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Segmentation, Targeting, & Positioning

Segmentation, Targeting, & Positioning

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Segmentation, Targeting, & Positioning

Segmentation, Targeting, & Positioning The marketing program of the firm depends on how the marketer identifies the potential customer , profiles them , targets them and positions his offering in the mind of the customer These concepts are studied under STP.

Segmentation, Targeting, & Positioning Segmentation How one can classify or group the heterogeneous market into homogenous market. Targeting involves including decisions encompassing which market(s) to enter out of the available market segment alternatives. Positioning Its about the customer perception about the brand as being different from the other brands on specific dimension including product attributes.

Segmentation Thus segmentation consists of taking the total heterogeneous market for a product and dividing into several sub-markets or segments. Routine example of mousetrap..segmented according to rural and urban areas . Income category and need based segmentation.

Advantages of Segmentation1.Allows a marketer to take heterogeneous market, consisting of customers with diverse needs, wants and behavior. 2.It also helps in better understanding of the competitive situation in each of the segment. 3.It not only helps in identification of customers with substantial similarity but also helps in profiling them and their need structure so that the marketer can develop an appropriate

Market segmentation & product differentiation Market segmentation it is a process of dividing a market into groups of segments having similar wants. Segments may differ also in their needs for information,reassurance,technical support, service promotion ,distribution etc.

Market segmentation & product differentiation The marketer can create the product differentiation by bringing a difference in the physical product itself. E.g.Gillete shaving gel as compare to cake soap or liquid. Dominos pizza thirty minutes delivery process as compare to other brands. Ujala compare to Robin blue.

Bases for market segmentation Geographic segmentation segmentation on the basis of nation , states and regions. E.g. Amul first marketed in Gujrat later on the company went for a national launch. For e.g. certain product is famous in South India or North India then it can be again divided into zones , villages , cities , climate etc.

Bases for market segmentation Demographic Segmentation it includes factors like age ,gender , family size , family life cycle , income , occupation , education , marital status , religion , generation , nationality , language and social class. E.g.Lakme , TVS scooty , diamond jwellery. Eg. Shaving creams , Bikes , Fair &

Bases for market segmentation Psychographic Segmentation Is the study of lifestyle of individuals. Lifestyle is a persons entire way of living. It reflects the persons living as a combination of his actions , interests , and opinions. Fashion industry (clubs) , women's in rural area.

Bases for market segmentation Behavioral Segmentation In this case , the market is divided on the basis of purchase decision and product or brand usage made by consumers. Who influence the purchase decision E.g.- Hospital industry is divided into six parts like Most modern hospitals Escort heart and research center , Batra hospitals and research center, these hospitals (purchase managers) are constantly on the look for new instruments to become more efficient.

Bases for market segmentation Autonomous Hospitals For e.g. In all India institute of medical sciences , the purchase decision is of specialist doctors or the head of the concerned departments. Government Hospitals For e.g. KEM Hospital here the medical superintendent and the financial controller influence the purchase decision.

Bases for market segmentation Medium size private hospitals Hinduja , Hiranandani hospital the final choice is by Medical Director is final. Nursing homes To get these hospitals recognized by the ministry of health, they go for quality , low price and after sales service. Doctors approved generally. Freelancing Anesthetist These

Bases for market segmentation Marketers segment the market on different basis like Volume segmentation In this case quantity purchased is the basis for segmentation. It attempts to identify frequent users of a product category or brand. For e.g. Cigarettes , wine and personal care categories.

Bases for market segmentation Brand user segmentation The marketer tries to identify the user characteristics on the basis of brand usage as brand users , brand triers and non-users. For e.g. Cadbury by Amitabh Bacchan , Hrithik Roshan for John Player.

Bases for market segmentation Situation Segmentation Many marketers are happy with identifying the segments and profiling the segments in context with how customers are experiencing the brand and what is their ultimate way of using the brand. For e.g. A person may select a simple hotel when travelling alone

Patterns of Market Segment E.g.- Ice cream buyers.. Clustered Preferences three segments like one who want to take center position to attract all the people(groups) Another is to participate in a large market segment Develop several brands in different segment

Patterns of Market Segment Homogeneous Preferences A market where all the consumers have roughly the same preferences. Diffused Preferences consumers preferences may be scattered throughout the space , indicating that consumers vary greatly in the preference.

Market segmentation Strategy Customers differences in preferences for brand appear to exist. These differences can be identified and matched with customer groups. The marketing program can help in reaching segments with certain preferences. The segments have enough demand potential to justify their selection as a target markets. The segments are sufficiently stable to allow adequate lead-time for the design and implementation of a

Market segmentation process Form the Target Segment

Profile the segment

Evaluate

Market segmentation process Forming Market segments Two approaches are followed 1.Build up for B2B or industrial buyers e.g. trade india.com 2.Break down - B2C or individual. For e.g. cars , personal care products etc.

Market segmentation process Profile segments marketing managers can profile segments by taking into account a different descriptive variables. Profiling helps to large identifiable groups within a market. For e.g. By taking into consideration the needs of the buyer, identifying product or service should be given.

Market segmentation process Evaluate market segments What is expected from each segment should be evaluated.. For e.g. Itc products. Select Target markets helps the marketer to correctly identify the markets and the group of target customers for whom the product/services are produced. E.g.-woodland shoes , cellular phones ,pepsi , titan ,Bata , Mahindra &

Criteria for effective market segmentation

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Criteria for effective market segmentationcti Distin ve

Clear differences in consumer preferences for a product must exist.

Criteria for effective market segmentationM Ide easu nti rab fia le ble

Difference preferences for a product must be identifiable and capable of being related to measurable variables.

Criteria for effective market segmentation The proposed market segment must have enough size and purchasing power to be profitable.

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Criteria for effective market segmentation Actionable

Companies must be able to respond to difference preferences with an appropriate marketing mix.

Criteria for effective market segmentationAcc ess ibl e

The proposed market segment must be readily accessible and reachable with market programs.

Target Market Depending on the available resources ,experience and competency of the marketer and time available the marketer will decide which market to target. In this stage the marketing manager evaluates different market opportunities and decides how many and which one to target. This is called as target marketing

Target Market The marketing manager should look at five factors for evaluating each segment .They are1.Segment size & 2.Segment worthiness 3.Segment measurability 4.Segment attractiveness 5.Segment accessibility. 6.

Types of target marketing strategies The product market coverage strategies are broadly classified as 1.Undifferentiated or mass marketing strategy 2.Concentrated marketing strategy 3.Differentiated marketing strategy

Types of target marketing strategies1.Undifferentiated or mass marketing strategy Here the marketing manager ignores the idea of segment characteristics and differences and develops a unified marketing program for the entire market. This strategy keeps overall cost low and makes it easier to manage. E.g. commodity market (whole sale

Types of target marketing strategies2. Concentrated marketing strategy The marketing manager decides to enter into a select market segment instead of all the available market segment. It is an excellent strategy for small manufacturers that can serve the segments closely and cater the needs. E.g. Jyothi laboratories brand of Ujala predominant in south India and then a national launch

Types of target marketing strategies3. Differentiated marketing strategy The main objective of offering a differentiated marketing offer is to cater to different segments and get higher sales with a dominant position in each of the segment. For e.g. Maruti 800 for middle class , Baleno and swift targeted for upper middle class and Omni for lower class or taxi operators.

Positioning The marketing manager needs to decide which segment to enter and how to target that segment with a product offer through selection of market segment and target marketing strategy. The challenge is to decide what position the company wants its products to occupy in the selected segment.

Positioning A product positioning is the definition that a consumer gives to the product on important attributes. Positioning is the act of developing the companys offerings and image to occupy a distinct place in the minds of the target market. The end result of positioning strategy is a distinct value-a reason for which the customer would buy the product.

Positioning E.g. Maggi Noodles , Dove soap , Vicks Vaporub etc.

Product positioning VS. Brand positioning In a commodity market hardly there is a difference between a product and brand positioning. Same with candles,iscense sticks etc. Product positioning brings us to the idea of functional value whereas Brand positioning talks about some thing above for which customer is willing to pay.

Product positioning VS. Brand positioning Whirlpool vs.Samsung. When a new brand comes to the market people start enquiring. E.g.Tata DOCOMO.

Qualities of a successful positionIn context with Ujala Relevance Distinctiveness Coherence Commitment Durability Clarity Courage Another examples are Tata Nano , Dell etc.

The brand positioning process Two categories Do good Margo Dettol

Feel Good Lux Dove

The brand positioning process Identify a set of possible competitive advantage Positioning process begins with differentiating the product on actual attributes so that customer will receive the higher value. Reliance industries In telecommunication Launch a GSM Technology with CDMA Companys offering sholuld be differentiated on the basis of product ,

The brand positioning process E.g DHL position themselves as reliable and firms with capabilities of speedy and accurate delievery. Eureka Forbes and Amway are the examples of channel differentiation To groom customers and tell them to give the service is an example of people differentiation Kodak Red and yellow , Wipro with rainbow and the catch line applying Thoughtis an image differentiation.

The brand positioning process Choose the right Competitive advantage The next step is to select a right competitive advantage which is most suitable for positioning the brand. E.g. Samsung Nano technology , biofresh.

The brand positioning process Select an overall positioning Strategy Consumers will buy the product or service which give them highest value. E.g. Raymonds , Kaya skin clinic , Dominos

The brand positioning process Communicate the message and deliver the chosen position Communicate to the target market E.g. Pepsi , coke , Rasna?

The brand positioning process Rasna is comparatively failure product as compare to other cold drinks.. Horliks - Konkana sen Boost Sachin tendulkar Postioned properly.

Assignment Zhandu balm is available in the market if company wants to plan to reposition it what options are available. Suggest at least three.