Markets, Segmentation Postioning

1. Market
The group of consumers or organizations that is
interested in the product, has the resources to
purchase the product, and is permitted by law and
other regulations to acquire the product.

2. Potential market
Those in the total population who have interest in
acquiring the product.
Available market
Those in the potential market who have enough
money to buy the product.
Qualified available market
Those in the available market who legally are
permitted to buy the product.
Target market
The segment of the qualified available market
that the firm has decided to serve (the served
market).
Penetrated market
Those in the target market who have purchased
the product.

3. Target Marketing
• Target marketing requires marketers to take three major steps:
• Market segmentation: Identifying and profiling distinct groups of buyers who
differ in their needs and preferences.
• Market targeting: Selecting one or more market segments to enter.
• Market positioning:
Establishing and communicating the key distinctive benefit(s) of the company’s
market offering to each target.

4. Market segmentation IPCI
luxury
Mid size Car
ECONOMY
Chevrolet
Optra
Mercedes Benz
BMW
AUDI
Accent
Esteem
Honda Civic
Indigo
Ford Ikon
Getz
Swift
Santro
Zen
Alto 800

5. Titan Watches
THE RICH
THE MIDDLE
THE LOWER
•Fashion accessory to add to style of their dressed items
Gold Plated
•Fine jewelry studded with precious gems and colored
stones
•Fashion & Design
•Durable Product
•Reasonable Price
•Device TellingTime
•Price

6. MARKET SEGMENTATION
Market segmentation is the identification of
portions of the market that are different from one
another.
Segmentation allows the firm to better satisfy
the needs of its potential customers

7. Segmenting ConsumerMarkets
Bases for Segmentation
•Geographic
•Demographic
•Psychographic
•Behavioral
• Nation or country
• State or region
• City or metro size
• Density
• Climate

8. • Differentiate target customers BASED ON WHERE THEYLIVE.
• Mcdonald’s is the world’s biggest restaurant chain, with over 37,000
restaurants in more than 120 markets.
• The fast-food chain divides its TARGET MARKETS INTO SEGMENTS
by country, region, and cities, then customizes the menu by local
preferences.
• Different preferences and McDonald's does an excellent job of localizing its
products.
• Instead of trying to sell a big mac (a beef burger) in india and affecting the
local sentiment, they introduced the maharaja mac: a variation of the big mac
but without pork or beef.
• Mcdonald’s adapts its product offering in line with the geographic and
cultural region. This not only shows respect toward local traditions and
beliefs, but also improves their company’s image and bottom line.

9. Segmenting ConsumerMarkets
Bases for Segmentation
•Geographic
•Demographic
•Psychographic
•Behavioral
• Age, race, gender
• Income, education
• Family size
• Family life cycle
• Occupation
• Religion, nationality
• Generation
• Social class

11. Segmenting ConsumerMarkets
Bases for Segmentation
•Geographic
•Demographic
•Psychographic
•Behavioral
• Lifestyle
Activities
Interests
Opinions
• Personality
• Core values

13. Segmenting ConsumerMarkets
Bases for Segmentation
•Geographic
•Demographic
•Psychographic
•Behavioral

14. Segmenting Business Markets
Rackman and Vincentis proposed a segmentation scheme
that classifies business buyers into three groups:
• Price-oriented customers: best served via transactional selling
• Solution-oriented customers: best served by means of consultative
selling
• Strategic-value customers: best served by means of enterprise selling

15. Market Segmentation Strategies
TraditionalApproaches
1. Mass Marketing
2. Differentiated Marketing
3. Niche Marketing
EmergingApproaches
1. One to one Marketing
2. Mass Customization
3. Permission Marketing

16. Traditional Approaches to Segmentation
Mass Marketing
• Involves no segmentation whatsoever
• Aimed at whole market for a particular product
• Undifferentiated approach that all customers in the market have same needs &
wants that can be reasonably satisfied with a single marketing mix
• Works best when the needs of the entire market is homogeneous
• Advantageous in terms of production efficiency and lower marketing cost
• Is inherently risky ,vulnerable to competitors, specialized products can be
launched
Commodity
Like oil,
agricultural
products
Single Marketing Mix to All customers in the market

17. Traditional Approaches to Segmentation
Differentiated Marketing
• Involves dividing the market into groups of customers having
relatively common or homogeneous needs and attempting to
develop a marketing mix that appeals to one or more of this
groups
• Involves two options:
Multi segment approach and
Market concentration approach
Aviation
industry
More than one marketing mix to more than one market Segment

18. Traditional Approaches to Segmentation
Niche Marketing
•Involving focusing marketing efforts on one small, well defined
market segment or niche that is unique, specific, set of needs
•Requires that firm understands & meet the needs of target
customers so completely that, despite the small size of the niche, the
firms substantial share makes the segment highly profitable
Single marketing Mix focused on small market segment

19. EmergingApproaches
➢Have become viable DUE TO ADVANCES IN TECHNOLOGY, particularly communication
technology and the internet.
➢Possible because organization can now track customers with high degree of specificity.
➢Allow firm to combine demographic data with pat and current purchasing behavior so they can
tweak their marketing mixes in ways that allow them to precisely match customers needs,
wants & Preference
➢Important in future as focus on individual customers critical in long term relationship
➢Depends on Automated delivery of the marketing mix & personalization

20. One to One Marketing
-Involves creation of an entirely unique marketing mix for each
customers in target segment
-Common in Business Market where unique programs/systems are
designed for each customer
-Growing in Consumer market also- luxury and custom made products
as well as in service
Emerging Approaches to Market Segmentation

21. Mass Customization
-Providing unique products and solutions to individual customers on a
mass scale
-Cost effective due to advances in supply chain management, including
just in time inventory control system
-Used in business Market in electronic Procurement Systems
Emerging Approaches to Market Segmentation

22. Permission Marketing
Customer choose to become member of the firms target market
Commonly executed via the opt- in- e-mail list , where customer permit a
firm to send periodic e mail about goods and services they have interest
in purchasing
Customers who opt in are already interested in goods and services
offered
Eliminates wasted marketing efforts and expense
Emerging Approaches to Market Segmentation

23. Selectivespecialization
• This is a multiple-segment strategy (Differentiated strategy)
• Different marketing mixes are offered to different segments.
• The product itself may or may not be different - in many cases only
the promotional message or distribution channels vary

24. Multiple Segmentstrategy
S1 S2 S3
P1
P2
P3
HUL,P&G

25. Productspecialization
• The firm specializes in a particular product and tailors it to different market segments
• Expertise in a product category is leveraged across many different market segment
S1 S2 S3
P1
P2
P3
Littmann Stethoscope-HPES- Cardiologist,SDS-
Peditrician,LWS-Simple Physical assesment

26. Marketspecialization
• The firm specializes in serving a particular market segment and offers
that segment an array of different products.
S1 S2 S3
P1
P2
P3
EDUCOM-
Schools,colleges,Universities

27. Fullmarketcoverage
• The firm attempts to serve the entire market.
• This coverage can be achieved by means of either a mass market strategy in which a single
undifferentiated marketing mix is offered to the entire market, or by a differentiated
strategy in which a separate marketing mix is offered to each segment
S1 S2 S3
P1
P2
P3
Coca Cola –Many different Beverage that fulfill many
customers needs

28. POSITIONING
Definition
ALRIES AND JACKTROUT Creating image or identity in the minds of target
market for a particular product, Brand or Organization
• Positioning refers to ‘how organizations want their consumers to see
their product’.
• What message about the product or service is the company trying to put
across?
• The pricing strategy must reflect the benefit offered and the promotion
strategy must communicate this benefit

32. Positioning Concept
• Positioning by Product Characteristics/Consumer Benefits
• Positioning by “Price-Quality
• Positioning by Use orApproach
• Positioning by Product User
• Positioning by Product Class
• Positioning by Culture Symbol
• Positioning by Competitor

33. Positioning by Product Characteristics/Consumer
Benefits
This is commonly used strategy and consists in
Associating an object with a product characteristic or customer benefit.
“Colgate Total”
Only toothpaste -12 Hr Protection-Cavities, Gingivitis,Plaque
For whiter teeth and healthy Smile
“ ANCHORWHITE”
100 percent VegetarianToothpaste
“CLOSE UPACTIVEGEL”
Vitamin Fluoride System- Fresh Breath and strong and whiter teeth

34. Based on physical characteristics,
pseudo-physical characteristics,
benefits.
• Physical characteristics are objective and can be measured on some physical scale: Temperature,
colour,
sweetness,
saltiness,
thickness,
weight.
• Pseudo-physical characteristics- characteristics that cannot be easily measured: Spiciness,
greasiness, creaminess, shininess (Kiwi shoe polish)
• Benefits represents to advantages that promote the well being of the consumer
Quenching thirst (Limca), not harmful to the skin, satisfying hunger, convenience.
Positioning by Product Characteristics/Consumer Benefits

35. Positioning by “Price-Quality”
Price and Quality Important considerations
• Ariel- Premium quality Product
Zenith Computers: “MNC quality. Indian price”

36. Positioning by Use orApproach
Associating the product with a specific use
Vicks: “Use Vicks when cold attacks”
Dettol: “The liquid protection against
bacteria”
Clinic All Clear: “The dandruff-control
shampoo”

37. Positioning by Product User
Associating the product with a particular type or class of
user.
• Through celebrity endorsements.
Lux-earlier their positioning was ‘Filmi Sitaroan Ka Saboon’,
New advertise says that by using Lux you can also become a star

38. Positioning by Product Class
Associated with a Product Class
Rolex Watches “ Best Expensive SwissWatches”
“Seven Up, the uncola

39. Positioning by Culture Symbol
Identifying something that is very meaningful to people, and that
competitors are not using, and then associating the brand with that
symbol.
Onida’s green eyed devil also set Onida apart from the competition by
positioning it as something that is envied and talked about by neighbors .

40. Positioning by Competitor
Making consumers think that your brand is better than, or as good as the
competitors
• Pears /Dove