segmenting ,targeting & positioning of market

7/30/2019 segmenting ,targeting & positioning of market

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SEGMENTATION Process of subdividing a total market into

different subsets or groups.

Where the marketer may select one or

more segments.

To be reached with an appropriatemarketing mix.


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Basis for market segmentation

On the basis of consumers

personal characteristics (non-

behavioral correlates)

On the basis of consumer responses

(behavioral correlates)

Geographic

Demographic

Psychographic

Socio-economic

Loyal

status

Usage

basedBenefits


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Geographic Segmentation

Subdividing the whole market into differentgeographical units which can be furthersub-divided into smaller units.

A national marketer may take whole nationas his market. For example-in the detergentmarket Hindustan Levers and Procter andGamble are all national marketers in India.

A multinational company may divide theglobal market on the basis of continents.Like Pepsi and Coca-cola.


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1 Geographical area. 3,287,263 sq km.

2 Ranking in terms ofgeographical area inthe world.

7th largest country

3 Physical features

Climate

Four major regions :

A. The Great mountain zone.

B. The Plains of the Ganga and the Indus region.

C. The Desert region.D. The Peninsular India

Tropical Monsoon types have four seasons

A. Winter January to February

B. Hot weather March to May

C. Rainy (south western monsoon) June toSeptember

D. Rainy (north eastern monsoon) October toDecember

Source: India 2000, Publication Division, Government of India

Geographical features of India


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Demographic Segmentation

Subdividing the market in terms ofdemographic features of a country or aregion.

Variables that may be considered are age,gender, marital status, family size, etc.

Demographic data is essential forestimating the size of the target market.


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Demographic features of India

1 Population

size

846.30 million as per 1991 census

Crossed 1000 million as per 2001 census

2 Sex ratio Females per 1000 males: 933/1000. 2001 census

In Kerela State: 1036/1000 1991 census

3 Metro Cities 1991 census

Mumbai : 12.60 millionKolkata : 11.02 million

Delhi : 08.42 million

Chennai : 05.42 million

4 Heavily

populateddistricts

Kolkata, Chennai, Greater Mumbai, Hyderabad, Delhi,

Chandigarh, Mahe, Howrah, Kanpur, Banglore(All of them have a density of above 2000 persons persquare km. 5.01% population lives in these 10 cities.Avg. density of these districts is 6885 persons)

Source: Census of India,1991 and 2001


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Socio-economic segmentation Variables that may considered for market

segmentation are Income, occupation,education, religion, social classes, etc.

This segmentation is used for durable productssuch as automobiles, PCs, etc.

Psychographic segmentation Sub division of different groups on the basis of

personality, life style and values.

Marketers of cosmetics, textiles, fast food providers etc.must understand the life style of the target market.

Automobile manufacturers must consider different

personality traits in dividing the market.


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Benefit segmentation

Segmented on the basis of benefits sought by consumers

Toothpaste

General benefits that consumers seek are

cleanliness and hygiene in all segments.

Other key benefits are:-

Cosmetic Fluoride Herbal

Protection againstfoul smell, modernity

and cosmic value. Eg-

Colgate, Prudent

Family health,extra protection

for children. Eg-

Colgate Fluoride,

Cibaca Fluoride.

Family health andwelfare.

Traditionally good

for health.

Eg-Neem, Dabur.


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Motorcyclebrands

Perceived benefits

Enfield sturdy, good for long rides and high resalevalue.

Hero-Honda Fuel efficient, high pick up and stylishKawasaki bajaj High pickup, sleek model

Scooter brands

Bajaj chetak cub Fuel efficient, lifelong, high resale value

Kinetic Honda Electronic ignition, easy to ride, trouble free.

Consumers perceived benefits of Two-wheelers


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Usage based segmentation

Market segmented into High buyers

Medium buyers

light buyers

Loyal buyers

Relationship seekers: buyers who want to develop

long term relationships with their suppliers or retailers.

Loyal buyers of particular brand: buyers who seek a

particular brand among competing brands.


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Evaluation of segmentation Measurable

Substantial

Accessible

DifferentiableActionable


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Targeting

Once the firm has segmented the totalmarket ,it should select the target market

segment or segments for marketing. Investing in a particular segment should

be sensible in terms of companys mission,

objectives, skills and resources.


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Targeting Strategies

Single segment

concentration

strategy

Multi segment

strategy or

differentiated

marketing

strategy

Undifferentiated

marketing

strategy


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Single segment concentration

strategy The firm selects a single segment or market and fully

concentrate its marketing efforts to try and seekmaximum advantage.

Car makerSingle marketing mix

Semi-luxury segment

(Expensive)

Small car

segment(affordable,

less

expensive)

Luxury carsegment

(very

expensive)


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Multi-segments strategy Here the firm may select two or more then two or may

be all the segments and approach each segment with anappropriate marketing mix programme.

Car maker

Small car segmentSemi-luxury

segmentLuxury segment

Marketing MixMarketing Mix Marketing Mix


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Undifferentiated Marketing Strategy

The firm ignores the market segment differences and

goes ahead with 1 single product offer for all segments.

Essential commoditymanufacturer.

Single

marketing mix


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Market Positioning

Positioning of a product or service iscreating an image in the consumers

mind. Consumers generally buy images rather

than actual product.

Marketers mostly use advertising as a toolto build up brand or corporate image.


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Positioning strategies

Sl.

no.

Positioning

strategies

Definition Advertising claims

1. Customerbenefits

Associate a brand or product withcustomer benefits

Benefit(s)

2. Price and quality A product is highlighted in termsof service features orperformance. Manufacturercharges high price

Value for money

3. Application Associating a product or servicewith a use or application

Use or applicationof a product or

services.

4. Product user Associating a product or servicewith a user or class of users.

Cine stars orsports heroesusing the product


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Positioning strategies

Sl.no.

Positioningstrategy

Definition Advertising claims

5 Product class Associating a product orservice in a particularproduct class

World class products

6 Culturalsymbols

Associating culturalsymbols with a product orservice to differentiatefrom competitors product

Royal

7 Competitors Associating with

competitors product orservice by comparison

Compares with

competitors brand


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Competing brands in the

health drinks market

Advertising claims Health drink

market

Complan

Horlicks

Bournvita

Boost

Viva

complete planned food

for growing children.

Contains 23 vital

nutrition

The great nourisher-with

extra calcium

Health strength and

energy.contains

protiens,vitamins,

menerals and

carbohydrates.

Energy Ah! Energy

Double action drink

Health

Drink

Market


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Determining a competitive positioningstrategy

Identification and selection of good positioning strategy With the help of marketing research

Steps in determining a competitive

positioning strategy

Identify the strategy group

Understand the consumers perception of competitive brands of strategy group

Determine consumers needs and aspirations

Select the best one for advertising campaign


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Identify the strategic groupStrategic Groups Marketing Mix Target

Consumer Groups

IHero Honda CD 100

Kawasaki Bajaj

Yamaha & Bullet

II

Hero Honda

TVS Suzuki

III

TVS EXL Champ

Hero Puch

High TechHigh styling

High power

High price

High style

High economy

Medium price

Low stylingHigh economy

Low price

Low Tech

Upper middleand middle

income

classes

Middle andlower middle

income classes

Lower income

classes


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Determine consumers need andaspirations

Price

Fuel efficiency After-sales service

Warranty

Stylish looks

Easy to ride

High pick up and trouble free

Select the best one for advertising campaign

A sample of respondents can be asked to select the best among the alternatives

and the same can be used for the advertising campaign


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Thank you

Documents

segmenting ,targeting & positioning of market