Week-2 Masterclass - Market Opportunity - Saurabh Chaubey - Types of Market Segmentation
Summary
TLDRThis 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.
Outlines
📊 Market Segmentation Overview
The speaker introduces the concept of market segmentation, focusing on four key qualities: demographic, geographic, psychographic, and behavioral. Demographic segmentation considers age, gender, and other personal characteristics. Geographic segmentation looks at where people live, such as country, state, or city, and how it influences product offerings. Psychographic segmentation delves into consumer mindsets, values, attitudes, and motivations. Behavioral segmentation examines how and why consumers make purchasing decisions. The speaker provides examples of how brands like Coca-Cola and McDonald's adapt their products based on geographic preferences and how TV channels target different age groups based on demographic data.
🌐 Geographic and Demographic Segmentation Examples
The speaker elaborates on geographic segmentation with the example of Coca-Cola, which offers region-specific beverages like 'Thumbs Up' in India, adapting to local tastes. McDonald's is highlighted for creating a unique product for the Indian market, 'McAloo Tikki', showcasing how geography can dictate product introductions. Demographically, TV channels are used as an example to target different age groups, from Cartoon Network for children to business channels for working adults, and channels like 'SAR ASA' for the elderly, demonstrating how demographic characteristics define consumer preferences.
🧠 Psychographic Segmentation and Consumer Mindsets
Psychographic segmentation is discussed with categories like innovators, thinkers, achievers, and others, each with distinct qualities that make them targets for specific products. For instance, achievers might be attracted to luxury brands like Rolls-Royce, while innovators might be interested in the latest technologies from companies like Tesla. The speaker also touches on how different people's attitudes towards dating apps like Tinder can influence market segmentation, with some preferring traditional methods over digital platforms.
🛒 Behavioral Segmentation and Consumer Actions
Behavioral segmentation is explored through examples of how customer preferences for low-cost services have led to the success of budget airlines like Indigo. The speaker also discusses how different customer behaviors, such as regular use of Ola for commuting or occasional use for special occasions, can influence market strategies. BigBasket's discount offerings cater to cost-sensitive customers, while the purchase of gold during festivals or marriages is an example of occasional buying behavior. The segment also covers how some customers may be decision-makers or followers of experts, which is crucial for understanding market segmentation.
🎯 Identifying Market Segments for a Product Launch
The speaker concludes with a practical approach to identifying market segments for launching a product, using the example of an online engineering coaching platform. Geographic segmentation involves choosing the right language to cover the desired geographical area. Demographic segmentation focuses on the target audience, which in this case is students in grades 9-12, with parents as the customers. Psychographic segmentation targets those comfortable with online learning and technology. Behavioral segmentation addresses the challenge of convincing Indian parents to invest a significant amount in online coaching, which is overcome by offering installment payment plans through financial institutions.
Mindmap
Keywords
💡Market Segmentation
💡Demographic Segmentation
💡Geographic Segmentation
💡Psychographic Segmentation
💡Behavioral Segmentation
💡Customization
💡Innovators
💡Achievers
💡Occasional Buying Behavior
💡Consumer Decision-Making
Highlights
Market segmentation is based on four qualities: demographic, geographic, psychographic, and behavioral.
Demographic segmentation considers age, gender, and other demographic qualities of the target audience.
Geographic segmentation involves tailoring products to the tastes and preferences of different regions or countries.
Psychographic segmentation is connected to consumers' thoughts, values, attitudes, and motivations behind their actions.
Behavioral segmentation focuses on how and why consumers make purchase decisions.
Coca-Cola customizes its beverages based on geographic segmentation, such as offering Thumbs Up in India.
McDonald's introduced the Maharaja Mac, a unique product for the Indian market, based on geographic considerations.
TV channels like GTV adapt to geographic segmentation by offering content in different languages for various Indian states.
Demographic segmentation is evident in TV channels targeting different age groups, like Cartoon Network for kids and business channels for professionals.
Psychographic segmentation categorizes consumers into groups like innovators, thinkers, achievers, and drivers, each with distinct qualities.
Rolls-Royce targets achievers with high-priced luxury cars, showcasing success and status.
Tesla attracts innovators interested in the latest technology with its electric vehicles.
Unacademy targets thinkers with its educational platform, appealing to those who value knowledge and self-improvement.
Tinder's market segmentation focuses on consumers who prefer using apps for dating, reflecting psychographic preferences.
Behavioral segmentation is seen in Indigo's low-cost airline model, targeting cost-sensitive customers.
Ola caters to different customer behaviors, from regular users to those who occasionally use ride-hailing services.
Big Basket targets cost-sensitive customers by offering discounts and appealing to occasional buyers during festivals.
Market segmentation strategies help businesses identify and target specific customer groups more effectively.
Transcripts
[Music]
now how we do the segmentation to do the
segmentation we basically look at the
four different kind of qualities the uh
the if if you look at the the picture
the one is about the demographic about
people uh what age gender uh what kind
of uh the bring demographic qualities
they bringing then Geographic if you
look at the the downside which country
state or city you are living in
psychographic this psychographic is
connected to you how you think and how
what what the values attitude
motivations is is basically behind your
actions and then the fourth one is the
behavioral and so behavior is about what
qualities like what how and why you make
a decision of purchase of any
product I have listed down some of the
parameters of all this four uh types of
Market segmentation which you look at
that so you can look at the detail of
all of them uh I will look I will take
you through some of the examples with
the brands start with the geographic
Market segmentation so you can see that
the Coca-Cola is a brand it's a global
brand right they're present in each
almost uh in each of the country but you
see that they have different beverages
uh they have some common Beverages and
then they have some specific beverages
for a particular country like for
example in India they have a unique they
acquired a unique brand thumbs up
because each country even some each
state has a different taste so based on
the geography you may need to change
your product the customization like the
way mcdonal did so Mech ALU tii is a
unique product which is being sold in
India which actually was made for India
so that is how the geography uh in the
many cases decide what product you are
going to introduce for example you can
see also the TV channels uh the g g news
or G Channel GTV is present in almost in
all the state of India but different
languages because every state has
different language to to speak on that's
how geography may decide what the
product you you are going to bring in
then let's talk about the demographic so
demography let's for take an example of
that characteristic age and you can see
that there different TV channels here so
based on your age uh different channels
are going to Target you uh for a kid
Cartoon Network for a young person uh
MTV maybe a person who is into job or
into business he would prefer to watch G
business or any business channel news
channels and a person who is now in an
old age retirement age you would prefer
to watch some uh Channel like SAR ASA
those kind of channels where like he
wants to gain the the other
knowledges so that's the example so
that's how the demography can Define
even the YouTube uh so definitely uh
this can't be a 100% rule for each and
everything but uh what we look at while
we doing while doing the market
segmentation we look at the common
characteristic which most of the people
in that group
shared that is what something we target
for now we look at the psychographic uh
Market segmentation so on the left you
can see that the different like we have
identified category segmented people in
different categories we termed some of
them as innovators thinkers Achievers
experiencer believer drivers makers
survivors now each one of them have a
different set of qualities in them and
that makes them Target for different
products for a person who is an achiever
right he is a target for brand like
Rolls-Royce who is going to give money
like 10 CR or 15 CR for a car somebody
who is highly successful in his career
who has a sense of being achiever
that guy would love to have a r stri to
Showcase his success right who is who
will be uh the Target customer for Tesla
somebody who is interested to know who's
who's looking forward to go ahead with
the latest Technologies somebody who is
actively looking into technology and
that is innovators right somebody who is
who would be a target for unacademy like
the the portal the at Tech portal
somebody like a thinker somebody who
would be driver who wants to do things
uh so that's how uh the customer for
anadem like of course you can see that
also for app like Tinder not everyone is
going to be their customer there will be
people who would prefer to use an app to
go for a date but there are other people
who may not like the idea of using an
app to go for a date they would prefer a
face tof face uh method of the old way
of doing going for dating so that's how
psychography decide the market
segmentation now look at the behavioral
aspect of that so
now let me take you uh to the each of
the brand like Behavior how Behavior Uh
impact the market segmentation there are
customer who would prefer a lowcost
airplane carriers right and that's where
the Indigo goes they want they they
started to offer low price tickets and
capture those customer customers right
then there are a customer who maybe uh
for Ola there can be different kind of
customer there may be a person who's a
regular user office goer or a college
student who regularly use Ola there will
be a person who occasionally use one or
two time he he might use Ola somebody
who is uh good with using app so he's of
course definitely a target for olola but
somebody who is not into a smartphone
doesn't like to use a smartphone for
anything so might not be interested in
that person uh similarly with the big
basket now there are people who prefer
to get discounts they like the idea so
this all companies may think to cat
those cost sensitive customer by
offering like big basket off for
Discount and those things that there are
occasionally buying Behavior like
marriages or festivals we plan to buy
gold that's when tus tap to those
customers this is the occasional
Behavior now you may look at the
customers who are going to buy who who
is going to build his home but he's not
going to decide which brand of cement
he's going to use his engineer or the
contractor will decide so the person
might be the decision maker the customer
might be a decision maker or he might be
a follower of another expert so that is
also the behavioral category of uh
deciding the market
segmentation now when you identify that
the who is your Market segment right you
have a product mightbe you let's take an
attech product so I have been from the
ad tech industry so how I used to do
that so for me uh I if I'm planning to
launch uh an engineering uh coaching
online coaching then how I will do that
the classification based on this four
criteria the first thing Geographic so I
will decide the language which will
cover the most of the geography I I have
to see that the the language with which
I am making a product how much geography
it is covering so if I use English I may
go to a large extent to the
urban the India but I may decide to go
out with the vernacular languages also I
may use Hindi or Bengali or udia if I
want to go more deeper into Tire two or
Tire three cities structure right then
uh demography so I'm very clear about
who was going to use an i coaching right
the consumer will be uh the student who
is in 9th 10th 11th 12th the important
part is 11 12th and then maybe the
droppers but the customer will be their
parents who who are going to buy that
coaching online coaching subscription
for their kids right then what are the
psychographic characteristic who wants
to use that right those who are ready to
use uh online products who are savy with
technology who are comfortable maybe uh
introverts people who are you know can
sit on a their chair for a long time
they are self-disciplined this kind of
people are my uh Target
customer and then of course the
behavioral thing now behavioral thing
you might have seen uh BYU and all uh
the topper it's a very interesting case
study in itself uh on a behavioral part
when this all coaching online coaching
apps came up they were like in a range
of 40,000 45,000 per year so normally
Indian parents cannot have that much
money to spend on a single time thing so
that was a behavioral challenge for this
products this apps that how to get 40 40
5,000 from Indian parents so what what
they did they break it up in a emis that
they gave offer that okay you can give
this on an Emi basis they're tied up
with the banks and financial institution
to uh Finance those fees so that these
are the that's how we basically segment
our
[Music]
Market
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