Market Segmentation, Target &...

MARKET SEGMENTATION,

TARGET & POSITIONING

A Mass Market Approach

Level of Micromarketing

Segment Market: Customers sharing similar sets of needs and wants.

Niche Market: Narrowly defined, seeking a distinctive mix of benefits.

Local Marketing: Tailoring brands and promotions to the needs & wants of local customer groups.

Individual Marketing: Tailoring products to the needs & preferences.

Brands Created a Niche Market

Segmentation

The process that companies use to divide large

heterogeneous markets into small markets that can

be reached more efficiently and effectively with

products and services that match their unique needs

Segmenting Consumer Markets

Geographic Demographic

Behavioral Psychographic

Consumer Markets

Geographic

Geographic segmentation divides the market into

different geographical units such as nations, regions,

states, or cities

Demographic

Divides the market into groups based on variables

such as age, gender, family size, family life cycle,

income, occupation, education, religion, race,

generation, and nationality

Demographic Segmentation

Age and Life Cycle

Life Stage

Gender

Income

Social Class

Generation

Psychographic

Divides buyers into different groups based on social

class, lifestyle, or personality traits.

Personality: The unique psychological

characteristics that leads to relatively consistent and

lasting responses to one’s own environment.

Lifestyle: A person’s pattern of living as expressed

in his or her activities, interests, and opinions.

VALS: Strategicbusinessinsights.com

Behavioral Segmentation

Dividing the market into groups based on consumer

knowledge, attitudes, uses or responses to a

product.

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Loyal Status

Hardcore

Split Loyals

Shifting Loyals

Switchers

Requirements of effective segmentation

Measureable

Accessible

Substantial

Differentiable

Actionable

Market Targeting: whom to serve?

A set of buyers sharing common needs or

characteristics that the company decides to serve.

Target Market Selection

Target Market Selection

Target Market Selection

Positioning : How will we serve them?

The way the product is defined by consumers on

important attributes– the place the product occupies

in consumer’s mind relative to competing products.

Competitive Advantage

An advantage over competitors gained by offering

greater customer value, either through lower prices

or by providing more benefits that justify higher

prices.

Choosing a Positioning strategy

Identifying possible value differences and

competitive advantage.

• Product Differentiation

• Service Differentiation

• People Differentiation

• Image Differentiation

Choosing the right Competitive Advantage

Selecting an overall positioning Strategy

Socio Economic Classification

IlliterateSchool up to 4 years

School 5–9 years

SSC/HSCSome college

but not graduate

Graduate/Postgraduate

general

Graduate/Post

Graduate professional

Unskilled E2 E2 E1 D D D D

Skilled Workers E2 E1 D C C B2 B2

Petty traders E2 D D C C B2 B2

Shop Owners D D C B2 B1 A2 A2

Businessmen with No

employees D C B2 B1 A2 A2 A1

Businessmen with 1-9

employees C B2 B2 B1 A2 A1 A1

Socio Economic Classification

IlliterateSchool up to 4 years

School 5–9 years

SSC/HSCSome college

but not graduate

Graduate/Postgraduate

general

Graduate/Post

Graduate professional

Businessmen with 10+ employees B1 B1 A2 A2 A1 A1 A1

Self Employeed professional D D D B2 B1 A2 A1

Clerical/Salesman D D D C B2 B1 B1

Supervisory Level D D C C B2 B1 A2

Officers/Executives-Junior C C C B2 B1 A2 A2

Officers/Executives-Mid/Senior B1 B1 B1 B1 A2 A1 A1