MITSOB

MARKETING ASSIGNMENT
NAME-NEHA GARUD-2803217
B

10

Market segmentation
The division of a market into different homogeneous groups of consumers is known as market segmentation. Rather than offer the same marketing mix to vastly different customers, market segmentation makes it possible for firms to tailor the marketing mix for specific target markets, thus better satisfying customer needs. Not all elements of the marketing mix are necessarily changed from one segment to the next. For example, in some cases only the promotional campaigns would differ. A market segment should be:

measurable accessible by communication and distribution channels different in its response to a marketing mix durable (not changing too quickly) substantial enough to be profitable

A market can be segmented by various bases, and industrial markets are segmented somewhat differently from consumer markets, as described below.

Consumer Market Segmentation

A basis for segmentation is a factor that varies among groups within a market, but that is consistent within groups. One can identify four primary bases on which to segment a consumer market:

Geographic segmentation is based on regional variables such as region, climate, population density, and population growth rate. Demographic segmentation is based on variables such as age, gender, ethnicity, education, occupation, income, and family status. Psychographic segmentation is based on variables such as values, attitudes, and lifestyle. Behavioral segmentation is based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and benefits sought.

The optimal bases on which to segment the market depend on the particular situation and are determined by marketing research, market trends, and managerial judgment.

Business Market Segmentation

While many of the consumer market segmentation bases can be applied to businesses and organizations, the different nature of business markets often leads to segmentation on the following bases:

Geographic segmentation - based on regional variables such as customer concentration, regional industrial growth rate, and international macroeconomic factors. Customer type - based on factors such as the size of the organization, its industry, position in the value chain, etc. Buyer behavior - based on factors such as loyalty to suppliers, usage patterns, and order etc.

Bases for Segmentation in Industrial Markets

In contrast to consumers, industrial customers tend to be fewer in number and purchase larger quantities. They evaluate offerings in more detail, and the decision process usually involves more than one person. These characteristics apply to organizations such as manufacturers and service providers, as well as resellers, governments, and institutions.

Many of the consumer market segmentation variables can be applied to industrial markets. Industrial markets might be segmented on characteristics such as:

Location Company type Behavioral characteristics

Location In industrial markets, customer location may be important in some cases. Shipping costs may be a purchase factor for vendor selection for products having a high bulk to value ratio, so distance from the vendor may be critical. In some industries firms tend to cluster together geographically and therefore may have similar needs within a region. Company Type Business customers can be classified according to type as follows:

Company size Industry Decision making unit Purchase Criteria

Behavioral Characteristics In industrial markets, patterns of purchase behavior can be a basis for segmentation. Such behavioral characteristics may include:

Usage rate Buying status: potential, first-time, regular, etc. Purchase procedure: sealed bids, negotiations, etc.

Targeting
After the process of segmentation the next step is for the organization to decide how it is going to target these particular group(s). There are three targeting options an organization can adopt.

Option 1 Undifferentiated marketing - Sometimes referred to as mass marketing the firm may decide to aim its resources at the entire market with one particular product. Coca Colas original marketing strategy was based on this form. One product aimed at the mass market in the hope that a sufficient amount of buyers would be attracted, although there are now changes in their product line to cater for growing dietary and caffeine free needs of consumers.

Option 2 Differentiated marketing strategy - Where the firm decides to target several segments and develops distinct products/services with separate marketing mix strategies aimed at the varying groups. An example of this would be airline companies offering first, business (segment 1) or economy class tickets (segment 2) , with separate marketing programmers to attract the different groups.

Option 3 Concentrated Marketing: Where the organization concentrates its marketing effort on one particular segment. The firm will develop a product that caters for the needs of that particular group. For example Rolls Royce cars aim its vehicles at the premium segment, same as Harrods within the UK.

POSITIONING
In their 1981 book, Positioning: The Battle for your Mind, Al Ries and Jack Trout describe how positioning is used as a communication tool to reach target customers in a crowded marketplace. Jack Trout published an article on positioning in 1969, and regular use of the term dates back to 1972 when Ries and Trout published a series of articles in Advertising Age called "The Positioning Era." Not long thereafter, Madison Avenue advertising executives began to develop positioning slogans for their clients and positioning became a key aspect of marketing communications. Historically, the top three brands in a product category occupy market share in a ratio of 4:2:1. That is, the number one brand has twice the market share of number two, which has twice the market share of number three. Ries and Trout argue that the success of a brand is not due to the high level of marketing acumen of the company itself, but rather, it is due to the fact that the company was first in the product category. They use the case of Xerox to make this point. Xerox was the first plain-paper copier and was able to sustain its leadership position. However, time after time the company failed in other product categories in which it was not first. With this point in mind, there are certain things that a market leader should do to maintain the leadership position. First, Ries and Trout emphasize what it should not do, and that is boasting about being number one. If a firm does so, then customers will think that the firm is insecure in its position if it must reinforce it by saying so. If a firm was the first to introduce a product, then the advertising campaign should reinforce this fact. Coca-Cola's "the real thing" does just that, and implies that other colas are just imitations. Another strategy that a leader can follow to maintain its position is the multiband strategy. This strategy is to introduce multiple brands rather than changing existing ones that hold leadership positions. It often is easier and cheaper to introduce a new brand rather than change the positioning of an existing brand. Ries and Trout call this strategy a single-position strategy because each brand occupies a single, unchanging position in the mind of the consumer. Finally, change is inevitable and a leader must be willing to embrace change rather than resist it. When new technology opens the possibility of a new market that may threaten the existing one, a successful firm should consider entering the new market so that it will have the first-mover advantage in it. For example,

in the past century the New York Central Railroad lost its leadership as air travel became possible. The company might have been able to maintain its leadership position had it used its resources to form an airline division.

Low volume product - if the sales volume is not expected to be high. Crowded market - if there is no unique position that the product can occupy. Small ad budget - without strong advertising support, it might make sense to use the house name. Commodity product - an undifferentiated commodity product has less need of its own name than does a breakthrough product. Distribution by sales reps - products distributed through reps may not need a separate brand name. Those sold on store shelves benefit more from their own name.

Positioning Has Broad Applications The concept of positioning applies to products in the broadest sense. Services, tourist destinations, countries, and even careers can benefit from a well-developed positioning strategy that focuses on a niche that is unoccupied in the mind of the consumer or decision-maker.

DETTOL Dettol protect against a wide range of unseen germs, including bacteria, and virus

Market segmentationSoap is a major consumerable item and there is a huge demand. The market segment of the dettol company has increased about 7% due to increase consumer awareness and education on the benefit of anti-bacterial soaps. DETTOL has launched its various variants in the market likeDettol original soap Dettol skincare soap Dettol cool soap Dettol fresh soap The objective of Dettol Company was focusing on the building of power brand, geographic expansion, continues innovation the product, high investment in the brand building. In dettol liquid it includes for bruises and cuts, insect bites, washing of clothes, mopping of clothes, shaving, bathing, cleaning of skin. The dettol prickly powder comes in two sizes 75gm and 200gm As we can see the market segmentation it is increasing towards the antibacterial category.

Target-marketing The target market of the dettol soap is all household who can afford buying soap and who want to fulfill everybody needs that provide them with 100% anti-bacterial solution complete protection from germs and bacteria. In geographic location it includes urban, suburban, small town, and the rural areas. In demographic it includes male, female specially mothers and children. Age is 10-55 yrs. In socioeconomic status mainly targeting the middle class and upper class in urban and sub urban areas around cities. In psychographic it includes young housewives and mothers who care about the health and well being of the family.

Positioning Against competitorDettol is positioned as the premium brand which the mothers choose for 100% protection against all germs and bacteria for her family. The mother is the focal point of the dettol soap as compared to other soap which focuses on children. Against product attributeThe primary positioning of product attributes is that the dettol soap has the essence of the dettol solution the number 1antiseptic brand in the world trusted by the families which its competitor does not possess. Does consider the premium brand of the anti-bacterial segment. Against price and qualityAs by the price and the quality it is priced as the premium to its competitor. There will be no compromise in quality as the link between price and the quality exits and customer is always willing to pay more for perceived quality which in the case of the dettol soap.