Marketing management :- 1.what is marketing 2.meaning and definition of marketing 3.marketing management 4.inteoduction of marketing 5.need,wants,demands and exchange process 6.evolution of marketing philosophies 7.marketing mix 8.consumer buying and organisational bying 9.scaning the market environment 10.market segmentation 11.target marketing and market positioning 12.consumer satisfication 13.feedback 14.internal and external marking environment 15.product mix

1. VIT BHOPAL
Business School
BBA 1st Year
Topic-Marketing Management Fundamental
Unit- I- Marketing Concept

2. Topics Covered
• To explore the core concepts of modern marketing management
• To impart marketing management theory & practices, market, customer base, market
structure, processes and behavioral aspects
Understanding Point of View
• What is Marketing?
• Meaning and Definition
• Marketing Management
• Introduction to marketing
• Needs, Wants, Demands and Exchange process
• Evaluation of Marketing Philosophies
• Marketing Mix
• Consumer Buying vs Organizational Buying
• Scanning the market environment
• Market Segmentation
• Target market & Market Positioning

3. Concept of Marketing
• Marketing is managing profitable relationships by attracting people
and new customers by superior value and keeping current customers
by delivering satisfaction. Marketing must be understood in the sense
of satisfying customer needs.
• Marketing can be defined as the process by which companies create
value for customers and build strong customer relationships to capture
value from customers in return.
• The understanding of customer needs and the marketplace
• Human needs- are states of felt deprivation and can include physical
and individual needs.
• Wants- it is a form of human needs take are shaped by culture and
individual personality
• Demands- human needs that are backed by buying power.

4. Cont.…
• Market offerings are the combinations of products, services and
experiences offered to a market to satisfy a need or want. These can be
physical products but also service- activities that are essentially
intangible.
• The phenomenon of marketing myopia is paying more attention to
company products than to the underlying needs of consumers.
• Value and satisfaction are key building blocks for customer
relationships.
• Exchanges are the acts of obtaining the desired object from someone
by offering something in return. Marketing consists of actions trying
to build an exchange relationship with an audience.
• A Market is the set of all actual and potential buyers of a product or
service. Marketing involves serving a market of final consumers in the
face of competitors.

5. Market Strategy & its relevance to Business
organizations
• Marketing management is the art and science of choosing markets
and building profitable relationships with them. The aim is to find,
attract, keep and grow targeted customers by creating and delivering
superior customer value.
• The target audience can be selected by dividing the market into
customer segments (Market segmentation) and selecting which
segments to go after target markets.
• A company must also decide how to serve the targeted audience by
offering a value proposition.
• A value proposition is the set of benefits or value a company promises
to deliver.

6. Evolution of Marketing Philosophy
• The production concept: the idea that consumers will favour products
that are available and highly affordable and that the organization
should therefore focus on improving production and distribution
efficiency.
• The product concept: the idea that consumers will favour products
that offer the most quality performance and features and that the
organization should therefore devote its energy to making continuous
product improvements.
• The selling Product: the idea that achieving organizational goals
depends on knowing the needs and wants of targets and delivering the
desired satisfactions better than competitors do. It can be regarded as
an outside-in view.

7. • The societal marketing concept: is the idea that a company’s
marketing decisions should consider consumers’ wants, the
company’s requirements, consumers’ long-term interests and
society’s long-term interests. Companies should deliver value in a way
that maintains consumers’ and society’s well-being.

8. Company ads, Loyalty, Hook and Goals

9. Nakia Failure Case Study
• 1982 Nokia Mobira Senator
• 1984 Nokia Mobira Talkman

10. 1987 Nokia Mobira City man

11. Product Reforms
• 10kg 5 kg 800grm

12. The first person to use GSM call in 1991,Global
System for Mobile communication(GSM) by Nokia
Cell phone
• Harri Holkeri, then prime minister of Finland, makes the world’s first
GSM call 1 July 1991 in Helsinki, Finland.

13. Nokia CEO ended his speech saying this “we didn’t
do anything wrong, but somehow, we lost”

14. Today’s Thought
• Please Don’t Underestimate Your Parent and Teachers
It’s Your Duty To Understand What They Are Telling
For What Reason They Are Telling
You Have Actually To Accept it, And Later, it will Pay its Price
It will Pay Later Part of Life
What You Don’t Learn Now
Will Never Be Learnt Later
It is always False Ideas When I grow Big, You Know I Would Do
By Sudha Murthy

15. 1992 Nokia Lunched 1011 Handset
• Nokia 1011 Nokia 2100, expected to 400,000 units but two crores Phones sold.

16. Market Trends
• Market
• Need
• Adoptions

17. Prediction 1992-1999 Nokia Company Market Size
• The main target is to hit 40 Million Handsets, but eventually, the
market increased to 250 million.
• Nokia Beat Motorola- World’s No-1
• 25% of the Market share and dominated other competitors
• Nokia market share in 1997-1998 across the world ( America, Europe,
Russia, India and China).
• 2003-2005 Nokia 1100 and Nokia 1110 (Market share Nokia 70% and
30% other companies).
• No need to do any marketing for the customers who are buying the
product from the retailer.

18. Lean Manufacture Systems

19. Mobile Manufacture Company in China

20. Transformations of Nokia Mobile set
• Every Competitive Advantage has a life span

21. Nokia three-tier Structure
• High End- Highly skilled People
• Mid Range- Android Ecosystem
• Low Range- China Mobile
• During 2007-2008, Apple and Google enter the market. Eventually,
these two companies increased their business.
• Nokia always focus on Hardware, not on software. (The whole world
is shifting their business hardware to software, but Nokia still
business run on hardware.
• Hardware Strength( Hamara mobile tuthta nahi hai)

22. The application came into existence in 2010
• Total of 3 lakhs applications having apple and Google having 1.25
lakh applications.
• Nokia has only Symbian OS

23. Android Ecosystem
• Hardware Advertising
• Software Search
• Developer Social Application
• Application Location-based service
• E-Commerce Unlimited Communication

24. More Apple Products
• Apple TV
• ipod
• iphone
• Mac os x
• Safari
• Mac Pc
• iwear
• iplay

25. App Developer
• Android ios

26. End of Nokia

27. What is Marketing?
• Marketing is about identifying and meeting human and social needs.
• Traditionally, a market was a physical place where buyers and sellers
gathered to exchange the goods.
• Marketers view sellers as an Industry and buyers as the marketer:
the sellers send goods and services and communications(ads, direct
mail, e-mail messages) to the market; in return, they receive money
ad information( attitudes, sales data).
• According to Peter Drucker says that” the aim of marketing is to make
selling superfluous. The aim of marketing is to know and understand
so well that the product or service fits him and sells itself, ideally,
marketing should result in a customer who is ready to buy.”

28. Definition
• According to the American Marketing Association offers the
following definition: Marketing is an organizational function and a set
of processes for creating, communicating and delivering value to
customers and for managing customer relationships in ways that
benefit the organization and its stakeholders.
• Marketing management takes place when at least one party to a
potential exchange thinks about the means of achieving desired
responses from other parties.
• Marketing is a societal process by which individuals and groups
obtain what they need and want through creating, offering and freely
exchanging products and services of value with others.

29. Marketing Management
• Marketing Management as the art and science of choosing target
markets and getting, keeping and growing customers through
creating, delivering and communicating superior customer value.
• It is centered on creating, planning, and implementing strategies that
will help achieve wider business objectives. These business objectives
can involve increasing brand awareness, boosting profits, or entering
previously untapped markets.
• Marketing Management offers a standard marketing management
definition as “the development, design, and implementation of
marketing programs, processes, and activities that recognize the
breadth and interdependencies of the business environment.” By
Philip Kotler and Kevin Lane Keller

30. Why is marketing management important?
• Marketing management is important because reaching and engaging
with potential customers is a vital component of a business strategy.
• At the outset, marketing management ensures you understand what
your customer desires, down to colourways and packaging. Without
it, you might find your product doesn’t even appeal to customers.
• After spending considerable time preparing your product or service to
be released, the right marketing management processes ensure it
reaches the ideal potential customer base via the right channels at
the right time.

31. Marketing Management types
• Email marketing- This is a direct marketing channel that lets
businesses share new products, sales, and updates with customers on
their contact list.
• Content marketing-Content marketing is a marketing strategy used to
attract, engage, and retain an audience by creating and sharing relevant
articles, videos, podcasts, and other media.
• Social media marketing- It is the process of creating content for
social media platforms to promote your products or services, which
builds community with the target audience and drives traffic to the
business.
• Performance marketing is the term given for online campaigns in
which advertisers pay marketing companies or advertising platforms
for results achieved, such as clicks or conversions.

32. Conti..
• Influencer marketing- Influencer marketing is more than just likes or
shares on social networks; it’s like a single customer recommending
your product to thousands, or even millions, of friends.
• Acquisition marketing process of targeting users who are already
familiar with a brand. Unlike building brand awareness, implementing
an acquisition marketing strategy.
• Search engine marketing is a very effective digital marketing channel.
Through search marketing, you can increase the visibility of your
website in search engine results using paid and unpaid methods

33. Process of Marketing Management
• Market and customer analysis: This marketing management process is all
about understanding your organization’s current market position and
analyzing consumer behaviour.
• Development of strategy, goals, and objectives: Where does a business
want to go? How does it plan to get there? After market and customer
analysis, the strategy will map the way forward.
• Product development: Marketing managers play a crucial role in product
development. When it comes to articulating the benefits of a product,
these professionals help craft poignant, on-brand messaging.
• Marketing program implementation: Once promising programs and
campaigns have been identified, it’s time to deploy the right resources to
launch them.
• Monitoring and control: Analyzing the success of marketing programs and
activities is a crucial process. It informs how future activities will be
planned and implemented.

34. Today’s thought

35. What is marketed?
They are ten main items;
 Goods-Physical goods constitute the bulk of most countries.
Production and marketing efforts. For example, the USA.
Services- As the economy advance, a growing proportion of its
activities focuses on the production of services. Hostels, Hospitals,
restaurants, cafés, bankers, lawyers, engineers, doctors, and barbers.
Events- Markets promote time-based events, such as major trade
shows, artistic performances and company anniversaries.
Experiences by orchestrating several services and goods, a firm can
create, stage and market experience. For example theme restaurants
that create the ambience of a village in Rajasthan and Gujarat

36. Conti…
Persons- Celebrity marketing a significant business, artists, musicians, CEOs, high-
profile physical lawyers.
Places-Cities states, regions and whole nations compete actively to attract
tourists, factories, company headquarters and new residents.
Properties- Properties are the intangible right of ownership of either real
property (real estate) or financial property (stocks and bonds).
Organizations- Organizations actively work to build a strong, favourable and
unique image in the minds of their target public. For example, in Philips
company’s “sense and simplicity” campaign, Dr Reddy labs “Good health Can’t
wait.”
 Information- information is important for what books, schools, and universities
produce, market, and distribute at a price to parents, students and communities.
Idea-Every market offering includes a basic idea. Ideas and benefits social
marketers are busy promoting such ideas by creating awareness about AIDS,
encouraging family planning and discouraging smoking which falls in the realm of
social marketing.

37. Marketing Change and its Response
• How to respond to changes in your business market
• Many things can change the market your business operates in, from
new competitors and innovations to a general slowdown in the
economy.
• If your business is in trouble, you could benefit from fresh information
on your market, customers and potential customers.
• You might discover that your sector has changed and that your lack of
response has contributed to your problems.

38. Source of information
There are a number of places where you can get information, some of
which are free, including;
• Government reports and statistics
• Local Trade Associations
• Chambers of Commerce
• Local authorities
• Commercial publishers of market reports

39. Marketing force to change
Customer research: what you need to know
• Once you have some information about the way the market is
moving, you can see whether your business could be made more
competitive.
• If demand for your product or service is shrinking, you could consider
diversifying into other areas where you have existing skills and
technical expertise.
• Carrying out customer research on loyalty, satisfaction and service
can make a big difference to your business.
• Existing and potential customers make their buying decisions, you
can adapt your sales methods to fit their needs

40. Who are your customers?
• Knowing demographic information about your customers can help with
your marketing and sales plans. Consider factors such as:
• Gender
• Age
• Occupation
• Income
• lifestyle
• Attitudes

41. What do they think?
• Knowing what your customers think of your products and service and how they
rate you against your competitors will enable you to improve your business
offering.
• To target your customers successfully, you should know as much about their
buying habits as possible. Consider the following aspects of your customers:
• Interests
• Needs
• Buying behaviour, including when and how they buy
• Preferences
• Opinions about your brand
• Opinions about competitors

42. Market research and Market reports
• Once you have identified the information you need, you can start to gather
it. Sources of market research may be 'primary' or 'secondary’.
• It is a good idea first to conduct secondary market research, then do your
own primary research.
What is primary market research?
• Primary market research is either conducted by your business or by a
research agency you have hired.
• Some examples of primary market research include:
• questionnaires
• focus groups
• examining your business’s own data e.g. sales and inquiries
• customers' online behavior.

43. Digital Marketing
• Traditional Marketing Vs Digital Marketing
• Slow conversion Fast Conversion
• Static Dynamics
• Feedback. Feedback
• ROI ROI
• Expensive Effective

44. Why is there a constant need for change in
Marketing
• Many reasons for a constant need for change in marketing
• Changes are implemented as a result of ineffective strategies, such as
an advertisement that doesn't pull as well as expected.
• Changes may be a result of improperly identifying a target audience,
which is the group of people who are most likely to use a product.
• Forces may also prompt the need for a change in marketing
strategies.

45. Brand Switching Behavior of Consumers
• Consumer tastes are constantly changing. Therefore, small companies
must constantly keep up with the types of products and services
customers want.
• Suppose, for example, a small consumer products company may
introduce a new drink with two flavours: strawberry and blueberry.
• However, to increase market share, they may need to add other
flavours that consumers want. Otherwise, consumers may start
buying other drinks with these flavours.

46. Companies Changing Marketing Strategy
• It is nearly impossible for small companies to stay complacent with
their marketing and advertising.
• A major reason is that a competitor may initiate a marketing strategy
that challenges a small company's position in the marketplace.
• As an example, a major competitor may challenge the small
company's status as the quality leader in the industry.
• They may hire a number of engineers and improve the quality of their
own products.
• Subsequently, the competitor may advertise its high-quality status,
taking some business away from the smaller company. In this case,
the small company must act to ensure its customers that it still
remains the quality leader.

47. Change and the Product Life Cycle
• Small companies also must change their marketing strategies during
different stages of the product life cycle.
• There are four product life cycle stages once a product hits the
market: introduction, growth, maturity and decline.
• Sales are often strong during the introduction and growth stages.
• However, sales for most companies in the industry eventually slow
when their products hit the maturity state.
• Hence, it becomes more difficult to maintain sales growth.

48. Today’s Thought

49. External Factors in Marketing Strategies
• Outside factors may also force small companies to change their
marketing strategies. These extraneous variables may include the
government, new laws, limited natural resources and changing
technologies.
• For example, a new packaging law may force a small manufacturer of
frozen dinners to change its packaging.
• The company may need to start including more nutritional details.
• A lack of natural resources may force companies to find substitutes
for manufacturing products.

50. Proactive Vs Reactive Marketing
• Companies implement certain marketing strategies, whether they are
adding to their product line or adding new distribution channels.
• When marketing managers implement marketing strategies of their
own volition, they are using proactive marketing.
• However, if some dynamic occurs in the industry like a competitive
price change or the introduction of new technology, marketing
professionals may need to use reactive marketing to ward off
potential negative effects on their sales and profits.

51. Significance
• Over time, as the industry becomes established, the industry leader
occasionally needs to change her marketing strategy as more
competitors become established in the industry.
• For example, one competitor may be trying to establish itself as the
service leader, increasing its customer service departments.
• Marketers for the industry leader expect some of these moves in
advance and are more proactive in expanding their own service
capacity.

52. Effects
• Over time, as the industry becomes established, the industry leader
occasionally needs to change her marketing strategy as more
competitors become established in the industry.
• For example, one competitor may be trying to establish itself as the
service leader, increasing its customer service departments.
• Then, the industry leader eventually needs to employ various reactive
marketing strategies, especially if competitors try to target the
leader's customers.

53. Identification
• Besides competition, there are other factors that influence whether a
company needs to be more proactive or reactive with its marketing.
• The economy can have an impact on a company's marketing decisions.
• For example, a prolix (drawn out) recession may force a small
manufacturer of premium and high-priced products to lower its prices,
a reactive marketing move.
• Additionally, a company's advertising may be deemed by legal
officials to be misleading, which forces the company to change its
advertising, a reactive marketing decision.

54. Considerations
• There are times when consumer actions can force a company from
more proactive marketing to reactive marketing.
• For example, a strong consumer health movement can particularly
affect the sales and profits of small companies that distribute sweets,
soft drinks and salty snacks.
• Eventually, when industry changes have settled, a company can
resume a more proactive marketing strategy to attract customers.

55. Prevention/Solution
• Companies that want to increase their amount of proactive marketing
relative to reactive marketing should conduct a lot of market research.
• A combination of studying the industry through secondary research
reports and conducting customer surveys can keep companies well-
informed about their particular industry and their customers.

56. What does it mean to be customer driven?
• Being customer-driven is about putting customer needs at the center
of the business strategy.
• Customer-driven companies build a customer-focused culture, one
where customer support, marketing, product, and sales teams work
together to provide a great customer experience.
• A customer-driven strategy means meeting customer expectations and
being tactical in how you do so. Here are a few ways to get started.

57. Understanding the customer’s choice and how your
consumers want to talk to you
• If there’s a mantra your company should focus on, it’s this: go where
your customers are—don’t make them come to you.
• How your customers engage with your business may be that the
customers prefers to reach out via email channel that trends to have
longer resolution times and higher touch rates.
• Provide fast support
• This is where customer service software flexes its muscles—while
most companies understand that customers want timely help, they’re
often in the dark about it.
• Customer service software to analyze where the bottlenecks are
happening and to manage the ticket queue more efficiently.

58. Break down silos between teams
• Silos get in the way of everyone’s common goal, which is providing a
top-notch customer experience at a cost that won’t hurt the bottom
line.
• But silos can be stubborn things, so a truly customer-driven
organization must set company-wide customer satisfaction goals that
are rooted in measurable data.
• Choose customer service software that unifies your service and
pulls data from multiple sources
• Whether it’s your sales team working in Salesforce or engineers
resolving issues in Jira, you need something that can integrate
seamlessly with those essential tools.

59. Constantly ask Customers for Feedback
• This goes far beyond simply sending customer surveys your company
must show tangible improvements to your product or service.
• Get engineers and product managers directly involved with
customer support
• There is a clear benefit to having software engineers and product
managers shadow your agents on customer support tickets.
• While it might be tempting to look at this exercise as taking away
from valuable coding time, it will help product teams develop better
use cases and roadmaps that reflect what your customers need.

60. Feedback before settling on your product requirements
• Although surveys can be helpful, think about other ways you can
gather user feedback—get involved in online communities and reward
active members.
• Customers leave, ask why—and then take action
• You can’t please everyone (though you should really try). If you’re not
sending Churn surveys to former customers, you’re missing an
opportunity to be a customer-centric organization. Identify common
trends and ensure that your product roadmap addresses those issues.

61. Marketing segmentation
• Company’s marketing team should be creating user personas via
surveys, focus groups, and using customer data to get a deep
understanding of the customer journey.
• Establish a clear, consistent voice for your customer-driven
marketing strategy
• Jargon is your enemy, employ clear, consistent language in your
marketing strategy, and avoid trash-talking your competitors.
• Create a marketing strategy that sets your organization apart
• That strategy should be rooted in your company’s values and a solid
understanding of the market. Identify user expectations and product
areas your competition has neglected—and be ready to capitalize on
those missed opportunities.

62. Engage on social media, ask for feedback, and
track your net promoter score NPS Score
• Social media strategy will need to vary depending on the platform.
• For example, Twitter can be great for posting news, content, and service
outages, but you’ll want to treat Facebook differently
• (say, as a venue for humanizing your company by showing employees at
work and play).
• Reward customers for their loyalty
• Power users and product evangelists have a lot to say. Reward them by
inviting them to special events and then listen to them talk about the
challenges they face.
• By going that extra mile to show your appreciation, you’ll take another step
toward being a truly customer-driven business.

63. Building customer satisfaction value and Retention
• What is a customer? – A person who buys products or goods from
shops or businesses. Another definition is “A customer is an individual
or business that purchases another company's goods or services.”
• Customer satisfaction is a measure of how products and services
supplied by a company meet or surpass customer expectations.
• Why is customer important? –Customers are important because they
drive revenue: without them, the business cannot exist.
• To understand how to meet the needs of their customers better, some
businesses closely monitor their customer relationships to identify
ways to improve service and products.

64. Customers Vs Consumers
• The terms customer and consumer are nearly synonymous and are often
used interchangeably.
• Consumers are defined as individuals or businesses that consume or use
goods and services.
• Customers are the purchasers within the economy that buy goods and
services, and they can exist as consumers or alone as customers.
• Marketing research is used to monitor consumer perception and evolution
continuously. The future business will depend upon day-to-day experience.
• These experiences can enhance marketing research by identifying
customer needs and developing a business strategy to meet those needs.

65. The World’s Biggest R&D Spenders

66. • Customer Satisfaction
Customer
Satisfaction
Customer
feedback
Customer
Grievance
Timely
Supply
Customer
Property
Special
Requirem
ent of
Customer
Customer
Focus

67. Feedback
• We all need people who will give feedback on how we will improve.”
by Bill Gates.
• The feedback will help the company to improve the product and
services.

68. Importance of customer satisfaction
• A leading indicator to measure customer loyalty
• Identify unhappy customer
• Increase revenue
• Attract new customers
• Reduces customers retrenchment
• Reduce the negative word of mouth
• It help is retaining customers

69. Customer value vs Satisfaction
• Customer value- value, a central marketing concept, is primarily a
combination of quality, service, and price,(qsp) called customer value
tried.
• Value perceptions increase with quality and service but decrease with
a price.
• Marketing as the identification, creation, communication, delivery
and monitoring of customer value.
• Satisfaction- reflects a person’s judgement of a product’s perceived
performance in relation to expectations.
• For example, if performance falls short of expectations, the customer
is disappointed.
• If it matches expectations, the customer is satisfied.

70. Customer Retention Strategy
• Communication calendar- it manage customer engagement and
create opportunity for up-sell and cross-sell
• Sending an email to a special promotion
• Conducting customer satisfaction survey for promotion
• Customer loyalty program- top 20% of customers spend three times
more than the rest of the customers.
• Benefits of customers after purchasing product.
• Using social media to build a group of engaged customers.

71. Scanning the market environment
• Environmental scanning involves reviewing external sources and
factors that impact the internal operations of a business.
• It carefully monitors these environments to identify threats and
opportunities to analyze all the factors that affect the future of the
organization.
Internal
External
environment
Components of
environmental
marketing

72. Internal Marketing
• Value
• Mission and Objective
• Organizational Structure
• Corporate Culture
• Quality of Human Resource
• Labour Union
• Physical resources and technologies capacities

73. External Environment
Micro Environment Macro Environment
Customer
Competitors
Market
Suppliers
Organization Economic
Political-legal
Technical
Global
Socio-Culture

74. Factors of Environmental Scanning
Expectations
Issues
Trends
Events

75. Scanning the market environment
• Macro environment
• Customer Preferences –Major emphasis on customer
• Competitor-Dealer network
• Bank rate-Excellent customer
• Govt. policy- Licensing
• Technology-New Product Lunch

76. Techniques of Environmental Scanning (SWOT)
Analysis
Strengths
Characteristics of a business which
give it over its competitors
Weakness
It helps your organization to
understand different issues that
arise in the current state and in
the upcoming future.
Opportunities
The “Opportunities” section
should highlight external factors
that represent potential growth or
improvement areas for a business
Threats
Threats are external forces that
represent risks to a business and
its ability to operate. The
categories tend to be similar to
the “Opportunities” section, but
directionally opposite

77. PESTEL
Political Economical Social Technological
Govt.Policy
Political
Stability
Corruption
Foreign
Trade Policy
Labour Law
Economic
Growth
Interest Rate
Unemploym
ent rates
Inflation rate
Exchange
Rates
Population
Growth rate
Age
distribution
Culture
Barriers
Lifestyle
Attitude
Safety
Emphasis
R&D Activity
Technologica
l Change
Technologica
l Awareness
Level of
Innovation
Automation

78. Conti..
Environment Legal
Whether
Climate
Change
Environment
al policy
Consumer
protection
law
Employment
law
Health and
safety Law
Copy right
and patent
law

79. ETOP
• The process by which organizations monitor their relevant
environment to identify opportunities and threats affecting their
business for the purpose of taking strategic decisions. Developed by
Glueck
• Environmental
• Threats and
• Opportunity
• Profile
.

80. Market Segmentation
• What is segmentation?
• Segmentation is the process of dividing a company's target market
into groups of potential customers with similar needs and
behaviours.
• Segmentation means to divide the marketplace into parts, or segments,
which are definable, accessible, actionable, and profitable and have
growth potential.
• In other words, a company would find it impossible to target the entire
market because of time, cost and effort restrictions. (The Times of
India 05 October 2022)

81. Segmentation and Targeting
• Segmentation is the process of
dividing potential customers into
groups to better understand them
• Targeting is determining which
segments are most likely to
become customers and directing
marketing efforts to best satisfy
them
Professional tennis players are a specific segment
of the market.

82. Five Criteria for a Market
1. There must be a true need and/or want for the product, service, or
idea; this need may be recognized, unrecognized, or latent
2. The person/organization must have the ability to pay for the product
via means acceptable to the marketer
3. The person/organization must be willing to buy the product
4. The person/organization must have the authority to buy the product
5. The total number of people/organizations meeting the previous
criteria must be large enough to be profitable for the marketer

83. Objectives of Segmentation
• To improve an organization’s understanding of who their prospective
customers are and how to serve them
• To reduce risk in deciding where, when, how, and to whom a product,
service, or brand will be marketed
• To increase marketing efficiency by directing effort toward designated
segment(s) in ways that are consistent with that segment’s
characteristics

84. Practice Question
What products or companies
would find this market
segmentation by family life
stage useful?

85. Choosing a Target Market
The target market should include
only those segments of a market
that are both:
• Profitable to serve
• Likely to be receptive to the
products a company provides

86. Common Market Segmentation Approaches
Type of Approach Segmentation Criteria
Geographic Nations, states, regions, cities, neighborhoods, zip codes, etc.
Demographic
Age, gender, family size, income, occupation, education, religion,
ethnicity, and nationality
Psychographic Lifestyle, personality, attitudes, and social class
Behavioral User status, purchase occasion, loyalty, readiness to buy
Decision maker Decision-making role (purchaser, influencer, etc.)

87. Common Business Segmentation Approaches
• Organization size: by revenue, number of employees, geographic
reach, etc.
• Geography
• Industry
• User status: usage frequency, volume used, loyalty, longevity,
products already in use, readiness to buy, etc.
• Benefits sought
• End use
• Purchasing approaches

88. Combining Bases for Segmentation
• Geo-cluster approach demographic
+ geographic data
• Geographic + behavioral data
• Can point companies toward locations
where customers are clustered
• Demographic + lifestyle or
behavioral segments

89. Sample Market Segment Profiles

90. Ideal Market Segment
1. Can be measured
2. Is profitable
3. Is stable
4. Is reachable
5. Is internally homogeneous
6. Is externally heterogeneous
7. Is responsive
8. Is cost-effective
9. Helps determine the marketing mix

91. Questions to Consider in Selecting a Target
Segment
• Whose needs can you best satisfy?
• Who will be the most profitable customers?
• Can you reach and serve each target segment effectively?
• Are the segments large and profitable enough to support your
business?
• Do you have the resources available to effectively reach and serve
each target segment?

92. Targeting Strategy
Concentration
Only one marketing mix is
developed
• Advantage: focus
• Disadvantage if demand in
segment declines, company will
suffer
Multi-segment
Marketing mix for each segment
• Advantage: may reach more
customers
• Disadvantage: Costs of multiple
campaigns and distribution
channels

93. Targeting Strategies
Strategy Target Market Example
Mass marketing Everybody everywhere Target
Differentiated
marketing
Large groups within the total
market
Costco, Sam’s Club
Niche marketing
High penetration within smaller,
specialized segments
Trader Joe’s, Whole Foods
Micromarketing
Individual customers or localized
microsegments
Groupon

95. Shaping Marketing Mix for Target Markets
Marketing
Element
Targeting Criteria
Product What would make the ideal product for your target segment?
What special features or capabilities are critical for this segment?
What unique problems does your product help them solve?
Promotion What are the best ways to get your target segment’s attention?
What do you want this segment to remember about your product?
Place /
Distribution
Where does this segment look or shop for your product?
What is the best way to get your product to your target customers?
Price What price(s) are your target customers willing to pay?
How much is too expensive? How much is too cheap?

96. Market Positioning
• The process indicates how you differentiate your product/ service from
that of your competitors and then determine which market niche to fill.
• Typical examples of marketing positioning
• Tesla and Audi position themselves as a luxury status symbol
• Starbucks positions itself as a trusted source of upscale quality coffee
and beverage
• McDonald’s positions itself as a place to get quick and cheap meals
• Microsoft and Apple position themselves as tech company that offers
innovative and user-friendly products.

97. Positioning
Positioning is a strategic process that marketers use to determine the
place or “niche” an offering should occupy in a given market, relative to
other customer alternatives
When you position a product or service, you need to understand
• Place
• Rank
• Attitude
• Outcomes

98. Differentiation
To make a product or service
stand out from its competitors in
ways that provide unique value to
the customer
Identifies a set of characteristics
and benefits that make a product
different and better for a target
audience that:
1. Customers value when they are
evaluating choices
2. Competitors cannot easily copy

99. Positioning vs. Differentiation
Name Positioning Differentiators
Wal-Mart Wide selection of products people
want, at the lowest prices
Wide selection; low prices
Target Trendy, fashionable products at
reasonable prices
Continually refreshed, on-trend product
selection
Macy’s Preferred “go-to” shopping destination
for upscale brands and current fashions.
Broad selection of most-wanted, upscale
brands; engaging shopping experience

100. Steps of the Positioning Process
1. Confirm your understanding of
market dynamics
2. Identify your competitive
advantages
3. Choose competitive advantages
that define your market “niche”
4. Define your positioning strategy
5. Communicate and deliver on the
positioning strategy

101. Step 1: Confirm Your Understanding of Market
Dynamics
A firm understanding of your target market and answers to the
following questions:
• In which product, service, or market category (also called the “frame
of reference”) do you plan to use this positioning?
• Which target segment is your focus for the positioning you are
developing?
• What factors do these buyers evaluate when they make a purchasing
decision?
• How do these buyers view your competitors in the category?

102. Step 2: Identify Your Competitive Advantages
A trait, quality, or capability that allows you to outperform the
competition
Gives your product, service, or brand an advantage over others in
purchasing decisions
Comes from any or all of the following:
• Price
• Features
• Benefits

103. Step 3:
Choose Competitive
Advantages That
Define Your Niche

104. Common Positioning Strategies
Differentiator Positioning Strategy Examples
Category Benefit Position yourself as “owning” an important
benefit and delivering it better than anyone else
Volvo = Safety
Hallmark = Caring shared
Hawaii = Aloha spirit
Best fit for the
Customer
Position yourself as an ideal fit for the customer’s
personality, style, and approach
Red Bull = Extreme
Guess Jeans = Sexy chic
Virgin Atlantic = Ultra cool fun
Business Approach Position yourself with a distinctive approach to
doing business
Jimmy John’s = Unbelievably fast
TurboTax = Easy DIY
Anti-Competition Position yourself as a preferred alternative to the
competition
Apple = Think different
Seven-Up = The Uncola
Price Position yourself according to pricing: lowest
cost, best value for the money, luxury or
premium
Wal-Mart = Lowest prices
Old Navy = Affordable fashion
Quality Position yourself according to a quality standard:
high quality or else reliably good quality at a
reasonable price
Hearts on Fire = Perfection
Ritz Carlton = luxury

105. Positioning Statement
One sentence that concisely
identifies the target market and what
you want customers to think about
your brand Includes:
1) the target market
2) the brand name
3) the key points of differentiation
4) the product/service category
5) why customers should believe
the positioning claims

106. Criteria to Evaluate Positioning Statements
• Is it tailored to the target market?
• Is it simple, focused, and
memorable?
• Does it provide an unmistakable
picture of your product, service, or
brand?
• Can you deliver on the promise you
make?
• Does it provide helpful direction for
designing the marketing mix and
other decisions?

107. Repositioning

108. Reasons to Consider Repositioning
Competition
• New competitors entering or leaving the market; competitors joining
forces
• Competitor’s innovation that threatens to make your offering
obsolete; competitive pricing strategies
Market environment
• Economic slow-down or recovery
• Changes in consumer confidence, the political climate, or social forces
like the movement around social responsibility and sustainability

109. More Reasons to Consider Repositioning
Consumer trends
• Changing tastes and preferences
• Evolving attitudes and behaviors
• New segments emerging as targets
Internal environment
• Changes in organizational leadership and strategy
• Acquisition or development of new technology
• Introduction of innovation that offers new competitive advantages and
differentiators

110. Repositioning and Market
Perceptions
The repositioning process evaluates the
established position of a product,
service, or brand and focuses on how to
alter the positioning–and, with
positioning, market perceptions–in order
to improve competitiveness.

111. Pitfalls of Repositioning
• Insufficient research
• A bridge too far: If brands go too far in a new direction, customers
may no longer believe the claims
• Underestimating “back to basics”
• Overpromising
• Confusing positioning

112. References
1. https://www.economicsdiscussion.net/market-segmentation/market-
segmentation/32464
2. Business Environment - Dwivedi Guidance
3. Lumenlearning.com
4. https://mailchimp.com/marketing-glossary/content-marketing
5. https://www.singlegrain.com/content-marketing-strategy-2/guide-
influencer-marketing/
6. https://www.channelsight.com/blog/acquisition-marketing
7. https://sendpulse.com/support/glossary/acquisition-marketing
8. https://www.reliablesoft.net/search-engine-marketing/
9. https://www.mageplaza.com/blog/positioning-in-marketing.html#what-is-
positioning-in-marketing