Segmenting Targeting Positioning
segmenting
• Not everyone who wears pants want to wear
jeans.
• Some vacationers prefer rest & relaxation;
some vacationers prefer adventure and
excitement.
Within the same general market there are
groups of customers – SEGMENTS.
A group of customers who share a similar set of
wants .
The STP Process
• Segmentation is the process of classifying customers
into groups which share some common characteristic
• Targeting involves the process of evaluating each
segments attractiveness and selecting one or more
segments to enter
• Positioning is arranging for a product to occupy a clear,
distinctive and desirable place relative to competing
products in the mind of the consumer
Segmenting
• Companies cannot connect with all customers
in large , broad or diverse markets.
• HORLICKS general nourishment for children,
adults and elderly.
• Companies can divide markets into groups of
consumers or SEGMENTS with distinct needs
and wants.
• Junior Horlicks , Mother’s Horlicks, Horlicks
Lite.
Segmentation
• Titan watches:
• Sonata : price conscious ( income , SEC)
• Raga and Nebula: women( demographic)
• Fast track: youth
• Titan edge: professional/global Indian
• Xylys : fashion conscious (psychographic)
• Recognising consumer differences and adjusting
the marketing efforts accordingly
3 segmentation groups
1. Customer based:
1.1 customer’s geographic location(urban vs rural;
metro [Link] metro ;north vs south)
1.2 psychographic variables
(lifestyle;personality;conservative,modern
cautious,risk taking etc.)
1.3 customer preparedness to buy ( awareness
interest,desire,determined/decided)
Segmentation groups
2. Product based:
2.1 product use situation (daily use,special
occasion e.g wrist watch,cold drink)
2.2 product benefit ( economy,comfort,safe)
2.4 product consumption/usage (heavy,light
moderate)
2.5 decision criteria
(price,quality,service,technology)
Segmentation groups
[Link] based segmentation.
3.1 hard core loyalists
3.2 soft core( split) loyalists
3.3 shifting loyalists
3.4 Switchers
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 and locations
(complete segmentation)
Local Marketing Individual Marketing
Tailoring brands/ promotions Tailoring products/ programs
to local customer groups to individual customers
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
Psychographi
cSocial class, lifestyle,
or personality
Behavioural
Occasions, benefits
sought, user status,
usage rate, loyalty
Segmentation variables (bases)
•Consumer markets
• Geographic :- south, west, north , east.(regions)
- metros, tier I, tier II, (cities)
Demographic - rural, urban, semi-urban
• : Age, gender, income, occupation
education, family size.
• Psychographic :lifestyle (culture,music,art )
personality(extrovert,introvert
authoritarian,helpful)
Segmentation variables
• Behavioral :
Occasions – regular, special.
Benefits –quality , speed , service,economy
User status- non user, first time user , ex-user
Usage rate-
Loyalty status
Readiness stage-aware,unaware,interested
Step 1. Market Segmentation
Bases for Segmenting Business Markets
Personal Demographics
Characteristics
Bases
for Segmenting
Business
Situational Markets Operating
Factors Characteristics
Purchasing
Approaches
14
15
16
17
Target Market
• A market is a set of all actual and potential buyers
• A target market is a group of people toward whom a
firm markets its goods, services, or ideas with a
strategy designed to satisfy their specific needs and
preferences.
• Any marketing strategy must include a detailed
(specific) description of this.
Targeting
• Evaluating and selecting market segments
on the following factors:
1-attractiveness indicators
(size,growth,profitability,risk)
2-organization’s objectives,resources and
competencies)
Targeting
• ITC : school and office stationery (fmcg)
• Tata Motors : Vehicles for defense application
• Amazon : books
• Barnes & Noble : text books
• Colgate : Oral/dental care
• Pepsodent : freshness of breath
• Icici bank: NRIs
Market Targeting Strategies
There are three basic types of strategies:
1. Undifferentiated or Mass marketing
2. Multisegment (Differentiated)
3. Concentration (Niche)
1. Undifferentiated Strategy
• A strategy that ignores differences between
groups within a market and offers a single
marketing mix to the entire market(coca cola)
• It works when a product is new to the market
and there is minimal or no competition
2. Multisegment/Differentiated Strategy
• Targeting two or more segments with different
marketing mix for each segment.
( Titan , HUL-personal care range )
3. Concentration/Niche Marketing Strategy
• Focus on one sub-market
( Saffola , McVitties biscuits, Bose acoustics)
Step 3: Positioning
• Positioning is arranging for a product to
occupy a clear, distinctive and desirable place
relative to competing products in the mind of
the consumer
Brand positioning – heart of marketing
strategy
Positioning
• “designing the product offering in a manner
which distinguishes it, gives it a distinct
personality and creates a recognisable
perception in the mind of the customer”
• Positioning is not what you do to the product
but what you do to the mind of the prospect –
Ries and Trout.
( Big Bazar , Rolex , Mont Blanc , Gatorade)
Positioning
• Well known products generally hold a distinctive
position in the consumers mind
• Just as individuals carry a distinctive personality
trait or characteristic
• Helpful , talkative , handsome , simple , petite ,
fun loving , rebellious , dependable
Mercedes – engineering excellence
Bata – durability
Dominos – delivery
Tata - trustworthy
HOW SOME OF THE
BRANDS ARE POSITIONED
IN THE INDIAN MARKET
Based on low price
Based on substitution
Based on cultural symbols
Based on quality
Examples of positioning
Based on size
Perceptual Mapping
• A spatial picture of how consumers view
products or brands within a market
• Allows marketers to determine how their
product appears in relation to competitive
brands
• Enables them to see gaps in in positioning of
all brands in the product class to identify areas
in which consumer needs are not being met
A visual profile of how consumers perceive a number of pain relievers
on the two dimensions of effectiveness vs. gentleness.
More
Tylenol
Effectiveness
Extra-Strength Tylenol
Bufferin
Nuprin
Anacin Motrin Advil
Bayer
Excedrin
Private Label Aspirin Aleve
Actron Orudis
Less Gentleness to Stomach More