M D01

Marketing Management
Session 3

Deepak Sundrani
 Developing strategies
for Growth and Downsizing.
One useful devise for identifying growth
opportunities is the product / market
expansion grid ( Ansoffs matrix)
Product / market expansion grid
Ansoffs matrix

Existing New
Product products

Existing Market Product

Markets penetration Development

New Market
Diversification
markets Development
 Marketing Strategy
The marketing logic by which the business
unit hopes to achieve its marketing
objectives.
 Steps in designing
customer driven marketing strategy

Step 1 Market Segmentation

Step 2 Market Targetting
Step 3 Differentiation
Step 4 Positioning

STP
Market
Segmentation
Dividing the market
into smaller groups
with distinct needs,
characteristics, or
behaviours who
might require
separate products
or marketing mixes.
Mass-marketing and segmentation
In mass-marketing, the seller engages in mass
production, mass distribution and mass
promotion. (One type of product only)

A market segment consists of a group of

customers who share a similar set of wants.

A marketers task is to identify the segments and

decide which one(s) to target
 Bases for segmenting
Consumer markets
1) Geographic segmentation
2) Demographic segmentation
3) Psychographic segmentation
4) Behavioural segmentation
Geographic Demographic Psychographic Behavioral
Region, Age, Social class Occasions,
City or Gender, Lifestyle, Benefits
metro size, Family size, Personality. sought,
Density, Family life User status,
Climate cycle, Usage rate,
Income, Loyalty
Occupation, status,
Education, Readiness
Religion, stage
Race, Attitude
Generation, towards
Gen X : 1965-76 product
Gen Y : 1977-94
Nationality
Using Multiple Segmentation
Bases
Example : seller of Barbie Dolls

Segmentation : Little girls

+
whose father is Rich
Using Multiple Segmentation
Bases
Example : Athshri
1 BHK = 50 Lakhs

Segmentation :
Age : Senior citizens
+
Income : Rich
 Requirements for Effective
Segmentation
1) Measurable
2) Accessible
3) Substantial
4) Differentiable
5) Actionable
MARKET TARGETTING
 Market Targetting
Consists of evaluating each
market segments attractiveness and
select one or more market segments
to enter.
Porters 5 Force model
 Market Targetting
1) Undifferentiated Marketing
(mass marketing) example : Electricity, Steel
2) Differentiated marketing
(segment marketing) , multiple brands
3) Concentrated marketing
(niche marketing) small segments
4) Micromarketing
(local marketing and individual marketing)
 Positioning
Product position
The way the product is defined by
consumers on important attributes the
place the product occupies in consumers
mind relative to competing products.
Example : Pizza
 Example

Dominos pizza ( delivery in

30 minutes, so order home delivery)

Pizza hut (eat there)