Page 140 - DMGT510_SERVICES_MARKETING

Unit 7: Service Segmentation and Targeting

7.6 Summary Notes

The process of identifying market segments, selecting one or more of them and developing

a marketing mix to meet their needs is known as target marketing.
Market Segmentation is defined as dividing a market into distinct groups of buyers with

different needs, characteristics, or behaviour that might require separate services or
marketing mixes.
An effective segment is one which is: measurable, actionable, accessible, sustainable,

competitive and differentiable.
There are several ways in which a service marketer can segment the market: demographics,

geography, psychographics, and behaviouristic.
Demographic segmentation can be done on the basis of age, gender, family, income and

education.
Under geographic segmentation the market can be segmented on the basis on countries,

states, cities, districts, urban areas, rural areas etc. A region can be divided into north, east,
south and west.
Under psychographic segmentation, the service marketer can segment on the basis of

lifestyles and personality. Behaviouristic segmentation can be done based on benefits,
attitudes, motivation, usage rate, loyalty, etc.
There are 3 basic steps in effective segmentation: identifying customer segments develop

measures for attractiveness and selecting customer segments.
Undifferentiated marketing is providing the same service to all the segments and

differentiated marketing refers to segmenting the market and designing specialised services
for each segment. As contrast, niche marketing to catering to specific needs to a particular
segment.

A service marketer with deep pockets and other resources addresses himself to all the

segments. The service marketer, over the period has come to the realisation that no single
offer can satisfy the whole market.

7.7 Keywords

Behaviouristic Segmentation: based on attitudes, loyalty, usage rate, benefits, etc.
Demographic Segmentation: based on age, income, gender, education, family, etc.
Geographic Segmentation: based on countries, regions, districts, states, etc.

Market Segmentation: dividing a heterogeneous market into homogenous sub-units
Niche Marketing: catering to a specialized segment
Psychographic Segmentation: based on lifestyles and personality
Segmentation: The process of defining and subdividing a large homogenous market into clearly
identifiable segments having similar needs, wants, or demand characteristics.
Target Market: A group of customers that the business has decided to aim its marketing efforts
and ultimately its services.

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