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SEGMENTATION,
TARGETING AND
POSITIONING
Content
 Meaning Of Market Segmentation.
 Benefits Of Market Segmentation.
 Limitations Of Market Segmentation.
 Levels of Marketing
 Basis Of Market Segmentation.
 Meaning of Target Market
 Importance of Target Marketing
 How To Choose An Effective Segment Market ?
 Pattern of Target market Selection
 Methods for Developing Target market
SEGMENTATION
 Market segmentation-
Dividing market into smaller
groups with distinct needs ,
characteristics or behavior
that might require different
marketing strategies
BENEFITS OF MARKET SEGMENTATION
Understanding market opportunities
Better matching of customer needs
Enhanced profits for business
Better opportunities for growth
Helps in deciding prices
Helps to retain loyal customers
Efficient use of marketing communication media
Gain share of the market segment
Know your customer better
Assist in designing suitable distribution strategy
Better service to customers
LIMITATIONS OF MARKET SEGMENTATION
 Segments are too small
 Consumers are misinterpreted
 Too many brands hence increases competition
 Increases product cost and market share cost
 Customization may be a costly affair
LEVELS OF MARKET SEGMENTATION
 Mass Marketing (targeting the whole potential
market with a single message)
 Segment marketing(a strategy where the company
divides its market into different segments based on
their unique needs and characteristics)
 Niche marketing (where the marketer focus on a
segment which have narrower and concise needs)
 Local marketing (targeting local customer group)
 Micro marketing (catering the needs of potential
customer having a very specific lifestyle or specific
geographic location)
BASIS FOR SEGMENTATION
Geographic Demographic
Psychographic Behavioral
Segmentation
GEOGRAPHIC SEGMENTATION
It calls for division of the market into different
geographical units such as nations, states, regions,
cities etc.
For Example : Mc. Donald, KFC
Variables -
 Region- south India, western region, north, east.
 City- class- 1st, metro cities, cities with a population
of 0.5 million to 1 million
 Rural & urban.
DEMOGRAPHIC SEGMENTATION
We divide the market into groups on the basis of variables
such as:
 Age
 Gender
 Generation
 Marital Status
 Nationality
 Family life cycle
 Family Size
 Life Stage
 Occupation
 Income
 Religion
 Social Class
PSYCHOGRAPHIC SEGMENTATION
In this segmentation buyers are divided into different
groups on the basis of life style, personality traits
and values. People within same demographic group
can exhibit very different psychographic profiles.
Example : Halal and Jhatka Meat
 Life style: Culture oriented, sports oriented
 Personality- Compulsive, Ambitious
BEHAVIORAL SEGMENTATION
In behavioral segmentation, marketers divide buyers into
groups on the basis of their knowledge of, attitude
towards, use of, or response to a product.
Behavioral variables include :
• Occasions
• Benefits
• User status
• Usage rate
• Buyer readiness
• Loyalty status
• Attitude towards the product
• Readiness Stage
Why is determining a Target
Market is Important?
 To identify their potential consumer, the more
successful they will be in delivering products and
services that are in demand.
 It makes easier to develop the products what the
people wants.
How do you determine who
your target market is ?
 Is your product international, national or local in
scope?
 Are your target customer is male or female?
 How old are they?
 Your target customer single married or divorced?
 what is their lifestyle like: conservative, exciting,
trend, economical?
 Where do they live?
How To Choose An Effective Segment Market ?
Segmentation
Criteria
Measurable
Substantial
AccessibleActionable
Differentiable
FIVE PATTERNS OF TARGET
MARKET SELECTION
• Single-Segment Concentration:
Concentrated Marketing where the firm
gains a strong knowledge of segments and
acquires a strong market presence.
E.g.- Vertu Mobile phone.
 Selective Specialization: A firm selects a
number of segments. Each objectively
attractive and appropriate, there may be
little or no synergy between the segments.
E.g.- Maggie.
P1
P2
P3
M1 M2 M3
Single – segment
Concentration
P1
P2
P3
M1 M2 M3
Selective
Specialization
 Product Specialization: The firm makes a
certain product that it sells to several different
market segments.
Eg: Electricity.
 Market Specialization: The firm concentrates
on serving many needs of a particular
customer.
Eg: Kindle
P1
P2
P3
P1
P2
P3
M1 M2 M3
M1 M2 M3
Product Specialization
Market
Specialization
 Full Market Coverage: The firm attempts to serve
all customer groups with all products they need.
E.g – Coca cola, ITC, Microsoft office (software
market) ,etc.
It covers the large market in two ways:
 Undifferentiated market- The firm ignores
segment differences and goes after the whole
market with one offer.
e.g- Nirma detergent powder, Maruti 800, etc.
 Differentiate market – The firm operates in
several market segments and design different
products for each.
e.g- Johnson & Johnson products, Maruti
models, etc.
P1
P2
P3
M1 M2 M3
Full Coverage
Market
ADDITIONAL CONSIDERATION…
METHODS FOR DEVELOPING A
TARGET MARKET
POSITIONING
POSITIONING
“The act of designing the company’s image and value
offer so that the segment’s customers understand and
appreciate what the company stands for in relation to its
competitors” ~Philip Kotler
FOR EXAMPLE:-
When we listen about “Benz”
and “Rolex watch”
The first word that comes in
mind…….
Prestige
SOME MORE EXAMPLES ARE…
• Liril - Freshness
• Fair & Lovely - Fairness Cream
• Pears - Tender skin like babies
• Bata- Value for money shoes
• Woodland - Sturdy shoes for adventure sports
Elements that affects the Positioning
Positioning
The
Company
The Product
The Consumer
The
Competition
APPROACHES TO POSITIONING
WHAT DIFFERENTIATION IS ?
“is an act of designing a set of meaningful differences to
distinguish the company’s offers from competitor’s offers.”
WAYS OF DIFFERENTIATION :-
Better Offering
Newer Offering
Faster Offering
Cheaper Offering
SPECIFIC WAYS FOR DIFFERENTIATING :-
POSITIONING STRATEGIES :-
Positioning Strategies
Competitive Positioning Selling Positioning
Product-Oriented
Positioning
Consumer-Oriented
Positioning
Benefit Positioning
Attribute Positioning
Use Positioning
User Positioning
Price/Quantity Positioning
Positioning
Process
Competition
Identification
Product
Characteristics
Study
Analyzing
Customers
Comparative
Analysis
Identifying USP
Execute
Marketing Plan
Measure &
Evaluate
POSITIONING ERRORS
• Under Positioning
• Over Positioning
• Confused Positioning
• Doubtful Positioning
UNDER POSITIONING
• Failing to present a strong central benefit or
reason to buy the product.
• occurs when customers cannot readily
identify the brand or the brand´s features.
The product must stand out in the mind of
the consumer
Example :- Solar Lamp,
ASUS LAPTOPS
OVER POSITIONING
• Marketers makes the product too special, so
the potential customer group becomes too
small.
• It means that buyers believe that the product is
meant for a very select audience because it is
premium priced.
Example:- Aqua Sure, TANISHQ
CONFUSED POSITIONING
• By claiming two are more benefits that contradict each
other.
• Too many benefits or claims, or when the brand attempts
to position in too many segments.
• Example:- NEXT computers
• CRYSTAL PEPSI
• Milkmaid
DOUBTFUL POSITIONING
• Claiming a benefit that customers will doubt that
the brand can actually deliver.
Example: Fair and Handsome
Weight loss medicines
Market Segmentation, Targeting and Positioning
Market Segmentation, Targeting and Positioning

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Market Segmentation, Targeting and Positioning

  • 2.
  • 3. Content  Meaning Of Market Segmentation.  Benefits Of Market Segmentation.  Limitations Of Market Segmentation.  Levels of Marketing  Basis Of Market Segmentation.  Meaning of Target Market  Importance of Target Marketing  How To Choose An Effective Segment Market ?  Pattern of Target market Selection  Methods for Developing Target market
  • 4. SEGMENTATION  Market segmentation- Dividing market into smaller groups with distinct needs , characteristics or behavior that might require different marketing strategies
  • 5. BENEFITS OF MARKET SEGMENTATION Understanding market opportunities Better matching of customer needs Enhanced profits for business Better opportunities for growth Helps in deciding prices Helps to retain loyal customers Efficient use of marketing communication media Gain share of the market segment Know your customer better Assist in designing suitable distribution strategy Better service to customers
  • 6. LIMITATIONS OF MARKET SEGMENTATION  Segments are too small  Consumers are misinterpreted  Too many brands hence increases competition  Increases product cost and market share cost  Customization may be a costly affair
  • 7. LEVELS OF MARKET SEGMENTATION  Mass Marketing (targeting the whole potential market with a single message)  Segment marketing(a strategy where the company divides its market into different segments based on their unique needs and characteristics)  Niche marketing (where the marketer focus on a segment which have narrower and concise needs)  Local marketing (targeting local customer group)  Micro marketing (catering the needs of potential customer having a very specific lifestyle or specific geographic location)
  • 8. BASIS FOR SEGMENTATION Geographic Demographic Psychographic Behavioral Segmentation
  • 9. GEOGRAPHIC SEGMENTATION It calls for division of the market into different geographical units such as nations, states, regions, cities etc. For Example : Mc. Donald, KFC Variables -  Region- south India, western region, north, east.  City- class- 1st, metro cities, cities with a population of 0.5 million to 1 million  Rural & urban.
  • 10. DEMOGRAPHIC SEGMENTATION We divide the market into groups on the basis of variables such as:  Age  Gender  Generation  Marital Status  Nationality  Family life cycle  Family Size  Life Stage  Occupation  Income  Religion  Social Class
  • 11. PSYCHOGRAPHIC SEGMENTATION In this segmentation buyers are divided into different groups on the basis of life style, personality traits and values. People within same demographic group can exhibit very different psychographic profiles. Example : Halal and Jhatka Meat  Life style: Culture oriented, sports oriented  Personality- Compulsive, Ambitious
  • 12. BEHAVIORAL SEGMENTATION In behavioral segmentation, marketers divide buyers into groups on the basis of their knowledge of, attitude towards, use of, or response to a product. Behavioral variables include : • Occasions • Benefits • User status • Usage rate • Buyer readiness • Loyalty status • Attitude towards the product • Readiness Stage
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  • 14. Why is determining a Target Market is Important?  To identify their potential consumer, the more successful they will be in delivering products and services that are in demand.  It makes easier to develop the products what the people wants.
  • 15. How do you determine who your target market is ?  Is your product international, national or local in scope?  Are your target customer is male or female?  How old are they?  Your target customer single married or divorced?  what is their lifestyle like: conservative, exciting, trend, economical?  Where do they live?
  • 16. How To Choose An Effective Segment Market ? Segmentation Criteria Measurable Substantial AccessibleActionable Differentiable
  • 17. FIVE PATTERNS OF TARGET MARKET SELECTION • Single-Segment Concentration: Concentrated Marketing where the firm gains a strong knowledge of segments and acquires a strong market presence. E.g.- Vertu Mobile phone.  Selective Specialization: A firm selects a number of segments. Each objectively attractive and appropriate, there may be little or no synergy between the segments. E.g.- Maggie. P1 P2 P3 M1 M2 M3 Single – segment Concentration P1 P2 P3 M1 M2 M3 Selective Specialization
  • 18.  Product Specialization: The firm makes a certain product that it sells to several different market segments. Eg: Electricity.  Market Specialization: The firm concentrates on serving many needs of a particular customer. Eg: Kindle P1 P2 P3 P1 P2 P3 M1 M2 M3 M1 M2 M3 Product Specialization Market Specialization
  • 19.  Full Market Coverage: The firm attempts to serve all customer groups with all products they need. E.g – Coca cola, ITC, Microsoft office (software market) ,etc. It covers the large market in two ways:  Undifferentiated market- The firm ignores segment differences and goes after the whole market with one offer. e.g- Nirma detergent powder, Maruti 800, etc.  Differentiate market – The firm operates in several market segments and design different products for each. e.g- Johnson & Johnson products, Maruti models, etc. P1 P2 P3 M1 M2 M3 Full Coverage Market
  • 21. METHODS FOR DEVELOPING A TARGET MARKET
  • 23. POSITIONING “The act of designing the company’s image and value offer so that the segment’s customers understand and appreciate what the company stands for in relation to its competitors” ~Philip Kotler
  • 24. FOR EXAMPLE:- When we listen about “Benz” and “Rolex watch” The first word that comes in mind……. Prestige
  • 25. SOME MORE EXAMPLES ARE… • Liril - Freshness • Fair & Lovely - Fairness Cream • Pears - Tender skin like babies • Bata- Value for money shoes • Woodland - Sturdy shoes for adventure sports
  • 26. Elements that affects the Positioning Positioning The Company The Product The Consumer The Competition
  • 28. WHAT DIFFERENTIATION IS ? “is an act of designing a set of meaningful differences to distinguish the company’s offers from competitor’s offers.”
  • 29. WAYS OF DIFFERENTIATION :- Better Offering Newer Offering Faster Offering Cheaper Offering
  • 30. SPECIFIC WAYS FOR DIFFERENTIATING :-
  • 31. POSITIONING STRATEGIES :- Positioning Strategies Competitive Positioning Selling Positioning Product-Oriented Positioning Consumer-Oriented Positioning Benefit Positioning Attribute Positioning Use Positioning User Positioning Price/Quantity Positioning
  • 33. POSITIONING ERRORS • Under Positioning • Over Positioning • Confused Positioning • Doubtful Positioning
  • 34. UNDER POSITIONING • Failing to present a strong central benefit or reason to buy the product. • occurs when customers cannot readily identify the brand or the brand´s features. The product must stand out in the mind of the consumer Example :- Solar Lamp, ASUS LAPTOPS
  • 35. OVER POSITIONING • Marketers makes the product too special, so the potential customer group becomes too small. • It means that buyers believe that the product is meant for a very select audience because it is premium priced. Example:- Aqua Sure, TANISHQ
  • 36. CONFUSED POSITIONING • By claiming two are more benefits that contradict each other. • Too many benefits or claims, or when the brand attempts to position in too many segments. • Example:- NEXT computers • CRYSTAL PEPSI • Milkmaid
  • 37. DOUBTFUL POSITIONING • Claiming a benefit that customers will doubt that the brand can actually deliver. Example: Fair and Handsome Weight loss medicines