BINAYAK ACADEMY,

Gandhi Nagar 1st Line, Near NCC Office, Berhampur

Contact No: 9776486185, 9078876111
UNIT 1
Chapter 1
INTRODUCTION
In today's world of marketing, everywhere you go you are being marketed to in one form or another. Marketing is
with you each second of your walking life. From morning to night you are exposed to thousands of marketing
messages every day. Marketing is something that affects you even though you may not necessarily be conscious of
it.
After reading this post you'll understand - What exactly the marketing is, to whom it is beneficial for, and what are
the nature and scope of marketing.
DEFINITION OF MARKETING
1. According to American Marketing Association (2004) - "Marketing is an organisational function and set of
processes for creating, communicating and delivering value to customers and for managing relationships in a way that
benefits both the organisation and the stakeholder."
2. AMA (1960) - "Marketing is the performance of business activities that direct the flow of goods and services from
producer to consumer or user."
3. According to Eldridge (1970) - "Marketing is the combination of activities designed to produce profit through
ascertaining, creating, stimulating, and satisfying the needs and/or wants of a selected segment of the market."
4. According to Kotler (2000) - "A societal process by which individuals and groups obtain what they need and want
through creating, offering, and freely exchanging products and services of value with others."
NATURE OF MARKETING
1. Marketing is an Economic Function: Marketing embraces all the business activities involved in getting goods
and services, from the hands of producers into the hands of final consumers. The business steps through which
goods progress on their way to final consumers is the concern of marketing.
2. Marketing is a Legal Process by which Ownership Transfers: In the process of marketing the ownership of
goods transfers from seller to the purchaser or from producer to the end user.
3. Marketing is a System of Interacting Business Activities: Marketing is that process through which a business
enterprise, institution, or organisation interacts with the customers and stakeholders with the objective to earn
profit, satisfy customers, and manage relationship. It is the performance of business activities that direct the flow of
goods and services from producer to consumer or user.
4. Marketing is a Managerial function: According to managerial or systems approach - "Marketing is the
combination of activities designed to produce profit through ascertaining, creating, stimulating, and satisfying the needs
and/or wants of a selected segment of the market."
According to this approach the emphasis is on how the individual organisation processes marketing and develops
the strategic dimensions of marketing activities.
5. Marketing is a social process
Marketing is the delivery of a standard of living to society. According to Cunningham and Cunningham
(1981) societal marketing performs three essential functions:-
1. Knowing and understanding the consumer's changing needs and wants;
2. Efficiently and effectively managing the supply and demand of products and services; and
3. Efficient provision of distribution and payment processing systems.
6. Marketing is a philosophy based on consumer orientation and satisfaction
7. Marketing had dual objectives - profit making and consumer satisfaction
SCOPE OF MARKETING
1. Study of Consumer Wants and Needs: Goods are produced to satisfy consumer wants. Therefore study is done
to identify consumer needs and wants. These needs and wants motivates consumer to purchase.
2. Study of Consumer behaviour: Marketers performs study of consumer behaviour. Analysis of buyer behaviour
helps marketer in market segmentation and targeting.
3. Production planning and development: Product planning and development starts with the generation of
product idea and ends with the product development and commercialisation. Product planning includes
everything from branding and packaging to product line expansion and contraction.

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 BINAYAK ACADEMY,
Gandhi Nagar 1st Line, Near NCC Office, Berhampur
Contact No: 9776486185, 9078876111
4. Pricing Policies: Marketer has to determine pricing policies for their products. Pricing policies differs from
product to product. It depends on the level of competition, product life cycle, marketing goals and objectives, etc.
5. Distribution: Study of distribution channel is important in marketing. For maximum sales and profit goods are
required to be distributed to the maximum consumers at minimum cost.
6. Promotion: Promotion includes personal selling, sales promotion, and advertising. Right promotion mix is
crucial in accomplishment of marketing goals.
7. Consumer Satisfaction: The product or service offered must satisfy consumer. Consumer satisfaction is the
major objective of marketing.
8. Marketing Control: Marketing audit is done to control the marketing activities.
IMPORTANCE OF MARKETING MANAGEMENT
Marketing management has gained importance to meet increasing competition and the need for improved
methods of distribution to reduce cost and to increase profits. Marketing management today is the most important
function in a commercial and business enterprise.
The following are the other factors showing importance of the marketing management:
(i) Introduction of new products in the market.
(ii) Increasing the production of existing products.
(iii) Reducing cost of sales and distribution.
(iv) Export market.
(v) Development in the means of communication and modes of transportation within and outside the country.
(vi) Rise in per capita income and demand for more goods by the consumers.
FUNCTIONS OF MARKETING MANAGEMENT
However, they must be carried out by any company that wants to operate its marketing systems successfully.
1. Selling:
It is core of marketing. It is concerned with the prospective buyers to actually complete the purchase of an article. It
involves transfer of ownership of goods to the buyer. Selling plays an important part in realising the ultimate aim
of earring profit. Selling is enhanced by means of personal selling, advertising, publicity and sales promotion.
Effectiveness and efficiency in selling determines the volume of company’s profits and profitability.
2. Buying and Assembling:
It involves what to buy, of what quality, how much from whom, when and at what price. People in business buy to
increase sales or to decrease costs. Purchasing agents are much influenced by quality, service and price.
The products that the retailers buy for resale are determined by the needs and preferences of their customers. A
manufacturer buys raw materials, spare parts, machinery, equipment’s, etc. for carrying out his production process
and other related activities. A wholesaler buys products to resell them to the retailers.
Assembling means to purchase necessary component parts and to fit them together to make a product. ‘Assembly
line’ indicates a production line made up of purely assembly operations. The assembly operation involves the
arrival of individual component parts at the work place and issuing of these parts to be fastened together in the
form of an assembly or sub-assembly.
Assembly line is an arrangement of workers and machines in which each person has a particular job and the work
is passed directly from one worker to the next until the product is complete. On the other hand, ‘fabrication lines’
implies a production line made up of operations that form or change the physical or sometimes chemical
characteristics of the product involved.
3. Transportation:
Transportation is the physical means by which goods are moved from the places where they are produced to those
places where they are needed for consumption. It creates place, utility. Transportation is essential from the
procurement of raw material to the delivery of finished products to the customer’s places. Marketing relies mainly
on railroads, trucks, waterways, pipelines and air transport.
The type of transportation is chosen on several considerations, such as suitability, speed and cost. Transportation
may be performed either by the buyer or by the seller. The nature and kind of the transportation facilities
determine the extent of the marketing area, the regularity in supply, uniform price maintenance and easy access to
the supplier or seller.

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 BINAYAK ACADEMY,
Gandhi Nagar 1st Line, Near NCC Office, Berhampur
Contact No: 9776486185, 9078876111
4. Storage:
It involves holding of goods in proper (i.e., usable or saleable) condition from the time they are produced until they
are needed by customers (in case of finished products) or by the production department (in case of raw materials
and stores); storing protects the goods from deterioration and helps in carrying over surplus for future
consumption or use in production.
Goods may be stored in various warehouses situated at different places, which is popularly known as
warehousing. Warehouses should be situated at such places from where the distribution of goods may be easier
and cheaper. Situation of warehouses is also important from the view of prompt feeding of emergency demands.
Storing assumes importance when production is regional or consumption may be regional. Retail firms are called
“stores”.
5. Standardization and Grading:
The other activities that facilitate marketing are standardisation and grading. Standardisation means establishment
of certain standards or specifications for products based on intrinsic physical qualities of any commodity.
This may involve quantity (weight or size) or it may involve quality (colour, shape, appearance, material, taste,
sweetness etc.) Government may also set some standards, for example, in case of agricultural products. A standard
conveys a uniformity of the products.
Grading means classification of standardised products into certain well defined classes or groups. It involves the
division of products into classes made of units possessing similar characteristics of size and quality. Grading is
very important for raw materials, marketing of agricultural products (such as fruits and cereals), mining products
(such as coal, iron and manganese) and forest products (such as timber). Branded consumer products may bear
grade labels A, B, C.
6. Financing:
It involves the use of capital to meet financial requirements of agencies dealing with various activities of
marketing. The services to provide the credit and money needed, the costs of getting merchandise into the hands of
the final user is commonly referred to as finance function in marketing.
In marketing, finances are needed for working capital and fixed capital which may be secured from three sources—
owned capital, bank loans and advance and trade credit. (Provided by manufacturers to wholesaler and by the
wholesaler to the retailers.) In other words; various kinds of finances are short-term finance, medium-term finance,
and long-term finance.
7. Risk Taking:
Risk means loss due to some unforeseen circumstances in future. Risk bearing in marketing refers to the financial
risk interest in the ownership of goods held for an anticipated demand including the possible losses due to a fall in
prices and the losses from spoilage, depreciation, obsolescence, fire and floods or any other loss that may occur
with the passage of time.
From production of goods to its selling stage, many risks are involved due to changes in market conditions, natural
causes and human factors. Changes in fashion or inventions also cause risks. Legislative measures of government
may also cause risks. Risks may arise during the course of transportation.
They may also be due to decay, deterioration and accidents, or due to fluctuation in the prices caused by changes
in their supply and demand. The various risks are usually termed as place risk, time risk and physical risk, etc.
8. Market Information:
The importance of this facilitating function of marketing has been recognised only recently. The only sound
foundation on which marketing decisions may be based is correct and timely market information. Right facts and
information reduce the aforesaid risks and thereby result in cost reduction.
Modern marketing requires a lot of information adequately, accurately and speedily. Marketing information makes
a seller know when to sell, at what price to sell, who are the competitors, etc. Marketing information and its proper
analysis has led to marketing research which has now become an independent branch of marketing.
Business firms collect, analyse and interpret facts and information from internal sources, such as records, sales-
people and findings of the market research department. They also seek facts and information from external
sources, such as business publications, government reports and commercial research firms.
Retailers need to know about sources of supply and also about customers “buying motives and buying habits”.
Manufacturers need to know about retailers and about advertising media. Firms in both these groups need
information about ‘competitor’ activities and about their markets.

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 BINAYAK ACADEMY,
Gandhi Nagar 1st Line, Near NCC Office, Berhampur
Contact No: 9776486185, 9078876111
Even ultimate consumers need market information about availability of products, their quality standards, their
prices and also about the after sale service facility. Common sources for consumers are sales people, media
advertisements, colleagues, etc.
Q. Explain different types of marketing concepts in detail.
1. Production Concept,
2. Product Concept,
3. Selling Concept,
4. Marketing Concept,
5. Societal Marketing Concept.

These concepts are described below;

Production Concept
The idea of production concept – “Consumers will favour products that are available and highly affordable”. This
concept is one of the oldest Marketing management orientations that guide sellers. Companies adopting this
orientation run a major risk of focusing too narrowly on their own operations and losing sight of the real objective.
Most times; the production concept can lead to marketing myopia. Management focuses on improving production
and distribution efficiency. Although; in some situations; the production concept is still a useful philosophy.
Product Concept
The product concept holds that the consumers will favour products that offer the most in quality, performance and
innovative features. Here; under this concept, Marketing strategies are focused on making continuous product
improvements.
Product quality and improvement are important parts of marketing strategies, sometimes the only part. Targeting
only on the company’s products could also lead to marketing myopia.
For example; suppose a company makes the best quality Floppy disk. But a customer does really need a floppy
disk? She or he needs something that can be used to store the data. It can be achieved by a USB Flash drive, SD
memory cards, portable hard disks, and etc. So that company should not look to make the best floppy disk. They
should focus to meet the customer’s data storage needs.
Selling Concept
The selling concept holds the idea- “consumers will not buy enough of the firm’s products unless it undertakes a
large-scale selling and promotion effort”.
Here the management focuses on creating sales transactions rather than on building long-term, profitable customer
relationships. In other words; the aim is to sell what the company makes rather than making what the market
wants. Such aggressive selling program carries very high risks.
In selling concept the marketer assumes that customers will be coaxed into buying the product will like it, if they
don’t like it, they will possibly forget their disappointment and buy it again later. This is usually very poor and
costly assumption.
Typically the selling concept is practiced with unsought goods. Unsought goods are that buyers do not normally
think of buying, such as insurance or blood donations.
These industries must be good at tracking down prospects and selling them on a product’s benefits.
Marketing Concept
The marketing concept holds- “achieving organizational goals depends on knowing the needs and wants of target
markets and delivering the desired satisfactions better than competitors do”.
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 BINAYAK ACADEMY,
Gandhi Nagar 1st Line, Near NCC Office, Berhampur
Contact No: 9776486185, 9078876111
Here marketing management takes a “customer first” approach.
Under the marketing concept, customer focus and value are the routes to achieve sales and profits.
The marketing concept is a customer-centered “sense and responds” philosophy. The job is not to find the right
customers for your product but to find the right products for your customers.
The marketing concept and the selling concepts are two extreme concepts and totally different from each other.
Q. Explain the difference between Selling Concept and Marketing Concept

No. The Selling Concept The Marketing Concept

1 undertakes a large-scale selling and promotion undertakes activities such as; market research,
effort
2 The Selling Concept is suitable with unsought The Marketing Concept is suitable for almost any
goods—those that buyers do not normally type of product and market.
think of buying, such as insurance or blood
donations.
3 Focus of the selling concept starts at the Focus of the marketing concept starts at
production level. understanding the market.
4 Any company following selling concept Companies that are following the marketing
undertakes a high-risk concept requires to bare less risk and uncertainty.
5 The Selling Concept assumes –“customers who Instead of making an assumption, The marketing
are coaxed into buying the product will like it. concept finds out what really the consumer requires
Or, if they don’t like it, they will possibly and acts accordingly to them.
forget their disappointment and buy it again
later.”
6 The Selling Concept makes poor assumptions. Marketing concept works on facts gathered by its
“market and customer first” approach.

Societal Marketing Concept

Societal marketing concept questions whether the pure marketing concept overlooks possible conflicts between
consumer short-run wants and consumer long-run welfare.
The societal marketing concept holds “marketing strategy should deliver value to customers in a way that
maintains or improves both the consumer’s and society’s well-being”.
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 BINAYAK ACADEMY,
Gandhi Nagar 1st Line, Near NCC Office, Berhampur
Contact No: 9776486185, 9078876111
It calls for sustainable marketing, socially and environmentally responsible marketing that meets the present needs
of consumers and businesses while also preserving or enhancing the ability of future generations to meet their
needs.
The Societal Marketing Concept puts the Human welfare on top before profits and satisfying the wants.
The global warming panic button is pushed and a revelation is required in the way we use our resources. So
companies are slowly either fully or partially trying to implement the societal marketing concept.
CHAPTER 2
Q. Define the term marketing mix. Explain structure of marketing mix and its elements.
Introduction to Marketing Mix
Marketing is the process of identifying, anticipating, and satisfying customers' requirements with the purpose to
make profits. In this process marketing managers and marketing representatives have to take various marketing
decisions to make the operations profitable. They have to decide what combination of marketing policies and
procedures is adopted to bring about desired behaviour of trade and consumers at minimum cost. They have to
decide how can advertise, personal selling, pricing, packaging, channels, warehousing, and the other elements of
marketing be manipulated and mixed to make marketing operations profitable. More specifically, they have to
decide a marketing mix - a decision making method in relation with the product, price, promotion, and
distribution.
The term Marketing Mix was introduced by Neil H. Borden in his article - "The Concept of Marketing Mix". He
learned about it in a research bulletin on the management of marketing costs, written by his associate, Prof. James
Culliton. in 1948. In this study of manufacturers' marketing costs he described the business executive as a
"decider," an "artist" - a "mixer of ingredients," who sometimes follows a recipe prepared by others, sometimes
prepares his own recipe as he goes along, sometimes adapts a recipe to the ingredients immediately available, and
sometimes experiments with or invents ingredients no one else has tried.
Definition of Marketing Mix
According to Philip Kotler - "Marketing Mix is the combination of four elements, called the 4P's (product, Price,
Promotion, and Place), that every company has the option of adding, subtracting, or modifying in order to create a
desired marketing strategy"
According to Principles of Marketing, 14e, Kotler and Armstrong, 2012 - "The Marketing Mix is the set of tactical
marketing tools - Product, Price, Promotion, and Place - that the firm blends to produce the response it wants in the target
market."
Meaning of Marketing Mix
The Marketing Mix is a marketing tool used by marketing professionals. It is often crucial when determining
product or brand's offering, and it is also called as 4P's (Product, Price, Promotion, and Place) of
marketing. However, in case of services of different nature the 4 P's have been expanded to 7P's or 8P's.
In recent times, giving more importance to customer a new concept have been introduced, i.e. Concept of 4C's. The
Concept of 4C's is more customer-driven replacement of 4P's. According to Lauterborn's the 4C's are - Consumer,
Cost, Communication, and Convenience. According to Shimizu's the 4C's are -Commodity, Cost, Communication,
and Channel.
4P's - Producer-oriented Model of Marketing Mix
Product
The product is something like good, service, information etc. that satisfies the wants of a company’s target market.
Products must follow a logical product lifecycle and it is very important for marketers or producers to understand
and plan for the stages of the product lifecycle and their core challenges. Product must answer some questions, for
example, what problem the product will solve, is the consumer or customer needs the product, and/or what will
be the components of the product?
Price
Price means the number of dollar customers or consumers must pay to obtain/use the product. It is the amount
paid by the customer by to a business. For example, a bottle of Wine that may cost Rs. 100.
Prices set by the business depends on the business policy those it may be adjusted through discounts, allowances,
and/or credit terms.
Place
Place indicates the company activities that ensure a product or service available to target consumers.
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 BINAYAK ACADEMY,
Gandhi Nagar 1st Line, Near NCC Office, Berhampur
Contact No: 9776486185, 9078876111
It includes all activities like distribution channels, logistics, transportation, and locations offered by the company.
A company may have many stores offering its products across the United States, but there may still locations
where customers or consumer will not access that company’s products.
This is a great loss for the company. So that it must ensure that products are available to target customers or
consumers.
Promotion
Promotion refers to the activities that communicate the merits of the product to target customers and influence to
buy it.
One of the major factors of promotion for products or services is advertising.

People
Indicates the employees representing the company. They interact with clients or customers for various purposes.
Process
The process is the procedures, mechanisms, and flow of activities by which the service is delivered to the clients/
customers.
Physical Evidence
Physical evidence refers to the area or space where the company representatives will interact with the customer. It
works as a tool for reassuring our customers. For example, a company might have impressive buildings, a well-
trained staff, and great website. Considerations include furniture, signage, and layout.
4C's - Consumer-oriented model of marketing Mix
 Consumer - In this model the Product is replaced by Consumer. Marketers focus more on consumer
satisfaction. The product is designed and produced keeping in consideration the requirements of consumer.
 Cost - Price is replaced by Cost. Here the cost refers to the total cost of owning a product. It includes cost to
use the product, cost to change the product, and cost of not choosing the competitor's product.
 Communication - Promotion is replaced by Communication. Communication includes advertising, public
relation, personal selling, and any method that can be used for proper, timely, and accurate communication
between marketer and consumer.
 Convenience - Place is replaced by Convenience. it focuses on ease of buying, convenience in reaching to the
store/product, and convenience in getting product information.
Q. What is Segmentation? Explain the need and basis of segmentation.
Segmentation refers to a process of bifurcating or dividing a large unit into various small units which have more or
less similar or related characteristics.
Market Segmentation
 Market segmentation is a marketing concept which divides the complete market set up into smaller subsets
comprising of consumers with a similar taste, demand and preference.
 A market segment is a small unit within a large market comprising of likeminded individuals.

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 BINAYAK ACADEMY,
Gandhi Nagar 1st Line, Near NCC Office, Berhampur
Contact No: 9776486185, 9078876111
 One market segment is totally distinct from the other segment.
 A market segment comprises of individuals who think on the same lines and have similar interests.
 The individuals from the same segment respond in a similar way to the fluctuations in the market.
Need for Market Segmentation
Not all individuals have similar needs. A male and a female would have varied interests and liking towards
different products. A kid would not require something which an adult needs. A school kid would have a different
requirement than an office goer. Market Segmentation helps the marketers to bring together individuals with
similar choices and interests on a common platform.
 Market Segmentation helps the marketers to devise appropriate marketing strategies and promotional
schemes according to the tastes of the individuals of a particular market segment. A male model would look
out of place in an advertisement promoting female products. The marketers must be able to relate their
products to the target segments.
 Market segmentation helps the marketers to understand the needs of the target audience and adopt specific
marketing plans accordingly. Organizations can adopt a more focussed approach as a result of market
segmentation.
 Market segmentation also gives the customers a clear view of what to buy and what not to buy. A Rado or
Omega watch would have no takers amongst the lower income group as they cater to the premium segment.
College students seldom go to a Zodiac or Van Heusen store as the merchandise offered by these stores are
meant mostly for the professionals. Individuals from the lower income group never use a Blackberry. In
simpler words, the segmentation process goes a long way in influencing the buying decision of the
consumers.
An individual with low income would obviously prefer a Nano or Alto instead of Mercedes or BMW.
 Market segmentation helps the organizations to target the right product to the right customers at the right
time. Geographical segmentation classifies consumers according to their locations. A grocery store in colder
states of the country would stock coffee all through the year as compared to places which have defined
winter and summer seasons.
 Segmentation helps the organizations to know and understand their customers better. Organizations can
now reach a wider audience and promote their products more effectively. It helps the organizations to
concentrate their hard work on the target audience and get suitable results.
Basis of Market Segmentation
 Gender
The marketers divide the market into smaller segments based on gender. Both men and women have different
interests and preferences, and thus the need for segmentation.
Organizations need to have different marketing strategies for men which would obviously not work in case of
females.
A woman would not purchase a product meant for males and vice a versa.
The segmentation of the market as per the gender is important in many industries like cosmetics, footwear,
jewellery and apparel industries.
 Age Group
Division on the basis of age group of the target audience is also one of the ways of market segmentation.
The products and marketing strategies for teenagers would obviously be different than kids.
Age group (0 - 10 years) - Toys, Nappies, Baby Food, Prams
Age Group (10 - 20 years) - Toys, Apparels, Books, School Bags
Age group (20 years and above) - Cosmetics, Anti-Ageing Products, Magazines, apparels and so on
 Income
Marketers divide the consumers into small segments as per their income. Individuals are classified into segments
according to their monthly earnings.
The three categories are:
High income Group
Mid Income Group

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 BINAYAK ACADEMY,
Gandhi Nagar 1st Line, Near NCC Office, Berhampur
Contact No: 9776486185, 9078876111
Low Income Group
Stores catering to the higher income group would have different range of products and strategies as compared to
stores which target the lower income group.
Pantaloon, Carrefour, Shopper’s stop target the high income group as compared to Vishal Retail, Reliance Retail or
Big bazaar who cater to the individuals belonging to the lower income segment.
 Marital Status
Market segmentation can also be as per the marital status of the individuals. Travel agencies would not have
similar holiday packages for bachelors and married couples.
 Occupation
Office goers would have different needs as compared to school / college students.
A beach house shirt or a funky T Shirt would have no takers in a Zodiac Store as it caters specifically to the
professionals.
Types of Market Segmentation:
Market segmentation process is imperative for marketers as it allows them to efficiently design and
convey messages to target market. It allows marketing budgets to be utilized effectively through reaching to
potential customers that will ultimately transform into leads, instead of being wasted on impressions that will
never convert. 4 Types of market segmentation strategies include:
Geographic Segmentation: Geographic segmentation refers to divide markets based on geography. Considering
where your potential customer is located, some companies market their goods with the specific requirement to
specific areas. For example, LG Electronics, the leading electrical appliances company markets for its heaters in
cold geographical areas whereas the same company markets for Air Conditioners in hot geographical areas.
Demographic Segmentation: This is one of the widest market segmentation; marketers divide customer population
based on different variables in this segmentation. For example, segmentation based on age, gender, income,
religion, nationality, race, occupation, family size, etc is taken up by companies to target potential customers. An
example of demographic segmentation is of cereal giant Kelloggs that offers different cereal brands for kids and
adults, healthy eaters and weight watchers, etc.
Psychographic Segmentation: This type of market segmentation targets the lifestyle, activities, interests and
opinions of potential customers. Psychographic segmentation considers the psychological aspect of how the
potential customer responds to a product. For example, Mountain Dew uses a marketing strategy that promotes its
product through associating masculinity and a daring personality with the drinkers of the brand, targeting young
individuals who crave for such a personality and associate themselves with it. Branded clothing lines such as Zara
involve in psychographic segmentation, offering clothing range for individuals that follow a trendy and chic
lifestyle.
Behavioural Segmentation: Behavioural segmentation refers to customer segmentation based on how they use,
behave or make decisions related to a product. Here I am giving you an example of behavioural market
segmentation is of soap bars. Young girls will prefer using Dove as it is a beauty soap bar, whereas sports
enthusiast will prefer using the Zest soap bar. While girls will prefer drinks such as Minute Maid or Rani, owing to
their general behaviour of preferring healthy and natural drinks, boys will prefer energy drinks such as Lucozade
or Sting, owed to their decision of likeness towards energy drinks.
Examples of Market Segmentation
Market segmentation is the most common activity of every business organization. Marketers and Business owners
cannot focus on mass marketing with one marketing strategy. Here are a few examples of market segmentation for
better understanding this point.
 Fast food restaurant should target teenagers and younger couples if target older people it will be a mistake
and will affect their revenue generation.
 If marketing Lingerie and beauty products like “Victoria Secret” focus on young, successful and working-
class women.
 Sports brand, for example, Nike and Lululemon segment the market and target health conscious, athletes,
gym lovers and sportsmen and sportswomen.
 Market segmentation is the best strategy to increase the conversion rate and cut down on the product cost. It
helps marketers to always target niche market and attain your objectives.