Marketing Management Unit 4, Market Segmentation, Targeting, and Positioning

1. Unit 4.
MARKET SEGMENTATION,
TARGETING, AND
POSITIONING
Central Department of Management (Tribhuvan University)
Prepared and presented by: Laxman Aryal
Roll No: 05/2020 (MBS-A)
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2. Objectives
 What is marketing segmentation?
What is a market segment?
Benefits and importance of market segmentation
Bases of segmentation
Process of Market Segmentation
 What is targeting?
Selecting a targeting strategy
 What is positioning?
Product positioning
Developing positioning strategy
Market Segmentation Practices in Nepal Laxman Aryal 2

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4. What is Market Segment?
 A market segment is a sub-set of a market
made up of people or organizations with one or
more characteristics that cause them to
demand similar product and/or services based
on qualities of those products such as price or
function.
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5. Market Segment
 What is a market segment? Market segment
refers to a large identifiable group within a market
with similar wants, purchasing power, geographical
location, buying attributes, or buying habits.
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6. What is Market Segmentation?
 Market segmentation is
 the analysis of total demand in a market into
its constituent (basic) parts,
 so that sets of consumers, with distinctive
needs and behaviors patterns, can be
identified.
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7. Benefits and Importance of Market
Segmentation
 Market segmentation facilitates the
matching of products with consumer
needs.
 This gives satisfaction to consumers and
 higher sales and profit to the marketing firm.
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8. Benefits and Importance of Market
Segmentation
 A firm can concentrate its efforts on most
productive/ profitable segments of the total
market due to segmentation technique.
 Thus market segmentation facilitates the
selection of the most suitable market.
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9. Benefits and Importance of Market
Segmentation
 It also enables the marketer to utilize the
available marketing resources effectively
as the exact target group is identified at the
initial stage only.
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10. Benefits and Importance of Market
Segmentation
 A firm can avoid the markets which are
unprofitable and irrelevant for its marketing
purpose and concentrate on certain
promising segments only.
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11. Benefits and Importance of Market
Segmentation
 Advertising media can be more effectively
used because only the media that reach the
segments can be employed.
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12. Bases of Segmenting the
Market
 The common methods of segmentation are:
1. Geographic Segmentation
2. Demographic Segmentation
3. Psychographic Segmentation
4. Behavioral Segmentation
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13. Geographic Segmentation
 It calls for dividing market size into
different geographical units such as:
Region
City
Density
Climate: Marketers take advantage of location by
selling sun lotion in Terai Area, Mosquito killer in
Terai Area, fur coats,Jackets in Mountain Area,
etc.
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14. Demographic Segmentation
 It is dividing the market size into groups on
the basis of variable such as:
Age
Education
Family Size
Religion
Gender
Nationality
Income
Occupation Laxman Aryal 14

15. Psychographic Segmentation
 Buyers are divided into
different groups
Lifestyle
Personality Characteristics
Social Status
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16. Behavioral Segmentation
 Buyers are divided into groups on the basis of
their knowledge of, attitude toward use of or
response to a produce.
Occasions
Benefits
User Status
-
Usage Rate
Loyalty Status
Regular, Special
- Quality , Economy
- Non-user, Ex-user, Potential user, First
time user, Regular user
- Light user, Medium user, Heavy user
None, Medium, Strong,
Attitude towards Product -Enthusiastic(eager), Indifferent,
Positive, Negative,
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17. What is Targeting?
 It involves selecting which segment to serve.
 Target Market involves breaking a market into
segments and then concentrating your
marketing efforts on one or a few key
segments.
 Target Market: A set of buyers sharing
common needs or characteristics those the
company decides to serve.
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19. Undifferentiated Marketing
 Undifferentiated Marketing (Mass Marketing) –
a market coverage strategy in which a firm
decides to ignore market segment
differences and go after the whole market
with one offer.
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20. Undifferentiated Marketing
 Undifferentiated products are products that
are so similar to one another that the
majority of consumers do not differentiate
between them. Examples would be milk,
paper, and gas. Companies selling these
products typically use price and availability to
compete with one another.
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21. Differentiated Marketing
 Differentiated Marketing – a market coverage
strategy in which a firm decides to target
several market segments and designs
separate offer for each.
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23. Colgate Brand practicing Differentiated Marketing
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24. Concentrated Marketing
“Niche Marketing”.
 Concentrated Marketing – a market coverage
strategy in which a firm goes after a large
share of one or a few submarkets.
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25. Process of Market Segmentation
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26. Positioning
 Positioning: The process by which marketers
try to create an image or identity in the minds
of their target market for its product, brand, or
organization.
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27. Product Positioning
 Product Positioning: refers to the way in which the
product or service is presented to the market.
 The factors in positioning the products could be:
performance, quality, packaging, price, characteristics,
and more.
 Example: Toyota is positioned on economy.
Mercedes and Cadillac on luxury.
Porsche and BMW on performance.
Volvo positioned on safety.
 In all the above four stated examples, the product is car.
But each company is positioning their product in a
different way. Laxman Aryal 27

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29. Product Positioning
 Some other products and how they are
positioned in the market:-
Dettol Soap: - Antiseptic soap,
Lifeboy: - Medical soap
WAI WAI noodles: - Instant food,
Dove: - Beauty soap,
Pepsi: - soft drink for fun,
Diet Pepsi: - less sugar
RARA noodles- White noodles
KFC- Fried Chicken
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30. Discussion Topic
Market Segmentation Practices in Nepal ??
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31. References
 Greg W. Marshall& Mark W. Johnston
Marketing Management, Second Edition
 Philip Kotler Marketing Management
Millenium Edition.
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