MARKETING SEGMENTATION, IMPLEMENTATION

&TARGETINGAGNES MIRIAM

BARATH SRINATH

DEVIKA P KUMAR

GOPINATH

GOWRISHANKAR

MODANNA IMMACULATE MARY

MARKETING SEGMENTATION• Market segmentation is a marketing strategy which involves dividing a broad target market into subsets

of consumers, businesses, or countries that have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them.

• Four basic factors that affect market segmentation are

1.clear identification of the segment,

2.measurability of its effective size,

3.its accessibility through promotional efforts, and

4.its appropriateness to the policies and resources of the company.

SEGMENTATION STRATEGIESThe four basic market segmentation-strategies are based on

1.Behavioral,

2.Demographic,

3.Psychographic, and

4.Geographical differences.

WHY DO WE NEED MARKET SEGMENTATION?Not all individuals have similar needs. A male and a female would have varied interests and liking towards different products. A kid would not require something which an adult needs. A school kid would have a different requirement than an office goer. Market Segmentation helps the marketers to bring together individuals with similar choices and interests on a common platform.

• Market Segmentation helps the marketers to devise appropriate marketing strategies and promotional schemes according to the tastes of the individuals of a particular market segment. A male model would look out of place in an advertisement promoting female products. The marketers must be able to relate their products to the target segments.

• Market segmentation helps the marketers to understand the needs of the target audience and adopt specific marketing plans accordingly. Organizations can adopt a more focussed approach as a result of market segmentation.

PROCESS OF MARKET SEGMENTATION

Steps in Market Segmentation1. Identify the target market

The first and foremost step is to identify the target market. The marketers must be very clear about who all should be included in a common segment. Make sure the individuals have something in common. A male and a female can’t be included in one segment as they have different needs and expectations.

2. Identify expectations of Target Audience

Once the target market is decided, it is essential to find out the needs of the target audience. The product must meet the expectations of the individuals. The marketer must interact with the target audience to know more about their interests and demands.

3. Create Subgroups

The organizations should ensure their target market is well defined. Create subgroups within groups for effective results. Subgroups would include attracting customers of different age group in the process. For example, if there is a product which attracts all age groups, there will a sub group for 10-15 yrs. 20-25 yrs.etc

4. Review the needs of the target audience

It is essential for the marketer to review the needs and preferences of individuals belonging to each segment and sub-segment. The consumers of a particular segment must respond to similar fluctuations in the market and similar marketing strategies.

5. Name your market Segment

Give an appropriate name to each segment. It makes implementation of strategies easier. A kids section can have various segments namely new born, infants, toddlers and so on.

6. Marketing Strategies

Devise relevant strategies to promote brands amongst each segment. Remember you can’t afford to have same strategies for all the segments. Make sure there is a connect between the product and the target audience. Advertisements promoting female toiletries can’t afford to have a male model, else the purpose gets nullified.

7. Review the behaviour

Review the behaviour of the target audience frequently. It is not necessary individuals would have the same requirement (demand) all through the year. Demands vary, perceptions change and interests differ. A detailed study of the target audience is essential.

8. Size of the Target Market

it is essential to know the target market size. Collect necessary data for the same. It helps in sales planning and forecasting.

APPLE’S MARKET SEGMENTATION

MARKET TARGETING

• A target market is a group of customers a business has decided to aim its marketing efforts and ultimately its merchandise towards. A well-defined target market is the first element of a marketing strategy.

• Target marketing is about attracting customers who will buy what you’re selling.

MARKET TARGETING PROCEDUREMarket targeting procedure consists of two steps:

1. Evaluating Market Segments:

Evaluation of market segments calls for measuring suitability of segments. The segments are evaluated with certain relevant criteria to determine their feasibility.

To determine overall attractiveness/suitability of the segment, two factors are used:

i. Attractiveness of Segment:

• In order to determine attractiveness of the segment, the company must think on characteristics/conditions which reflect its attractiveness, such as size, profitability, measurability, accessibility, actionable, potential for growth, scale of economy, differentiability, etc. These characteristics help decide whether the segment is attractive.

ii. Objectives and Resources of Company:

• The firm must consider whether the segment suit the marketing objectives. Similarly, the firm must consider its resource capacity. The material, technological, and human resources are taken into account. The segment must be within resource capacity of the firm.

2. Selecting Market Segments:

• When the evaluation of segments is over, the company has to decide in which market segments to enter. That is, the company decides on which and how many segments to enter. This task is related with selecting the target market. Target market consists of various groups of buyers to whom company wants to sell the product; each tends to be similar in needs or characteristics. Philip Kotler describes five alternative patterns to select the target market. Selection of a suitable option depends on situations prevailing inside and outside the company.

TARGET MARKET OF SAMSUNG• Samsung's targets a very wide range of consumers ranging from normal day to day usage devices to

industrial standard equipment. The usual target age group of customers range from the 20s to 50s or even older, as long as the person has the ability to purchase and use the products that Samsung has to offer in the market.

• Teenagers to early adults (age 14 ' 25) ' This age group of Samsung product consumers is usually Samsung's smartphone target customers as they are mostly technology savvy. This group of customers is growing as Samsung saw that this group has more spending power in recent years compared to in the past.

• Adults (age 26 ' 50) ' This specific group of targets the largest portion of Samsung's target market as this is the group of consumers that have the most ability to purchase any of the product Samsung has to offer in the market be it smartphones, smart television, cameras or any other household products like vacuum cleaners or washing machines. This portion of customers will continue to grow in the years to come.

MARKET POSITIONING

• Positioning is a marketing strategy that aims to make a brand occupy a distinct position, relative to competing brands, in the mind of the customer. Companies apply this strategy either by emphasizing the distinguishing features of their brand (what it is, what it does and how, etc.) or they may try to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end, etc.) through advertising.

• An effort to influence consumer perception of a brand or product relative to the perception of competing brands or products. Its objective is to occupy a clear, unique, and advantageous position in the consumer's mind.

POSITIONING PROCESS • There are 6 main steps in positioning process. In each of the steps, marketing research techniques can

be employed to get the necessary information. These steps are discussed as follows, the example here is taken as ‘PEPSI’.

(1) Identifying the Competitors – A first step is to identify the competition. This step is not as simple as it seems to be. For example, ‘Pepsi ‘ might define its competitors as follows:

(1) Other cola drinks (2) Non-diet soft drinks (3) All soft drinks (4) Non-alcoholic beverages, (5) All beverages except water

There is basically two types of competitors

• -Primary competitors i.e., competitors belonging to the same product class

• -Secondary competitors, those belonging to other product category.In the above example other cola drinks are primary competitors and other drinks and beverages are secondary competitors.

(2) Determining how the Competitors are Perceived and Evaluated – The second step is related to determining the product positioning which is basically done so as to see,when the competitors products are purchased by the customers. It is to see comparative view. An appropriate set of product attributes should be chosen. The term ‘attributes’ includes not only product characteristics and consumer benefits but also product associations such as product use or product users. In any product category, there are usually a host of attribute possibilities.

(3) Determining the competitor’s positions – Our next focus should be to determine how different brands (including our own brand) are positioned with respect to the relevant attributes selected under the previous step. At this point we should be clear about what is the image that the customer has about the various product brands? You have to see how are they positioned in respect to each other? Which competitors are perceived as similar and which as different? This judgment can be made subjectively. However a research can be taken up for getting the answer of these questions.

(4) Analyzing the Customer – Now you need to analysis the customers habits and behaviour in a particular market segment. The following questions need attention while understanding the customer and the market – (i) how is market segmented? (ii) What role does the product class pay in the customers life style? What really motivates the customers? And what habits and behavior patterns are relevant?

(5) Making the positioning Decision – The above four steps provide you a useful backgrounds and are necessary to be conducted before taking any decision about positioning. The managers can carry these steps or exercises. After these four exercises, the following guidelines can be offered to reach a positioning decision: –

(i) An economic analysis should guide the decision.

(ii) Positioning usually implies a segmentation commitment.

(iii) If the advertising is working, the advertiser should stick to it.

(iv) Do not try to be something, your are not.

(v) In making a decision on position strategy, symbols or set of symbols must be considered.

(6) Monitoring the position – An image objective, like an advertising objective should be measurable. It is necessary to monitor the position overtime, for that you have variety of techniques that can be employed it can be on the basis of some test and interviews which will help to monitor any kind of change in the image.

Thus, the first four steps in the positioning process provides a useful background. The fifth one only is taken to make the position decision. The final step is to evaluate and measure and follow up.

THANK YOU