MASS MARKETING
Henry Ford was the first to mass-market automobiles. Ford mass-produced by assembly line, mass-distributed through dealers, mass-promoted one product for all buyers through just one ad.
Create value for targeted customers
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Segmentation Differentiation
Positioning Targeting
Create value for targeted customers
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• Divide the total market into smaller segments
• Differentiate the market offering to create superior customer value
• Position the market offering in the minds of target customers
• Select the segment or segments to enter
Segmentation Differentiation
Positioning Targeting
Create value for targeted customers
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MICRO MARKETING
The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer groups.
Rather than seeing a customer in every individual, micro-marketers see the individual in every customer.
MARKET SEGMENTATION BENEFITS
Facilitates right choice of target market Facilitates effective tapping of the chosen market Makes the marketing effort more efficient and
economic Helps identify less satisfied segments and
concentrate on them
SEGMENT MARKETING
A market segment consists of a group of customers who share a similar set of NEEDS and WANTS.
SEGMENT MARKETING
It offers key benefits over mass marketing.Company can Better design, Price, Disclose
and Deliver the product/ service to target market
SEGMENT MARKETING
A flexible market offering consists of two parts:
A naked solution: product/ service elements that all segment members value.
Discretionary options: some segment members value.
SEGMENT MARKETING
Car basic model, power steering, power window, petrol diesel versions
Train sleeper, 3ac 2ac 1ac
Airline business class, economy class, executive class
SEGMENT MARKETING
Homogenous preferences- all the consumers have roughly the same preferences.
Diffused preferences- consumer preferences may be scattered throughout the space.
Clustered preferences- market may reveal distinct preference clusters.
NICHE MARKETING
A niche is a more narrowly defined customer group seeking a distinctive mix of benefits.
LOCAL MARKETING
Marketing programmes related to the needs and wants of local customer groups (trading areas, neighbourhoods, individual stores).
CUSTOMERISATION/ INDIVIDUAL MARKETING
It combines operationally driven mass customisation with customised marketing in a way that empowers consumers to design the product and service offering of their choice.
A company is customerised when it is able to respond to individual customers by customising its products, services and messages on a one-to-one basis.
THAILAND- Burgers with Thai Basil JAPAN- Teriyaki Burger INDONESIA- Rice Dishes INDIA- Mc Aloo Burger, Veg Salad Sandwich, Mc Masala, Mc
Imli Sauces, Garlic free sauces, Eggless sandwich sauces, Veg Pizza Mcpuff,
India 75% localised menu, 33% in Asian Countries, other countries less than 5%
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 middle 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
PSYCHOGRAPHICS
It is the science of using psychology and demographics to better understand consumers.
People within the same demographic group can exhibit very different psychographic profiles.
PSYCHOGRAPHIC
Lifestyle-Activities, interest, opinion Culture oriented, sports oriented, outdoor
oriented
Personality- compulsive, gregarious, authoritarian, ambitious
PSYCHOLOGICAL Attitude
Knowledge and awareness
Wants and needs
Affiliations
Traits- extrovert/ introvert
Expertise and involvement- hobbies
Brand attributes sought- premium quality/ low price
Risk orientation- financial investments, adventure travel
VALS
Believers Strivers Makers
Survivors
HIGH RESOURCESHIGH INNOVATION
LOW RESOURCESLOW INNOVATION
INNOVATORS
IDEALS ACHIEVEMENTSELF-
EXPRESSION
PRIMARY MOTIVATION
VALS Innovators- sophisticated, high self esteem, image is important
Thinkers- conservative, practical, look for value
Achievers- goal oriented lifestyle, image very important
Experiencers- like ‘cool stuff’, high expenditure on fashion
Believers- conservative, like familiar and established brands
Strivers-trendy and fun loving, money defines success, concerned about other’s opinions
Makers- practical, DIY, prefer value to luxury, unimpressed by material possessions
Survivors – few resources, buy at discount, little motivation to buy, loyalty high
BEHAVIOURAL Users v/s competitors’ users v/s non-users of brand/
category
Co purchase patterns- recommendation agents and similar purchases
Media- magazines, cable, internet, movies
Loyalty programmes, purchase frequency
Occasions, benefits, usage rate, buyer-readiness stage,
Psychographic segmentation The basis of such segmentation is the lifestyle of the individuals. The individual’s attitude,
interest, value help the marketers to classify them into small groups. Behaviouralistic Segmentation The loyalties of the customers towards a particular brand help the marketers to classify
them into smaller groups, each group comprising of individuals loyal towards a particular brand.
Geographic Segmentation Geographic segmentation refers to the classification of market into various geographical
areas. A marketer can’t have similar strategies for individuals living at different places. Nestle promotes Nescafe all through the year in cold states of the country as compared to
places which have well defined summer and winter season. McDonald’s in India does not sell beef products as it is strictly against the religious beliefs
of the countrymen, whereas McDonald’s in US freely sells and promotes beef products.
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