Car maker Toyota Kirloskar Motor plans to expand its

dealership network in the North East targeting

"significant contribution" from this region even as its total
sales in the country has fallen in recent months.
The company, which is planning to set up an area office in
Guwahati to boost sales in the region, will target smaller
towns and open two more outlets by the end 2013.
Right now we are focusing on expanding our dealer
network in the North East with 9 dealer outlets by the
end of 2013," Toyota Kirloskar Motor (TKM) Deputy
Managing Director and COO (Marketing and
Commercial) Sandeep Singh

Market
Segmentation,
Targeting, and
Positioning

Segment1

Large
Heterogeneous
Segment

Segment2
Segment3

Chapter Objectives

Explain market segmentation and identify several

possible bases for segmenting markets

List and distinguish among the requirements for

effective segmentation

Chapter Objectives

Outline the process of evaluating market segments

Illustrate the concept of positioning for competitive

advantage

Discuss choosing and implementing a positioning

strategy
Concept of differentiation

Levels of Market Segmentation

Segment Market: A market segment consists a group of
customers who share a similar set of needs and wants.
Niche Market: A niche is more narrowly defined
customer group seeking a distinctive mix of benefits.
Local Marketing:Focused to the needs and wants of local
customer groups in trading areas, neighborhoods,even
individual stores.
In-City courier
Bharat Matrimony
Individual Marketing: Segment of one

Market Segmentation

Geographic
Segmentation

Psychographic
Segmentation

Demographic
Segmentation

Behavior
Segmentation

Geographic Segmentation

Dividing the market into different geographic

units

Nations
States
Regions
Counties
Cities
Neighborhoods

Demographic Segmentation

Dividing the market into groups based on demographic

variables
Age
Gender
Income
Occupation
Education
Color
Cast
Marital Status
Many More

Psychographic Segmentation

Dividing buyers into different groups based on social

class, lifestyle, and personality characteristics

Behavior Segmentation

Buyers are divided into groups based on their knowledge, attitude,

and use or response to a product

The best starting point for building market segments

Types
Special occasion segmentation
Benefits sought
User status
Usage rate 80/20 rule
Loyalty status
Buyer readiness stage

Requirements for Effective Segmentation

Measurability
Accessibility

Size, purchasing power, profiles

of segments can be measured.
Segments can be effectively
reached and served.

Substantiality

Segments are large or profitable

enough to serve.

Actionability

Effective programs can be

designed to attract and serve
the segments.

Targeting
Once the firm has identified its market-segment
opportunities, it has to decide how many and
which ones to target

Decisions relating to segment targeting are taken

on the growth/ risk parameters

Market Targeting

Evaluating Market Segments

Selecting Market Segments

Choosing a Market-Coverage Strategy

Evaluating Market Segments

Segment Size and Growth

Segment Structural Attractiveness

Company Objectives and Resources

Selecting Market Segments

Undifferentiated Marketing

Bifurcated Marketing

Differentiate Marketing

Concentrated Marketing

Selecting Market Segments

Company
Marketing
Mix
Company
Marketing Mix 1
Company
Marketing Mix 2
Company
Marketing Mix 3

Market
A. Undifferentiated Marketing

Segment 1
Segment 2
Segment 3
B. Differentiated Marketing

Company
Marketing
Mix

Segment 1
Segment 2
Segment 3
C. Concentrated Marketing

Choosing a Market Coverage Strategy

Company resources

Degree of product homogeneity

Market homogeneity

Competitors strategies

Patterns of Target Market Selection

Patterns of Target Market Selection

Patterns of Target Market Selection

Product Positioning

Product Positioning
Positioning is how you provide your product or service
brand identification as you go to market. It is the next
step after you have determined how to differentiate your
product or service.
..\management videos\market Positioning.wmv.flv
POD
POP

Category POP
Competitive POP

Points-of-difference (POD)
The aspects of the product offering that are relatively distinct
to the offerings of like competitors.
Points-of-parity (POP)
The aspects of the product offering that are largely similar to
the offerings of like competitors

Positioning Strategies

Products can be positioned on specific attributes or

against another product class

Choosing and Implementing a

Positioning Strategy
1.

Identifying a set of possible competitive advantages

upon which to build a position

2.

Selecting the right competitive advantages

3.

Effectively communicating and delivering the chosen

position to a carefully selected target market

What are the main ways to position a

product?

Brands/products can be positioned in many different ways in

the marketplace.
However, there are several major categories of positioning
approaches, which will help us understand the range of
positioning options available.

The major positioning categories

include:

positioning by product attribute (product feature and/or

benefit),
positioning by user,
positioning by product class,
positioning versus competition,
positioning by use/application, and
positioning by quality or value.

Selecting the Right Competitive

Advantages

Avoid:
Underpositioning
Overpositioning
Confused positioning

Selecting the Right Competitive

Advantages

Brand differences should meet the following criteria prior to

marketing:

Important
Distinctive
Superior
Communicable
Preemptive
Affordable
Profitable

Positioning statement

A statement that summarizes

company or brand positioning- It
takes form: to (target segment
and need) our (brand) is
(concept) that POD (point of
difference)

To busy mobile professional who need to always

be in the loop, Black Berry is a wireless
connectivity solution that gives you an easier
,more reliable way to stay connected to data
,people and resources while on the go.

Positioning Measurement

Perceptual mapping is a research tool used to measure

a brands position

Product Differentiation

Product differentiation is the incorporation of attributes,

such as quality or price, into a product to encourage the
intended customers to perceive it as different and
desirable.
For example, if your company sells seat belts to
automotive manufacturers, perhaps your unique value is
never-fail, on-time delivery with no rejected belts. If other
seat belt manufacturers are not meeting these desired
goals, you will have a unique advantage against your
competition, and will have differentiated your seat belts
from those of your competitors

Product Differentiation

Physical Attribute Differentiation

Service Differentiation

Personnel Differentiation

Location Differentiation

Image Differentiation

In-class Activity

Choose one of the companies/brands and

Identify relevant direct competitors

Choose the two dimensions that are most important to
consumers
Develop a perceptual positioning map
Are there any opportunities in this category?

In-class Activity, Part

Choose a company and invent a segmentation scheme for that

companys customers using the variables we discussed in class.

In-class Activity
Developing a Segmentation Scheme

Develop a PSYCHOGRAPHIC/USAGE segmentation scheme for each of

the following types of consumers.

Segment the market into three or more substantive groups.

Be sure to think of the key psychological/usage drivers of consumption.
Name your segments the more creative, the better!

Consumers

Vacationers
Internet Users
Restaurant Patrons
Eco-friendly product consumers
Smartphone Users
Grocery Store Shoppers

In-class Activity

Describe how each of the following brands, companies, or

products is positioned: