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m Process of subdividing a total market into different

subsets or groups.
m Where the marketer may select one or more
m To be reached with an appropriate marketing mix.
asis for market segmentation

On the basis of consumer¶s

On the basis of consumer responses
personal characteristics (non-
(behavioral correlates)
behavioral correlates)

Geographic Psychographic

Usage Loyal
Demographic enefits
Socio-economic based status
mSubdividing the whole market into different
geographical units which can be further sub-divided
into smaller units.
mA national marketer may take whole nation as his
market. For example-in the detergent market
Hindustan Levers and Procter and Gamble are all
national marketers in India.
mA multinational company may divide the global
market on the basis of continents. Like Pepsi and
Geographical features of India

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Source: India 2000, Publication Division, Government of India

m Subdividing the market in terms of demographic
features of a country or a region.
m Variables that may be considered are age, gender,
marital status, family size, etc.
m Demographic data is essential for estimating the
size of the target market.
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Source: Census of India,1991 and 2001

m Variablesthat may considered for market
segmentation are Income, occupation,
education, religion, social classes, etc.
m This segmentation is used for durable products
such as automobiles, PCs, etc.

Psychographic segmentation
m Sub division of different groups on the basis of
personality, life style and values.
m Marketers of cosmetics, textiles, fast food providers etc.
must understand the life style of the target market.
mAutomobile manufacturers must consider different
personality traits in dividing the market.
Segmented on the basis of benefits sought by consumers

General benefits that consumers seek are

cleanliness and hygiene in all segments.
Other key benefits are:-

Cosmetic Fluoride Herbal

Protection against Family health, Family health and

foul smell, modernity extra protection welfare.
and cosmic value. Eg- for children. Eg- Traditionally good
Colgate, Prudent Colgate Fluoride, for health.
Cibaca Fluoride. Eg-Neem, Dabur.
Consumers¶ perceived benefits of Two-wheelers

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Market segmented into
m High buyers
m Medium buyers
m light buyers

Loyal buyers
m Relationship seekers: buyers who want to develop
long term relationships with their suppliers or retailers.
m Loyal buyers of particular brand: buyers who seek a
particular brand among competing brands.
m Measurable
m Substantial
m Accessible
m Differentiable
m Actionable
m Once the firm has segmented the total market ,it
should select the target market segment or
segments for marketing.
m Investing in a particular segment should be
sensible in terms of company¶s mission,
objectives, skills and resources.
Single segment Multi segment Undifferentiated
concentration strategy or marketing
strategy differentiated strategy
m The firm selects a single segment or market and fully
concentrate its marketing efforts to try and seek
maximum advantage.

Semi-luxury segment
Single marketing mix
Car maker (Expensive)

Small car
segment Luxury car
(affordable, segment
less (very
expensive) expensive)
m Here the firm may select two or more then two or may be
all the segments and approach each segment with an
appropriate marketing mix programme.

Car maker

Marketing Mix Marketing Mix

Marketing Mix

Semi-luxury Luxury segment

Small car segment
m The firm ignores the market segment differences and
goes ahead with 1 single product offer for all segments.

Essential commodity Single

manufacturer. marketing mix
m Positioning of a product or service is creating an
³image´ in the consumers¶ mind.
m Consumers generally buy ³images´ rather than
actual product.
m Marketers mostly use advertising as a tool to build
up brand or corporate ³image´.
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Positioning strategies
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Competing brands in the Advertising claims Health drink
health drinks market market

Complan ³complete planned food´

for growing children.
Contains 23 vital
Horlicks ³The great nourisher-with
extra calcium´ Health
³Health strength and Drink
protiens,vitamins, Market
menerals and
³Energy Ah! Energy´
³Double action drink´
m Identification and selection of good positioning strategy
m With the help of marketing research
Steps in determining a competitive
positioning strategy
mIdentify the strategy group
mUnderstand the consumers¶ perception of competitive brands of strategy group
mDetermine consumers¶ needs and aspirations
mSelect the best one for advertising campaign
Strategic Groups Marketing Mix Target
Consumer Groups
I Upper middle
High Tech
and middle
Hero Honda CD 100 High styling
High power
Kawasaki ajaj classes
High price
Yamaha & ullet
II Middle and
High style
Hero Honda High economy lower middle
Medium price income classes
TVS Suzuki

III Low styling

High economy Lower income
Low price classes
Hero Puch Low Tech
m Price
m Fuel efficiency
m After-sales service
m Warranty
m Stylish looks
m Easy to ride
m High pick up and trouble free

Select the best one for advertising campaign

A sample of respondents can be asked to select the best among the alternatives
and the same can be used for the advertising campaign
Thank you