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Segmentation, targeting and postioning in marketing
The document covers the concepts of segmentation, targeting, and positioning (STP) in marketing, detailing the definitions, processes, and benefits of segmentation including various bases such as geographical and demographic criteria. It explains the importance of targeting specific consumer segments and presents different targeting strategies along with positioning techniques relevant to consumer perceptions and competitive advantages. Overall, it emphasizes how effective segmentation and positioning can enhance marketing effectiveness and profitability for businesses.
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Overview of segmentation, targeting, and positioning in marketing presented by Jitendra Patel.
Module covers segmentation definition, needs, quality, basis, and examples. Discusses STP process.
Defines market segmentation, highlights its necessity for marketing effectiveness and competition.
Describes qualities of a good segment and underlying bases including geographic, demographic, psychographic.
Details geographic segmentation which classifies markets based on geographic criteria.
Explains demographic segmentation focusing on age, gender, income, and education.
Covers psychographic segmentation analyzing consumer behavior based on lifestyle and personality.
Discusses behavioral segmentation categorizing consumers by their attitudes and responses to products.
Practical examples of segmentation in various sectors like banking, telecom, and restaurants.
Highlights advantages of segmentation like effective targeting, customer satisfaction, and focus.
Explains how segmentation enhances company focus and customer retention using Titan watches as an example.
Discusses segmentation's role in market expansion and profitability using examples like Reebok and Nike.
Defines targeting as the second stage of STP process, outlines criteria for selecting target markets.
Discusses various strategies for targeting markets including single segment and full market coverage.
Defines positioning and its importance in consumer perception and competition, with examples.
Explains positioning strategies including by attributes, price, and cultural symbols with brand examples.
Focuses on positioning specifically in the hotel industry and elements that affect positioning.
Guidelines for selecting positioning strategies and identifying competitive advantages.
List of references and sources used in the presentation for further reading.
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Segmentation, targeting and postioning in marketing
- 1. Segmentation , Targetingand Positioning in Marketing Prepared By Jitendra Patel Assistant Professor Prestige Institute of Management and Research, Indore 9/1/2019 1Jitendra Patel, Assistant Professor ,PIMR
- 2. Module II 1.Segmentation 1.1 Definition 1.2Needs for Segmentation 1.3 Quality of Good Segment 1.4 Basis of Segmentation 1.4.1 Geographical Segmentation 1.4.2 Demographical Segmentation 1.4.3 Psychographic Segmentation 1.4.4 Behavioral Segmentation 1.5 Segmentation Example 1.6 Benefits of Segmentation 2. STP Process 3. Targeting 3.1 Targeting Definition 3.2 Targeting Consumer 3.3 Criteria for Selecting Target 3.4 Target market strategies 3.4.1 Single Segment Strategy 3.4.2 Selective Specialization 3.4.3 Product Specialization 3.4.4 Market Specialization 3.4.5. Full Coverage 3.4.5.1 Undifferentiated, Concentrated, Differentiated9/1/2019 2Jitendra Patel, Assistant Professor ,PIMR
- 3. Module II 4 Positioning 4.1Positioning Example 4.2 Types of Positioning 4.3 Positioning in Hotel Industry 4.4 Elements of Positioning 4.4.1 Product 4.4.2 Company 4.4.3 Competitor 4.4.4 Consumer 4.5 Choosing a Positioning Strategy 9/1/2019 3Jitendra Patel, Assistant Professor ,PIMR
- 4. Unit II: MarketSegmentation • Market Segmentation is the sub dividing of customers into homogenous sub set of customers where any sub set may be selected as market target to be reached with distinct marketing mix. -Kotler • The process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants or demand is called Segmentation 9/1/2019 4Jitendra Patel, Assistant Professor ,PIMR
- 5. Need for Segmentation •To develop Marketing Activities • Increase market effectiveness • Greater customer satisfaction • Create savings • To overcome competition effectively 9/1/2019 5Jitendra Patel, Assistant Professor ,PIMR
- 6. The Good SegmentMust be • Well Defined • Small • Manageable • Targeted and Focused. • Profitable • Substantial Size • 9/1/2019 6Jitendra Patel, Assistant Professor ,PIMR
- 7. Basis of MarketSegmentation Segmenting Consumer Markets • Geographic • Demographic • Psychographic • Behavioral 9/1/2019 7Jitendra Patel, Assistant Professor ,PIMR
- 8. Geographic Geographic segmentation dividesthe market into different geographical units such as • nations, • regions, • states, • counties, or cities 9/1/2019 8Jitendra Patel, Assistant Professor ,PIMR
- 9. Demographic Demographic segmentation dividesthe market into groups based on variables such as – age, gender – family size – family life cycle, – income, – occupation, – education, – religion, – race, – generation, and – nationality 9/1/2019 9Jitendra Patel, Assistant Professor ,PIMR
- 10. Psychographic • Psychographic segmentationdivides buyers into different groups based on – social class, – lifestyle, – personality traits 9/1/2019 10Jitendra Patel, Assistant Professor ,PIMR
- 11. Behavioral segmentation Behavioral segmentationdivides buyers into groups based on their knowledge, attitudes, uses, or responses to a product • Occasion • Benefits sought • User status • Usage rate • Loyalty status 9/1/2019 11Jitendra Patel, Assistant Professor ,PIMR
- 12. Segmentation Examples Type ofFirm Segmentation Base Possible market segments Banking Demographic segmentation Young couples, young families, older families, pre-retirement, retired Mobile phone carriers Benefit segmentation Highly social, work- oriented, safety contact, status symbol Toothpaste Benefit segmentation Teeth whitening, sensitive teeth, fresh breath, cavity protection, tartar control Restaurant Behavioral segmentation Regulars, special occasion, business lunch, quick spot9/1/2019 12Jitendra Patel, Assistant Professor ,PIMR
- 13. Benefits of Segmentation 1.Facilitates the right choice of Target market: It helps the marketer to identify potential buyers and pickup their target market effectively. 2. Facilitates effective tapping of the Chosen market segment: It helps to know and analyse the demands of each customer group and make offers that match them. 9/1/2019 13Jitendra Patel, Assistant Professor ,PIMR
- 14. Toyota India 9/1/2019 14JitendraPatel, Assistant Professor ,PIMR
- 15. 3. Helps identifyless satisfied segments and concentrate on them: 4. Helps to concentrate efforts on most productive and profitable market segment instead of frittering over irrevelant, unproductive /unprofitable segment. ● Segmentation also helps the marketers to know the segment still waiting to be served and grabs them as a unique opportunity. 9/1/2019 15Jitendra Patel, Assistant Professor ,PIMR
- 16. 5. FOCUS OFTHE COMPANY ● Segmentation is an effective method to increase the focus of a firm on market segments. ● This helps a company in changing its focus for better returns. ● Thus companies base their strategy completely on a new segment which increases its focus and profitability. e.g. Automobile companies have started focusing on small car segments. 9/1/2019 16Jitendra Patel, Assistant Professor ,PIMR
- 17. 6.CUSTOMER RETENTION Segmentation ensurescustomer retention. e.g. Titan watches. ● A watch is available for any customer who enters a Titan showroom, whatever be his age, budget. ● from fast track to Sonata and the high end watches(EDGE,HTSE,PURPLE,etc) Titan has them by price segment as well as life cycle segment. 9/1/2019 17Jitendra Patel, Assistant Professor ,PIMR
- 18. 7. MARKET EXPANSION ●Segmentation plays a crucial role in expansion. ● One cannot expand in a territory without any idea of which segment of customers one will be dealing with. ● e.g Reebok targets fitness enthusiasts, it has expanded into clothes and accessories from being a shoe manufacturer. 9/1/2019 18Jitendra Patel, Assistant Professor ,PIMR
- 19. 8. INCREASE PROFITABILITY ●It affects the profitability of the firm. e.g. Nike, BMW showrooms. ● One of the USP’s of these brands is their segmentation. i.e they target segments which donot bargain or negotiate.Thus their profitability is high. 9. BETTER COMMUNICATION ● Communication cannot be possible without knowing target market. ● By limiting the audience, one can choose magazines, websites, radio and TV stations, events that those customers are more likely to hear, see, visit or attend. ● This makes the marketing effort more economic and efficient. 9/1/2019 19Jitendra Patel, Assistant Professor ,PIMR
- 20. 9/1/2019 20Jitendra Patel,Assistant Professor ,PIMR
- 21. Targeting • Targeting isthe second stage of the SEGMENT "Target" POSITION(STP) process. After the market has been separated into its segments, the marketer will select a segment or series of segments and ‘target’ it/them. Resources and effort will be targeted at the segment. 9/1/2019 21Jitendra Patel, Assistant Professor ,PIMR
- 22. Targeting Consumer Target Unaware Aware NotYet Tired Negative Opinion Neutral Favorable Opinion Tired Rejecter Switcher User Light User Moderate User Heavy User 9/1/2019 22Jitendra Patel, Assistant Professor ,PIMR
- 23. Criteria for SelectingTarget • Size: The market must be large enough to justify segmenting. If the market is small, it may make it smaller. • Difference: Measurable differences must exist between segments. • Money: Anticipated profits must exceed the costs of additional marketing plans and other changes. • Accessible: Each segment must be accessible to your team and the segment must be able to receive your marketing messages • Focus on different benefits: Different segments must need different benefits. 9/1/2019 23Jitendra Patel, Assistant Professor ,PIMR
- 24. Single Segment SingleProduct 9/1/2019 24Jitendra Patel, Assistant Professor ,PIMR
- 25. One Product allSegment 9/1/2019 25Jitendra Patel, Assistant Professor ,PIMR
- 26. Multi Products MultiSegment 9/1/2019 26Jitendra Patel, Assistant Professor ,PIMR
- 27. Target market strategies •Single Segment Strategy • Selective Specialization • Product Specialization • Market Specialization • Full Market Coverage 9/1/2019 27Jitendra Patel, Assistant Professor ,PIMR
- 28. Full Market Coverageis done in three way Undifferentiated, Concentrated, Differentiated Strategy Description Example Undifferentiated Sending the same promotional message to everyone Promoting the city as a historic destination by placing ads in widely read newspapers Concentrated Designing a promotional message that communicates the benefits desired by a single specific segment Promoting the city as historic by targeting elderly members of historical societies by placing ads in their newsletters Differentiated Designing more than one promotional message, with each communicating different benefits Also targeting families by communicating a promotional message about the importance of children learning history 9/1/2019 28Jitendra Patel, Assistant Professor ,PIMR
- 29. Positioning The place a productoccupies in consumers’ minds relative to competing products. 9/1/2019 29Jitendra Patel, Assistant Professor ,PIMR
- 30. Positioning – The placethe 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. 9/1/2019 30Jitendra Patel, Assistant Professor ,PIMR
- 31. Positioning Example • eBay’spositioning: No matter what “it” is, you can find “it” on eBay! 9/1/2019 31Jitendra Patel, Assistant Professor ,PIMR
- 32. Types of Positioning 9/1/201932Jitendra Patel, Assistant Professor ,PIMR
- 33. • Positioning bySpecific Product Attribute and Benefits. Here the marketer associates a product with an attribute, a product feature or a consumer feature. A common approach is setting the brand apart from competitors on the basis of the specific characteristics or benefits offered. Every one you know have one Yahoo. • Eat fresh • Subway • By product class • Highlights their fresh menu items, against the range of fast food options available • “To Fly. To Serve.” British Airways” 9/1/2019 33Jitendra Patel, Assistant Professor ,PIMR
- 34. • POSITIONING BYPRICE/ QUALITY The positioning is done based on price and quality of the product. Premium products are positioned like this. JIO Emirates Hello Tomorrow Making the sky the best place on Earth") is the tagline of ‘Air France’ 9/1/2019 34Jitendra Patel, Assistant Professor ,PIMR
- 35. • POSITIONING BYUSE OR APPLICATION specific image or position for a brand is to associate it with a specific use or application. • don’t leave home without it • American Express • By use/application • States that the product is vital when you are traveling 9/1/2019 35Jitendra Patel, Assistant Professor ,PIMR
- 36. • POSITIONING BYPRODUCT CLASS Often the competition for a particular product comes from outside the product class. • When it absolutely, positively, has to be there overnight • Federal Express • By product class • States that there is no competitive alternative when you want promptness and reliability • Cisco 9/1/2019 36Jitendra Patel, Assistant Professor ,PIMR
- 37. • POSITIONING BYPRODUCT USER Here the persona of the product is associated with the User. Eg. Idea – Abhishek Bachaan Banker to every Indian SBI 9/1/2019 37Jitendra Patel, Assistant Professor ,PIMR
- 38. • POSITIONING BYCOMPETITOR This is similar to positioning by product class, although in this case the competition is within the same product category. • We try harder • Avis Rent-a-Car • Against competition • Targets the market leader (Hertz), by implying that they are lazy and complacent, particularly in the area of customer service • Have it your way • Burger King • Against competition • Highlights the flexibility of their menu choices, implied against McDonald’s offerings • Autobell Car Wash • People can tell........When you Autobell. 9/1/2019 38Jitendra Patel, Assistant Professor ,PIMR
- 39. • POSITIONING BYCULTURAL SYMBOLS the cultural symbols are used to differentiate the brands., Air India 9/1/2019 39Jitendra Patel, Assistant Professor ,PIMR
- 40. Positioning Strategy –Cultural Symbols • Culture can be defined as the customs, arts, social institutions, and achievements of a particular nation, people, or other social group • A population recognizes itself and the society through the use of cultural symbols • It is this fundamental principle that leads advertisers to associate a particular product with a cultural symbol • This leads the target market populace to associate the product with culture and the general understanding it identifies as holy, artistic, refined or sophisticated. • Essentially, identify something that is very meaningful to people and associate the brand with that symbol. • This helps to differentiate brands from other competitors. 9/1/2019 40Jitendra Patel, Assistant Professor ,PIMR
- 41. Cultural Symbols PositioningStrategy 9/1/2019 41Jitendra Patel, Assistant Professor ,PIMR
- 42. Product Matrix No. ofdestinations Destinations Type Less More Luxury Cultural heritage Malaysia Thailand India Dubai Singapore China 9/1/2019 42Jitendra Patel, Assistant Professor ,PIMR
- 43. Positioning in HotelIndustry 9/1/2019 43Jitendra Patel, Assistant Professor ,PIMR
- 44. Elements of Positioning 9/1/201944Jitendra Patel, Assistant Professor ,PIMR
- 45. • The Product: Thisis where the consumer decides how important the product is and what meaning it has and how he relates it with his need. 9/1/2019 45Jitendra Patel, Assistant Professor ,PIMR
- 46. • The Company Everyproduct comes from a company and every company has its own Image. Better Company profile, Better the perceived value of the product. In some cases the brand name overshadows the name of the company. Eg. Amul – GCMMF (Gujrat Co-operative Milk Marketing Federation)9/1/2019 46Jitendra Patel, Assistant Professor ,PIMR
- 47. • The Competition ProductPositioning is done in relation to various competitive offerings. Most of the cases a products are compared with the dominant brand in the same category. Selecting a slot distinctly different from the competitors can avoid direct confrontation with them.9/1/2019 47Jitendra Patel, Assistant Professor ,PIMR
- 48. • The Consumer Tore-enforce, Positioning is essentially based on consumer perceptions rather than factual evaluations. It becomes very important, to examine, what is the perceived value of the product for the consumer. To Analyze this, we should be through with Consumer Behaviour. 9/1/2019 48Jitendra Patel, Assistant Professor ,PIMR
- 49. Identifying possible competitiveadvantages Choosing the right competitive advantage Choosing a positioning strategy Differentiation can be based on Products Services Channels People Image Topics Choosing a Positioning Strategy 9/1/2019 49Jitendra Patel, Assistant Professor ,PIMR
- 50. Choosing a PositioningStrategy • How many differences to promote? Unique selling proposition Several benefits • Which differences to promote? Criteria include: Important Distinctive Superior Communicable Preemptive Affordable Profitable Topics Identifying possible competitive advantages Choosing the right competitive advantage Choosing a positioning strategy 9/1/2019 50Jitendra Patel, Assistant Professor ,PIMR
- 51. Choosing a PositioningStrategy • Value propositions represent the full positioning of the brand • Possible value propositions: More for More More for the Same More for Less The Same for Less Less for Much Less Topics Identifying possible competitive advantages Choosing the right competitive advantage Choosing a positioning strategy 9/1/2019 51Jitendra Patel, Assistant Professor ,PIMR
- 52. References 1. Aakar, D.A. (2012), “Strategic Market Management” 9th Edition, New Delhi, India, Wiley India. 2. D. Chandra Bose (2010.) “Modern Marketing Principles and Practices” PHI Learning, 1st Edition. 3. Kumar, N. (2013) “Product positioning strategy - use of cultural symbols” retrieved from https://www.slideshare.net/NehaKumar09/product-positioning-strategy last assessed on 09 August 2019. 4. O. C. Ferrell and Michael Hartline (2012 ). “Marketing Strategy, Text and Cases” , South Western Cengage Learning, sixth edition. 5. Philip Kotler, Kelvin Lane, Keller, Abraham Koshi, Mitihlesh Jha.(2011), Principles of Marketing Management, South Asian Perspective, Pearson Education, 14th Edition 6. Reddy, S.(2014) “Positioning Services in Competitive Markets” retrieved from https://www.slideshare.net/suryareddy999/positioning-services-in-competitive-markets- 38785172 last assessed on 09 August 2019. 7. S. M. Jha. (2011), “Services Marketing”, Himalaya Publishing House, 7th Edition, New Delhi. 8. Sonwane, N. (2014) “Market positioning in services” retrieved from https://www.slideshare.net/nikssonawane/market-positioning-in-services last assessed on 09 August 2019. 9/1/2019 Jitendra Patel, Assistant Professor ,PIMR 52
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