Segment The Market

But Focus More On

Targeting And Positioning

1
Segmentation
Targeting
&
Positioning

“Reaching out to
the
Right Customers”
By:
Shilpa Susan Philip
Sachin Kr. Sanu
Sunny Gupta
(Group2, IMC)
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 Contents
• Our Focus
• Segmentation
• Target Marketing
• Positioning
• References


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OUR FOCUS:
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Steps to Follow

 Three major steps:

Market segmentation Target marketing Market Positioning

1.Identify 3. Develop 5. Develop

bases for measure of positioning for
segmenting segment target segments
the market attractiveness
1. 6. Develop
2. Develop 4. Select a marketing mix
segment target segments for each segment
profiles

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Segmentation can be based on:-

• Behavioral
• Psychographic
• Demographic
– For common consumer
– For Business Market
• Need Based



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Behavioral Segmentation
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Geographic Segmentation

•
• Based on nations, states, regions, cities.


 Eg:-Starbucks: more coffee and dessert for

the Southern states customers.

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Psychographic Segmentation

•
• Social class, lifestyles or personality
characteristics.


 Eg:-Mercedes. K2 cigarette


• Psychographic classification system

 SRIC-BI VALSTM


• Classifies adults into 8 primary groups

based on personality traits & key
demographics
•
Contd..
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Innovators
upscale, niche-oriented
Thinkers
durability, functionality
Achievers
established & prestige
Experiencers
fashion, entertainment
Believers
familiar & established
Strivers
stylish products
Makers
basic, practical
Strugglers:
Loyal to favorite brands

Source: Keller, Ang, Leong & Tan4th Edition: VALS Segmentation System
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Demographic Segmentation

Consumer

Business:
• Age First-time prospects
• Gender Novices
• Family size Sophisticates
• Family life cycle Price-oriented customers
• Income (transactional selling)
• Occupation Solution-oriented customers
• Education (consultative selling)
• Religion, race Strategic-value customers
• Generation (enterprise selling)
• Nationality
•
Demographical segmentation For Business Market

Dividing groups on the basis of industry, company

size.
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Requirements for Effective Segmentation

To be useful,
market segments

must be:


 7-step Needs-based Market Segmentation Approach

Needs-Based Group customers -similar needs & benefits

Segmentation segments
Identification Demographics, lifestyles, & usage behaviors make
segment distinct & identifiable (actionable)
Attractiveness Use predetermined segment attractiveness
Profitability Determine segment profitability
Positioning Create a “value proposition” - segment’s unique
customer needs & characteristics
“Acid Test” Create “segment storyboards” - test attractiveness
Marketing-Mix Expand strategy to include marketing mix

Source: Kotler 4rth Edition

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Other Factors:-
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Target Marketing

Target Market
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How to identify a target market?

• What does a product do?

•
• Whom is it helpful to?
•
• Which region of the world will accept the product?
•
• Attractiveness of a Market Segment


• Suitability of Market Segments to the Firm

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Attractiveness of a Market Segment

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Suitability of Market Segments to Firm

• Whether the firm can offer superior value to the customers in

the segment
•
• The impact of serving the segment on the firm's image
•
• Access to distribution channels required to serve the segment
•
• The firm's resources and capital investment required to serve
the segment

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TARGET MARKETING STRATEGY

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CONTINUED…
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CONTINUED…

Micromarketing: tailor products & marketing programs to the

needs & wants of specific individuals & local customer groups.


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Choosing a Target Marketing Strategy

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Positioning…

…For A Competitive Advantage

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“POSITIONING” for Competitive Advantage

 “Arranging for a product to occupy a clear, distinctive, and desirable

place relative to competing products in the minds of target
consumers.”


Examples:
Apple – Innovation,

Toyota – Economy,

Mercedes – Luxury,

Pepsi (My Can)– Youth


 Choosing a Positioning Strategy

The positioning task consists of three steps:



1. Identifying possible competitive advantages:



 Offer consumers greater value, either through lower prices or

by providing more benefits that justify higher prices.


 “Differentiation” is the Key !



Various ways a company can differentiate its offerings:

Along the lines of product, services, channels, people or image.

•
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Positioning for Competitive Advantage

– Product differentiation
 Form: Shape and Size (Tetra packs and pouches of
shampoos)
 Features: Oral B (Blue Dye)
– Services differentiation: (Dominos, Pizza Hut – Freshness
Indicators)

– Personnel differentiation: (Training)

– Channel differentiation: Dell, Caterpillar
– Image differentiation: Sony
– By Symbols: Vodafone – Zoozoo, Mc Donald’s Golden
 Positioning for Competitive Advantage

2. Choosing the right competitive advantages:



– How many differences to promote:

• only one benefit (Quick fix)
• more than one benefit (Floor Cleaners).
–
 We must avoid three major positioning errors.
 Under positioning, Over positioning, Confused
positioning.


– Which differences to promote: important, distinctive,

superior, communicable, preemptive, affordable,
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Positioning for Competitive Advantage

3. Selecting an overall positioning strategy:



Five winning value propositions upon which companies can position

their products would be:

– More for more: Mercedes-Benz automobiles

– More for the same: Mahindra Holydays
– The same for less: Tata Nano
– Less for much less: Adibas, Reedok and many more
– More for less: winning value proposition, Dell
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Positioning for Competitive Advantage

Communicating and Delivering the Chosen Position:

Offer and Deliver

Example:
More for more: Produce high quality products, charge a high price,

distribute through high quality dealers, advertise in high-quality media.

–
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References

•
• Keller, Ang, Leong & Tan4th
Edition: VALS Segmentation
System
•
• Philip Kotler, 4rth Edition
•
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Queries???