Marketing

Strategy
Segmentation, Targeting
Positioning
Dr. Kiran Sharma

K J Somaiya Institute of Management, India 1

Marketing Strategy

Segmentation
Segmentation

Targeting
Targeting

Positioning
Positioning
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No Market Segmentation

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Segmented by Age

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Segmentation by age

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Segmentation by Age

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Segmentation by Age

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Segmented by Gender

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Segmentation by Gender

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Segmentation by income

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Segmentation by Social class

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Segmentation by Social class

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Segmentation by Usage

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Undifferentiated (mass) Marketing

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Differentiated (segmented) Marketing

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Concentrated (niche) Marketing

•Caters to youth (generation x and y)

•Young and diverse segment
•Male and Female
•Active Lifestyle
•Middle and High Income

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 Micromarketing (local and
individual)

• Retailing and customized marketing (e.g. HAVIANAS –customized slippers)

• Tailoring brand products and marketing programs to suite taste of individual

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 Value Propositions
• Tata Indica Car
– A spacious small Car without extra costs.
• Moov
- Launched balm for relieving joint pains
Value Propositions

Brand, company and Target Customers Benefits Value proposition

Product

Mahindra Scorpio Lifestyle Products Ruggedness, luxury ?

and comfort

Hidesign Fashion conscious Durability, style and ?

customers aesthetic appeal

Domino’s Pizza Convenience minded Delivery speed and ?

pizza lovers good quality

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Brands accepting the cultural changes trying to
establish the right positioning in the customers’
minds

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Brands accepting the cultural changes trying to establish
the right positioning in the customers’ minds

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K J Somaiya Institute of Management, India
 New Market Entries

o Six categories of new products:

o New-to-the-world products
o New product lines
o Additions to existing product lines
o Improvements in existing products
o Repositionings
o Cost reductions
 Categories of New Products Defined According to their Degree of
Newness

High
10%
20%
New-to-the world
Newness to the company

New product lines products

26% 26%

Revisions/ Improvements to
Additions to existing
existing products
product lines

11% 7%
Repositionings

Low Cost reductions

Low High
Newness to the market
Objectives of New Product and Market Development

o Maintain position as a product innovator

o Defend a current market-share position
o Establish a foothold in a future new market
o Exploit technology in a new way
o Capitalize on distribution strengths
 Pioneer Strategy
o Potential sources of competitive advantage
o First choice of market segments and positions
o Defining the rules of the game
o Distribution advantages
o Economies of scale and experience
o High switching costs for early adopters
o Possibility of preempting scarce resources
 Follower Strategy
o Possible advantages:
o Ability to take advantage of:
o Pioneer’s positioning mistakes
o Pioneer’s product mistakes
o Pioneer’s marketing mistakes
o Latest technology
o Pioneer’s limited resources
Strategic Marketing Programs for Pioneers

o Mass-market penetration
o Niche penetration
o Skimming and early withdrawal
Product Life Cycle

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Generalized Product Life Cycle

Product category sales

(real dollars)
Life cycle
extension

Profit/unit
Sales
Profit per unit

Introduction
(real dollars)

Maturity Decline or
extension
Competitive
Growth turbulence
Time (years)
 Implications of PLC Stages
 Introductory Stage
 Marketing Mix in the Introductory Stage
 Skimming
 Penetration
 Distribution
 Promotion

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 Implications of PLC Stages……
 Growth Stage
 Marketing Mix Changes
 Product line expands to attract new market
segments
 Prices
 Promotion Costs

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Implications of PLC Stages……..
 Maturity Stage
 Marketing Mix Changes
 Breakthroughs in R&D or engineering that help to differentiate the
product.
 Add value to the product.
 Providing services help in differentiating the product.
 Promotion expenses and Prices tend to remain stable.

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Implications of PLC Stages………

 Decline Stage
 Sales decline, costs increase and efforts are
needed to reduce costs.
 Marketing Mix changes
 Promotion expenditures decrease
 Prices remain stable

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Limitations of the Product Life Cycle
o Considers only two variables.
o Strategies are based on assumptions about the
features of each stage – fails to consider the role of
various other market forces.
Thank You
simsr.somaiya.edu

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