 Welcome the learners of Kishnokantro-Hendrik State of University MBA program, second semester. We are going to have a unique coverage of your marketing management paper in the second semester. And I shall take up unit 5 today. Unit 5 is all about market segmentation. This unit 5 has got a number of learning objectives. What I plan to do? These six learning objectives, I shall try to cover in three videos of 10 minutes duration, together about 30 minutes of duration. And I shall take up two of the learning objectives in each of the small videos. This market segmentation, as you all know, being the students of marketing, that we cannot think of covering the entire mass market. The market comprises of different divisions. Suppose take the example of toothpaste market. Now, no toothpaste is the same. Each and every toothpaste in the market is different. And some of the toothpaste could be, say, Harvelle toothpaste, some of the toothpaste could be on some other positions. So, NIM toothpaste is different from promise toothpaste. Promise toothpaste is different from bubble toothpaste. It's not it. Colgate toothpaste is different from Perfsoldert. Even, say, close-up is different. Close-up also of different varieties. So, no two products are the same. All of them belong to the same toothpaste market. So, the market is divided into segments. So, this particular unit will discuss about all the various aspects about market segmentation. As I have told you, I shall take up two objectives. One is, first of all, we shall discuss what market segmentation is all about. We shall explain the concept of market segmentation so that you can understand the concept of market segmentation, why it is required, and we shall also discuss the importance of market segmentation. So, as regards the concept of market segmentation, you see, as I have already told you, a market comprises of different customers. No two customers are same. Take the example of ice cream market. Some of the ice creams could be more sweet. Some of the ice creams could be more creamy. Take the example of, say, store-ware products. Goddress store-ware. There could be the personal consumers, personal users. There could be the industrial users. Say, Goddress locks. The banks also will use locks, even me in our own household also. We shall use locks. So, locks also will be having different varieties of different sizes, different shapes. It's not it. So, market segment is grouping of buyers. The buyers will be grouped out of the market according to some common characteristics. There could be the male segment. There could be the female segment. It's not it. Say, fair and lovely. Fair and lovely men's cream. Fair and lovely women's cream. So, there would be different characteristics of the market in terms of age, sex, qualification, geographical location, say, north-eastern market, rural market, urban market. So, rural market needs a difference. Urban market needs a difference. Metropolitan market needs a difference. So, market segment is grouping of buyers. According to some common characteristics such as income, age, sex, qualification, geographical location, so that their needs are balanced out. By offering one unique product, one single product, we cannot meet the requirements of all the customers. Say, adults need a different product. Young generation needs a different product. The housewives might require different products. The working women might require different products. So, each one of them will be having different kinds of requirements. So, market segmentation is subdividing the market into distinct subsets of customers. So, those subsets will be quite distinct. So, this is the men's segment. This is the women's segment. This is for the middle class consumers. This is for the high-end consumers. This is the premium segment. This is the mass segment. This is the hyper-premium segment. Hyper-premium is very, very high quality, very, very high price. So, that will not be affordable to each and every one. So, that is a segment, that is a distinct segment. So, market segmentation is basically dividing the market into subsets of customers, where each subset may simply be selected as a target market. A marketer will select a particular market segment that I shall make my offer in this particular segment only. So, a shootings and shootings manufacturer, a textile manufacturer might think that I shall offer my products in the hyper-premium category only. So, hyper-premium category will be very, very high price and will be of very high quality. So, necessarily it will not be available in all the outlets. It will be available only in the selected outlets. So, that market I shall try to target. And that is a segmentation. And to that extent, I shall have a distinct marketing mix. My product will be different. My price will be different. My distribution outlets will be different. And my promotional mechanism also will be different. In this regard, let us see some of the definitions of market segmentation. Dear learners, in your self-learning material, certain definitions are given about market segmentation. We shall take up some of those definitions and we shall try to understand the concept better. According to Philip Kotlar, who is a domain of marketing management, he, according to Philip Kotlar, his definition is, market segmentation is the act of dividing the market into distinct groups of buyers, who might merit separate products. So, a very high-notes-top-notes brokerate, a top-notes-corporate official would require a very premium range of products. So, his requirements are different. So, we, accordingly, we shall have to offer a distinct marketing mix to meet the requirements of that distinct set of customers. So, market segmentation is the act of dividing a market into distinct groups of buyers, who might merit separate products or separate marketing strategy. R.S. Dabber, grouping of buyers or segmenting the market is described as market segmentation. This is as simple as that, grouping of buyers and dividing the market into segments. And according to W.G.L. Stanton, market segmentation consists of taking of total heterogeneous market. A market is heterogeneous. Out of this heterogeneous market, we shall try to identify distinct group of customers who would like to demonstrate some kind of homogeneity in the heterogeneous market. And according to those homogenous segments, we shall identify some of those homogenous segments and we shall make our offer into segments. So, repeating once again the definition of W.G.L. Stanton, market segmentation consists of taking the total heterogeneous market for a product and dividing it into several submarkets or segments, each of which tends to be homogenous in all significant aspects. So, despite the heterogeneity, a market will show certain characteristics which are homogenous. And segmentation is identifying those homogenous sub-segment. And according to L.N. Arover, market segmentation is a strategy of dividing markets in order to quantify them. Ultimately, why are we selecting segments so that we can selectively target them and we can be successful in those particular segments so that our marketing objectives can be accomplished. So, dear learners, from this discussion so far, we must have been able to understand the importance of market segmentation. If we do not go for market segmentation, we shall get lost. The mass market is so heterogeneous and we shall not be able to identify any kind of target segment. So, dividing the market into distinct sub-seks will help us in many ways because it will provide us various types of information that are useful in product development. What kind of product do we need to develop to meet the requirements of these kind of segments. So, marketing research is important. Then, evaluation of marketing activities are important. Segment related, that we are going to be present in this particular segment. So, accordingly, suppose, say, digitalized market. Out-of-the-digitalized market, say, woolen clothes. Woolen clothes require a distinct kind of detergent. So, that is Goddress easy detergent. So, that is particular segmentation. The Goddress easy detergent is for woolen segment only. So, if we go for a mass kind of detergent, that will not appeal to the woolen garments owners. So, the woolen garments owners, they are highly concerned about the care, about the safekeeping of their woolen garments. So, they would like to prefer a distinct detergent. So, Goddress is positioned that way. Goddress has been able to identify that particular segment. So, market segmentation helps us in channelizing the money because hard-earned money has to be sent in marketing development so that we can identify the most profitable customers by which we can be able to sustain the market segmentation. So, market segmentation helps us in designing, preparing effective marketing policy, efficient marketing policy, and accordingly, we can target our promotional activities as real. So, each of the marketing mix elements, like say, product, price, place, promotion, all these can be developed as per the requirement of the target market. As I have told you, say, we can think about a clothing, merchant, textile manufacturer, developing suitings and shortings, right, to the top-notch bureaucrats, top-notch corporate personnel. So, I think the product will be of high quality, prices will be of high quality, place will be of selective availability in selected outlets only. Promotion also will be going through the premium modes of media, like, say, India Today magazine or, say, some selected TV channels, like that only. So, accordingly, the entire integration of product, price, place, promotion will be made, keeping in view of the distinct requirements of the distinct segments. So, this is with this. I would like to conclude the first part of the video of market segmentation. In the second part, we shall take up two more learning objectives. Thank you.