1. The document outlines the steps in market segmentation, targeting, and positioning which include identifying segmentation variables, developing segment profiles, evaluating segment attractiveness, selecting target segments, identifying positioning concepts, and selecting and communicating a positioning concept. 2. Key aspects of segmentation, targeting, and positioning are discussed such as segmenting based on demographics, psychographics, behaviors, and using strategies like product differentiation, image differentiation, and personnel differentiation to target and position products. 3. The document emphasizes that segmentation allows companies to better satisfy smaller, more homogeneous groups and that effective positioning gives products the greatest advantage in the target market through unique benefits identified via the marketing mix.

1. Segmentation, Targeting and Positioning

2. Steps in Market Segmentation, Targeting,and Positioning 1. Identify segmentation variables and segment the market 2. Develop profiles of resulting segments Market Segmentation 3. Evaluate attractiveness of each segment 4. Select the target segment(s) Market Targeting 5. Identify possible positioning concepts for each target segment 6. Select, develop, and communicate the chosen positioning concept Market Positioning

3. Why Segmentation ? Not all buyers alike Subgroups may be identified Subgroups smaller and more homogeneous Easier to satisfy smaller groups

4. How to Segment & Target? 1. Break market down 2. Group into segments TARGET MARKET 3. Choose target market

5. Bases for Segmenting Consumer Markets Occasions, Benefits, Uses, or Attitudes Behavioral Geographic Region, City or Metro Size, Density, Climate Demographic Age, Gender, Family size and Life cycle, Race, Occupation, or Income ... Lifestyle or Personality Psychographic

6. Bases for Segmentation

7. Bases for Segmentation

8. Market Targeting Evaluating Market Segment Segment Size and Growth Segment Structural Attractiveness Company Objectives & Resources 2. Selecting Target Segment 3. Targeting Strategies -Standardization -Differentiation -Focus

9. Five Patterns of Target Market Selection Single-segment concentration Product specialization M1 M2 M3 P1 P2 P3 Selective specialization M1 M2 M3 P1 P2 P3 M1 M2 M3 Full market coverage P1 P2 P3 Market specialization M1 M2 M3 P1 P2 P3 P1 P2 P3 M1 M2 M3 P = Product M = Market

10. Choosing a Positioning Strategy Product’s Position - the way the product is defined by consumers on important attributes - the place the product occupies in consumers’ minds relative to competing products. Marketers must: Plan positions to give their products the greatest advantage in selected target markets, Design marketing mixes to create these planned positions.

11. Positioning Positioning is an act of creating an image of the product in the minds of customers. Positioning involves the brand’s unique benefits and differentiations in customers mind. Ex: Complan – A complete planned food Videocon – Indian Multinational

12. Positioning Strategy Identifying Possible Competitive Advantages Services Differentiation i.e. Delivery, Installation, Repair Services, Customer Training Services Product Differentiation i.e. Features, Performance, Style & Design, or Attributes Image Differentiation i.e. Symbols, Atmospheres, Events Personnel Differentiation i.e. Hiring, Training Better People Than Competitors Do

13. Product Differentiation Form Fea- tures Perfor- mance Quality Dura- bility Relia- bility Repair- ability Style Design

14. Product Differentiation Form: size, shape or physical structure Ex. Sony Handicam, Product of Asian sky shop Features: These are the characteristics that supplements the product basic functioning Ex: Mobile phones with blue tooth, touch screen, recorder Performance : Buyers will pay more for the better performance Ex: Quick service offered in 5 star hotels Quality Ex: Mac Donald’s Burger, Barista Coffee, Surf Excel Powder Durability Reliability Ex: Godrej Almirah Reparability – easy to repair Style – How well the product looks and feels to the customer Ex: Parker Pens, Ray Ban Sun glasses, Design Is the totality of features that affect how a product looks and works in terms of customer requirements ( Pleasing look, easy to open, operate to repair, ) Ex: Gillette in electric shavers

15. Services Differentiation Delivery Ex: Home Delivery, Dominos Ordering Ease Ex. Telephone ordering, Internet Maintenance & Repair Ex: LG Samsung Customer Training Ex: SPSS, Data base software Installation Ex. Reliance WLL phones, Airtel, Tata Sky Customer Consulting Ex. Investment Companies Miscellaneous Services

16. Companies can gain a strong competitive advantage through having better trained people. Trained personnel exhibits following characteristics Competence – possess the required skills & knowledge Courtesy – Friendly, respectful Credibility – Trustworthy Reliability – perform the service consistently and accurately Responsiveness – respond quickly to the customer’s problem Communication – make an effort to understand the customer and communicate clearly PERSONNEL Differentiation

17. Channel Differentiation Coverage Expertise Performance

18. Image Differentiation Media Atmosphere Symbols Events

19. Differences Worth Establishing Affordable Superior Profitable Preemptive Distinctive Important Which Differences to Promote

20. Distinctive: Company can offer better than competitors Superior: Customer might not obtain the same benefit elsewhere Profitable: Introduce the difference with profit Preemptive: Competitors can not imitate the difference easily Affordable: Buyers can afford to pay for the difference Communicable: The difference is communicable and visible to the buyers Important The difference delivers a highly valued benefit to the target buyers

21. Perceptual Map Stylish, Prestigious Practical, Economical Conservative, Older Sporty, Fast Rolls Royce Maruti Alto Baleno Ambassador Mercedes Honda Accord Ferrari Maruti Omini Swift Palio