The key dimensions of Local Marketing are: Segmentation, Media and Messaging. Segmentation refers to how one group of customers is differentiated from another. Media refers to the form of communication to be used – local advertising, POP signage, coupons, direct marketing, etc. Messaging is what you say and how you say it in a manner that compels the targeted customers to act.The success of any Local Marketing initiative depends on these elements working together, yet the sequence by which each is developed plays a key role in the initiative’s long-term effectiveness. Segmentation comes first, followed by Media selection, and then Messaging. A fourth dimension, Measurement, is essential to drive the growth and evolution of the Local Marketing effort.Segmentation identifies “who” you are targeting.Media selection determines “how” you will deliver your message.Messaging establishes “what” you are communicating.Measurement collects data that can be used to guide future cycles of the program.Local Marketing programs can be initiated without complex segmentation and messaging, while using a single media type. However, these programs should be designed to support a more sophisticated, data-driven messaging system that will evolve over time.Too many companies are failing in their Local Marketing initiatives because they start with mass-marketing tools and processes but can’t support further segmentation as the need becomes apparent. Local Marketing is not an event or a campaign, but instead should be a continual and evolving process.
SEGMENT MARKETINGIdentify the needs of Address Fine-tuneconsumers Offer better consumers‟ Flexible marketing by groups design, price, needs market strategy andthen direct communicate without offerings to activities to marketing and deliver forcing them all members compete efforts to product or to look for of a against make a service. items that segment rivals. larger they desire. impact.
LOCAL MARKETING The strategy and actions that communicate to your customers in a manner, and with a message, that is relevant and meaningful based upon localized differences. Also called “Grassroots Marketing” The key dimensions of Local Marketing are: Segmentation, Media and Messaging
NICHE MARKETING Focus on a small segment of people unique and similar needs Highly customised Opposite of mass marketing Market research imperative
BANKING SECTOR Investment products Home loans Vehicle finance Financial planning Personal loans Private Banking Source: http://www.siliconindia.com/finance/news/13-Best-Banks-of-India-nid- 134523.html
BEST AMONG THE RESTBEST AMONG THE RESTHDFC: Best Retail bank; private sectorStandard Chartered Bank: Best SME finacing; foreign bankingAllahabad Bank: Most consistent performer in Priority Sector LendingState Bank Of India: Technology Adoption - Public SectorSource: http://www.siliconindia.com/finance/news/13-Best-Banks-of-India-nid- 134523.html
MEN’S GROOMING PRODUCTS: THE NEWEMERGING MARKET IN INDIA- A CASE STUDY ONEMAMI FAIR & HANDSOME-CHANDRA KANT SHARMA Source: Indian Journal Of Marketing
1/16/2013FAIRNESS CRAZE Market size : ₹ 800 crore Market growth rate : 15- 20 % y-o-y Leading players: HUL‟s fair & lovely: 76% Calvin care‟s fairever: 15% Males constitute 20% of the sale of fairness creams The Indian male took an average of 20 minutes vs the Indian female‟s 18 minutes! 25-30% of fairness products purchased and used by men They saw a lucrative opportunity. Decided to delve deeper into this „fairness craze‟ Source: Indian Journal Of Marketing
SEGMENTATION & POSITIONING • Positioned as a fairness Region: South cream that can make men Rural/Urban:attractive to handsome and Urban girls Age: 15-35 years • 5 power fairness system: Gender: Male peptide – Double strength complex – Sunguard – Stress buster – Anti- bacplus – Herbo cool • Get fair in four weeks
GEOGRAPHICAL SEGMENTATION Division of the market into different geographichal units viz; regions, countries ,cities or neighbourhood Consumer‟s taste , habits and preferences Flexibility of the product to go national from domestic
PROBABILITYThe probable chance of a good / bad investment in food depending on taste , preference and location of consumer
NEED VS REQUIREMENTSDepending upon climatic conditions and other factors too the need and requirements are derived
CASE: LIFEBUOY VS NIRMALifebuoy‟s first step in India without deep study of Indianmarket led to obstacles in growth which ultimately led todiversified geographical location with a greater innovation inPLC tooNirma being the Indian brand made its fine mark in all thelocations irrespective of the major chunks/ big players whowere the fine players , and Nirma being the newly introducedone , a deep and thorough study of every factor depending onrequirements , needs , hygiene and all other basic factors
DEMOGRAPHIC SEGMENTATION • Most commonly used and easily identifiable • Variables help in dividing into specific customer groups • Helps in MASS MARKETING
DEMOGRAPHIC VARIABLES Age and Life-Cycle Stage Life Stage Gender Income Generation Social Class
Age and Life-Cycle StageCONSUMER WANTS ANDABILITIES CHANGE WITH AGE Babies Old Age Children Youth & Teenagers
Life StageMarriagebuying a house starting a familyretirement
Gender Campaign for Real BeautyProduct Positioning New Product Category “aims to change the status quo and offer in its place a broader, healthier, more democratic view of beauty”
Income“VALUE FOR MONEY” “FORTUNE AT THE BOTTOM OF THE PYRAMID” “Sachet Marketing”
GenerationCOHORT EFFECT IS A TENDENCY AMONG MEMBERS OF A GENERATION TO BE INFLUENCEDAND DRAWN TOGETHER BY SIGNIFICANT EVENTS OCCURRING DURING THEIR KEYFORMATIVE YEARS Disney KidSense 2007
Social Class Caste Income System Level Socio Education Economic Occupation Factors
Psychographic SegmentationLifestyle and Social Status Personality values
LIFESTYLE AND VALUES • Introduced vegetarian burgers in the Indian market keeping in mind the sentiments and the values of the purely vegetarian Indian families • Also McDonalds did not introduce their most famous beef burger “Big Mac” because it might hurt the sentiments of the customers in the Indian market. • McDonalds understand that tastes vary around the globe. • But instead of simply duplicating local favourites, we take whats familiar and put a McDonalds twist on it. • You can order up a Quiche de Queijo (cheese quiche) in Brazil, Red Bean Pie in Hong Kong (where red beans are commonly used in desserts), and traditional Caldo Verde soup (made with cabbage, kale, onion, potato and chorizo) in Portugal.
SOCIAL STATUS Datawind‟s Amazon‟s Kindle Ubislate 7+ Apple‟s Ipad Fire
PERSONALITY • “Made like a Gun”. The ultimate comfort bike in India. • Loyal customers but very less market share due to outdated technology. • Senior managers at Eicher Motors faced a tough choice. For that they wanted to modernise the bikes to appeal to a wider customer base. But existing customers wanted their Bullets just the way they had always been.
CONT.THE PROBLEMDespite the bikes fan following, the motorcycle division was bleedingTHE WAY OUTAppealing to a wider base, making the products more reliableTHE CHALLENGEModernising the bikes without taking away their unique identityTHE SUCCESSModern technology used, but vintage look retained; improved managementpractices
USAGE Customers can be segmented on the basis of usage status- heavy users, light users & non-users of a product category. The profiling of heavy users allows this group to receive most marketing attention (particularly promotion efforts) on the assumption that brand loyalty among these people will pay heavy dividends.