AGRI INPUT MARKETING

CHAPTER IV

MARKETING STRATEGY

R.SHRIKANTHASSOC.PROFESSOR

FOOD AND AGRI BUSINESS SCHOOL

Marketing Strategy

SegmentationSegmentation

TargetingTargeting

PositioningPositioning

SEGMENTATION

• Market segmentation is the process of dividing the

total market into relatively distinct homogeneous

sub-groups of consumers with similar needs or

characteristics that lead them to respond in similar

ways to a particular marketing program.

• Market segment is a portion of a larger market in

which the individuals, groups, or organizations

share one or more characteristics that cause them

to have relatively similar product needs.

SEGMENTATION…. CONTD…

WHY SEGMENTATION ?• Segmentation studies are used to uncover

needs and wants of specific groups of consumers for whom the marketer develops especially suitable products and services to satisfy their needs.

SEGMENTATION…. CONTD…Five conditions must exist for segmentation to be meaningful:

1. A marketer must determine whether the market is heterogeneous. If the consumers’ product needs are homogeneous, then it is senseless to segment the market.

2. There must be some logical basis to identify and divide the population into relatively distinct homogeneous groups, having common needs or characteristics and which will respond to a marketing program. Differences in one market segment should be small compared to differences across various segments.

3. The total market should be divided in such a manner that comparison of estimated sales potential, costs, and profits of each segment can be done.

SEGMENTATION…. CONTD…

4.One or more segments must have enough profit potential that would justify developing and maintaining a marketing program.

5.It must be possible to reach the target segment effectively. For instance, in some rural areas in India, there are no media that can be used to reach the targeted groups. It is also possible that paucity of funds prohibits the development required for a promotional campaign.

SEGMENTATION…. CONTD…BASES FOR SEGMENTATION :

• A segmentation variable is a

characteristic of individuals, groups

or organizations that marketers use

to divide and create segments of the

total market.

SEGMENTATION…. CONTD…

SEGMENTATION VARAIABLES

Region ,Nation ,Urban, Rural State ,City size Climate, Terrain,Market density

Geographic variables

Gender ,Family size ,Age Occupation ,Race, Family life, Cycle, Religion, IncomeSocial class , Education

Demographic variables

Personality attributesMotivesLifestyle

Psychographic variables

Usage volume, OccasionEnd use Benefits soughtBrand loyaltyPrice sensitivity

Behaviouristic variables

SEGMENTATION…. CONTD…

GEOGRAPHIC SEGMENTATION:• Dividing the market into different geographic

units– Nations– States– Regions– Counties– Cities– Neighborhoods

SEGMENTATION…. CONTD…

DEMOGRAPHIC SEGMENTATION:• Dividing the market into groups based on

demographic variables– Age– Gender– Income– Occupation

SEGMENTATION…. CONTD…

PSYCOGRAPHIC SEGMENTATION:• Dividing buyers into different groups based on• social class• lifestyle• Personality characteristics

SEGMENTATION…. CONTD…

BEHAVIORISTIC SEGMENTATION :

• Buyers are divided into groups based on :

• knowledge

• Attitude

• Use or response to a product

SEGMENTATION…. CONTD…

Requirements for Effective Segmentation:

• Measurability

• Accessibility

• Substantiality

• Actionability

SEGMENTATION…. CONTD…

• Measurable

• Size, purchasing power, profiles of segments can be measured. • Segments can be effectively reached and served.

• Segments are large or profitable enough to serve.

Measurable Measurable

AccessibleAccessible

SubstantialSubstantial

ActionableActionable• Effective programs can be designed to attract and serve

the segments.

Requirements for Effective Segmentation

TARGETING

Target Market :

Consists of a set of buyers who share

common needs or characteristics that the

company decides to serve.

TARGETING… contd..

Evaluating Market Segments :• Segment Size and Growth

– Analyze current sales, growth rates and expected profitability for various segments.

• Segment Structural Attractiveness– Consider effects of: competitors, availability of

substitute products and, the power of buyers & suppliers.• Company Objectives and Resources

– Company skills & resources needed to succeed in that segment(s).

– Look for Competitive Advantages.

TARGETING… contd..

Selecting Target Market Segments :– Undifferentiated (mass) marketing– Differentiated (segmented) marketing– Concentrated (niche) marketing– Micromarketing (local or individual)

Segment 1Segment 1

Segment 2Segment 2

Segment 3Segment 3

Segment 1Segment 1

Segment 2Segment 2

Segment 3Segment 3

CompanyMarketingMix

CompanyMarketingMix

CompanyMarketingMix

CompanyMarketingMix

CompanyMarketing Mix 1

CompanyMarketing Mix 1

CompanyMarketing Mix 2

CompanyMarketing Mix 2CompanyMarketing Mix 3

CompanyMarketing Mix 3

MarketMarket

A. Undifferentiated Marketing

B. Differentiated Marketing

C. Concentrated Marketing

TARGETING… contd..

Choosing a Target Marketing Strategy :– Company resources– The degree of product variability– Product’s life-cycle stage– Market variability– Competitors’ marketing strategies

Patterns of Target market selection

Patterns of Target market selection

Patterns of Target market selection

POSITIONING

Act of designing the company’s offering and

image to occupy a distinctive place in the

mind of the target market.

POSITIONING…. CONTD…

• Step 1. Identifying Possible Competitive Advantages

• Step 2. Selecting the Right Competitive Advantage

• Step 3. Communicating and Delivering the Chosen Position

POSITIONING…. CONTD…

Developing and Communicating a Positioning Strategy :

• Positioning: How many ideas to promote?• Unique selling proposition

– Four major positioning errors1. Under positioning

2. Over positioning

3. Confused positioning

4. Doubtful positioning

POSITIONING…. CONTD…

Differentiation Strategies :

Channel Image

Product Personnel

POSITIONING…. CONTD…

Product Differentiation :• Product form, Features ,Performance

Conformance ,Durability• Reliability ,Reparability ,Style ,Design• Ordering ease ,Delivery ,Installation• Customer training ,Customer consulting• Maintenance

POSITIONING…. CONTD…

Identity:

The way a company aims to identify or position itself.

Image:

The way the public perceives the company or its products.

ASSIGNMENT

• Choose any upcoming or lesser known Agri Input product and prepare a hypothetical marketing strategy for the same. Prepare hard and soft copy of the same.

• Note : soft copy in form of PPT.• Last date for submission : 24/02/2014• Secondary data can be used .