CB FINAL PPT.pptx

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    SEGMENTATION

    ANDTARGETING

    STRATEGIESBy: ANKITA GAUR 05-MBA-2012

    MEENU GUPTA 29-MBA-2012SAKSHI GUPTA 45-MBA-2012

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    people or organizations with needs or wants, and with the ability and the willingness to buy.

    A group of people that lacks anyone of these characteristics is not a

    market.

    A Market Is...

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    The Concept of Market Segmentation

    3

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    TITAN WATCHES

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    Market can be segmented using several

    bases

    A market/ consumer population for a productcan be segmented using several relevant bases.The major ones include:

    GeographicDemographics

    Socio-cultural

    Psychographic

    Psycho-graphics

    Buying Behavior

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    Geographic Segmentation

    Geographic decides the product consumption

    pattern. People in coastal areas of Konkan and

    Goa relish rice, a staple grain there and fishabundantly available from sea. Southern are

    found of coffee and north Indians like Tea

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    Age: It is essentially a case of age based

    segmentation of a market.

    Example:Amul has segmented his product in

    different age group

    For kids: Amul kool, chocolate milk, Nutramul energy

    drink.

    For Youth: Amul cool kafe.

    For womens and older people: Amul calci+, Amul

    Shakti energy drink

    Gender: Gender is another key variable/base under

    demographic segmentation.

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    Example: Adidas targets women in India

    German shoe maker Adidas is trying to develop

    the women segment in India for its products.

    Emami segmented its product in gender

    Womens: Naturally fair

    Men: Fair and handsome

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    Socio-Cultural Factors

    McDonald has both veg and non veg burger.

    McDonald has veg burger for vegetarian and nonveg

    burger for non vegetarian.

    Psychographic segmentation

    Life style:

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    Buying Behavior Segmentation

    Usage rate: - Heavy user / moderate user / light user of a product.

    User status: - Regular / potential / first time user / irregular

    /occasional.

    Loyalty to brand: - Hard core loyal / split loyal / shifting /

    switches.Occasion: - Holidays and occasion stimulate customer to purchase

    products.

    Attitude toward offering: - Enthusiastic / positive attitude /

    negative attitude / indifferent / hostile.

    Example:Shampoos, soap and all FMCG products buying behavior

    segmentation is used.

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    Segmentation approaches

    Depends on number of bases (factors) applied:

    Single-stage segmentation (one base).

    Two-stage segmentation (two bases).

    Multi-stage segmentation (three or morebases).

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    TYPE OF FIRM SUITABLE

    SEGMENTATIONAPPROACH

    RATIONALE

    Cosmetics and perfumes firms(such asLOreal)

    Demographics (gender, age)OR

    Benefit

    Cosmetics and perfumes firmscould effectively use a varietyof segmentation variables. Forexample, males and femaleswould have different needs, aswould younger and olderconsumers.

    Benefit segmentation could beused (some possible couldinclude: skin repair, removewrinkles, glowing skin, acnereduction, attractive look, social

    status, celebrity identification).

    Car manufacturerPsychographic(social class)

    OR

    Geographic

    Segmenting by social classmakes sense for this productcategory, as cars are often areflection of a consumerslifestyle and used as a socialsymbol of success.

    Geographic segmentation (suchas urban versus rural) could alsobe an effective approach

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    Criteria for market segmentation

    IDENTIFICATION

    MEASURABILITY

    ACCESSIBILITY

    SUBSTANTIALLY

    STABILITY

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    Multisegment Marketing

    Marriott Courtyard

    Ritz-Carlton Hotels

    Marriott Conference Centers

    Marriott ExecuStay

    Marriott Vacation Clubs

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    EXAMPLE: GENERAL MOTORS

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    EXAMPLE- APPLE

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    Segmentation Global Markets

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    Examples

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    Advantages

    Facilitates proper choice of target marketing

    Higher Profits

    Facilitates tapping of the market, adapting theoffer to the target

    Stimulating Innovation

    Makes the marketing effort more efficient andeconomic:

    Sustainable customer relationships in all phases ofcustomer life cycle

    Targeted communication

    Higher market Shares

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    Targeting Marketing

    Target market is a business term meaning the market segmentto which a particular good or service is marketed. It is mainlydefined by age, gender, geography, socio-economic grouping, orany other combination of demographics.

    The beauty of target marketing is that it makes the promotion,pricing and distribution of your products and/or services easier andmore cost-effective.

    Target marketing provides a focus to all of your marketing activities.In choosing target market, a firm basically carries out anevaluation of the various segments and selects those segmentsthat are most appropriate to it.

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    Process of choosing a target market

    Choosing the target market is related to, but notsynonymous with, market segmentation.

    Segmentation is the means or the tool; choosingthe target market is the purpose.

    Segmentation can also be viewed as the prelude totarget market selection.

    Choosing the target market usually follows multi-level segmentation using different bases.

    Choosing the target market involves several othertasks in addition to segmentation.

    Looking at each segment as a distinct marketingopportunity

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    Evaluating the worth of each segment (sales/profit potential).

    Evaluating whether the segment is:

    Distinguishable.

    Measurable.

    Sizable.

    Accessible.

    Growing. Profitable.

    Compatible with the firmsresources.

    Examining whether it is better to choose the whole market, or the only a fewsegment, and deciding which ones should be chosen.

    Looking for segments, which are relatively less satisfied by the current offers in

    the market from competing brands. Checking out if the firm has the differential advantage / distinctive capability for

    serving the selected segments.

    Evaluating the firmsresources and checking whether it is possible to put in themarketing programmes required for capturing the spotted segments with thoseresources.

    Finally selecting those segments that are most appropriate for the firm.

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    FACTORS TO BE CONSIDERED WHILETARGET MARKET

    SELECTION Attractiveness of a Market Segment

    Suitability of Market Segments to the Firm

    1. Whether the firm can offer superior value to the customers inthe segment

    2. The impact of serving the segment on the firm's image

    3. Access to distribution channels required to serve the segment4. The firm's resources vs. capital investment required to serve

    the segment

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    TARGET MARKET STRATEGIES

    Single-segment strategy

    Selective specialization

    Product specialization

    Market specialization

    Full market coverage

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    Market Targeting

    S1 S2 S3

    P1

    P2

    P3

    P = ProductsS = Market Segment

    Single Segment Concentration

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    Market Targeting

    (

    S1 S2 S3

    P1

    P2

    P3

    P = ProductsS = Market Segment

    Selective Specialization

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    Market Targeting

    S1 S2 S3

    P1

    P2

    P3

    P = ProductsS = Market Segment

    Product Specialization

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    Market Targeting

    S1 S2 S3

    P1

    P2

    P3

    P = ProductsS = Market Segment

    Market Specialization

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    Market Targeting

    S1 S2 S3

    P1

    P2

    P3

    P = ProductsS = Market Segment

    Full Market Coverage

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    DECISIONS INVOLVED IN TARGETING STRATEGYINCLUDE:-

    which segments to targeting.

    how many products to offer.

    which products to offer in which segments.

    TARGETING STRATEGY DECISIONS AREINFLUENCED BY:

    Market maturity.

    Diversity of buyers' needs and preferences. Strength of the competition.

    The volume of sales required for profitability.

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    SEGMENT TION

    IMPULSE SEGMENT

    For eating then and thereKhaane walo ko khane ka bahana chaiye

    GIFT SEGMENTPurchased to gift some one

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    T RGET M RKET

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    SEGMENT TION

    On the basis of Geography

    -divided Indian market in telecomcircles.

    -Subdivided States into category A, Band C

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    T RGETING

    Earlier elite class above age group of 25

    years.

    Corporate people and business men.

    Again targeted youth by introducing

    YOUTOPIA plan.

    Targeted women and senior citizens byintroducing post paid plans.

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    THANK YOU(Errors and omissions regretted)