S.No. - 2/4LECTURE TITLE – MARKET

SEGMENTATION & CONSUMER BEHAVIOUR

MODULE – 2 (HEALTHCARE MARKETING AND PATIENTS RELATIONS MANAGEMENT

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Target marketingICRI, Mumbai

We have already studied-

Levels of market segmentation Segment marketing Niche marketing Local marketing Individual customer marketing

Target marketingA company cannot serve all the customers in

a broad market. Customers are numerous and diverse in their buying requirements.

So it needs to identify segments it can serve effectively.

Sellers distinguishes segments, and develop products and programs tailored to each.

Steps1) Need based segmentation

2) Segment identification

3) Segment attractiveness

4) Segment profitability

5) Segment Positioning

3) Marketing mix strategy - 5Ps etc

6) Segment acid test

Summary of steps• Segment Size and Growth– Analyze current segment sales, growth rates, and expected

profitability for various segments.

• Segment Structural Attractiveness– Consider effects of: competitors, availability of substitute

products, and the power of buyers & suppliers.

• Company Objectives and Resources– Examine company skills & resources needed to succeed in that

segment(s).– Offer superior value & gain advantages over competitors.

Step 2. Market TargetingEvaluating Market Segments

Segment Size and GrowthAnalyze current sales, growth rates and expected

profitability for various segments.Segment Structural Attractiveness

Consider effects of: competitors, availability of substitute products and, the power of buyers & suppliers.

Company Objectives and ResourcesCompany skills & resources needed to succeed in

that segment(s).Look for Competitive Advantages.

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Target marketing

P1

P2

P3

M1 M2 M3• Single segment concentration- Porsche concentrates only on

sports car market. • In this form acquires strong

knowledge of needs and achieves strong market presence.

• It also enjoys operating economies through specialising its production, distribution and promotion.

• It becomes leader and enjoys high return on investment.

- Risks involved – a particular market can turn sour

Target marketing Selective specialisation-

P1

P2

P3

M1 M2 M3

• firm selects a number of segments , each objectively attractive and appropriate. There may be little or no synergy among segments but each promises to be a moneymaker.

Target marketing Product specialisation-

P1

P2

P3

M1 M2 M3firm makes a product that it sells to various segments. Like microscope manufacturer.

Target marketing Market specialization-

P1

P2

P3

M1 M2 M3

• The firm concentrates on serving many needs of a particular group. An example would be a firm that sells an assortment of products only to universities.

Target marketing -Full market coverage-

P1

P2

P3

M1 M2 M3

• the firm attempts to serve all the customer groups with all the products they might need.

only large firm can undertake full market coverage strategy like coca cola or IBM.

FULL COVERAGE• It can be done in 2 ways a) undifferentiated

ignores segment difference, and try to appeal whole market.

It relies on mass distribution and mass advertising. b) differentiated marketing-

The firm operates in several market segments and designs differentiated product for each segment. GM does it as it says it produces car for every- Purse, purpose and personality.

Concerns with targeting• Product modification costs- modifying a

product to meet different market segment requirements usually involves R&D, engineering .

• Manufacturing costs:- unless the product is sold in large volume it is expensive to produce different products in varying units.

• Inventory costs:- it is costly to manage inventories of many products

Concerns with targetingPromotion costs:- company has to reach

different market with different promotion programs

Admin costs:- the company has to develop separate marketing plan for each market segment. This requires extra research, analysis, planning , channel arrangement.

Process flow

Now we will move to positioning

PositioningIs the act of designing the company’s offering

and image to occupy a distinctive place in mind of target market.

Sporty drink

Bujhaye pyaas baki all bakwaas

Product positioning StrategiesBy attribute or benefit-

sugar freeBy use or application-

easy to use By price or quality-

Nirma super By user – Bikes segment.

Mileage or race By competitor-

coke and pepsiBy product or service class-Dalda alternative

to ghee. Cheaper and healthier.

Competitive advantage by positioning• Product’s Position - the way the product is defined by

consumers on important attributes.• Product is compared with competing products.• Simplifies the buying process by helping consumers

organize products into categories.• Marketers must:– Plan positions to give their products the greatest advantage

in selected target markets,– Design marketing mixes to create these planned positions.

Choosing a Positioning Strategy

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Step 2. Choosing the Right Competitive Advantage

Step 3. Communicating and Delivering the Chosen

Position

Step 1. Identifying Possible Competitive

Advantages

Identifying Possible Competitive AdvantagesKey to winning and keeping customers is to

understand their needs and buying processes better than competitors do and deliver more value.

Competitive advantage is an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits, that justify competitive advantage,

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Identifying Possible Competitive Advantages

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ServicesDifferentiation

i.e. Delivery, Installation, Repair Services,

Customer Training Services

Product Differentiationi.e. Features,

Performance, Style & Design, Attributes

People Differentiation

i.e. Hiring, Training Better People Than

Competitors Do

ImageDifferentiationi.e. Symbols, Characters

ChannelDifferentiation

examplesReliance Mobile- 100 million customers &

counting - diverse segmentsTATA Photon + - positioned ‘speed” as its

USP – giant banner with device from an aircraft at Banglore stadium cricket match- grab maximum eyeballs

INQ cell phone – Dhoni riding on the back of a truck in a supposedly boring journey. Talks to all his friends – social networks. Positions INQ well among the youngs.

TATA ACE – chhota haathi – LAKME’ Fruit Blast- “Kare Aapke chehre ki gahri

safia aur lautaye nami lautaye

What 4 major positioning errors should a company strive to overcome? Under positioning- buyers have vague idea of

brand.Over positioning- buyers have a narrow image

of brand.Confused positioning- company making too

many claims or changing brand position frequently.

Doubtful positioning- buyers find it hard to believe the brand claims.

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ISSUES WITH POSITIONING

Choosing the Right CompetitiveAdvantages

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CriteriaFor Determining

Which DifferencesTo Promote

AffordableAffordable SuperiorSuperior

ProfitableProfitable

PreemptivePreemptive

DistinctiveDistinctive

ImportantImportant

CommunicableCommunicable

Selecting an Overall Positioning Strategy

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Communicating and Delivering the Chosen PositionCompany must take strong steps to deliver

and communicate the desired position to target consumers.

All the company’s marketing mix must support the positioning strategy.

Positioning strategy must be monitored and adapted over time to match changes in consumer needs and competitors’ strategies.

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Reviewing the ConceptsThree steps of target marketing: market

segmentation, market targeting, and market positioning.

List and discuss the major levels of market segmentation for segmenting consumer.

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Explain how companies identify attractive market segments and choose a market-coverage strategy.

Discuss how companies can position their products for maximum competitive advantage in the marketplace.