Segmentation Targeting & Positioning

Instructor:
Dr. Ravi Shanker
 STEPS IN MARKET SEGMENTATION, TARGETING
AND POSITIONING
1. Identify segmentation 3. Evaluate the 5. Identify possible
variables and segment attractiveness positioning
the market. of each concepts for each
segment. target segment.
2. Develop profiles of
resulting segments. 4. Select the
6. Select, develop,
target
and signal the
segment(s).
chosen
positioning
concept.
 Bases for Segmenting Consumer Markets

Geographic
Demographic
Sociographic
Lifestyle
Behavior
Consumption
 Market Segmentation:
Other Types of Segmentation

• Benefit segmentation
• Segmentation by consumption profile
• Segmentation by national boundaries
MBA DEGREE BENEFIT SEG.

Quality Seeker
Specialty Seeker
Career Seeker
Knowledge Seeker
Status Seeker
Degree Seeker
Professional Advancers Seeker
Avoiders Seeker
Convenience Seeker
 Roper Starch Worldwide (RSW)
Six Global Consumer Segments
• Strivers: Place more emphasis on material & professional
goals
• Devouts: Tradition and duty are very important.
• Altruist: Interested in social issues & social welfare.
• Intimates: Value close personal & family relationships.
• Fun seekers: High consumptions of restaurants, bars
clubs, movies.
• Creatives: Strong interests in education, knowledge,
technology, information.
 Segment Viability
• Characteristics of segment viability:
• Size: Must be large enough to generate volume
for adequate profit.
• Identity: Should have unique characteristics
that can be identified.
• Relevance: Must be relevant to the important
characteristics of the product.
• Access: Must be able to be reached.
 TARGETING
Factors in evaluating different market segments:
I) Segment size & growth
II) Segment structural attractiveness:
(To study the impact on long term profitability
of: industry competitors, potential entrants,
substituttes, buyers, suppliers.)
Iii) co’s own objectives & resources:
 Positioning

• The way consumers perceive the brand

relative to its competition
– Unique competitive advantage
– Stress salient characteristics
– Differentiate
 DEFINITION
Positioning is concerned with the identification,
development and communication of a
differentiated advantage which makes the brand
perceived as superior & distinctive to those of its
competitors in the mind of the Target segments.
 SEVEN POSITIONING STRATEGIES
ATTRIBUTE Positioning on specific product
POSITIONING feature
BENEFIT Positioning on benefits, Problem
POSITIONING solution or needs
USE/APPLICATIONS Positioning for specific usage
POSITIONING occasions
USER Positioning for user category
POSITIONING
COMPETITOR Positioning against another
POSITIONING product
PRODUCT CATEGORY Product class dis-association
POSITIONING
QUALITY/PRICE
POSITIONING
 SEVEN POSITIONING STRATEGIES

ATTRIBUTE Gas Mileage

POSITIONING
BENEFIT Cotton: Cool in Summer
POSITIONING
USE/APPLICATIONS Office Wear
POSITIONING
USER Pepsi Generation
POSITIONING
COMPETITOR The Pepsi Challenge
POSITIONING
PRODUCT CATEGORY Cola-, Skimmed Milk
POSITIONING
QUALITY/PRICE Cheaper Detergents
POSITIONING
 User Positioning

Most People think I must drink at least 10 cups of coffee

Competitor Positioning to be so perky Benefit Positioning in the
morning. But the truth is, I drink Use/applications Positioning
skim milk first thing. It has all the same nutrients Attribute
Positioning of whole milk without all the fat Product category
Positioning. And besides, my husband got the coffee maker.

MILK: What a Surprise

 Selection of Position

• Importance
• Distinctiveness
• Communicability
• Superiority
• Affordability
• Profitability
 Positioning Errors

• Under Positioning
• Over Positioning
• Confused Positioning
• Doubtful Positioning
 POSITIONING STRATEGIES
CONSUMER FOCUS COMPETITION FOCUS

BOTH ASSOCIATE PRODUCT BENEFITS WITH

CONSUMER NEEDS

BY LINKING THE BY COMPARING THE

PRODUCT WITH THE PRODUCT AND THE
BENEFITS THE BENEFITS IT OFFERS,
CONSUMER WILL TO THE COMPETITIION
DERIVE
 Corporate Positioning
for Services Organizations
All Brands by Starwood
Hotels & Resorts
Worldwide, Inc.
 CORPORATE POSITIONING
 
IT IS IN THE MINDS OF KEY DECISION
MAKERS & PUBLIC OPINION LEADERS

(BASED OF "SUBSTANTIVE" REASON

FOR DIFFERENTIATION)
 
 CORPORATE POSITIONING
 
 
PROBLEMS

IRRELEVANT DIFFERENCES

UNBELIEVABLE CLAIMS

ME-TOO POSITIONING
1. Market Share Leader:
The Biggest
2. Quality Leader:
Best and most reliable
 3. Service Leader:
Most responsive to customers’ problems
4. Technology Leader:
First to develop new technologies
 5. Innovation Leader:
Most creative in applying new technologies
6. Flexibility Leader:
Most adaptable
 7. Relationship Leader:
Most committed to customers’ success
8. Prestige Leader:
Most exclusive
 9. Knowledge Leader:
Best expertise in Industry, Technology, Management
Function: HR, finance etc
10. Global Leader:
Best to serve the world market
11. Value Leader:
Best price-performance
12. Bargain Leader:
The lowest Prices
CORPORATE POSITIONING
ISSUE –I

WHOSE MINDS REALLY MATTER?

CORPORATE POSITIONING
ISSUE- II

HOW VISIBLE & CREDIBLE ARE WE IN

COMPARISON TO COMPETITION?
VISIBILITY V/S CREDIBILITY
MATRIX & IMPLICATIONS
VISIBILITY
LOW HIGH

Y
CREDIBILIT
W
LO
E
N

BL
W

A
O

IR
N
K

ES
N

D
U

N
U

H
HIG
ED
ED

EL
ER

LL
V
CO

RA
IS

PA
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N

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U
 CORPORATE POSITIONING
ISSUE- III

WHAT FACTORS WITHIN OUR CONTROL

OFFER THE GREATEST POTENTIAL FOR
SHAPING OUR CORPORATE POSITION
CONTROLABLE FACTORS INFLUENCING CP
HR PRACTICES THAT DETERMINE LERDERSHIP & PERSONALITY
OF TOP MANAGEMENT
HOW THE FIRM

RECRUITS
SELECTS
DEVELOPS
REWARDS
TERMINATES
CONTROLABLE FACTORS INFLUENCING CP
HR PRACTICES THAT DETERMINE LERDERSHIP & PERSONALITY
OF TOP MANAGEMENT FOR EMPOWERMENT

Employment Security
Encouragement Respect

Empowerment Responsibility
Independence
Employable
Personal Fulfillment
Innovator
CONTROLABLE FACTORS INFLUENCING CP
THE NON-WORK ACTIVITIES
(COMPANY &EMPLOYEES)
PLAY
COMMUNITY SERVICE
CONTROLABLE FACTORS INFLUENCING CP
 THE "COMPANY" IT KEEPS
BUSINESS PARTNERS
ASSOCIATING FIRMS
BANKERS, INVESTORS
CONSULTANTS, LAW FIRMS
AD AGENCY
SUPPLIERS
CUSTOMERS
CORPORATE POSITIONING
ISSUES- IV

HOW DOES OUR COMPANY OFFER

MEANINGFUL, BELIEVABLE, UNIQUE
ADVANTAGES OVER OTHERS?
Through marketing mix decisions in contrast to
competition
– Distribution
– service delivery process
– Pricing
– Physical evidences
– Communication
– Employees’ responsiveness to customers’ needs
CORPORATE POSITIONING
ISSUE-V

ARE OUR ACTIVITIES

"PRODUCTS", "PRODUCT LINES“
MUTUALLY REINFORCING?
 CORPORATE POSITIONING
ISSUE- VI

SHOULD WE SEEK A SINGLE GLOBAL IMAGE?

 CORPORATE POSITIONING
ISSUE- VII

HOW TO INCREASE VISIBILITY & CREDIBILITY

BUT DECIDE WHAT SHOULD COME FIRST?

 Uses of Positioning in Marketing
• Understand relationships between products and
markets
– compare to competition on specific attributes
– evaluate product’s ability to meet consumer
needs/expectations
– predict demand at specific prices/performance levels
• Identify market opportunities
– introduce new products
– redesign or reposition existing products
– eliminate non-performing products
 Uses of Positioning in Marketing
• Make marketing mix decisions, respond to
competition
– Distribution
– service delivery process
– Pricing
– Physical evidences
– Communication
– Employees’ responsiveness to customers’ needs
 Review
• Explain how Branding creates distinct Position
• Define Positioning and explain how the concept got
evolved
• Explain Principles of Positioning Strategy
• Identify Position Criteria for Services
• Understand Market Positioning and Repositioning
• Introduce the Meaning and relevance of Corporate
Positioning
• Understand Corporate Positioning Options
• Explain each of the key issues of Corporate Positioning
for a service organization