This document discusses segmentation, targeting, and positioning in marketing. It defines segmentation as dividing the market into groups with distinct needs, and discusses the common bases used for segmentation including geographic, demographic, psychographic, and behavioral factors. Targeting involves selecting specific segments to target with marketing efforts. Positioning refers to how a product is perceived relative to competitors, and involves differentiating it through attributes, benefits, use, user type, quality or price positioning. The key to effective positioning is choosing strong, distinctive competitive advantages to communicate to customers.

1. Segmentation, Targeting &
Positioning

2. Overview:Segmentation, Targeting &
Positioning
Why do this?

4. • Segmentation:
Involves finding out what kinds of
consumers with different needs exist.

5. Process involved in
Segmentation
1.Identify the existing and future wants in
the current market
2.Examine the attributes that distinguish
the segments
3.Evaluate the proposed segment
,attractiveness on the basis of
measurability, accesibility,and size

6. Step 1. Market
Segmentation
Bases for Segmenting Consumer
Markets
Geographic
Nations, states, regions or cities
Demographic
Age, gender,
family size and
life cycle, or income
Psychographic
Social class, lifestyle,
or personality
Behavioral
Occasions, benefits, uses, or responses

7. Market Segmentation -
Principles
• Segmentation Variables
– Geographic
– Demographic
– Psychographic
– Behavioral
– Other (anything!)
• No single best way to segment a market.
• Often best to combine variables and identify smaller,
better- defined target groups.

8. Geographic
Segmentation
• Divide markets into different geographic
units.
• Examples:
– World Region or Country: North America,
Western Europe, European Union, Pacific
Rim, Mexico, etc.
– Country Region: Pacific, Mountain, East Coast, etc.
– City or Metro Size: New York, San Francisco
– Population Density: rural, suburban, urban
– Climate: northern, southern, tropical, semi-tropical

9. Demographic
Segmentation
• Use Differences in:
– age, gender, family size, family life
cycle, income, occupation, education, race,
and religion
– Most frequently used segmentation variable
• Ease of measurement and high availability.
– Usually the worst variable to use.

10. Behavioral
Segmentation
• Occasion
– Special promotions &
labels for holidays.
– Special products
for special
occasions.
• Benefits Sought
– Different segments
desire different
benefits from the
same products.
• Loyalty Status
– Nonusers, ex-users,
potential users, first-
time users, regular
users.
• Usage Rate
– Light, medium, heavy.

11. Loyalty Status
Segmentation
Hard-core
Split loyals
Shifting
loyals
Switchers

12. User & Loyalty Status
Segmentation

13. Targeting Segments -
Overview

14. Step 1. Market
Segmentation
Levels of Market
Segmentation
Mass Marketing
Same product to all consumers
(no segmentation)
Segment Marketing
Different products to one or more segments
(some segmentation)
Niche Marketing
Different products to subgroups within segments
( more segmentation)
Micromarketing
Products to suit the tastes of individuals or locations
(complete segmentation)

15. Differentiated (Segmented)
Marketing
– Targets several
segments and designs
separate offers for each.
– Coca-Cola (Coke, Sprite, Diet
Coke, etc.)
– Toyota (Camry, Corolla, Prius,
Scion, etc.)

16. Micromarketing
• Tailoring products and marketing programs to
suit the tastes of specific individuals and/or
locations.

17. TARGETING
• Targeting is defined as a group of
people or organisations for which an
organisation designs , impements and
maintains the marketing mix .

18. Selecting target market
• Homogeneous preference :- soft
drinks market(Coco cola )
• Diffused preferences :- automobile
market,HUL having different brands for
soaps .
• Clustered preferences :- occupation
having impact on the types cloths
worn.

19. Market Preference
Patterns

20. Patterns of Target Market
Selection: Product x Market
Matrices

21. Positioning
Placing aproduct occupies in consumers’minds
relative to competing products.

22. Remember this important
point.
Positioning is
all about
'perception'.

23. Bases of positioning the
product
• Attribute positioning :- size or number
of years in existence
• Eg : Sunfeast positions its snacky
brand as bigger lighter and crisper.

24. • Benefit positioning : Product is positionedd
as the leader in a certain benefit.
• Eg : Hyundai santro
• Headline – India’s best –loved family car
is now also India’s ‘simplestcarto
drive’

25. • Use orApplicationpositioning
• Positioning the product as best for use
and application .
• Eg: Kenstar positioned its
product as UNEXPECTEDLY
COLD

26. • User positioning:- for some user
group
• Eg :- Parle-G for kids

27. • Competitor positiong :- the product
claims to be better in some way than a
particular competitor .

28. • Quality and price positioning :-
The product is positioned as offering the
best value .
Eg : Big Bazar

29. Positioning Strategy
• Competitive advantages
• Points of Parity
• Points of Difference => Differentiation
Positioning results from differentiation
and competitive advantages.
Positioning may change over time.

30. Choosing the Right Competitive
Advantages
• Thebest competitive advantagesare…
– Important
– Distinctive
– Superior
– Communicable
– Pre-emptive
– Affordable (to company and consumer)
– Profitable
Moral: Avoid meaningless
differentiation.

31. Positioning Errors
• Under-positioning:
– Not positioning strongly enough.
• Over-positioning:
– Giving buyers too narrow a picture of the product.
• Confused Positioning:
– Leaving buyers with a confused image of the
product.