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
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
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 ,
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
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
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
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
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
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
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
Acan ti al
ct Distin iveAcc ess ibl e
M I d ee a s u nti rab fia le ble
Criteria for effective market segmentationcti Distin ve
Clear differences in consumer preferences for a product must
Criteria for effective market segmentationM Ide easu nti rab fia
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
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
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
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.
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
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.