MARKET SEGMENTATION TARGETING AND POSITIONING

presented by Anand Kumar. R Kanimozhi .T Naveen Kumar .K.R Satheesh .D

INTRODUCTION
Target marketing includes 3 activities:

1. Market segmentation, 2. Market targeting, 3. Market positioning.

The STP process

Segmentation is the process of classifying customers into

groups which share some common characteristic

Targeting involves the process of evaluating each segments

attractiveness and selecting one or more segments to enter

Positioning is arranging for a product to occupy a clear,

distinctive and desirable place relative to competing products in the mind of the consumer

Steps in Segmentation, Targeting, and Positioning

6. Develop Marketing Mix for Each Target Segment Market 5. Develop Positioning Positioning for Each Target Segment 4. Select Target Segment(s) Market
3. Develop Selection Criteria

Targeting

2. Develop Profiles of Resulting Segments

1. Identify Bases for Segmenting the Market

Market Segmentation

WHAT IS MARKET SEGMENTATION?

Market

segmentation is the sub-dividing of a market into homogeneous sub-sects of customers where any sub-sect may conceivably be selected as a target market to be reached with a distinct marketing mix -Philip Kotler

WHY SEGMENT THE MARKET? 1. Facilitates proper choice of target market 2. Facilitates Tapping of the market, Adapting the Offer to the market 3. Makes the Marketing Effort more Economic and Efficient 4. Benefits the customer as well

MARKET SEGMENTATION
Geographic

Demographic

SocioCultural

Market segmentation

Buying Behavior

PsychoGraphics

MAJOR BASES FOR SEGMENTATION

SEGMENTATION APPROACHES

CONSUMER CHARACTERISTICS

BEHAVIOURAL

GEOGRAPHIC

DEMOGRAPHIC

PSYCHOGRAPHIC

1.REGION 2.CITY SIZE 3.DENSITY 4.CLIMATE

1.AGE 2.GENDER 3.FAMILY SIZE 4.INCOME& EDUCATION 5.OCCUPATION 6.SOCIAL CLASS 7.RELIGION

1.PERSONALITY 2.LIFE STYLE

1.OCCASSIONS 2.BENEFITS 3.USER STATUS 4.USAGE RATE 5.READINESS STAGE

Effective Segmentation
1.Must be measurable in terms of both purchasing power & size 2. Must be able to effectively promote to & serve a market segment 3. Must be sufficiently large to be potentially profitable 4. The number of market segments must match the firm's capabilities

MARKET TARGETING

Market targeting is the selection of segments Evaluation of segments: 1. Is it sizeable? 2. Is it growing? 3. Is it profitable? 4. Is it accessible? 5. Is it compatible with firms resources & capabilities?

TARGET MARKET SELECTION :

Once the firm has segmented the total market , it should select
the target market segment or segments for marketing. This requires the evaluation of different segments in terms of

market size, competition, growth rate, companys resources,

profitability, scale of economics etc. The firm may consider the following patterns of target markets. 1. Single segment concentration strategy. 2. Multi- segment strategy or Differentiated marketing Strategy.

3. Un-differentiated Marketing strategy.

1. Single segment concentration strategy:

Car maker

2. Multi- segment strategy or Differentiated marketing Strategy:

Car maker

1. Un-differentiated Marketing strategy :

Car maker

Whole Market

MARKET POSITIONING
Positioning is the strategy that enables a firm to competitively and strongly place its brand in the customers mind Positioning Strategies: Approaches of positioning Strategies : 1. Customer Benefits. 2. Price & Quality. 3. Product Users. 4. Product class. 5. Cultural Symbols. 6. Competitors.

Selecting the Positioning Platform:

Superior
Communicable Affordable Profitable to the company

Steps to Choosing a Positioning Strategy

Step 1. Identify the strategic group. Step 2. Understand the customers perception of brands of

strategic group.
Step 3. Determine Customers needs , aspirations. Step 4. Select the best one for advertising campaign.

Perceptual Map for Soft Drinks:

Cola

Diet Pepsi Tap

Coca-Cola Pepsi

Diet
Fresca Diet 7-up Sprite 7-Up

Non-Diet

Non-Cola

CASE STUDY

Local marketing Niche marketing Geographic & Demographic segments Discussion Questions: 1. Key success factors for HSBC? 2. Where is HSBC vulnerable? Where should it watch out for? 3. Recommendations to senior marketing executives going forward? What should they be sure to do with its marketing?

REFERENCES : 1. Principles and Practices of marketing management . Dr.P.C.Sekar & M.Selvaraj 2. Marketing Management. - V S Ramaswamy & S Namakumari 3. Marketing Management. -S Jayachandran 4. Marketing Management. -Philip Kotler & Kevin Lane Keller & Abraham Koshy & Mithileshwar Jha 5. Marketing Management. -Rajan Saxena

THANK YOU