08_Segmentation, Targeting & Positioning

7/29/2019 08_Segmentation, Targeting & Positioning

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MARKET SEGMENTATION,

TARGETING & POSITIONING


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Contents

MARKET SEGMENTATION

MEANING

REASONS/NEEDS/BENEFITS/SIGNIFICANCE

BASES FOR MARKET SEGMENTATION

PHILOSOPHIES OF MARKET SEGMENTATION(APPROACHES TO

MARKETING)

MARKET SEGMENTATION STRATEGIES(LEVELS OF SEGMENTATION)

PROCESS OF MARKET SEGMENTAITION

EFFECTIVE MARKET SEGMENTATION

MARKET SEGMENTATION DECISION

Contd.


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Contents

TARGETING

TARGET MARKET

TARGET MARKETING STRATEGIES

PROCESS OF SELECTING TARGET MARKET

POSITIONING

MEANING

PRODUCT POSITION vs. BRAND POSITION

SUCCESSFUL POSITION

POSITIONING ACCORDING TO RIES AND TROUT

POSITIONING APPROACHES


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Market Segmentation


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Market Segmentation

MEANING Dividing a potential market into distinct sub-markets

of consumers with common needs and characteristics

The process of taking the total heterogeneous market

for a product and dividing it into several sub-markets

or segments, each of which tends to be homogeneous

in all significants

- Stanton


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Market Segmentation (Contd.)

REASONS/

NEEDS/

BENEFITS/

SIGNIFICANCE

Proper/appropriate choice of Target Markets

Tapping of the Target Market and Adapting

the offer to the Target

Minimizes Aggregation Risk

Gains to the Customers

Efficiency & Economy in Marketing Effort

Helps create Innovations Provides opportunities to Expand Market


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BASES1. Geographic Segmentation

Geographic Variables Components

1. Regions Asian, Pacific, American, European

2. City Size Pop Below 5000; 5000 20000; etc.

3. Density Rural; Semi-urban; Urban

4. Climate Hot; Humid; Cold

2. Demographic Segmentation

Age, Sex, Marital Status, Income, Family Size, Occupation, Education,

Religion, Nationality, Generation, Race, Social Class, Family Life Cycle, etc.

3. Psychographic Segmentation

1. Lifestyle Conservative. Liberal, Adventuresome, Status-

seeker, H & Fitness

2. Social Class Lower, L-M, H-M, Upper

3. Cultural Indian, South Indian, Hindu

4. Personality Extrovert, Aggressive, Introvert


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BASES4. Behavioral Segmentation

Needs-motivation; Perception; Learning Involvement; Beliefs; Attitudes;

Usage rate

5. Socio-economic Segmentation

Social Class

Ability to Buy

6. Product Segmentation

1. Prestige Products

2. Maturity Products3. Status Products

4. Anxiety Products

5. Functional Products


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BASES7. Value Based Segmentation

Cs Value = Net Present Value of Customer

= (Annual Revenue from Customer X Number of years of

Association) (Cost of Acquiring the Customer)


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PHILOSOPHIES

OF MS /

APPROACHES

TO MARKETING

1. Mass marketing

Same product

Same MM

Undifferentiated marketing strategy2. Product Variety Marketing

Differentiated product features

3. Target Marketing

Shot-gun Approach Rifle Approach

Example Pepsi Mirinda, 7UP, Dew, Pepsi,

Tropicana


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PHILOSOPHIES

OF MS /

APPROACHES

TO MARKETING

4. Micro Marketing

Bifurcate Target Market

Example

Westside S. Delhi vs. Westside W. Delhi5. Customized Marketing

Individual customer basis

6. Personalized Marketing

Relationship Building


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Market

Segmentation

Strategies

or

Levels of

Segmentation

Undifferentiated Marketing

Differentiated Marketing

Concentrated Marketing


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Market

Segmentation

Strategies

or

Levels of

Segmentation

Comparison

FOCUS UM DM CM

Product One/few Many One/Few

Segments All Many One/Few

MM One Many One/Few


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Process of

Market

Segmentation

1. Form the Segments (Basis for Segmentation)

2. Profile the Segments (Solicit Buyer Profile Info.)

3. Evaluate the Segments (By means of Financial and

Strategic Criteria)4. Target Market Selection (Selects and Targets)


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Market

Segment

Selection

/

Selection of

Target Markets


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Market

Segment

Selection

/

Selection of

Target Markets


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EFFECTIVE

Market

Segmentation

1. Measurable and Obtainable

2. Substantial

3. Accessible

4. Differentiable5. Actionable

6. Others

1. Profitable

2. Relevant3. Potential

4. Risk and Competition


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Market

Segmentation

Decision

N

N

N

Y

Y

Y


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Targeting


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Targeting

Target Market A set of buyers sharing common needs or

characteristics that the company decided to serve


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Targeting (Contd.)

Target Market

Strategies

Task of Target Marketing (or Targeting)

Analyzing the environment and evaluating business

opportunities in order to identify the organizations

MS opportunities

and,

Evaluating these alternatives to take a decision

whether to enter into one market segment or a

number of strategically significant segments for

launching the marketing programme


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Targeting (Contd.)

Target Market

Strategies

(Contd.)

Target Marketing Strategies

Undifferentiated MS

Concentrated MS


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Targeting (Contd.)

Target Market

Strategies

(Contd.)

Target Marketing Strategies

Differentiated MS


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Targeting (Contd.)

Process of

Selecting Target

Market

1. TM Strategy

2. Determine segment variables

3. MS Profiles

4. Evaluate relevant Market Segments5. Select Specific Target Markets


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Positioning


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Positioning (Contd.)

Positioning

Approaches

By price value

With respect to use

According to users/class of users

With respect to product class Vis--vis competition


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Positioning

Concept Act of developing the companys offerings and image to

occupy a distinct place in the minds of the target

market

Consumer driven strategy in which the objective is to

occupy a unique place in the consumers mind and

maximize its potential benefit for the firm


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Product

Position

Vs.

Brand Position

PP BPIdea of functional vale Something above functional

value

Refers to a brands objective or

functional attributes in relation

to other brands in the category.

Characteristic of the physicalproduct and its functional

attributes

Outcome of the perception of

the target segment

customers. Brands subjective

or perceived attributes inrelation to competing brands

in the market.


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Positioning

According to

Rites and Trout

Six step framework for successful positioning

1. What position do you currently own?

2. What position do you want to own?

3. Whom you have to defeat for that position?

4. Do you have the resources to do it?

5. Can you persist until you get there?

6. Are your tactics supporting the positioning objective

you set?


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Positioning

According to

Rites and Trout

(Contd.)

Principles of Positioning

1. Minds of customers

2. Singular, consistent

3. Differentiate from competitor

4. Focus its efforts (Companys)

Positioning Errors

1. Under-positioning

2. Over-positioning

3. Confused Positioning

4. Doubtful Positioning


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Successful

Position

Relevance

Distinctiveness

Coherence

Commitment Durability

Clarity

Courage

08_Segmentation, Targeting & Positioning

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