Segmentation, Targeting

and Positioning
 Learning Objectives

• What are the different levels of market segmentation?

• How can a company divide a market into segments?
• How should a company choose the most attractive
target markets?
• What are the requirements for effective segmentation?
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-4
 Paper Boat out to solve COVID era pani puri, golgappa
pangs

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-5

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-6
Segmentation Strategy
 Cont..

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-8

 Cadbury Dairy Milk Market
Segmentation

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-9

Four levels of Micromarketing

Segments Niches

Local areas Individuals

What is a Market Segment?

A market segment consists of a

group of customers who share a
similar set of needs ad wants.
Niche Products ?
 Niche Products

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-13

 Baskin Robbins Focuses on
Local Marketing

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-15

Segmenting Consumer Markets
Geographic Segmentation

• Cheer, Bounce,
Dreft, Era,
Aussie, Cascade,
Dawn, Native
Demographic Segmentation

Age and Life Cycle

Life Stage

Gender

Income

Generation

Social Class
Demographic Segmentation
 Toyota Scion
Targets Gen Y Consumers
Dove Targets Women
The VALS Segmentation System
Psychographic Segmentation
 Behavioral Segmentation

Behavioral Variables
• Occasions
• Benefits
• User Status
• Usage Rate
• Loyalty Status
Loyalty Status

Hard-core

Split loyals

Shifting loyals

Switchers
 Steps in Segmentation Process

Needs-based segmentation

Segment identification

Segment attractiveness Natural to organic to

now, ‘plant-based’

Segment profitability

Segment positioning
Hindware Appliances’ new
foldable air cooler

 ‘‘Summers mein kare

cold, winters mein ho Segment acid test
jaaye fold’ 
 Effective Segmentation Criteria

Measurable

Substantial

Accessible

Differentiable

Actionable

Dettol’s laundry sanitiser

 Effective Targeting Requires…

• Identify and profile distinct groups of buyers who

differ in their needs and preferences
• Select one or more market segments to enter
• Establish and communicate the distinctive benefits of
the market offering
 Patterns of
Target Market Selection
 Patterns of
Target Market Selection
 Patterns of
Target Market Selection
Segment-by-Segment Invasion Plan