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Market Segmentation

Interesting thoughts were evoked when in a conversation a renowned marketeer posed a question about segmentation on a consumption basis rather than sales basis.

As we got further into discussions, we realised that how this was seen by many as same/similar and an issue of sementics though the concept, per se, is absolutely different.

I was reminded of one of my own hypothesis that was subsequently tested positive in practice in the category of prestige alchoholic drink.

The consumption of prestige products cuts across income levels. The difference is in the frequency of consumption. This was further complicated by the famous example of one red soap that had (at the time of limited survey) a phenomenally high penetration in a high income category and so was the case of a popular brand of tea.

Of the recent examples, penetration of TVs amongst people is more consumption led than otherwise. This perhaps also explains the fact the penetration of DVD players is far more than refrigerators.

Back to segmentation on consumption basis - help academia help....

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