P. 1
8.Market Segmentation, Targeting and Positioning

8.Market Segmentation, Targeting and Positioning

|Views: 30|Likes:
Published by varun910

More info:

Published by: varun910 on Dec 21, 2010
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PPT, PDF, TXT or read online from Scribd
See more
See less







Instead of trying to market what is easiest for us to market, we must find out much more what the consumer is willing to buy-----We must apply our creativeness more intelligently to people, and their wants and needs, rather than to products. (CHARLES G. MORTIMER)

therefore different selling techniques will be used for gaining success in each market) . one should first have a working knowledge of the important institutional characteristics of five types of markets: Consumer Market Producer Market Reseller Market Govt.MARKETS EXHIBIT VAST DIFFERENCES   A marketer should have deeper understanding of markets. Market International Market COMPANY (PRODUCT) (Buying motives are different in each market. which are the starting point for all marketing planning and control. To understand a particular market.

The customers are too numerous and diverse in their buying requirements. Here sellers distinguish the major market segments. . The company needs to identify the market segments that it can serve more effectively. Many companies are embracing target marketing. and develop products and marketing programs tailored to each. target one or more of those segments.MARKET SEGMENTATION   A company can not serve all customers in a broad market.

) Competitive Positioning (4.) Market Opportunity Analysis (2. choosing and exploiting marketing opportunities to fulfill the company¶s mission and objectives.STRATEGIC MARKETING PROCESS  It is a managerial process of identifying. .) Marketing Strategy and Marketing Mix. analyzing. More specifically it consists of : (1.) Market Segmentation and Target Market Selection (3.

 (2) Select one or more market segments to enter (market targeting). .TARGET MARKETING Target marketing requires marketers to take three major steps :  (1) Identify and profile distinct groups of buyers who might require separate products or marketing mixes (market segmentation).  (3) Establish and communicate the products¶ key distinctive benefits in the market (market positioning).

There may be three basic market preferences: 1. and 3. Diffused.MARKET SEGMENTATION  Markets differ in their degree of heterogeneity . At one extreme they are homogeneous (Similar) and at the other extreme they are heterogeneous (Substantially different). Clustered . 2.Homogeneous.  Market Segmentation is the process of identifying group of buyers with different  buying desires or requirements.

Diffused Preferences Attribute X C.Homogeneous Preferences . ::::::::::::: Y :: :::::::::::::::: Y :::::::::::: :::::::::::::: :::::::::::::: Attribute X B.Clustered Preferences Attribute X A.BASIC MARKET PREFERENCE PATTERNS Attribute Y :::::::::::::: :::::::::::::: :::::::::::::: Attribute :::::::::::::: ::::::::::::: Attri.

demographics and psychographics of the respondents. Then the researcher collects data on attributes and their importance ratings. attitudes. . and geographics. product usage patterns.MARKETMARKET-SEGMENTATION PROCEDURE (THREE STEP PROCESS FOR IDENTIFYING MARKET SEGMENTS)  (1) Survey Stage : The researcher conducts exploratory interviews and focus groups to gain insight into consumer motivations. and behavior. brand awareness and brand ratings.

behavior. and media patterns.MARKETMARKET-SEGMENTATION PROCEDURE (THREE STEP PROCESS FOR IDENTIFYING MARKET SEGMENTS)   (2) Analysis Stage : The researcher applies factor analysis to the data to remove highly correlated variables. psychographics. . then applies cluster analysis to create a specified number of maximally different segments. (3) Profiling Stage : Each cluster is profiled in terms of its distinguishing attitudes. Each segment is given a name based on its dominant characteristic. demographics.

ADVANTAGES OF MARKET SEGMENTATION 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.  Better allocation of marketing resources.  Better assessment of the strengths and weaknesses of the competition.  Information gained from segmentation allows the organization to plan a systematic and effective marketing programme to satisfy the consumer needs.


personality etc. Benefits sought. Attitude. life style.SEGMENTATION ANALYSIS (BASIS OF SEGMENTATION)  CONSUMER CHARACTERISTICS (1) Geographic ( Where they live ? ) (2) Demographic ( Who they are ? ) (3) Psychographic (How they behave ? ) (On the basis of social class. User status) . Usage rate.)  CONSUMER RESPONSES (4) Behavioral Segments (Why they buy ? ) (Buyer readiness stage. Occasions. Loyalty.

TARGET MARKET STRATEGY  Sellers may have different thinking for their Marketing Strategy: (1) Mass Marketing (2) Product Variety Marketing (3) Target Marketing .



2 Seg. 3 .) CONCENTRATED Segment 1 Marketing Mix Seg.TARGET MARKET STRATEGIES (3.

FIVE PATTERNS OF TARGET MARKET SELECTION  (1) Single Market Concentration  (2) Market Specialization  (3) Product Specialization  (4) Selective Specialization  (5) Full Coverage .

Company¶s Resources Product Homogeneity Product Stage in the Life Cycle Market Homogeneity Competitive Marketing Strategy .  4.  5.  3.  2.FACTORS CONSIDERED IMPORTANT IN THE SELECTION OF TARGET MARKET STRATEGY  1.

place.  The . a product occupies in consumers¶ minds relative to competing products.POSITIONING FOR COMPETITIVE ADVANTAGE What is Market Positioning ?  A product¶s position is the way the product is defined by consumers on important attributes.

POSITIONING STRATEGIES  Product Attributes  Needs they fill or the benefits they offer  Usage Occasions  Users  Against a Competitor  Away from Competitors  Product Classes (Marketers often use a combination of these positioning strategies) .

IDENTIFYING POSSIBLE COMPETITIVE ADVANTAGE  Product Differentiation  Services Differentiation Differentiation  Personnel  Image Differentiation .

SELECTING THE RIGHT COMPETITIVE ADVANTAGE How many differences to promote ? Which differences to promote ? .

But not all differences are meaningful or worthwhile. A difference is worth establishing to the extent that it satisfies the following criteria :  Important : The difference delivers a highly valued benefit to a sufficient numbers of buyers.DEVELOPING AND COMMUNICATING A POSITIONING STRATEGY All products can be differentiated to some extent.  Distinctive : The difference is delivered in a distinctive way. .

.  Affordable : The buyer can afford to pay for the difference.DEVELOPING AND COMMUNICATING A POSITIONING STRATEGY  Superior : The difference is superior to other ways of obtaining the benefit.  Preemptive : The difference cannot be easily copied by competitors.  Profitable : The company will find it profitable to introduce the difference.

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->