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Companies cant connect with all the customers in a large, board or diverse market
But they can divide such markets into groups of consumers or segments
A company then needs to identify which market segment (s) it can serve effectively This decision requires a keen understanding of consumer behavior & careful strategic thinking
Segmentation
Targeting
Positioning
MASS MARKETING
SEGMENT MARKETING
NICHE MARKETING
The starting point of segmentation begins with mass marketing In mass marketing the buyer offers one product to the whole market Henry Ford epitomized this strategy when he offered the Model-T Ford in one color black.
Coke also used this strategy when it sold only one kind of Coke in 6.5 ounce bottle
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Many marketers actually believe that Market segmentation on the basis of demand concept lead to the evolution of Marketing Concept
Market Segmentation can be done on the basis of several factors which will be discussed later
A niche refers to a very narrowly defined customer group seeking distinctive benefits
Marketers usually identify niche by dividing the market segments in to sub-segments
Increase in competition & change in consumers demand pattern has forced many companies to adopt niche marketing strategy A prime example of niche marketing is Star Sports, Ten Sports launching Channels such as Star cricket, Ten Cricket, etc.
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It is the ultimate level of segmentation It is also called customized marketing or one to one marketing
In modern day business customization is the name of the game
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Dividing the market into different geographical units such as nations, states, regions, cites, etc. Geographic Segmentation of the market into rural & urban areas is quite popular in India
Rural markets differ from urban markets on a number of parameters such as literacy levels, income, spending power, etc.
Geographic segmentation can also be done based on the product preference of the consumers.
E.g. Consumers in southern part of India like TamilNadu prefer coffee, where as people living in the northern part of the country prefer tea
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HIGHER CLASS
MIDDLE CLASS
LOWER CLASS
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Lower Class is the one which is financially weak So why should we develop any product for them????
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for market
Segmenting the market on the basis of demographic factors such as Age Sex
Fair & Lovely Fair & Lovely for Men
Income
Nirma Washing Powder launched at lowest price Shampoos, Hair Oil, etc. launched in pouch & sashes for lower income group However segmentation based on income can be quite tricky
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Bajaj Pulsar Bike for Men Unish Kuri for Teenagers Cartoon Network for Kids
In behavioral segmentation marketers look to classify the buyers according to their buying & post purchase behavior
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User Status
Usage Rate
On purchase of a product customers look for different kinds of benefits which satisfy their needs
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Economy
Markets can also be divided based on the user status Let us consider the following example of a deodorant Non user : A 10 year old child Potential User : A teenager First Time Users: Teenagers first deodorant used Regular User: Corporate People, College going girls & girls users
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Ex Users: Some one who stopped using Deodorants due to some reason like allergy or may be shifted to a substitute product like Perfume
Consumers can be segmented based on their loyalty status Let us discuss it via the following example Hard Core Loyalty :People who use Colgate all the time
Shifting Loyalty: People who shift from Colgate to Close Up & Pepsodent without any consistency Switching Loyalty : People who show no loyalty what so ever & will any brand that is available
A target market is defined as the market segment to which a company is planning to sell its goods
It is the segment that has been identified as the likely customers of the product
Target marketing aims to provide marketing mix at a specific group of customer(s)
Undifferentiated Marketing : One marketing Mix for whole market. E.g. Use and Throw Pens
Concentrated Marketing : One marketing Mix for one market segment only. E.g. JLR for HIG
Differentiated Marketing : Different marketing Mix for different market segments. E.g. Dove, Lirl, Lux, etc.
Consumers are constantly bombarded with numerous advertising messages & have plenty of options to buy in almost all product categories There for the marketer must develop a distinct & unique image in the minds of the consumers ( Positioning)
According to Mr. Subroto Sengupta while positioning the marketers should look to answer the following questions Who am I , What am I, For whom am I, Why me
Best Quality
LG Videocon
Least Cost Sony
Most Cost
Ronix
Oscar
Least Quality
Lux, Surf, Titan, Reebok etc. are prime examples of such positioning
Brand positioning is most successful during product launch
This is probably the most widely used way of positioning In this approach the product is positioned based on its key attributes It is mainly based on What am I
Price Quality Approach is quite a powerful one especially in a growing economy like India Price Quality approach looks to satisfy the consumers via value for money It makes the consumers feel good about a very wise buying decision
Many companies like Nirma, Zenith etc. have adopted price quality approach with great success
In this case the products are positioned based on the target market segement It mainly looks to answer the question For whom am I? Dabur Chyavanprash for all ages Johnson & Johnson baby Soap, Cerelac for Kids
Such positioning is usually seen in case of comparative advertising In India we have seen such positioning in big brand fights between Pepsi & coke; Horlicks & Complan; Hindu & TOI Ethical issues are one of the most important things to be kept in mind while going for such positioning strategies However if used well it can be a big hit Avis- a car rental company used it to great effect against its arch rival Hertz
No matter how well a product appears to be positioned, the marketer may be forced to repositioning in response to new opportunities Over the year we have witnessed many prominent brands go for repositioning However we will discuss about One such brand- Cadbury India A brand which has quietly made chocolates made popular among the adults even before we knew it It used a series of campaigns such
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Kid in all of us
Real Taste of Life
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