Market Segmentation

Targeting

Positioning

 Market segmentation is the sub dividing of market into homogenous sub sections of customers, where any sub- section may conceivably be selected as a market target to be reached with a distinct marketing mix. Market segmentation allows a marketer to take a heterogeneous market, a market consisting of customers with diverse characteristics needs, wants & behavior & carve it up into one or more homogeneous markets which are made up of individuals or organization with similar needs, wants & behavioral tendencies.

Homogeneous Preferences. Clustered Preferences. Diffused Preferences Herein a Flexible Marketing Offering is there 1. Naked solution. 2. Discretionary options.

DEMOGRAPHIC SEGMENTATION

GEOGRAPHIC SEGMENTATION

BASES FOR MARKET SEGMENTATION

BEHAVIORAL SEGMENTATION

PSYCHOGRAPHIC SEGMENTATION

 Here, a marketer divides the target market into different geographical unit such as nations, states & regions. This works well in South Asian markets wherein markets are divided into Rural, Urban and Metros. These markets differ in terms of consumer preferences and purchasing habits. Co. may decide to operate in one or more than one geographical areas. E.g. A particular brand may be popular only in North India then the north Indian market can be divided on the bases of zones, village, cities, etc. Ex Coolers/ Ac , Coffee/ Tea, Assam Tea/ Nilgiri Tea, MTR/ Aashirvad, Curry powder etc.

 In demographic segmentation, a marketer divides the market on the bases of demographic factor like age, gender, family size, marital status, income occupation etc. For e.g. cosmetic manufacturers & food manufactures particularly keep in mind the age categories.

 AGE & LIFE CYCLE STAGE TV Channels. Products like baby soap, Doy soap, anti ageing cream. Music Novels.

LIFE STAGE
LIFE STAGE defines a persons major concern such as getting married, buying a home, taking care of elders members, sending kids to school. Co. target these needs by advertisements & sales promotion offers , saving cum insurance, saving schemes at higher rates.

Gender
Both are different a MEN often has to be invited to touch a product while WOMEN are likely to pick up without prompting. Men go thru product information & female on personal basis. Bajaj bikes and waves etc , bicycles , Fairness cream, shoes, colors of clothes. Decision maker in daily groceries , vegetables etc .

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Income segmentation
Income as a criteria has been a long term practice. Even people from same income segment have different attributes depending on their lifestyle, values, attitudes. Small packing is an approach towards it in form of affordability. Bangladesh they have Grameen phone for phone ladies.
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 It involves developing sub group identification on the basis of psychological characteristics. Psychological/Personality traits, VALS. Religion has a significant impact on values Ex Vegetarian, Non Vegetarian , Beef, Jhatka & Halal meat

 Lifestyle parameters: Titan watches has wide range of sub brands as Raga, Nebula, Edge , Regalia to appeal to different segments. Fast track for youngsters. Sonata for working people with affordable prices. Hidesign bags, purses , handbags, Briefcases for people who value style and elegance in a classical sense.

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Targeting
Undifferentiated /Mass Marketing differentiated Marketing

Target Marketing

Niche Marketing

Mass/Undifferentiated

Single service offer

Single market

Mass/Undifferentiated

Single service offer

Single market

Differentiated

Service Offer 1 Service Offer-2

Single market

Niche

Single Service

Niche market

Differentiated

Service Offer 1

Market Segment -1

Service Offer-2

Market Segment 2

How you differentiate your product or service from that of your competitors and then determine which market niche to fill .

The term was coined in 1969 by Al Ries and Jack Trout in the paper "Positioning" is a game people play in todays me-too market place" in the publication Industrial Marketing.

A good position is: 1. What makes you unique. 2. This is considered a benefit by your target market

 positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.
It is the 'relative competitive comparison' their product occupies in a given market as perceived by the target market.

Positioning Strategies
There are seven positioning strategies that can be pursued: Product Attributes: What are the specific product attributes? (dettol antiseptic, Ariel- cleaning even the dirtiest cloth, Colgate- preventing cavities, promise- clove oil toothpaste, Nirma- low price detergent, Maruti-fuel efficient) Benefits: What are the benefits to the customers? (fair and lovely fairness, master card:- u can buy everything except emotions, Optra Chevroletsunroof)

 Usage Occasions: When / how can the product be used? (perk- kahin bhi kabhi bhi, Rasna offered as a soft drink when one is fatigued after days work, when you have party, when guests come suddenly or when you feel thirsty.)
Users: Identify a class of users. (Johnson & Johnson baby products) Against a Competitor: Positioned directly against a competitor. (Pepsi and coke, Avis (auto rental company) we are no. 2. We try harder, Onida was placed against the competitor as if this is the only original brand and others are clones, wheel against Nirma as better in washing and gentle on hands, Kinetic Honda against Bajaj as more mileage to a litre of petrol)

 Away from a Competitor: Positioned away from competitor. (Babool and Close up, medimix and lux) Product Classes/ life style positioning: Compared to different classes of products. (Mercedes- premium segment, longines range of watches or Nakshatra brand of diamonds and luxury homes and villas by DLF and Unitech are positioned as aspirational product and for high class)