Market Segmentation, Targeting and Positioning

Markets
Market segments for Bicycles

1 (Exercisers)

2 (School-goers)

3 (Transportation riders)

4 (Adventurers)

Markets MARKET SEGMENTS Groups of customers with different wants. buying preferences or product-use behavior TARGET MARKET A market segment for which the seller designs a marketing mix .

internally homogeneous groups Members of each group are similar with respect to the factors that influence demand .Market Segmentation Process of dividing the total market for a good or service into several smaller.

Process of Market Segmentation Identify wants within a market Identify characteristics that distinguish the segments Determine size and satisfaction .

Market Segmentation Conditions Measurable and Obtainable Data Large enough to be Profitable Segment is Accessible MICROMARKETING Treat each single customer as a separate segment .

to resell.Market Segmentation .First Cut Customer s reason for buying CONSUMER Purchase for personal use BUSINESS Purchase to use in organizations. or to make other products .

C Etc. East West -Coastal. -North. B. Non-coastal Non-Metro.Segmentation Bases for Consumer Markets 1. Large towns. Urban -Villages > 1000.Rural Climate Metro. Small towns -Rural. A.Geographic Region UrbanUrban. South. < 1000 population etc Possible Market Segments .

Engineers etc Possible Market Segments . PG. etc. 42050+ etc -Male.Segmentation Bases for Consumer Markets 2. Female -Young couples w/o children.Demographic Age Gender Family life-cycle lifeIncome Education. >50K/M 10K. 4-6 Yrs.Graduate. -< 6M. 20-40. Bachelor etc -10K-20K/M. tc.

Yoga. love & warmth. relationship Etc.Psychographic Possible Market Segments Personality Life-style (Activities. Consumer values . Business etc -Strength of Values such as fun.Segmentation Bases for Consumer Markets 3. Interests & Opinion) -Introvert/Extroverts. etc -Spiritual. Music Politics. Achievers.

Non-user Non- .Segmentation Bases for Consumer Markets 4. Medium.Heavy.Behavioral Possible Market Segments Benefits desired Usage rate .Virtually for all products . Low user.

Small towns -Rural. Large towns.Customer Location Region Country Town etc -North. South. Asea Possible Market Segments . Urban -Europe. East West -Coastal. Non-coastal Non-Metro.Segmentation Bases for Business Markets 1.

Purchase Criteria process for selection Etc. Cement. Textile Size -Large.Segmentation Bases for Business Markets 2. DecentrDecentrOrganizational structure allized. Small. -Price. Medium -Centralized.Customer Type Industry -Steel. Possible Market Segments . Price & quality.

Segmentation Bases for Business Markets 3. New Buy re-Non/Light/Heavy user . Leasing. small etc -More frequent. etc Possible Market Segments .Transaction Condition Buying Situation Usage Rate Purchase Process Order Size Service Reqrmt -Straight/Modified re-buy.Competitive Bidding. occasional. Service etc -Large.

Target-Market Strategy TargetMarket-aggregation Strategy mass-market undifferentiated-market and Product differentiation Strategy Single Marketing Strategy shotgun .

Target-Market Strategy Target- Single-Segment Strategy concentration One Marketing Mix NICHE MARKETERS .

Target-Market Strategy Target- Multiple-Segment Strategy Multiple Marketing Mixes .

Selecting a Target Market Guidelines Compatible with company s goals Match market opportunity with resources Profit that justifies investment Competitors are few and/or weak .

Positioning Firm creating and maintaining in the minds of a target market a particular image relative to competing products THREE STEPS Select position concept Design the feature that conveys position Coordinate the marketing mix to convey position .

Perceptual Map for different brands of bar soap High moisturizing Nondeodorant Deodorant What bar soap? What position? Low moisturizing .

Perceptual Map for different brands of bar soap High moisturizing Dove Lux Nondeodorant Deodorant What bar soap? What position? Hamam Lifebuoy Low moisturizing .

Perceptual Map for different brands of bar soap High moisturizing Dove 7 2 5 Lux 4 8 Deodorant Nondeodorant 3 1 What bar soap? What position? 6 Hamam Lifebuoy Low moisturizing .

Forecasting Market Demand MARKET SHARE Proportion of total sales of a Product during a stated period in a specific market that is captured by a single firm brand x our company brand y brand z MARKET FACTOR 1) exists in the market 2) is measurable 3) is related to the demand for a product in a known way .

Forecasting Market Demand MARKET POTENTIAL Total sales of a Product during a Period in a market under ideal conditions .

Forecasting Market Demand SALES POTENTIAL Portion of market potential that a specific company could expect under ideal conditions .

Forecasting Market Demand SALES FORECAST Estimate of sales For one company during a period in a specific market assuming a defined marketing plan .

Methods of Sales Forecasting Market-Factor Analysis Survey of Buyer Intentions Past Sales and Trend Analysis Test Marketing Sales-Force Composite Executive Judgment .

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