SEGMENTING, TARGETING
& POSITIONING
SegmentationSegmentation - grouping consumers by some
criteria, such that those within a group will respond similarly to a marketing action and those in a different group will respond differently.
SegmentationSegmentation means dividing the potential
users/market on the basis of criteria like economic status, region, ethnicity or lifestyles
A large identifiable group within a market with similar wants, purchasing power or buying habits.
segment would display similar buying behaviour
Need for SegmentationTo serve the ultimate user in a better way.
To improve targeting the customer.
Easy decision making.
Saving of recourses & time
Market Segmentation & Brand Positioning In Indian Passenger Car Industry
Luxury
Mid size Family
Economy
Mercedes BenzeBMW
Honda CivicToyota Corolla
IndigoOpel Corsa
Santro Swift
Zen,AltoMaruti 800 cc
Steps in Segmentation, Targeting, and Positioning
1. Identify Basesfor Segmenting the Market
2. Develop Profilesof Resulting Segments
3. Develop Measuresof Segment Attractiveness
4. Select TargetSegment(s)
5. Develop Positioningfor Each Target Segment
6. Develop MarketingMix for Each Target Segment Market
Positioning
MarketTargeting
Market Segmentation
Step 1. Market SegmentationLevels of Market Segmentation
Mass MarketingSame product to all consumers
(no segmentation)
Segment MarketingDifferent products to one or more segments
(some segmentation)
MicromarketingProducts to suit the tastes of individuals or locations
(complete segmentation)
Niche MarketingDifferent products to subgroups within segments
( more segmentation)
Step 1. Market SegmentationBases for Segmenting Consumer Markets
Geographic
DemographicAge, gender, family size and life cycle, or income
PsychographicSocial class, lifestyle,
or personality
BehavioralOccasions, benefits, uses, or responses
Nations, states, regions or cities
Using Multiple SegmentationBases: Geodemographics
Step 1. Market SegmentationRequirements for Effective Segmentation
• Size, purchasing power, profiles of segments can be measured.
• Segments must be effectively reached and served.
• Segments must be large or profitable enough to serve.
Measurable
Accessible
Substantial
Differential
Actionable
• Segments must respond differently to different marketing mix elements & actions.
• Must be able to attract and serve the segments.
Step 2. Market TargetingMarket Coverage Strategies
Segment 1
Segment 2
Segment 3
Segment 1
Segment 2
Segment 3
CompanyMarketing
Mix
CompanyMarketing
Mix
CompanyMarketing Mix 1
CompanyMarketing Mix 2
CompanyMarketing Mix 3
Market
A. Undifferentiated Marketing
B. Differentiated Marketing
C. Concentrated Marketing
TARGETING Choosing one or more of the customer
segments whom we plan to serve.
Whether the segments size, growth, profitability and risk are favourable .
co’s overall, long-term objectives ,company has the requisite resources and competencies to serve the chosen segment.
5 patterns of target market selectionSingle segment concentration-Concentrate ting on
specialized product , distribution,& promotion.Full market coverage-firm attempts to serve all customer
groups with all products they might needHUL's Project Shakti Peddakaparthy village 65 kms from Hyderabad
The vision is ambitious: to create by 2010 about 11,000 Shakti entrepreneurs covering one lakh villages and touching the lives of 100 million rural consumers.
5 patterns of target market selectionMarket specialization-Concentrates on serving many
needs of a particular customer group.
Selective specialization - Selecting a number of segments. Movie Launch in metro cities
Pears has traditionally operated in the skin repair and maintenance segment, and within that, it has been primarily in
the moisturising area where glycerine leaves the silk soft. We are looking at extending the Pears equity to new people, those
concerned about germs and the level of cleansing," says Rampal. Carrying the baseline, `Innocent Beauty', Pears changed its
advertising agency from JWT to Mc Cann Erickson last year. "The new commercial will be based on the usage of the brand within a
family with kids, who tend to collect germs," says Rampal.
Product specialization-Firms make a certain product that it sells to several segments.
Step 3. Positioning for Competitive Advantage
Product’s Position - the place the product occupies in consumers’ minds relative to competing products; i.e. Volvo positions on “safety”.
Marketers must:Plan positions to give products the greatest
advantageDevelop marketing mixes to create planned
positions
Step 3. Positioning for Competitive Advantage: Strategies
Against aCompetitor
UsageOccasions
Away fromCompetitors
ProductAttributes
ProductClass
BenefitsOffered
Users
B
A
ED
CHG
F
Steps to Choosing and Implementing
a Positioning Strategy
Step 1. Identifying a set of possible competitive advantages: Competitive Differentiation.
Step 2. Selecting the right competitive advantage.
Step 3. Effectively communicating and delivering the chosen position to the market.
Developing Competitive Differentiation
Product Service
Personnel Image
Areas for CompetitiveDifferentiation
Selecting the Right CompetitiveAdvantages
Criteriafor
DeterminingWhich
Differencesto
Promote
Affordable Superior
Profitable
Preemptive
Distinctive
Important
Communicable
Four major positioning errorUnderpositioning - Lack clarity
Overposition - Narrow image
Confused Position - Too many claims
Doubtful Positioning
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