Week-2 Masterclass - Market Opportunity - Saurabh Chaubey - Types of Market Segmentation

Summary

This video script delves into market segmentation strategies, focusing on demographic, geographic, psychographic, and behavioral factors. It illustrates how brands like Coca-Cola and McDonald's tailor their offerings based on geographic preferences, while channels like Cartoon Network and MTV target different age groups. The script also discusses how psychographics, such as values and attitudes, influence consumer choices, exemplified by Rolls-Royce appealing to achievers and Tesla to innovators. Behavioral segmentation is highlighted through examples like Indigo's low-cost airline model and Big Basket's discount offers, emphasizing the importance of understanding consumer actions to effectively segment markets.

Takeaways

• 🌐 Geographic segmentation involves tailoring products to suit regional tastes and preferences, such as Coca-Cola offering different beverages in India like Thumbs Up.
• 👥 Demographic segmentation targets specific age groups, genders, and other characteristics, influencing the choice of TV channels or products accordingly.
• 🧠 Psychographic segmentation classifies consumers based on their attitudes, values, and motivations, helping brands like Rolls-Royce and Tesla target specific customer profiles.
• 🛒 Behavioral segmentation examines how and why consumers make purchase decisions, which can influence strategies for brands like Indigo airlines and Ola cabs.
• 🏡 Geographic customization is crucial for global brands to cater to local tastes, as McDonald's does by offering the McAloo Tiki, a unique product for the Indian market.
• 📺 Demographic targeting is evident in TV channels that cater to different age groups, from Cartoon Network for kids to business channels for professionals.
• 🚀 Innovators and thinkers are more likely to be targeted by technology-focused brands like Tesla, showcasing the importance of psychographic data in marketing strategies.
• 📈 Behavioral segmentation helps in understanding customer preferences for cost, convenience, and occasional purchases, which is vital for companies like BigBasket and gold jewelry brands during festivals.
• 💡 The script illustrates how market segmentation is crucial for product introduction and marketing, using examples from various industries like FMCG, technology, and education.
• 🌟 A comprehensive approach to market segmentation considers geographic, demographic, psychographic, and behavioral factors to effectively target and satisfy consumer needs.

Q & A

What are the four types of market segmentation discussed in the script?

The four types of market segmentation discussed are demographic, geographic, psychographic, and behavioral.

How does geographic segmentation influence product offerings?

Geographic segmentation influences product offerings by requiring customization based on regional tastes and preferences. For example, Coca-Cola offers different beverages in different countries, such as Thumbs Up in India.

What is a demographic segmentation example provided in the script?

An example of demographic segmentation is the targeting of different TV channels based on age groups, like Cartoon Network for kids, MTV for young adults, and business channels for those in the job or business sector.

How does psychographic segmentation categorize consumers?

Psychographic segmentation categorizes consumers based on their values, attitudes, motivations, and lifestyles. Examples include innovators, thinkers, achievers, and believers, each targeted by brands that align with their characteristics.

What is an example of behavioral segmentation in the script?

An example of behavioral segmentation is the preference for low-cost airplane carriers, which Indigo targets by offering low-priced tickets.

How does the script suggest addressing the behavioral challenge of high-priced online coaching?

The script suggests addressing the behavioral challenge of high-priced online coaching by offering installment plans or tying up with banks and financial institutions to finance the fees.

Why is it important to consider geographic segmentation when launching a product?

Geographic segmentation is important because it helps in tailoring the product to the tastes and preferences of consumers in different regions, which can lead to better acceptance and sales.

How does demographic segmentation help in targeting TV channels?

Demographic segmentation helps in targeting TV channels by identifying the age group of the audience and creating content that appeals to their interests and needs.

What role does psychographic segmentation play in brand targeting?

Psychographic segmentation plays a crucial role in brand targeting by identifying consumers' values, attitudes, and lifestyles, allowing brands to connect with them on a more personal and meaningful level.

How does behavioral segmentation affect the marketing strategy for Ola cabs?

Behavioral segmentation affects the marketing strategy for Ola cabs by identifying different customer behaviors, such as regular users, occasional users, and those who prefer app-based services, allowing Ola to tailor its offerings accordingly.

What is the significance of understanding market segmentation for a new product launch?

Understanding market segmentation is significant for a new product launch because it helps in identifying the target audience, tailoring the product to meet their needs, and developing effective marketing strategies to reach them.