 Welcome learners. Today I am going to discuss the second video lecture on market segmentation. First, I will just show you the outline of the program. After going through this video lecture, you will be able to define the criteria for market segmentation. Then you will be able to identify the basis for market segmentation. In general, we do market segmentation for customer market and as well as for organizational market. First, we will discuss the criteria for market segmentation. For the market segmentation to be effective, basically we require the following criteria which I will be discussing here. First one is identity. That means there must be some means of identifying people of the segments on some standard basis for classifying the people in different segments. People of such segments can readily identify by common characteristics which show similar buying behavior. So, for having a segmentation in the market, there should be like same kind of characteristics, common characteristics they should have. Then second is substantiality. To be an effective and successful segmentation, the various segments should be sufficiently large for the marketers to earn profit. That means size of the business should be large enough. Then accessibility. The marketers must be able to focus its marketing efforts such as promotion and distribution to the selected or targeted segments. The marketers must be able to provide information and knowledge to potential customers regarding their products and services. And at the same time, they should be able to distribute the products or services to them at a reasonable price. Then another point is miserability. Measuring the size of the market and the changes in the consumer behavior of the various segments should be possible. The segment should be capable of providing accurate measurement of changes taking place among the consumers. For example, the segment of a market for a car is determined by a number of considerations such as economy, status, quality, safety, comfort, etc. Then the another point is nature of demand. It refers to variations in demand among various market segments. Segmentation is needed only if there are mark differences in nature of demand. Then a formulation of effective programs. The market segmentation should be made in such a way that an effective program can be formulated for attracting and serving various segments. Now we will discuss the basis for market segmentation. Market segmentation means dividing the market into several homogeneous submarkets or segments. Market can be broadly classified into two types as I have already said. One is consumer market and another one is your organizational market. Consumer market covers the ultimate users who normally buy in small quantities. Generally like grocery store we go and purchase things that is your example of consumer market. Then organizational market covers industrial market, reseller market and government market. Here the size of the market is very large. So here I will be discussing the segmentation of consumer markets. As in my first video lecture I have mentioned like there are four types of market segmentation. One is your geographic segmentation, then demographic, then psychographic and behavioral segmentation. First we will go to the geographic segmentation. Like region, country, city size, population density, climate all these are part of your geographic segmentation. Now we will discuss the demographic segmentation. So demography is the study of population. It is the popular base for segmenting the consumer market. We can segment this demographic market under various categories. First one is your age. Bias needs wants and ability to purchase differ with their age factor. The marketer should analyze to which age group his or product or service would be most suitable. Like for children we have different product category, for adults we have different product category and for like old people again we have different product category. Then we will go to the gender. Many products are purchased by one sex or the other. Like female generally purchases cosmetic jewelry, bangles, lipstick all those things. On the other hand, saving kids or many things which are purchased by men only. So gender also influences in purchasing of the product. Then comes the income, which is again another form of demographic factor. People must have money to spend, then only they can make a market income. Income provides purchasing ability to customers. Therefore a detailed study of income is very useful for the marketers. Like low income group may purchase different things, high income group may purchase different things. Then occupation, occupation is again another demographic factor which is influenced by the, which is again very influential factor for marketers. Like people have various occupation. They may be lawyers, doctors, engineers, businessmen all this. And their buying behavior and lifestyle also depends on their occupation. Then another demographic factor is education. On the basis of educational qualification and subject of specialization, again consumer purchase pattern varies. Then religion, in India we have different religions. So it is quite useful to analyze the population based on religion or for certain products such as like dress, their food habits, all these things varies depending on their religion. Then we will go to the psychographic variables. Under these factors it includes social class of people, lifestyle of people, personality factors, etc. So under social class we can say that a marketer requires close attention on different social classes. The social class may be conceptualized on the basis of the occupation of the customers or maybe based on their income level the social class varies. Then we will go to the lifestyle. Lifestyle affects the overall manner in which persons live and spend time and money. So depending on lifestyle of the person also the buying pattern varies. And based on this the marketers can segment the market. Like people living in rural area or people living in urban area their lifestyle varies and based on that their requirements also varies. Then we will go to the personality. It covers the characteristics such as dominance, aggressiveness, objectivity, achievement, motivation, etc. of a person which again influences our buying behavior. The personality of an individual is determined by a good number of factors like education, transient, industrialization and job opportunities available. So based on personality also we can segment the market. Then comes the behavioral segmentation. A large number of marketers are on the opinion that behavioral segmentation are the best starting point for a constructing market segments. In behavioral segmentation consumers can be divided into groups on the basis of their attitude, use, knowledge, expectation from the product user's rate, user's habit, etc. So here I have explained few points. First one is your occasion. Like regular occasions for example having fruit juice after breakfast special occasions like purchasing new dresses during any festive season so all these your behavioral variables. Then user status, non-user, ex-user, potential user regular user, etc. are different categories of buyers as users. Then users rate like how frequently they use the product whether light users or heavy users and then based on the loyalty status. Like some people are hardcore loyal towards a product they will purchase only that particular product and some have the shifting loyalties like this time if they are buying this product then next time they might be purchasing some other products. And then like attitude towards the product whether they have positive attitude whether they have negative attitude or whether it is indifferent all these things are based on all these things market can be segmented. Now we will go to the segmentation of organizational markets. The base of segmentation of consumer goods can also be applied for the segmentation of organizational market. Usually there are three common bases which are frequently used in organizational markets. They are type of customers, size of customers and type of buying situation. So first we will go to the type of customer. Based on the type of activity it can be classified into so many segments. According to the standard industrial classification system like they said based on the type of customers we can segment the market as agricultural market, construction market, finance market, mining market, manufacturing market, government market, services all those kinds. Then based on the size of customers like the size of an industry or trading house maybe small, medium or large and accordingly their purchase order will vary. The marketer may have separate marketing policies to sell their products or services to bug purchase and small purchases. Then based on the type of buying situation on the basis of buying situation again the marketer can classify the market as new buyer like those who are purchasing the product for the first time. Then modified buyer suppose earlier also they were purchasing the product from these marketers but slight modifications they have made and then third one is straight rebuy. That means like whatever they have purchased earlier they were continuing the same type of purchase. So our marketers, organizational marketers can be segmented based on these categories. We have come to the end of this video lecture. Now we will just summarize whatever we have learnt in this video lecture. Here we can say that instead of applying one marketing program for total market marketers can create separate marketing programs to meet the needs of different buyers effectively. The ultimate basis for meaningful segmentation are differences in customer response to the different marketing elements. Organizations adopt the policy of market segmentation for two main reasons. One is in order to match their own limited resources to market opportunities and to provide guidelines for the development of an appropriate marketing mix. So here we have discussed about the consumer market and basis for consumer market segmentation and we have also discussed like basis for organizational market segmentation. So I have given some further readings. That's all for this video lecture. Thank you.