This document discusses market segmentation, targeting, and positioning. It defines market segmentation as dividing a market into subgroups of customers with similar needs or characteristics. Effective segmentation requires segments to be measurable, accessible, substantial, and responsive to different marketing mixes. Common bases for segmentation include geographic, demographic, psychographic, behavioral, and benefit factors. Targeting involves selecting specific segments to focus on based on factors like segment size, growth, and attractiveness. Positioning develops a specific marketing mix to influence customers' perceptions of a brand relative to competitors. It identifies attribute, benefit, user, and competitor bases for positioning. The document also discusses differentiation, market coverage strategies, and repositioning.

1. STP

2. Market Segmentation
Market segmentation is the subdividing of
market into homogenous sub sections of
customers, where any sub section may
conceivably be selected as a market target
to be reached with a distinct marketing mix.

3. Requirements for Effective
Segmentation
• Size, purchasing power, profiles
of segments can be measured.
• Segments can be effectively
reached and served.
• Segments are large or profitable
enough to serve.
Measurable
Accessible
Substantial
Differential
Actionable
• Segments must respond
differently to different marketing
mix elements & programs.
• Effective programs can be
designed to attract and serve
the segments.

4. Bases for Segmentation
Geographic Segmentation
Region North, South, East, West
City size Major metropolitan areas,
small cities, towns
Density of area Urban, suburban, (semi
urban) rural
Climate Hot, Cold, warm

5. Demographic Segmentation
Age Under 11, 12-17, 18-34 and so on
Sex Male, Female
Marital Status Single, married, divorced, living together,
widowed
Family size Up to 2 children, 3 to 4 children, 5 & above
Income Under RS.10,000, Rs. 20,000, Rs. 30,000
and so on
Education Illiterate, able to read and write, high
school, graduate, post graduate or
illiterate, semiliterate, literate

6. Occupation Professional, blue collar, white collar,
agricultural
Race Brahmin, Bania, Kayastha, Rajput,
Bhumihar
Language Hindi, Tamil, Telugu, Punjabi
Psychographic Segmentation
Needs- motivation Shelter, safety, security, affection
Personality Extrovert, introvert, aggressive,
complaints
Attitudes Positive attitude, negative attitude

7. Psychographic lifestyle Straight, conservatives, status
seekers
Socio-cultural Segmentation
Culture Indian, Chinese, Japanese, English
Religion Hindu, Muslim, Christian
Social Class Lower, middle, upper
Family lifestyle Bachelors, young married
Use related Segmentation buyer behavior
Usage rate Heavy users, medium users, light
users, nonusers

8. Awareness status Unaware, aware, interested to
try (enthusiastic), regular buyer
Brand loyalty None, some, strong
Use situational segmentation
Time Leisure, work, rush, morning, night
Objective Personal use, gift, fun, achievement
Location Home, work, friend’s home, in-store
Person Self, friends, boss
Benefit segmentation Convenience, prestige, economy,
value for the money

9. Hybrid Segmentation
Demographic/Psychographic profiles Combination of
demographic and
psychographic
characteristics
VALS Actualizer, fulfilled,
believe, achieve,
striver, experiencer,
maker, struggler

10. Principle Oriented Status Oriented
FULFILLED
BELIEVERS
ACTUALIZERS
ACHIEVERS
STRIVERS
STRUGGLERS
Abundant Resources
Minimal Resources
Action Oriented
EXPERIENCERS
MAKERS
VALS 2 - Network

11. What type of demographic segmentation
is reflected by this?

12. Refrigerators
The refrigerator market can be segmented on the following basis
of:
i) Geographical
a) North India b) South India c) East India d) West India
ii) Size of refrigerators
a) 65 litres b) 90 litres c) 165 litres d) 286 litres e) 300
litres
iii) Nature of consumers
a) Households b) Industrial
Washing machines
a) Density : Urban and Suburban
b) Economy : Middle and upper income group
c) Benefits : Automatic, Semi automatic

13. Segmentation, Targeting, and Positioning
Develop profiles of
resulting segments
Market
Segmentation
Develop measures of
segment attractiveness
Select the
target segment(s)
Develop positioning
for each segment
Develop marketing mix
for each segment
Identify bases for
segmenting market
Market
Targeting
Market
Positioning

14. Targeting
It involves making
decision about which
part of the market an
organization wishes
to focus on.

15. Evaluating a segment for
targeting
• Has sufficient current and potential sales and
profits
• Has the potential for sufficient future growth
• Is not over-competitive
• Does not have excessive barriers or costs to
entry or exit
• Has some relatively unsatisfied needs that the
company can serve particularly well.

16. Evaluating Market Segments
1) Segment Size and Growth
– Collect and analyze data on segment size
– Growth rates
– Expected profitability (ROI)
2) Segment Structural Attractiveness
– Consider effects of competitors
– Existence of substitute products
– Bargaining power of buyers
– Bargaining power of suppliers

17. 3) Company Objectives and Resources
– Company’s attention and energies are not diverted
from the main goal – while serving that segment eg
gaming business
– Examine company resources needed to succeed in
that segment e.g.: McDonald’s in biscuits
– Offer superior value and gain advantage over
competitors (Differentiation)

18. Market Targeting
Market Coverage Strategies
Segment 1
Segment 2
Segment 3
Company
Marketing
Mix
Company
Marketing Mix 1
Company
Marketing Mix 2
Company
Marketing Mix 3
Market
A. Undifferentiated Marketing
B. Differentiated Marketing

19. Market Targeting
Market Coverage Strategies
Segment 1
Segment 2
Segment 3
Company
Marketing
Mix
C. Concentrated Marketing

20. • Undifferentiated marketing: when a firm
produces only one product or product line
and promotes it to all customers with a
single marketing mix
– Sometimes called mass marketing
– Much more common in the past

21. • Differentiated marketing: when a firm
produces numerous products and
promotes them with a different
marketing mix designed to satisfy
smaller segments
– Tends to raise costs
– Firms may be forced to practice
differentiated marketing to remain
competitive

22. • Concentrated marketing (niche
marketing): when a firm commits all of its
marketing resources to serve a single
market segment
– Attractive to small firms with limited resources
and to firms offering highly specialized goods
and services

23. Positioning
Developing a specific marketing mix to
influence potential customers’ overall
perception of a brand, product line, or
organization in general.
The process of creating an image for a product
in the mind of target customers.
The place a product, brand, or group of
products occupies in consumers’ minds relative
to competing offerings.

24. Identify positioning bases
Attribute
Price and Quality
Use or Application
Product User
Product Class
Competitor
Positioning
Bases
Benefits or needs

25. Choosing and Implementing a
positioning Strategy
1) Identifying possible competitive
advantages
• Company can position itself as providing
superior value either by low price or by
providing more benefits to justify higher
prices
• Deliver the promised quality and service

26. 2. Selecting the right competitive
advantages
• How many differences to promote ?
• Best quality, best services, lowest price
advance technology
• Which differences to promote?
3. Communicating and delivering the chosen
position

27. 1) Differentiation
It is the act of designing a set of meaningful
differences to distinguish the company’s offering
from competitors’ offering
a) Product differentiation
i) Features
ii) Performance – level at which characteristics of
products operate
iii) Conformance-degree to which product meet
promised target specifications
iv) Durability –expected operating life
v) Reparability- ease of fixing a product
vi) Style- looks and feels to the buyer
vii) Design- totality of features that effect how a product
looks and functions

28. b) Service differentiation – differentiating in
services.
i) Ordering ease- how easy it is for the cr
customer to place an order
ii) delivery- how well product is delivered.
iii) Installation- work done to make a product
operational.
iv) Customer training
v) Customer consulting- data, information that the
sellers offers free
vi) Maintenance and repair- Company’s service
programme for helping customers.

29. c) Personnel Differentiation – Competitive
advantage through hiring and training people.
i) Competence- employees possess the required
knowledge and skill
ii) Courtesy- employees are helpful, friendly
iii) Responsiveness - respond to customer
requests and problems
iv) Communication- employees make an effort to
understand customer and communicate
clearly
v) Credibility- employees are trust worthy
vi) Reliability- employees perform the service
consistently and accurately

30. d) Channel differentiation – Companies can make
differentiation through distribution channel.
Channel’s coverage, expertise and performance .
e) Image differentiation- how companies differentiate
their personnel or brand image
2) Market Segmentation – It can help the
management in achieving following benefits
a) Concentrating on most profitable market
b) Designing product that really match the market
demand
c) Determining promotional mix which will be most
effective.
d) Choosing advertising media effectively and
determining how to allocate better budget among
the various media.

31. Repositioning
Changing consumers’ perceptions of a brand
in relation to competing brands.