Techniques for Segmenting, Targeting & Positioning of Bank Products

Market Segmentation
Dividing the market into distinct groups of buyers on the basis of needs, characteristics or behavior who might require separate products or marketing mixes.

Levels of Market Segmentation

Mass Marketing

Segment Marketing

Niche Marketing

Micro Marketing

Levels of Market Segmentation

Mass Marketing: Coca-Cola Segment Marketing: Auto Company Niche Marketing: Jaguar Local Marketing: Citi Bank, HSBC Customerization: One to One

Basis of Segmentation
Geographic segmentation Demographic segmentation Psychographics segmentation Behavioral segmentation

Geographic Segmentation
Continent,country,state Size of population Urban,Rural,Suburban Climate according to geographic location

Demographic Segmentation
Age Gender Family size Income Occupation Education Ethnicity Religion

Psychographics Segmentation
Social class Life style Personality characteristics

Behavioral Segmentation
Benefit sought Usage rate Brand loyalty User status Potential,First time,Regular Readiness to buy Occasions holidays etc like Eid,Christmas

Requirements of Market Segmentation

Measurable by size, purchasing power etc. Accessible reachable through communication and distribution channels. Substantial large enough to justify the resource involvement. Differentiable justify separate needs. Durable relatively stable to minimize the cost.

Preference Segmentation
Homogeneous Diffused Clustered

Targeting
A set of buyers sharing common needs or characteristics that the company decodes to serve.

Steps in Targeting
Identify potential customers Conducting marketing research Choosing the target market Compiling market profile

Positioning

Positioning
Is the act of designing the company's offerings and images so that they occupy a meaningful and distinct competitive position in the minds of the consumers.

Positioning Strategy
Product attributes features like Master Card, Visa Card Benefit positioning Head & Shoulder Competitors positioning: Safari park On economy: Toyota As luxury: Cadillac, Jaguar etc. Product category :7- up is more refreshing Price leadership: Cost effectiveness

STP

Segmenting,Targeting and Positioning

6.Develop marketing mix for each segment 5.Developing positioning for each segment 4.Select target segment(s) 3.Determine segment attractiveness

Market Positioning
Market Targeting

2.Develop segment profile

Market
1.Identify bases for segmenting the market

Segmentation

Marketing Concept
Reciprocal Marketing Marketing Myopia

Estimating Current Demand

Total Market Potential Area Market Potential Industry Sales and Market Share

Estimating Future Demand

Survey of Buyers intentions Sales Force Opinions Expert Opinion Past Sales Analysis Market Test Method