SELECT CUSTOMER DECIDE ON A VALUE TO SERVE PROPOSITION SEGMENTATION DIFFERENTIATION DIVIDE THE TOTAL DIFFERENTIATE THEMARKET INTO SMALLER MARKET OFFERING TO SEGMENTS CREATE SUPERIOR CREATING VALUE CUSTOMER VALUE FOR TARGETED CUSTOMERS TARGETING POSITIONINGSELECT THE SEGMENT OR POSITION THE MARKET SEGMENTS TO ENTER OFFERING IN THE MINDS OF TARGET CUSTOMERS
SEGMENTATION• Market segmentation is dividing a market into distinct groups with distinct needs, characteristics or behavior who might require separate products on marketing mix.
GEOGRAPHICAL SEGMENTATIONWorld region or country City or metro size Climate
DEMOGRAPICSEGMENTATION Age Gender Income Occupation Religion
PSYCHOGRAPHIC SEGMENTATION Social class Lifestyle Personality
BEHAVIORALSEGMENTATION Occasion Benefit User Loyalty statusAttitude towards product
REQUIREMENTS OF EFFECTIVE SEGMENTATION Measurable Accessible Substantial Differentiable Actionable
TARGETING• Targeting is the actual selection of the segment you want to serve the target market is the group of people or organizations whose needs a product is specifically designed to satisfy
EVALUATING TARGET SEGMENTS • how large is this target market? Worth Size pursuing? Expected • even if the market is small, it may be profitable Growth if there are indications that it will grow. Competitive • low competition equals attractive market PositionCost to Reach • Is this market accessible with our tactics?Compatibility • how aligned is this market to our goals?
TARGET MARKETING TargetingUndifferentiated mass marketing broadly Differentiated segmented marketing Concentrated niche marketing Micromarketing (local or Targeting individual) narrowly
WOODLAND SHOES MCDONALDS BAJAJ HIMALAYAN PUBLIATION COKE AND PEPSI
POSITIONING• A product position is the way a product is defined by consumers on important attributes – the place the product occupies in consumers minds relative to competing products.
SEGMENTATION• Red bull avoided usual methods of marketing, relying more on what is called as “buzz marketing” or word-of-mouth• Red bull advertise directly to generation y, then so called millennial: people born after 1981• ‘student brand managers’ who would be used to promote red bull on university campuses. These students would be encouraged to throw parties at which cases of red bull will be distributed
TARGET MARKETCore target market segments of red bull consists of thecore age group of 15-60 yearsEnergy drinks with high sugar level are more popularamong children and women, while energy drinks withstrong taste and flavor are more preferred by maleconsumersRecent studies also indicate that 65% of the energy drinkmarket consists of male consumers.
SEGMENTATION• On the basis of Geography -divided Indian market in telecom circles. -Subdivided States into category A, B and C
TARGETING• 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 by introducing post paid plans.
POSITIONING• Tagline- “ EXPRESS YOURSELF ”.• Positioned in premium category aimed at elite class of society.• Perception of aspirational and lifestyle brand.• Airtel decided that the brand should always connote leadership - be it in network, innovations, offerings or services• Sponsored games like Golf.