Market

Marketing Management
 Market segmentation involves aggregating
prospective buyers into groups
 (1) that have common needs and
 (2) will respond similarly to a marketing
action.
 Market segments are relatively
homogenous groups of prospective buyers
that result from the market segmentation
process.
 The recognition that marketers cannot
appeal to all buyers everywhere or all
buyers in the same way.
 Efforts must be geared towards parts of
the market that the company can serve
best rather than trying to compete in the
entire market.
 Segmentation moves away from mass
marketing.
 Innovators
 Early Adopters
 Late Adopters
 Laggards

 16% 34% 34% 16%

 Innovators Early Adopters Late Adopters Laggards

 SIZE:-Substantial; how big the
segment is?
 IDENTIFIABLE:- Distinctive,
differentiable, )
 MEASURABLE: (profits, cost)
 ACCESSIBLE: (restriction by law,
contracts, costs, frustration etc.)
 GROWTH POTENTIAL:
Mass marketing: No segmentation
Segmenting markets:
Segmenting and Targeting
Niche marketing: Targeting Sub-
group or sub-segment within a
segment.
Micro marketing: Customization
 Geographic Segmentation: Regions,
Countries, zones, cities, etc.
 Demographic Segmentation: Age,
Gender, income levels, etc.
 Psychographic Segmentation: Social
class, lifestyles, personality.
 Behavioural Segmentation: loyalty status,
Occasion, benefit sought, Usage rate.
 Demographic Segmentation: Industry,
Company size, Location (Geographic)
 Operating variables: Customer
capabilities, technology,
 Purchasing approaches: organization’s
purchasing procedures, nature of existing
relationships, purchase criterion (price,
quality, warranty).
 Situational factors: Size of order, urgency.
 Select base(s) for segmentation and identify
appropriate market segments.
 Evaluate and appraise the market segments
 Select an overall market targeting strategy.
 Select specific target segments.
 Develop a product positioning strategy for
each target segment.
 Develop an appropriate marketing mix for
each chosen target
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Market segmentation reveals
the firm’s market segment
opportunities.
The firm now has to evaluate
the various segments and
decide how many and which
ones to target.
 Segment 1

Segment 2

Product Segment 3

Segment 4

Segment 5
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 Segment 1

Segment 2

Product Segment 3

Segment 4

Segment 5

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 Segment 1
Brand A

Brand B Segment 2
Brand C Segment 3
Brand D Segment 4

Brand E
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Segment 5 14
 The place the product occupies in
consumers’ minds relative to competing
products.
 Typically defined by consumers on the
basis of important attributes.
 Involves implanting the brand’s unique
benefits and differentiation in the
customer’s mind.
 Positioning maps that plot perceptions
of brands are commonly used.
 Product position refers to the place an
offering occupies in consumers’ minds
on important attributes relative to
competitive products.
 Positioning is very necessary for new
products introduced on the market.
Product positioning is a prospect’s
perception about the product.
 Product differentiation: features,
performance, quality etc.
 Services Differentiation: Installation,
after-sales services, delivery, speed of
service, etc.
 Personnel differentiation:
professionalism, customer service, etc.
 Image differentiation: brands, logos,
sponsored events, colours etc.
 Value positioning offers a range of
positioning alternatives based on the
value an offering delivers and its price.
 Consumers usually choose products
and services that will give them the
greatest value.
 The combination of these concept is
usually referred to as value proposition
More for More
More for Same
Same for Less
Less for much Less
More for Less
Less for Same
 Price
Benefits Less Same More

More More for Less More for Same More for More

Same Same for Less Status quo Same for More

Less
Less for Much
Less for same Less for More
Less