This Presentation contains Market segmentation, Basis of market segmentation, Benefits of market segmentation, Target market selection, Market targeting strategies and Positioning strategies

1. Segmentation , Targeting and
Positioning in Marketing
Prepared By
Jitendra Patel
Assistant Professor
Prestige Institute of
Management and
Research, Indore
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2. Module II
1.Segmentation
1.1 Definition
1.2 Needs for Segmentation
1.3 Quality of Good Segment
1.4 Basis of Segmentation
1.4.1 Geographical Segmentation
1.4.2 Demographical Segmentation
1.4.3 Psychographic Segmentation
1.4.4 Behavioral Segmentation
1.5 Segmentation Example
1.6 Benefits of Segmentation
2. STP Process
3. Targeting
3.1 Targeting Definition
3.2 Targeting Consumer
3.3 Criteria for Selecting Target
3.4 Target market strategies
3.4.1 Single Segment Strategy
3.4.2 Selective Specialization
3.4.3 Product Specialization
3.4.4 Market Specialization
3.4.5. Full Coverage
3.4.5.1 Undifferentiated, Concentrated, Differentiated9/1/2019 2Jitendra Patel, Assistant Professor ,PIMR

3. Module II
4 Positioning
4.1 Positioning Example
4.2 Types of Positioning
4.3 Positioning in Hotel Industry
4.4 Elements of Positioning
4.4.1 Product
4.4.2 Company
4.4.3 Competitor
4.4.4 Consumer
4.5 Choosing a Positioning Strategy
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4. Unit II: Market Segmentation
• Market Segmentation is the sub dividing of
customers into homogenous sub set of customers
where any sub set may be selected as market
target to be reached with distinct marketing mix.
-Kotler
• The process of defining and subdividing a large
homogenous market into clearly identifiable
segments having similar needs, wants or demand
is called Segmentation
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5. Need for Segmentation
• To develop Marketing Activities
• Increase market effectiveness
• Greater customer satisfaction
• Create savings
• To overcome competition effectively
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6. The Good Segment Must be
• Well Defined
• Small
• Manageable
• Targeted and Focused.
• Profitable
• Substantial Size
•
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7. Basis of Market Segmentation
Segmenting Consumer Markets
• Geographic
• Demographic
• Psychographic
• Behavioral
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8. Geographic
Geographic segmentation divides the market into
different geographical units such as
• nations,
• regions,
• states,
• counties, or cities
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9. Demographic
Demographic segmentation divides the market into groups based on
variables such as
– age, gender
– family size
– family life cycle,
– income,
– occupation,
– education,
– religion,
– race,
– generation, and
– nationality
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10. Psychographic
• Psychographic segmentation divides buyers
into different groups based on
– social class,
– lifestyle,
– personality traits
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11. Behavioral segmentation
Behavioral segmentation divides buyers into
groups based on their knowledge, attitudes,
uses, or responses to a product
• Occasion
• Benefits sought
• User status
• Usage rate
• Loyalty status
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12. Segmentation Examples
Type of Firm Segmentation Base Possible market
segments
Banking Demographic
segmentation
Young couples, young
families, older families,
pre-retirement, retired
Mobile phone carriers Benefit segmentation Highly social, work-
oriented, safety
contact, status symbol
Toothpaste Benefit segmentation Teeth whitening,
sensitive teeth, fresh
breath, cavity
protection, tartar
control
Restaurant Behavioral segmentation Regulars, special
occasion, business
lunch, quick spot9/1/2019 12Jitendra Patel, Assistant Professor ,PIMR

13. Benefits of Segmentation
1. Facilitates the right choice of Target market:
It helps the marketer to identify potential buyers
and pickup their target market effectively.
2. Facilitates effective tapping of the Chosen
market segment:
It helps to know and analyse the demands of each
customer group and make offers that match
them.
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14. Toyota India
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15. 3. Helps identify less satisfied segments and concentrate
on them:
4. Helps to concentrate efforts on most
productive and profitable market segment
instead of frittering over irrevelant, unproductive
/unprofitable segment.
● Segmentation also helps the marketers to
know the segment still waiting to be served
and grabs them as a unique opportunity.
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16. 5. FOCUS OF THE COMPANY
● Segmentation is an effective method to increase the focus of
a firm on market segments.
● This helps a company in changing its focus for better returns.
● Thus companies base their strategy completely on a new
segment which increases its focus and profitability.
e.g. Automobile companies have started focusing on small car
segments.
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17. 6.CUSTOMER RETENTION
Segmentation ensures customer
retention.
e.g. Titan watches.
● A watch is available for any
customer who enters a Titan
showroom, whatever be his age,
budget.
● from fast track to Sonata and the
high end
watches(EDGE,HTSE,PURPLE,etc)
Titan has them by price segment as well
as life cycle segment.
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18. 7. MARKET EXPANSION
● Segmentation plays a crucial role in expansion.
● One cannot expand in a territory without any idea of which
segment of customers one will be dealing with.
● e.g Reebok targets fitness enthusiasts,
it has expanded into clothes and accessories from being a shoe
manufacturer.
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19. 8. INCREASE PROFITABILITY
● It affects the profitability of the firm.
e.g. Nike, BMW showrooms.
● One of the USP’s of these brands is their segmentation. i.e
they target segments which donot bargain or negotiate.Thus
their profitability is high.
9. BETTER COMMUNICATION
● Communication cannot be possible without knowing target
market.
● By limiting the audience, one can choose magazines,
websites, radio and TV stations, events that those customers
are more likely to hear, see, visit or attend.
● This makes the marketing effort more economic and efficient.
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21. Targeting
• Targeting is the second stage of
the SEGMENT "Target" POSITION(STP)
process. After the market has been separated
into its segments, the marketer will select a
segment or series of segments and ‘target’
it/them. Resources and effort will be targeted
at the segment.
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22. Targeting Consumer
Target
Unaware Aware
Not Yet
Tired
Negative
Opinion
Neutral
Favorable
Opinion
Tired
Rejecter Switcher User
Light User
Moderate
User
Heavy
User
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23. Criteria for Selecting Target
• Size: The market must be large enough to justify
segmenting. If the market is small, it may make it
smaller.
• Difference: Measurable differences must exist between
segments.
• Money: Anticipated profits must exceed the costs of
additional marketing plans and other changes.
• Accessible: Each segment must be accessible to your
team and the segment must be able to receive your
marketing messages
• Focus on different benefits: Different segments must
need different benefits.
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24. Single Segment Single Product
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25. One Product all Segment
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26. Multi Products Multi Segment
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27. Target market strategies
• Single Segment Strategy
• Selective Specialization
• Product Specialization
• Market Specialization
• Full Market Coverage
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28. Full Market Coverage is done in three way
Undifferentiated, Concentrated, Differentiated
Strategy Description Example
Undifferentiated
Sending the same
promotional message to
everyone
Promoting the city as a historic
destination by placing ads in
widely read newspapers
Concentrated
Designing a promotional
message that
communicates the benefits
desired by a single
specific segment
Promoting the city as historic by
targeting elderly members of
historical societies by placing ads
in their newsletters
Differentiated
Designing more than one
promotional message, with
each communicating
different benefits
Also targeting families by
communicating a promotional
message about the importance of
children learning history
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29. Positioning
The place a
product occupies
in consumers’
minds relative to
competing
products.
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30. Positioning
– The place the product occupies in consumers’
minds relative to competing products.
– Typically defined by consumers on the basis of
important attributes.
– Involves implanting the brand’s unique benefits
and differentiation in the customer’s mind.
– Positioning maps that plot perceptions of brands
are commonly used.
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31. Positioning Example
• eBay’s positioning: No matter what “it” is, you can find “it”
on eBay!
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32. Types of Positioning
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33. • Positioning by Specific Product Attribute and Benefits.
Here the marketer associates a product with an attribute, a product
feature or a consumer feature.
A common approach is setting the brand apart from competitors on
the basis of the specific characteristics or benefits offered.
Every one you know have one
Yahoo.
• Eat fresh
• Subway
• By product class
• Highlights their fresh menu items, against the range of fast food
options available
• “To Fly. To Serve.” British Airways”
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34. • POSITIONING BY PRICE/ QUALITY
The positioning is done based on price and quality
of the product.
Premium products are positioned like this.
JIO
Emirates
Hello Tomorrow
Making the sky the best place on Earth") is the
tagline of ‘Air France’
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35. • POSITIONING BY USE OR APPLICATION
specific image or position for a brand is to
associate it with a specific use or application.
• don’t leave home without it
• American Express
• By use/application
• States that the product is vital when you are
traveling
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36. • POSITIONING BY PRODUCT CLASS
Often the competition for a particular product
comes from outside the product class.
• When it absolutely, positively, has to be there
overnight
• Federal Express
• By product class
• States that there is no competitive alternative
when you want promptness and reliability
• Cisco
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37. • POSITIONING BY PRODUCT USER
Here the persona of the product is associated
with the User.
Eg. Idea – Abhishek Bachaan
Banker to every Indian
SBI
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38. • POSITIONING BY COMPETITOR
This is similar to positioning by product class, although in this case the
competition is within the same product category.
• We try harder
• Avis Rent-a-Car
• Against competition
• Targets the market leader (Hertz), by implying that they are lazy and complacent,
particularly in the area of customer service
• Have it your way
• Burger King
• Against competition
• Highlights the flexibility of their menu choices, implied against McDonald’s
offerings
• Autobell Car Wash
• People can tell........When you Autobell.
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39. • POSITIONING BY CULTURAL SYMBOLS
the cultural symbols are used to differentiate
the brands., Air India
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40. Positioning Strategy – Cultural Symbols
• Culture can be defined as the customs, arts, social institutions, and achievements
of a particular nation, people, or other social group
• A population recognizes itself and the society through the use of cultural symbols
• It is this fundamental principle that leads advertisers to associate a particular
product with a cultural symbol
• This leads the target market populace to associate the product with culture and
the general understanding it identifies as holy, artistic, refined or sophisticated.
• Essentially, identify something that is very meaningful to people and associate the
brand with that symbol.
• This helps to differentiate brands from other competitors.
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41. Cultural Symbols Positioning Strategy
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42. Product Matrix
No. of destinations
Destinations
Type
Less
More
Luxury Cultural
heritage
Malaysia
Thailand
India
Dubai
Singapore
China
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43. Positioning in Hotel Industry
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44. Elements of Positioning
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45. • The Product:
This is where the consumer decides how
important the product is and what meaning it has
and how he relates it with his need.
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46. • The Company
Every product comes from a company and every
company has its own Image.
Better Company profile, Better the perceived
value of the product.
In some cases the brand name overshadows the
name of the company. Eg. Amul – GCMMF (Gujrat
Co-operative Milk Marketing Federation)9/1/2019 46Jitendra Patel, Assistant Professor ,PIMR

47. • The Competition
Product Positioning is done in relation to various
competitive offerings.
Most of the cases a products are compared with
the dominant brand in the same category.
Selecting a slot distinctly different from the
competitors can avoid direct confrontation with
them.9/1/2019 47Jitendra Patel, Assistant Professor ,PIMR

48. • The Consumer
To re-enforce, Positioning is essentially based on
consumer perceptions rather than factual evaluations.
It becomes very important, to examine, what is the
perceived value of the product for the consumer.
To Analyze this, we should be through with Consumer
Behaviour.
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49.  Identifying possible
competitive advantages
 Choosing the right
competitive advantage
 Choosing a positioning
strategy
 Differentiation can be
based on
 Products
 Services
 Channels
 People
 Image
Topics
Choosing a Positioning Strategy
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50. Choosing a Positioning Strategy
• How many differences to
promote?
 Unique selling proposition
 Several benefits
• Which differences to promote?
Criteria include:
 Important
 Distinctive
 Superior
 Communicable
 Preemptive
 Affordable
 Profitable
Topics
 Identifying possible
competitive advantages
 Choosing the right
competitive advantage
 Choosing a positioning
strategy
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51. Choosing a Positioning Strategy
• Value propositions represent
the full positioning of the
brand
• Possible value propositions:
 More for More
 More for the Same
 More for Less
 The Same for Less
 Less for Much Less
Topics
 Identifying possible
competitive advantages
 Choosing the right
competitive advantage
 Choosing a positioning
strategy
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52. References
1. Aakar, D. A. (2012), “Strategic Market Management” 9th Edition, New Delhi, India, Wiley India.
2. D. Chandra Bose (2010.) “Modern Marketing Principles and Practices” PHI Learning, 1st Edition.
3. Kumar, N. (2013) “Product positioning strategy - use of cultural symbols” retrieved from
https://www.slideshare.net/NehaKumar09/product-positioning-strategy last assessed on 09
August 2019.
4. O. C. Ferrell and Michael Hartline (2012 ). “Marketing Strategy, Text and Cases” , South
Western Cengage Learning, sixth edition.
5. Philip Kotler, Kelvin Lane, Keller, Abraham Koshi, Mitihlesh Jha.(2011), Principles of Marketing
Management, South Asian Perspective, Pearson Education, 14th Edition
6. Reddy, S.(2014) “Positioning Services in Competitive Markets” retrieved from
https://www.slideshare.net/suryareddy999/positioning-services-in-competitive-markets-
38785172 last assessed on 09 August 2019.
7. S. M. Jha. (2011), “Services Marketing”, Himalaya Publishing House, 7th Edition, New Delhi.
8. Sonwane, N. (2014) “Market positioning in services” retrieved from
https://www.slideshare.net/nikssonawane/market-positioning-in-services last assessed on 09
August 2019.
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