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sharing with one or more characteristics that cause them to demand similar product
and/or services based on qualities of those products such as price or function. A
true market segment meets all of the following criteria: it is distinct from other
segments (different segments have different needs), it is homogeneous within the
segment (exhibits common needs).
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"Dividing a market into smaller groups of buyers with distinct needs,
characteristics or behaviours who require separate products or marketing mix. The
company identifies different ways to segment the market and develop profiles of
the resulting market segment".
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An organisation cannot satisfy the needs and wants of all consumers. To do so may
result in a massive drain in company resources. Segmentation is simply the process
of dividing a particular market into sections, which display similar characteristics
or behavior. These are a number of segmentation variables that allow an
organisation to divide their market into homogenous groups.

Market can be segmented on following bases.

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Demographic segmentation consists of dividing the market into groups based on
variables such as age, gender family size, income, occupation, education, religion,
race and nationality.

As you might expect, demographic segmentation variables are amongst the most
popular bases for segmenting customer groups.
This is partly because customer wants are closely linked to variables such as
income and age. Also, for practical reasons, there is often much more data
available to help with the demographic segmentation process.

The main demographic segmentation variables are summarised below:



Consumer needs and wants change with age although they may still wish to
consumer the same types of product. So Marketers design, package and promote
products differently to meet the wants of different age groups. Good examples
include the marketing of toothpaste (contrast the branding of toothpaste for
children and adults) and toys (with many age-based segments).

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A consumer stage in the life-cycle is an important variable - particularly in markets

such as leisure and tourism. For example, contrast the product and promotional
approach of Club 18-30 holidays with the slightly more refined and sedate
approach adopted by Saga Holidays.

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Gender segmentation is widely used in consumer marketing. The best examples

include clothing, hairdressing, magazines and toiletries and cosmetics.

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Another popular basis for segmentation. Many companies target affluent

consumers with luxury goods and convenience services. Good examples include
Coutts bank; Moet & Chandon champagne and Elegant Resorts - an up-market
travel company. By contrast, many companies focus on marketing products that
appeal directly to consumers with relatively low incomes. Examples include Aldi
(a discount food retailer), Airtours holidays, and discount clothing retailers such as
TK Maxx.

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Many Marketers believe that a consumers "perceived" social class influences their
preferences for cars, clothes, home furnishings, leisure activities and other products
& services. There is a clear link here with income-based segmentation.

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Customer can be divided into different group on the basis of their occupation like
doctor, lawyer, manager, farmer, worker, politician, and so on.

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As religion changes, the need of customer also changes. E.g. A florist prepares
garlands for Hindu customers, bouquet for Christians and square-³chader´ of
garlands for Muslim customers.

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Customers can be divided into different group on the basis of their education like
highly educated, moderately educated, uneducated etc. E.g. A publishing company
may publish different books for different level of education.

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Based on the nationality, customer can be divided as Indian, Nepalese, American,

and etc. A multinational company having its operation in different countries may
fall product accordingly.

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People of various races have different demands. E.g. Jains, Brahmins, Kshatriyas
have different demands. So, a hotel may have on its menu variety of combinations
to fulfill the need of different customers.

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Geographic segmentation tries to divide markets into different geographical units
such as Regions, Countries, City or Town size, Population density, Climate and so
on. For instance, a firm may divide its total market into various parts like local
market, regional market, national market, international market and so on.

Again national market is divided into various parts like north zone, east zone, west
zone, south zone, and central zone.

Geographic segmentation is an important process - particularly for multi-national

and global businesses and brands. Many such companies have regional and
national marketing programs which alter their products, advertising and promotion
to meet the individual needs of geographic units.

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In psychographic segmentation, buyers are divided into different groups on the
basis of lifestyle or personality or values.
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Some important psychographic variables are explained below.

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Buyers are divided on the basis of the life style like simple life style, aristocratic
life style and so on. Life style has a strong influence on the preference of the
people in clothing, cosmetics, furniture, alcoholic behavior and so on. E.g.nestle
introduces a special brand of coffee (Decaffeinated) for ³Late Nighters´. However,
it failed.
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Markers have used personality variables to segment markets like compulsive,
authoritarian, ambitious, and so on. Personality has a strong influence on the
preference of the people in clothing, furniture, automobiles, cigarette, and so on.

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Some markers segment by core values. Core values go much deeper than behavior
or attitude, and determine, at a basic level, people¶s choices and desires over the
long term.

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In behavioral segmentation, buyers are divided into groups on the basis of their
knowledge of, attitude toward, use of, or response to a product. Many marketers
believe that behavioral variables-occasions, benefits, user status, usage rate, loyalty
status, buyer-readiness stage, and attitude are the best starting points for
constructing market segments.
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Buyers can be distinguished according to the occasions when they develop a need,
purchase a product, or use a product. Occasions segmentation can help firms
expand product usage. For example in Pakistan tea is usually consumed at
breakfast. A company can consider occasions of critical life events or transitions-
marriage, childbirth, illness, relocation, career change-as giving rise to new needs.

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Buyers can be classified according to the benefits they seek. This means some buy
for economy, some buy for convenience and some buy for prestige.E.g. in
toothpaste buyer may seek various benefits such as economy (low price), cosmetic
(bright teeth), medicinal (decay prevention) and taste.
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Markets can be segmented into nonuser, ex-users, potential users, first time users,
and regular users of a product. Market-share leaders tend to focus on attracting
potential users because they have the most to gain. Smaller firms focus on trying to
attract current users away from the market leader.
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Markets can be segmented into light, medium, and heavy product users. Heavy
users are often a small percentage of the market but account for high percentage of
total consumption.

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Consumers have varying degrees of loyalty to specific brands, stores, and
companies. Buyers can be divided into four groups according to brand loyalty
status:
1 Hard-core loyal: Consumers who are buy one brand all the time.
2 Split loyal: Consumers who are loyal to two or three brands.
3 Shifting loyal: Consumers who shift from one brand to another.
4 Switchers: Consumers who show no loyalty to any brand.

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A market consists of people in different stages of readiness to buy a product. Some

are unaware of the product, some are aware, some are informed, some are
interested, some desire the product, and some intend to buy. The relative numbers
make a big difference in designing the marketing program.
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Five attitude groups can be found in a market: enthusiastic, positive, indifferent,
negative, and hostile.Door-to-door workers in political campaign use the voter¶s
attitude to determine how much time to spend with that voter. They thank to
enthusiastic voters and remind them to vote; they reinforce those who are
positively disposed; they try to win the votes of indifferent voters; they spend no
time trying to change the attitudes of negative and hostile voters

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Started in 2004, Tata Sky is an 80:20 JV between the TATA Group and STAR.
Tata Sky offer Indian viewers a world-class television viewing experience through
its satellite television service.
The TATA Group is one of India¶s largest and most respected business companies.
It includes diversified businesses in sectors such as materials, engineering,
services, energy, information systems & communications, consumer products and
chemicals.
The Group and its enterprises have been dedicated and unique in their loyalty to
business ethics and their commitment to corporate social responsibility. This is a
heritage that has earned the Group the trust of many millions of stakeholders in
measure few business houses anywhere in the world can match.
STAR is a leading media and entertainment company in Asia. STAR¶s parent
company, News Corporation, owns an International group of DTH businesses that
include BSkyB in UK, Sky Italia in Italy and Foxtel in Australia.
Revolutionizing TV Viewing

ic DVD Quality picture and Sound : Enjoy over 160 TV channels and
services in DVD quality picture and CD quality sound.

ic Customer Service : 24x7 help. Support in 11 languages.

ic Guide : Get a 4-day listing of all programmes on television. You can

also set reminders for your favourite programmes.
 ic Parental Control : Regulate what your children watch on your
television by locking movies based on the ratings provided by the
channel or by locking the entire channel.

ic Search and Scan Banner : Find out what¶s playing on another channel
without changing the channel you are watching.

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Tata Sky is launched in 2006, so it is in its initial stage and it has only
35% share in the DTH market. If we compare it with Dish TV then it
is far behind in the race and Tata Sky has to work a lot to attract the
customers and it has taken a step in doing the same. They have
launched Tata Sky +, which has unique features like Live recording,
Live Program Pause, Live Program Rewind. We hope that it will help
Tata Sky a lot to increase its sales or we can say to convert failure to
success. Actually Dish TV has a benefit of first mover. And we know
that it is very difficult to fight with first mover, because it is
positioned in the mind of the customer and if we want to change the
consumer¶s mind then Tata Sky should launch new and innovative
features which help them to attract customers. Now they have
launched Tata Sky + in which they have many new and Innovative
features



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They have understood each member of the family and provide services for them.

ic For youngsters there is Showcase in which there are movies on

demand.

ic For mother they have cooking recipes.

ic For kids they have Games and GK Quizzes

ic For Grandmother/Grandfather they have Active Darshan in which

they telecast live from different temples
It means that they have understood and analyse the customer needs and provide
them the same.

Tata Sky already has over 2.3 million subscribers and they are the fastest growing
Direct to Home (DTH) provider in India. They have special Active service which
includes:

ic Active Wizkids

ic Active Darshan

ic Active Cooking

ic Active Stories

ic Active Sports

ic Active Astrology

ic Active Games

ic Active Matrimony

They have focused on every age group and provided its features accordingly.

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It should be said that market segmentation is one of the important strategies that
provides an organization with competitive advantage.Market segmentation
contributes to the success of the organizations in many ways such as helping to
better understand the consumer needs and wants, better target and position the
products, to retain existing customers and win new customers, maintains effective
relationships with the customers, reduce costs and expenses, increase market share
and profits and better use of resources etc. Hence so, if the organizations are to
face the turbulent, ever changing competitive environment then they obviously
have to segment the market beforehand, whether it may be consumer or industrial.


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