marketing strategy for agri input


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marketing strategy for agri input

  2. 2. Marketing Strategy Segmentation Targeting Positioning
  3. 3. SEGMENTATION • Market segmentation is the process of dividing the total market into relatively distinct homogeneous sub-groups of consumers with similar needs or characteristics that lead them to respond in similar ways to a particular marketing program. • Market segment is a portion of a larger market in which the individuals, groups, or organizations share one or more characteristics that cause them to have relatively similar product needs.
  4. 4. SEGMENTATION…. CONTD… WHY SEGMENTATION ? • Segmentation studies are used to uncover needs and wants of specific groups of consumers for whom the marketer develops especially suitable products and services to satisfy their needs.
  5. 5. SEGMENTATION…. CONTD… Five conditions must exist for segmentation to be meaningful: 1. A marketer must determine whether the market is heterogeneous. If the consumers’ product needs are homogeneous, then it is senseless to segment the market. 2. There must be some logical basis to identify and divide the population into relatively distinct homogeneous groups, having common needs or characteristics and which will respond to a marketing program. Differences in one market segment should be small compared to differences across various segments. 3. The total market should be divided in such a manner that comparison of estimated sales potential, costs, and profits of each segment can be done.
  6. 6. SEGMENTATION…. CONTD… 4.One or more segments must have enough profit potential that would justify developing and maintaining a marketing program. 5.It must be possible to reach the target segment effectively. For instance, in some rural areas in India, there are no media that can be used to reach the targeted groups. It is also possible that paucity of funds prohibits the development required for a promotional campaign.
  7. 7. SEGMENTATION…. CONTD… BASES FOR SEGMENTATION : • A segmentation variable is a characteristic of individuals, groups or organizations that marketers use to divide and create segments of the total market.
  8. 8. SEGMENTATION…. CONTD… Geographic variables Region , Nation ,Urban, Rural State ,City size Climate, Terrain, Market density Psychographic variables Personality attributes Motives Lifestyle Demographic variables Gender ,Family size ,Age Occupation ,Race, Family life, Cycle, Religion, Income Social class , Education Behaviouristic variables Usage volume, Occasion End use Benefits sought Brand loyalty Price sensitivity SEGMENTATION VARAIABLES
  9. 9. SEGMENTATION…. CONTD… GEOGRAPHIC SEGMENTATION: • Dividing the market into different geographic units – Nations – States – Regions – Counties – Cities – Neighborhoods
  10. 10. SEGMENTATION…. CONTD… DEMOGRAPHIC SEGMENTATION: • Dividing the market into groups based on demographic variables – Age – Gender – Income – Occupation
  11. 11. SEGMENTATION…. CONTD… PSYCOGRAPHIC SEGMENTATION: • Dividing buyers into different groups based on • social class • lifestyle • Personality characteristics
  12. 12. SEGMENTATION…. CONTD… BEHAVIORISTIC SEGMENTATION : • Buyers are divided into groups based on : • knowledge • Attitude • Use or response to a product
  13. 13. SEGMENTATION…. CONTD… Requirements for Effective Segmentation: • Measurability • Accessibility • Substantiality • Actionability
  14. 14. SEGMENTATION…. CONTD… Requirements for Effective Segmentation • Measurable Measurable Accessible • Size, purchasing power, profiles of segments can be measured. • Segments can be effectively reached and served. Substantial • Segments are large or profitable enough to serve. Actionable • Effective programs can be designed to attract and serve the segments.
  15. 15. TARGETING Target Market : Consists of a set of buyers who share common needs or characteristics that the company decides to serve.
  16. 16. TARGETING… contd.. Evaluating Market Segments : • Segment Size and Growth – Analyze current sales, growth rates and expected profitability for various segments. • Segment Structural Attractiveness – Consider effects of: competitors, availability of substitute products and, the power of buyers & suppliers. • Company Objectives and Resources – Company skills & resources needed to succeed in that segment(s). – Look for Competitive Advantages.
  17. 17. TARGETING… contd.. Selecting Target Market Segments : – Undifferentiated (mass) marketing – Differentiated (segmented) marketing – Concentrated (niche) marketing – Micromarketing (local or individual)
  18. 18. Company Marketing Mix Market A. Undifferentiated Marketing Company Marketing Mix 1 Company Marketing Mix 2 Company Marketing Mix 3 Segment 1 Segment 2 Segment 3 B. Differentiated Marketing Segment 1 Company Marketing Mix Segment 2 Segment 3 C. Concentrated Marketing
  19. 19. TARGETING… contd.. Choosing a Target Marketing Strategy : – Company resources – The degree of product variability – Product’s life-cycle stage – Market variability – Competitors’ marketing strategies
  20. 20. Patterns of Target market selection
  21. 21. Patterns of Target market selection
  22. 22. Patterns of Target market selection
  23. 23. POSITIONING Act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.
  24. 24. POSITIONING…. CONTD… • Step 1. Identifying Possible Competitive Advantages • Step 2. Selecting the Right Competitive Advantage • Step 3. Communicating and Delivering the Chosen Position
  25. 25. POSITIONING…. CONTD… Developing and Communicating a Positioning Strategy : • Positioning: How many ideas to promote? • Unique selling proposition – Four major positioning errors 1. 2. 3. 4. Under positioning Over positioning Confused positioning Doubtful positioning
  26. 26. POSITIONING…. CONTD… Differentiation Strategies : Product Personnel Channel Image
  27. 27. POSITIONING…. CONTD… Product Differentiation : • Product form, Features ,Performance Conformance ,Durability • Reliability ,Reparability ,Style ,Design • Ordering ease ,Delivery ,Installation • Customer training ,Customer consulting • Maintenance
  28. 28. POSITIONING…. CONTD… Identity: The way a company aims to identify or position itself. Image: The way the public perceives the company or its products.
  29. 29. ASSIGNMENT • Choose any upcoming or lesser known Agri Input product and prepare a hypothetical marketing strategy for the same. Prepare hard and soft copy of the same. • Note : soft copy in form of PPT. • Last date for submission : 24/02/2014 • Secondary data can be used .