade-up” after being sold an introductory, lower-priced product<br />Retain more customers: By marketing products that appeal to customers at different stages of their life, a business can retain cu