Unit II

Market Segmentation, Targeting and Positioning

SEGMENTATION,TA
RGETING AND
DIFFERENTIATION
STRAGIES
 Market Segmentation, Targeting & Positioning

Levels of Market Segmentation :

Mass Marketing

Segment Marketing

★ Homogeneous Preference
★ Diffused Preferences
★ Clustered Preferences
Demographic
★ Age
★ Lifecycle Stage
★ Income
★ Generation
★ Social Class
Case in Point : L’oreal Helen
Miran ( Age Variable)
Gender
Case In Point : Segmentation : Age : Frooti : Fresh
N Juicy
PSYCHOGRAPHIC
SEGMENTATION
Behavioural Segmentation
★ Decision Role -Initiator, Influencer, Decider, Buyer; and User.
( Flipped Class : Kent & Bajaj)
★ Behavioural Variables
○ Occasions ( FPL)
○ Benefits (FPL)
■ Enthusiast
■ Image Seekers
■ Savvy Shoppers
■ Traditionalist
■ Satisfied Sippers
■ Overwhelmed
Behavioural Segmentation….
○ User Status ( user, Non user etc)
○ Usage Rate ( High, Medium, Low)
○ Buyer Readiness Stage ( Aware-- Brand
Funnel- HOE Model)
○ Loyalty Status
● 1.Hard-core loyals
● 2. Split loyals
● 3. Shifting loyals
● 4. Switchers
○ Attitude -Enthusiastic, Positive, Indifferent,
Negative, and Hostile. ( What Strategy to deal with people
with different attitude)
Jet Airways - jetprevlege- intermiles -
Frequent Flyer Progamme ( Usage Rate)
Brand Funnel
The Conversion Model
Users of Brands into 4 Groups :
1.Convertible (most likely to defect)
2. Shallow
3.Average
4.Entrenched
Non users of Brands into 4 Groups :
1. Strongly unavailable
2. Weakly unavailable
3. Ambivalent
4.Available
Market Targeting
MARKET TARGETING FFECTIVE SEGMENTATION CRITERIA
Evaluating and Selecting the
Market Segments

Two factors:
★ Segment’s overall attractiveness
★ Company Objectives & Resources

How does each segment score on 5 criteria

Evaluating and Selecting the Market Segments
Full Market Coverage
★ Undifferentiated Marketing
★ Differentiated Marketing
SEGMENT-BY-SEGMENT INVASION PLANS
Ethics in Segmentation
Developing and communicating a
Positioning Strategy
★ Positioning is the act of designing the
company's offering and image to occupy a
distinctive place in the minds of the target
market.
★ Requirements of Positioning
❏ Competitive Frame of Reference
❏ Catagory Membership
❏ Target Market - Consideration Set
❏ Points of Difference (POD)
❏ Points of Parity ( POP)
❏ Category Points of Parity
❏ Competitive Points of Parity
★ Establishing Catagory Membership
DIFFERENTIATION STRATEGIES

⦿Sustainable Competitive Advantage

⦿Means of Differentiation
◼Employee Differentiation
◼Channel Differentiation
◼Image Differentiation
◼Service Differentiation
DEVELOPING & ESTABLISHING A
BRAND POSITIONING
⦿Determining Competitive Frame of
Reference
◼Identify & Analyze Competitors
⦿Identifying optimal POP and POD
⦿Choose points of POP and POD
◼Perceptual Map- Visual representation of
consumer Perceptions and preferences
⦿Brand Mantras
Niche Marketing
A niche is a more narrowly defined customer group seeking a distinctive mix of benefits.
Local Marketing
Grass root Mark

★ HSBC - Worlds Local Bank

★ Fevicol “ Onground Activation

Individual Marketing (
Customised Marketing)
Case Study : Positioning Aava Natural Mineral
Water
()
Generic Positoning
Price /Quality Positioning
Attribute Positoning
Perceptual Map-Aava’s Intended Positioning
Aava’s Actual Positoning