By- Abhijith R.

MARKET
TARGETIN
G

Market Segmentation???
-It is the process of
disaggregating the total
market for a given product
into a number of submarkets.
-The heterogeneous market
is divided into a number of
relatively homogeneous
units.

Need?
The marketing concept calls for
understanding customers and
satisfying their needs better than
the competitors . But different
consumers have different trends, and
it rarely is possible to satisfy all
customer by treating them alike.

Mass Marketing
Mass marketing refers to
the treatment of the
market as a homogeneous
group and offering the
same marketing mix to
all customers. It allows
economies of scale to be
realized through mass
production, mass
distribution, and mass
communication.

DrawbackCustomer needs
and preferences
differ and at the
same offering is
likely to be viewed
as optimal by all
customers.

Micro Marketing
Micro marketing recognizes the diversity of
customers and does not try to please all of
them with the same offering.
Objectives:
-Understand the characteristics of the
customers.
-Identify the value & profitability of different
segments.
-Identify the size and characteristics of the
market in which they operate.

Micromarketing
Micromarketing
Products
Products to
to suit
suit the
the tastes
tastes of
of individuals
individuals or
or locations
locations
(complete
(complete segmentation)
segmentation)
Niche
Niche Marketing
Marketing
Different
Different products
products to
to subgroups
subgroups within
within segments
segments
(( more
more segmentation)
segmentation)
Segment
Segment Marketing
Marketing
Different
Different products
products to
to one
one or
or more
more segments
segments
(some
(some segmentation)
segmentation)
Mass
Mass Marketing
Marketing
Same
Same product
product to
to all
all consumers
consumers
(no
(no segmentation)
segmentation)

Levels of Segmentation

Steps in Segmentation
Process
Identify the target market.
Identify expectations of target audience.
Create Subgroups
Identify suitable marketing mix for each
groups.
Find out which group to focus.
Select those segment which offer high
potential.

Stages of Identifying Market

Segments
Surve
y

The researchers conduct explorative interviews

to identify customer motivations, attitude and
behaviour.

Researches applies factor analysis to the data to

remove highly correlated variables & then applies
Analys cluster analysis to create a specified number of
is
maximally different segments.

Profili
ng

Each cluster is profiled in terms of its

distinguishing attitudes, behaviour, demographics
,psychographics, and media patterns.

Market Segmentation of:

Consumer Market
and
Business Market

Bases for Segmenting Consumer Markets

Two major Approaches to Segmentation are:

Attitudes

Segmenting for Business Markets

Demographic
Demographic

Geographic
Geographic

Situational
Situational Factors
Factors

Benefits of Market
Segmentation
1. One customer group is distinguished from another within a
given market and this enables to decide which segment of
the market should form as target market.
2. Facilitates in-depth study of the characteristics of the buyers.
3. Help the marketing man to develop the marketing programme
on a predictable and reliable base.
4. More suitable marketing offers for a particular segment is
easily developed.
5. Suitable marketing mix is achieved.
6. Due to concentrated efforts most productive and profitable
segments of markets are achieved.
7. Its helps to asses competitors stand in the market.
8. Customer and companies choose each other for mutual benefit
and satisfaction.

Implementing Market Segmentation

Market segmentation in various

industries
SOAP INDUSTRY

LAUNDRY SOAP.
SPECIAL LAUNDRY SOAP.
LOW GRADE TOILET SOAP.
PREMIUM YOILET SOAP.
TOILET SOAPS FOR STORES, OFFICES AND RESTAURANTS.
INDUSTRIAL SOAP.

WATCH INDUSTRY

GEOGRAPHIC LOCATION OF CUSTOMERS.

LIFE STYLE PATTERN.
BASED ON AGE.
BASED ON GENDER.
BASED ON INCOME.

 INDIAN CAR INDUSTRY

ECONOMY SEGMENT
MID-SIZED SEGMENT
LUXURY SEGMENT
SUPER LUXURY SEGMENT

DIFFERENT TYPES OF
SEGMENTATION
PURCHASE OCCASION SEGMENTATION
DIVIDE CUSTOMERS ON THE BASIS OF THE REASON BEHIND THEIR
PURCHASE.

USER STATUS SEGMENTATION

DIVIDE CUSTOMER BASED ON THEIR USAGE OF A PRODUCT OR SERVICE AND THE
PATTERN OF USAGE.

USAGE RATE SEGMENTATION

DIVIDE CUSTOMERS BASED ON THE FREQUENCY OF USAGE OF A PRODUCTOR
SERVICE.
IT DIVIDES THE USER MARKET INTO LIGHT, HEAVY,AND MEDIUM USER GROUPS

LOYALTY SEGMENTATION
DIVIDES CUSTOMERS ON THE BASIS OF THEIR
LOYALTY TOWARDS A CERTAIN PRODUCT OR
SERVICE.

TECNOGRAPHIC SEGMENTATION
IDENTIFICATION OF SEGMENTS BASED ON THE
INTERACTION OF THREE VARIABLES.
THESE ARE ATTITUDE TOWARDS TECHNOLOGY,
APPLICATION OF TECHNOLOGY, AND THE
FINANCIAL POSITION OF THE CONSUMERS.

POSITIONING
POSITIONING IS THE ART OF DESIGNING COMPANYS
OFFERING AND IMAGE TO OCCUPY A DISTINCTIVE
PLACE IN THE TARGET MARKETS MIND
THE POSTION OF BRAND IS THE PERCEPTION IT BRINGS
ABOUT IN THE MIND OF THE TARGET CUSTOMER.

PRINCIPLES OF POSITIONING
IT IS BETTER TO BE FIRST THAN TO BE LATE.
IN CASE, IT IS NOT THE FIRST, THEN THE COMPANY
SHOULD BE ABLE TO CREATE A NEW CATEGORY BY
MAKING AT LEAST A SMALL CHANGE IN THE MARKETING
MIX ELEMENTS.
IT IS IMPORTANT TO UNDERSTAND THE POSITION AND
STRATEGIES OF THE COMPETITORS.
POSITIONING USING AN EASY NAME. EG:L G.

POSITIONING ERRORS

UNDER POSITIONING.
OVER POSITIONING.
CONFUSED POSITIONING.
DOUBTFUL POSITIONING

POSITIONING STRATEGIES

ATTRIBUTE POSITIONING.
BENEFIT POSITIONING.
USE OR APPLICATION POSITIONING.
USER POSITIONING.
COMPETITOR POSITIONING.
PRODUCT CATEGORY POSITIONING.
QUALITY OR PRICE POSITIONING.
POSITIONING IN RTELATION TO A TARGET MARKET.

HOW TO POSITION THE

BRAND
Perceptual
Mapping
This technique involves studying the consumers perception
of the product and competitors brands and based on it
identifying the vacant slots.
This involves
1. Studying the ideal product perception studying both
tangible and intangible attributes that a customer look while
buying a product.
2. Get the customers to rank these attributes in the order of
importance to them.
3. Customers knowledge of the competitors brands.
4. Based on these assessment of competitor brands on the

COMMON POSITIONING STRATEGIES

IN THE CONSUMER DURABLE SECTOR
1. Benefit or use positioning:-The positioning strategies adopted by
consumer durable companies depend a lot on usage , economy and
corporate identity of which a well established brand surely projects
the identity of the product in terms of which corporate house the
product is form.
2. Competitor related positioning:-This is the strategy of placing a
firms brand next to the leader in the market and trying to uproot it on a
specific tangible variable.
3. Lifestyle positioning:-A firm could even position the brand as a
lifestyle contemporary or futuristic.
4. Positioning by corporate identity:-This type of positing is seen very
much with consumer durables when a tried and trusted corporate
identity .
5. Surrogate positioning:- Here the product cant be positioned
differently on the basis of attributes but differentiated by positioning
them on the surrogates for the attributes.

POSITIONING PARADIGMS
Monopolistic competition prevails in the contemporary markets. Product
differentiation and price differentiation are the main features of
monopolistic competition. The marketer must reinterpret the product
differentiation as a meaningful consumer benefit.
Competiti
ve
advantag
e

Compa Competit
ny
or
standin standing
g

Importan
ce of
imprvg
std

Affordabili Competito Recomty &

rs ability
mended
speed
to imprv
action
standing

Technolog 8
y

Hold

Cost

Monitor

Quality

Monitor

Service

Invest

POSITIONING OF SERVICES
Because of intangibility and other features associated with the services,
consumers find that differentiation of services is more difficult and complex.
Positioning involves giving the target market segment the reason for buying
the services and thus underpins the whole marketing strategy.

Some specific strategies are:-

1. Attribute positioning:-A service provider positions itself based on an attribute or a

feature.
2. Benefit positioning:-Most service providers resort to benefit positioning as the general
psyche of the customer is to analyze the benefit that he derives by using a particular
service.

Contd
3.Use or application positioning:-The service is positioned
as the best for a certain application.
4.User positioning:-The service is positioned for a specific
target group of users.
5.Competitor positioning:-The service is positioned by the
provider against a competitors service offering.
6.Catogory positioning:-The service provider positions
itself as the category leader and becomes synonymous
with the service.
7.Quality or price positioning:-A service is positioned in

N
O
I
T
A
G
I
N
T
I
N
T
E
E
R
G
E
R
F
A
F
I
T
D

D
N

DIFFERENTIATION
VARIABLES

CHARACTERSTICS OF
DIFFERENTIATION STRATEGIES

DIFFERENTIATION IN
SERVICES

SERVICES
DIFFERENTIATING
VARIABLES..

BASIC SERVICE PACKAGE(BSP)

QUALITY AND COMPOSITION OF FACILITATING SERVICES
.QUALITY AND COMPOSITION OF SUPPORTING SERVICES

ACCESSIBILITY
THE NUMBER OF CONTACT PERSONNEL
OFFICEC HOURS
TIME TAKEN TO PERFORM TASKS
LOCATION OF THE OUTLETS
EXTERIOR AND INTERIOR OF SERVICE OUTLETS
TOOLS,EQUIPMENT AND DOCUMENTS
CO-CUSTOMERS

INTERACTION
PHYSICAL AND TECHNICAL RESOUCES
SYSTEMS
EMPLOYEES
OTHER CUSTOMERS

CUSTOMER PARTICIPATION
CUSTOMER
KNOWLEDGE
ABILITY
WILLINGNESS
INFORMATION SUPPORT

TANGIBLES
INTERIOR
EXTERIOR
TOOLS
EQUIPMENT
FURNITURE

SEVICE CHANNEL
EXPERTISE
PERFORMANCE
CHOICE
COVERAGE

SERVICE IMAGE
CORPORATE IMAGE
LOCAL IMAGE

SERVICE RECOVERY
TIME
EMPATHY

SERVICE PERSONNEL
COMPETENCE
COURTESY
CREDIBILITY
RELIABILITY
RESPONSIVENESS
COMMUNICATION
EMPATHY