The document discusses market segmentation, explaining its purpose of dividing a market into distinct groups based on demographics, geographics, psychographics, and behaviors. It includes various examples and strategies such as mass marketing, niche marketing, and custom marketing. Additionally, it outlines steps for developing a positioning strategy and highlights the importance of competitive advantage and customer perception.

1. Market Segmentation
Dr. Md Rizwan Alam
Prof.-Marketing and IB
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2.  Market segmentation
Dividing a market into smaller groups with
distinct needs, characteristics, or behaviors
who might acquire separate products or
marketing mixes.
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3.  Demographic
 Geographic
 Psychographic
 Behavioral
Types of Market Segmentation
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4.  Demographic Segmentation:
Dividing a market into groups based on variables
such as age, gender, family size, family lifecycle,
income, occupation, education, religion, race,
generation, and nationality.
Variables:
age: under 6,-11,12-19,20-34,35-49,50-64,65+
ex. Barbie, lady brid, BMW, laughter society
Task: list the brands for various age groups.
Demographic Segmentation
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5. Gender: male, female
e.g. L’Oreal offers Men’s expert , Nivea Man
skin care, Nike with woman’s store
Family size: 1-2,3-4,5+
Family life cycle: young, single, married, no
children, married with children, older etc.
Eg. Housing, Automobiles
Income: Under $10,000;$10000- 20,000,etc.credit
cards holder, Cross Pen, Mont Blanc Pen
Occupation: professional and technical
Education: some high SSC, some Masters
Religion: Muslim, Christian, Eg. Mecca Cola, Pak
Race: Asian, Hispanic, Black, and White, eg. barbie
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6. • Generation: Baby boomer, Generation X/Y and
Millennial
• Nationality: Polish, Dutch, and Finish
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7. .
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8.  Geographic segmentation
Dividing a market into different geographical
units such as nations, states, regions, counties,
cities, or neighborhoods.
Variables:
World region North America, Africa,
Country region North Emirates, South Mexico
City size/population 50,000-100,000,etc
Density urban, suburban, and rural
Climate cold, moderate, and hot
Market Segmentation
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9. Market Segmentation
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Geographic segmentation calls for dividing the
market into different geographical units such as
nations, states, regions, counties, cities, or
neighborhoods

10.  Psychographic:
Dividing base- social class, lifestyle, etc.
Social class: lowers, upper lowers, working class,
middle class, upper middle class, lower uppers,
upper uppers
Lifestyle: achievers, striver, e.g. De Beer
Personality: gregarious, authoritarian, ambitious
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11. • Researchers at the Survey Research Centre at the
University of Michigan have identified nine basic values
that relate to purchase behavior. These are known as list of
value
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13.  Behavioral
Occasion: Regular occasion, special occasion like
Eid, Easter, Valentine’s Day
Benefits: quality, service, economy, convenience,
speed, e.g. Laptop, iPod, Dettol Saop, toothpaste
User status: ex-user, potential user, first time user,
regular user,
User rates: light user, medium user, heavy user
also known as heavy half.
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14. e.g. Burger King targets young population (age 18-
34) ,’super fans’ who account for almost half of all
customer visits.
• Loyalty status: none, medium, strong, absolute.
• Readiness stage: unaware, aware, inform,
interested, desirous, intending to buy,
• Attitude towards product: enthusiastic, positive,
indifferent, negative, hostile.
e.g. iPad, Mont Blanc
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18. • Survey stage
• Analysis stage
• Profiling stage
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20. In targeting, the marketers evaluate the
attractiveness of each potential segment and decide
which of these groups they will invest resources
against to try to turn them into customers. The
customer group or groups selected are the firm’s
target market.
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21.  Mass marketing/Undifferentiated
 Niche/Concentrated
 Multiples segment/differentiated
 Custom Marketing strategy
 Mass customization
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22.  Aggregation strategy or undifferentiated (mass)
marketing is characterized by the following
elements:
- shotgun approach
- single segment
- marketing offerings-single product
- communication-single common program
- size
- cost minimization
e.g. staple products like salt and sugar
Target-Market Strategies
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23.  Single –segmented strategy or concentrate
marketing (Niche)
- one market in depth
- relatively high price
- higher profit margin
- reputation as a specialist
- firms with limited resources
- More direct marketing
- More direct delivery
e.g. Lexus, Evian Water, Rolls-Royce, and Ferrari
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24. Multiple-Segment Strategy
Ex. Toyota
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25. • Multiple-Segment/differentiated strategy
Under a multiple strategy, two or more different
groups of potentials customers are identified as target
markets. A separate marketing mix is developed to
reach each targeted segment.
e.g., Toyota Motors
- a greater sales volume
- useful for versatile customers
- helps to maintain status quo
- trades off economic cycles
Drawbacks:
- costly both in production and distribution
- difficult to fully penetrate
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26. - a greater sales volume
- useful for versatile customers
- helps to maintain status quo
- trades off economic cycles
Drawbacks:
- costly both in production and distribution
- difficult to fully penetrate
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27. • Custom marketing strategy: a marketing strategy
in which a firm develops a separate marketing mix
for each customer.
• Ex. HNI for bankers and Insurance companies
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28. • Mass customisation: a marketing strategy in
which a firm modifies a basic good or service to
meet an individual customer’s needs.
Ex. The custom made sports shoes of NikeID cost just 20%
more than the shoes made from mass production.
Customers can get their name and photo printed on
the shoes to get personalized shoes.
Dell Computers company is one of the oldest and popular
examples of mass customization. Dell company started it’s
with the concept of mass customization. You can choose
the components that you want to include in your
computer and get your computer assembled as you want.
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29. Definition:
The way a firm’s product, brand or organization is
viewed relative to the competition by current
and prospective customers.
Eg: Tide is positioned as a powerful all purpose
family detergent.
- Toyota Yaris and Honda Fit: as economy
- Mercedes and Cadillac: on Luxury
- Ferrari: Speedy
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30. There are four steps marketers follow to develop a
positioning strategy.
• Analyse competitor’s positions
• Offer a good or service with a competitive
advantage
• Match elements of the marketing mix to the
selected segment
• Evaluate the target market’s responses and modify
if necessary
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33.  Find your current position
 Analyze your competitors
 Develop your unique position
 Test your marketing positioning
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34.  Create a positioning statement
– Who is your target audience?
– What is your product or service category?
– What is the greatest benefit of your product or service?
– What is the proof of that benefit?
 Create your tagline
Ex. Target: “Expect more. Pay less.
 Test your marketing positioning
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35. • Mercedes-Benz prestige
• BMW driving
• Volvo Safety
• Starbucks high-end coffee
• Rolex high-end watches
• Google search
• Red bull energy drink
• FedEx overnight (delivery)
• Sharaf DG product range
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37. • Asian Paints – Har Ghar Kuch Kehta Hai
• Coca-Cola – Thanda Matlab Coca-cola
• Dairy Milk – Kuch Meetha Ho Jaaye
• Bingo – No Confusion
• Boost – Boost Is The Secret Of My Energy
• Lifebouy- Lifebouy Hai Jahan, Tandrusti Hai Wahan
• Idea-an Idea Can Change Your Life
• Maggi –Taste Bhi Health Bhi
• Tata Sky – Isko Laga Dala Toh Life Jhingalala
• MRF- Tyres With Muscles
• LIC- Zindagi Ke Saath Bhi Zindagi Ke Baad Bhi
• The Economic Times- Journalism Of Courage
• Lays-no One Can Eat Just One
• Tata Salt- Desh Ka Namak
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38. • Coca Cola – “Open Happiness”
• Amul – “Taste of India”
• Mcdonald – “I’m loving it”
• Nike – “ Just do it”
• Adidas – “impossible is nothing”
• Kit Kat - “Have a break. Have a KitKat”
• Intel – “Intel inside”
• Nokia – “Connecting people”
• Dominos - “Dil, Dosti, Domino's!”
• Thums up - 'Aaj Kuchh Toofani Kartey Hain'
• Apple - "Think Different."
• Tata motors – “Connecting Aspirations”
• Maruti Suzuki - 'Way of life'.
• State bank of india- “The Nation banks on us ;Pure Banking Nothing Else ;With
you all the way”
• Jio – “Digital Life”
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41. • Apple TV
• Diet Coke Plus Green Tea
• Colgate-Palmolive: Kitchen Entrees
• Burger King: Halloween Whopper
• Evian Water Bra
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42. 42
Founded April 1, 1976
Founder Steve Job, Steve Woznaik and
Ronald Wayne
CEO Steve Job
Current CEO since 2011 Tim Cook
Headquarter California
Product Computer software, hardware,
consumer electronics,
Industry Technology
Revenue-worldwide as of 2020 $274.5 billion
No of employees 137,000, full -time
No of Store 510

43. • Iphone
• Ipad
• Mac
• Ipod
• Apple Watch
• Apple TV
• Apple software applications and iOs
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44. • Apple in general is positioned as a premium
product.
• Apple products are generally priced higher than
competition.
• This position has helped Apple a lot as it avoids
getting into price war. Instead of competing on
price, Apple can now compete on innovation and
unique value propositions.
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45. • “Simple is different” – no overdoing in its product
design.
• Ex. From colorful iMac’s to iPods, iPhones, and iPads –
Apple has always added elegance to simplicity and this
is what has been liked by the customers and has
worked wonders for the brand.
• There is a popular saying that Simple is stylish
• positioning around three core tenets:
-Simplicity
-Creativity
-Humanity
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Case Study of Nano Car

49. • What is segmentation?
• What is the purpose of segmentation?
• Which one of the segmentations is mostly used?
• Which segmentation is more complex and
challenging?
• Describe the patterns of segmentation.
• What is positioning?
• What is the purpose of positioning?
• Can you recall any ten tag lines?
• Why tagline is used by a company? Discuss.
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50. Generations
https://www.mckinsey.com/industries/consumer-packaged-goods/our-
insights/true-gen-generation-z-and-its-implications-for-companies#
Positioning
https://learn.marsdd.com/article/positioning-creating-an-image-of-your
product-in-your-target-customers-mind/
Top 10 Failed Products From Famous Companies
https://listverse.com/2021/04/19/top-10-failed-products-from-famous-
companies/
Apple’s Positioning
http://arunkottolli.blogspot.com/2011/07/apples-market-
positioning.html#:~:text=Apple%20in%20general%20is%20positioned,i
nnovation%20and%20unique%20value%20propositions.
http://mybrandsquad.com/understand-the-brand-positioning-of-apple/
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51. Case Study-Brand Positioning | Brand Repositioning | FMCG
Marketing | Sandeep Ray
https://www.youtube.com/watch?v=fWmMa8FGR4Q
Brand Analysis Presentation - Red Bull
https://www.youtube.com/watch?v=CBUANbspmZk
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