Levels of marketing segmentation

a)  Mass Marketing

Companies have not practiced target marketing always. Actually, for most of the year 1900s, major consumer products companies held quickly to mass marketing-mass producing, mass distributing, and mass promoting regarding the same product in about the similar way to all consumers. Henry Ford epitomized this marketing approach when he offered the Model T Ford to all of the buyers; they could have the car" in any color only if it is black." Similarly, Coca-Cola at one time produced just one drink for the complete market, hoping it would appeal to everybody.

The traditional argument for mass marketing is that it makes the prime potential market that leads to the lowest costs, which, in turn, may translate into either lower cost or higher margins. However, various factors now make mass marketing more hard. The proliferation of distribution channels and advertising media has also made it hard to practice "one-size-fits-all" marketing.

b)  Segment Marketing

A company that practices segment  marketing isolates broad segments that create a market and adapts its offers to more  nearly  match  the  requirements  of  one  or  more segments. therefore, Marriott markets to a variety of segments-business travellers, families, and others-along packages adapted to their altering needs. Segment marketing offers various benefits over mass marketing. The company may market more efficiently, targeting it's or services or products, channels, and communications programs toward just consumers that it may serve best and most profitably. The company may also market more effectively by fine-tuning its products, cost, and programs to the requirements of carefully defined segments. The company can face fewer competitors if fewer competitors are focusing on this market segment.

c)  Niche Marketing

Market segments are generally large, identifiable groups within a market-for instance, performance car buyers, luxury car buyers, utility car buyers, and economy car buyers. Niche marketing focuses on subgroups in these segments. A niche is a more narrowly defined group, typically identified by dividing a segment into sub segments or by defining a group along a distinctive set of traits who can seek a special combination of benefits. While segments are quite large and normally attract many competitors, niches are smaller and normally attract just one or a few competitors. Niche marketers seemingly understand their niches' requirements so well that their customers gladly pay a price premium.

 d)  Micro marketing

Segment and niche marketers tailor their scheme and marketing programs to meet the requirements of various market segments. At the same time, though, they do not customize their offers to each specific customer. Therefore, segment marketing and niche marketing fall between the extremes of mass marketing & micro marketing. Micro marketing is the exercise of tailoring products and marketing  programs  to  suit  the  tastes  of  definite  individuals  and  locations.  Micro marketing contain local marketing (Local marketing involves tailoring brands and promotions to the requirements and wants of local customer groups-neighbourhoods, cities, and even particular stores. Citibank provides different mixes of banking services in its branches based on neighbourhood demographics) and specific marketing (tailoring products and marketing programs to the requirements and preferences of specific customers).