Segment, Target & Positioning


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Segment, Target & Positioning

  1. 1. Identifying Marke t Segments and Selecting Targe t Marke ts BYL AZARUS CHETTIAR DEVANAND.S.MENON PRATHAMESH PARAB RON ALD PATRICK
  2. 2. MARKET • Market is a physical place where buyers & sellers gathered to buy and sell goods. Or Collection of buyers and sellers who transact over a particular product. E.g 1. Consumer Market- Soft Drinks, cosmetics, air travel 2. Business Markets- Infosys, Huwai, BPO’s 3. Global markets- Import & Export companies, MNC;s 4. Nonprofit & Govt Markets-Temples, Universities, govt companies
  3. 3. STEPS IN SEGMENTINGTARGETING-POSITIONING 6. Develop Marketing Mix for Each Target Segment 5. Develop Positioning for Each Target Segment 4. Select Target Segment(s) 3. Develop Measures of Segment Attractiveness 2. Develop Profiles of Resulting Segments 1. Identify Bases for Segmenting the Market Market Positioning Market Targeting Market Segmentation 10-3
  4. 4. LEVELS OF MARKET SEGMENTATION Mass Marketing Mass Marketing Same product to all consumers Same product to all consumers (no segmentation) (no segmentation) Segment Marketing Segment Marketing Different products to one or more segments Different products to one or more segments (some segmentation) (some segmentation) Niche Marketing Niche Marketing Different products to subgroups within segments Different products to subgroups within segments (( more segmentation) more segmentation) Micromarketing Micromarketing Products to suit the tastes of individuals or locations Products to suit the tastes of individuals or locations (complete segmentation) (complete segmentation) 10-4
  5. 5. SEGMENTATION-PRODUCT EXAMPLES SEGMENT MARKETING: Example: Automobile industry – basic model is same but for A.C , power steering, power window buyer has to extra price NICHE MARKETING :Group of customers seeking a distinctive mix of benefits who are ready to pay extra premium. Egs :- detergents :- surf excel on tough stains ,Ezee godrej for delicate clothes . Sanskar ,Shankara T.V ,TTD(Tiruapti tirumala Devasthanam) – focus on religion & spiritualism LOCAL MARKETING: Ex. – Spiderman 3 was released in 5 different language in India including bhojpuri. INDIVISUAL MARKETING: Ex. Paint companies have started doing this- Asian Paint , Nerolac , Berger Paints Arvind mills launched Ruff’n Tuff Jeans, branded ready to sitch
  7. 7. The Classic Segmentation Variables for Consumer Markets & Customer Population Geographic Nations, states, regions or cities Demographic Age, gender, family size and life cycle, income Psychographic Social class, lifestyle, or personality Behavioral Occasions, benefits, uses, or responses 10-7
  8. 8. SEGMENTATION-PRODUCT EXAMPLES  GEOGRAPHICAL SEGMENTATION: • Ex.- Mcdonalds globally, sell burgers aimed at local markets, • for example, burgers are made from lamb in India rather then beef because of religious issues.  DEMOGRAPHIC SEGEMENTATION: • Needs and wants change as people ages . Egs :- Nappies for babies, Toys for children , Clothes for teenagers, Gender segmentation is used within the cosmetics, clothing and magazine industry.  INCOME SEGMENTATION: • Stores like Big Bazar, Woodland are predominantly aimed at the affluent market. • TATA aim their vehicles at price sensitive buyers who require a bundle of benefits for the price. • Products and services are also aimed at different lifecycle. • Holidays are developed for families, the 18-30's singles, and for those in their 50's. (Kesari Or Mahindra Club)
  9. 9. SEGMENTATION-PRODUCT EXAMPLES  PSYCHOGRAPHIC: • Lifestyle groups Yuppie Associations • Mobile, High valued house/flat, Good Salary, Young branded car. • 50's , Retired early from profession, Time to spare, Adventure Seekers  OCCASIONS - Archies and Hallmark, cards, Monaco at tea time. • BENEFITS – Shampoo for hair conditioning, cleaning , hair fall defence dandruff control • USER STATUS- light – medium – heavy user • LOYALTY STATUS- hardcore loyal , split loyalloyal to 2-3 brand ,shifting loyal, switcher
  10. 10. SEGMENTATION-PRODUCT EXAMPLES Demographic-AGE Gender Occasion- Behavioral Psychographics LOCAL
  12. 12. MARKET TARGETING Effective Segmentation Criteria Measurable Measurable Accessible Accessible Substantial Substantial Differential Differential Actionable Actionable • Size, purchasing power, profiles of segments can be measured. • Segments must be effectively reached and served. • Segments must be large or profitable enough to serve. • Segments must respond differently to different marketing mix elements & actions. effective programs can be designed for attracting and serving the segments. 10-12
  13. 13. Patterns of Target Market Selection Product x Market Matrices
  14. 14. POSITIONING • 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. Goal 4: Realize how companies position their products
  15. 15. THANK YOU 10-15