Amity School of Business
Amity School of Business
Marketing Theory and Practices
Module - I
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Marketing and Customer Value
• Marketing involves satisfying consumer’s needs and wants
And the Task of any business is to deliver customer value
at a profit.
• A company can create a wining situation by providing and
communicating superior value
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Market Segmentation
• It’s a process of dividing a total market into market
groups consisting of people who have relatively
similar product needs. There are clusters of needs
• A market segment consists of individuals, groups or
organization with one or more characteristics that
cause them to have relatively similar product needs.
Advantages of Segmentation
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1. It improves a company’s understanding of why consumers do or do not
buy certain products. Therefore prepares a company to meet changing
market demands.
2. Information gained from segmentation allows the organization to plan a
systematic and effective marketing programme to satisfy the consumer
needs.
3. Better assessment of the strengths and weaknesses of the competition.
4. Better allocation of marketing resources.
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Criteria for Effective Segmentation
• Measureable: The Size, purchasing power and characteristics of the
segment can be measured.
• Substantial: Segments are large and profitable enough to serve.
Segments should be largest possible homogenous group.
• Accessible: Segments can be effectively reached and served.
• Differentiable: Segments are conceptually distinguishable and respond
differently to different marketing mix elements and programs.
• Actionable: Effective programs can be formulated for attracting and
serving the segments.
Bases for Segmenting Amity School of Business
Consumer Markets
• Geographic
– Nation
– State
– Region
– Cities
• Demographic
– Age
– Gender
– Family size and life cycle
– Income
– Occupation
– Education
– Religion
– Nationality
– Social class
• Psychographic
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– Lifestlye
– Personality
• Behavioral
– Occasions
• Regular occasion or special occasion
– Benefits
• Quality, service, economy, speed
– User status
• Non user, ex user, potential user, first time user, regular user.
– Usage rate
• Light user, medium user, heavy user
– Loyalty status
• None, medium, strong
– Readiness stage
• Unaware, aware, informed, interested, desirous, intending to
buy
– Attitude towards products
• Positive, negative, neutral
Targeting Amity School of Business
• Targeting is a strategy to choose one or
more segments to serve
• Factors to be considered before choosing
a segment
– Size, growth, profitability, economies of scale
– Analysis on whether investing in these
segments will meet the company’s objectives
and resources
Patterns of Target Market Selection:
Product and Market Matrices
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Market Targeting
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Market Coverage Strategies
A. Undifferentiated Marketing
Company
Marketing Market
Mix
B. Differentiated Marketing
Company
Marketing Mix 1 Segment 1
Company
Segment 2
Marketing Mix 2
Company
Segment 3
Marketing Mix 3
C. Concentrated Marketing
Company Segment 1
Marketing Segment 2
Mix
Segment 3
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Differentiation and Positioning
• Differentiation
– It is the act of designing a set of meaningful
differences to distinguish the company’s offering from
competitors offerings
– Identify what is unique and valuable to customers
– Being the provider of these unique and valuable
benefits leads to competitive advantage
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Differentiation Strategies
Product Personnel
Channel Image
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