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
STP.
 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
segmentation.
 Advantages of
Segmentation
1. 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 offer
for each identified segment.
 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 , climate etc.
 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
efficient.
 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 decision.
 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 Anesthetist These people can
use their own equipments if they have..
 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
but with family he may book a
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 different
segment
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
preference.
 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 marketing strategy.
 Market segmentation
process

Form the Profile the Evaluate

Target
Segment 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 & Mahindra
Criteria for effective market
segmentation

Acc
ess
ible
Criteria for effective market
segmentation

Clear
differences in
consumer
preferences
for a product
must exist.
Criteria for effective market
segmentation
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
profitable.
 Criteria for effective market
segmentation

Actionable Companies
must be able
to respond to
difference
preferences
with an
appropriate
marketing mix.
Criteria for effective market
segmentation

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 are-
1. Segment size &
2. Segment worthiness
3. Segment measurability
4. Segment attractiveness
5. Segment accessibility.
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 strategies

1. 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 strategies

2. 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 launch
Types of target marketing strategies

3. 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 etc.
 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.
E.g.Tata DOCOMO.
 Qualities of a successful
position
In 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 Feel Good

Margo Lux
Dettol 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 , service , channel ,
people , image.
 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.