INSTITUTE –University School of

Business
DEPARTMENT -Management
M.B.A
MARKETING MANGEMENT- BAT615
Ms. Ginni Syal
Assistant Professor
Chandigarh University

UNIT-1 Marketing
Management- DISCOVER . LEARN . EMPOWER
Segmentation ,
Targeting and
Positioning
1
 Course Outcome https://skillshop.exceedlms.com
CO Title Level
Number
• Space for visual (size 24)

CO1 Understand
 
Provide information to student by
explaining the key principles and
concepts of marketing.

CO2 Apply
  Will be covered in this
Students will be able to Construct an
effective marketing strategy, including lecture
a marketing mix for a product/service.

CO3 Analyze

Plan an integrated marketing

communications campaign that uses a
range of mass communications media
that are well suited to reach the target
market. 2
Steps in STP
 Market Positioning
Arranging for a product to occupy a clear, distinctive, and desirable place
relative to competing products in the minds of target consumers. (Philip Kotler)
Positioning process – Steps involved in Positioning

• (1) Identifying the Competitors –

• A first step is to identify the competition. This step is not as simple as it seems to be. For
example, ‘Pepsi ‘ might define its competitors as follows:
• (1) Other cola drinks
(2) Non-diet soft drinks
(3) All soft drinks
(4) Non-alcoholic beverages,
(5) All beverages except water
• One thing, which should be clear to you, is that there is basically two types of competitors
• -Primary competitors i.e., competitors belonging to the same product class
-Secondary competitors, those belonging to other product category.
In the above example other cola drinks are primary competitors and other drinks and
beverages are secondary competitors

6
(3) Determining the competitor’s positions

• Our next focus should be to determine how different brands (including our own brand) are
positioned with respect to the relevant attributes selected under the previous step. At this
point we should be clear about what is the image that the customer has about the various
product brands? You have to see how are they positioned in respect to each other? Which
competitors are perceived as similar and which as different? This judgment can be made
subjectively. However a research can be taken up for getting the answer of these questions.

7
(2) Determining how the Competitors are Perceived and
Evaluated –

• The second step is related to determining the product positioning which is basically done
so as to see, when the competitors products are purchased by the customers. It is to see
comparative view. An appropriate set of product attributes should be chosen. The term
‘attributes’ includes not only product characteristics and consumer benefits but also
product associations such as product use or product users. In any product category, there
are usually a host of attribute possibilities.

8
(4) Analyzing the Customer 

• Now you need to analysis the customers habits and behaviour in a particular market
segment. The following questions need attention while understanding the customer and
the market – (i) how is market segmented? (ii) What role does the product class pay in the
customers life style? What really motivates the customers? And what habits and behavior
patterns are relevant?
• The segmentation question is, of course, critical. There are various approaches to
segmentation but out of all benefit segmentation is relevant here, which focuses upon the
benefits or attributes that a segment believes to be important. In order to specify that
benefit segments, it is useful to highlight the role of ‘ideal object’ as a tool.

9
(5) Making the positioning Decision

• The above four steps provide you a useful backgrounds and are necessary to be conducted
before taking any decision about positioning. The managers can carry these steps or
exercises. After these four exercises, the following guidelines can be offered to reach a
positioning decision: –
(i) An economic analysis should guide the decision.
• (ii) Positioning usually implies a segmentation commitment.
• (iii) If the advertising is working, the advertiser should stick to it.
• (iv) Do not try to be something, your are not.
• (v) In making a decision on position strategy, symbols or set of symbols must be
considered.

10
(6) Monitoring the position

• An image objective, like an advertising objective should be measurable. It is necessary to

monitor the position overtime, for that you have variety of techniques that can be
employed it can be on the basis of some test and interviews which will help to monitor any
kind of change in the image.
• Thus, the first four steps in the positioning process provides a useful background. The fifth
one only is taken to make the position decision. The final step is to evaluate and measure
and follow up.

11
 Basis of positioning the product

Attribute positioning :- size or number of years in existence

Eg : Sunfeast positions its snacky brand as bigger lighter and crisper.

Benefit positioning : Product is positioned as the leader in a certain benefit.

Eg : Hyundai santro
Headline – India’s best –loved family car is now also India’s ‘simplest car to
drive’

Use or Application positioning: Positioning the product as best for use and
application .
Eg: Kenstar positioned its product as UNEXPECTEDLY COLD
User positioning:- for some user group
Eg :- Parle-G for kids

Competitor positiong :- the product claims to be better in

some way than a particular competitor .

Quality and price positioning :-The product is positioned as

offering the best value .
Eg : Big Bazar
Positioning Strategy

• 1) Using Product characteristics or Customer Benefits as a positioning strategy

• 2) Pricing as a positioning strategy
• 3) Positioning strategy based on Use or Application
• 4) Positioning strategy based on Product Process
• 5) Positioning strategy based on Product Class
• 6) Positioning strategy based on Cultural Symbols
• 7) Positioning strategy based on Competitors

14
 Blackboard
Assessment Pattern

Components HT-1 HT-2 Assignment Surprise Business GD Forum Attendance Scaled

Test Quiz Marks

Max. Marks 10 10 6 4 4 4 2 40

15
THANK YOU

16