STP Analysis Specific To Indian Sub Continent

8
Identifying Market Segments and Targets
Marketing Management
A South Asian Perspective, 13th ed
Effective Targeting Requires

Identify and profile distinct groups of buyers who differ in their needs and preferences Select one or more market segments to enter Establish and communicate the distinctive benefits of the market offering
Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.
What is a Market Segment?

A market segment consists of a group of customers who share a similar set of needs and wants
Why Segment the Market?

Facilitates right choice of target market Facilitates effective tapping of the chosen market Makes the marketing effort more efficient & economic Helps identify less satisfied segments & concentrate on them
The Himalaya Drug Company serves a growing niche market by focusing on ayurvedic medicines and health supplements
What is Customerization?
Customerization combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product and service offering of their choice.
Horlicks is sold in a number of countries across world. In different countries, the product has different formulations in order to cater to varying consumer segments and serve different consumer needs.
Segmenting Consumer Markets

Geographic Demographic Psychographic
Behavioral
Demographic Segmentation
Age and Life Cycle
Life Stage Gender Income Generation Social Class
Dove Targets Women
Adidas Targets Women in India

German shoemaker Adidas is trying to develop the women segment in India for its products. While globally, Adidas derives about 35% of its euro 6.4 bn. Revenue from women segment, it brings less than 15% in India. So, it plans to increase the number of women focused stores. One strategy to draw more women customers into its stores is to expand the list of merchandise. The company is now planning to have as many as 68 items of womens footwear. It launched its all women store at Eva Mall at Bangalore, a mall exclusively targeting the woman customer.
Behavioral Segmentation
Decision Roles Initiator Influencer Decider Buyer User Behavioral Variables Occasions Benefits User Status Usage Rate Buyer-Readiness Loyalty Status Attitude
Usage Based Segmentation

Currently user of the brand Currently user of competitors brand Currently non users of the category as such
Contd
Start with current users of the brand Tackle current users of competitors brands Tackle non users, entering the category for the first time
Benefit segmentation
GSK Consumer Healthcare & Pepsi have created separate segments with their Diet Horlicks & Diet Pepsi. Mother Dairy has done the same thing with their low calorie ice cream
Segmentation with Value orientation

Irrespective of the method applies, marketer has to make the search in terms of the value needs of the buyers All of them may be buyers for the product, but may differ in their motivations & the value sought in buying it Marketer has to fully uncover the value needs. If he stops with conventional segmentation, such differences in motivations/ value needs lie within a segment cant be uncovered
Example
Suppose you are targeting the market of holiday lovers, and have chosen a broad segment applying the conventional segmentation methods. You work out a travel package addressed to them. But, you find some of them looking for privacy, some others are relishing group activities, some are interested in exotic settings, and some more are concerned at the travel comforts. All of them are holiday lovers & you have selected the segment applying a combination of relevant segmentation variables. But you find your purpose is not fully served, given the diverging value needs of the segment. You have to go deeper & capture the value difference in the segment.
Loyalty Status
Hard-core
Split loyals Shifting loyals Switchers

Effective Segmentation Criteria

Measurable Substantial
Accessible
Differentiable Actionable
Choosing the Target Market

The marketer can choose one, or a few or all of the segment With segmentation the firm just divided the market into segments to be examined further All these segments need not necessarily form its target market A selection/ decision is thus involved after the segmentation process
Airtels Target Market for Broadband services

Airtel does not select all segments/ cities as its market for its broadband/ fixed line services. Airtels broadband services are available in the top 50 cities only, and even in those cities it does not select all parts of the city as its operating market. It selects only those segments/ parts of the selected cities where the costs would be low & profits would be high. It is highly choosy about the areas it pick up. It feels that it doesnt make economic sense to lay copper fibre across the length & breadth of any city.
Steps involved in choosing the Target Market

Look at each segment as a distinct marketing opportunity Evaluate the worth of each segment Evaluate whether the segment meets all the attributes of effective segment Examine whether it is better to pick up the whole market or only a few segments Look at segments which are relatively less satisfied by the current offers
Contd
Check out if the firm has the differential advantage capability for serving the selected segments Evaluate the firms resources Examine, whether the spotted segments match with & make the best fit for the firms distinctive capabilities Finally, select those segments that are most appropriate for the firm as the target market
Evaluating the Segments

Is it sizeable Is it growing Is it profitable Is it accessible Is it compatible with the firms ambitions, resources & capabilities

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8

Identifying Market Segments and Targets

Effective Targeting Requires

What is a Market Segment?

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Why Segment the Market?

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Segmenting Consumer Markets

Dove Targets Women

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Adidas Targets Women in India

Usage Based Segmentation

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Segmentation with Value orientation

Split loyals Shifting loyals Switchers

Effective Segmentation Criteria

Choosing the Target Market

Airtels Target Market for Broadband services

Steps involved in choosing the Target Market

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Evaluating the Segments

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

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