4.

Segmentation, Targeting &

Positioning
BOM
 Why STP
• Focus of marketing is to meet the needs of
individual customer
• Markets are fragmented in terms of the needs
• Marketers can create many segments but not
all the segments are profitable
• How to position companies product in the
mind of the customer so that, ultimately it
becomes customers first choice
 Why STP

Segmentation

Creating
Differenti Value for Targeting
ation targeted
customers

Positioning
 Market Segmentation
• Market Segment A sub group of people or
organizations sharing one or more
characteristics that cause them to have similar
product needs
• Market Segmentation The process of dividing
a market into meaningful, relatively similar, &
identifiable segments or groups
 Segmentation
• Criteria for successful segmentation
– Substantiality – Should make commercial sense
– Identifiability & Measurability
– Accessibility – Reached & served effectively
– Responsiveness – If customers from different
segments responds same to the marketing mix
then no need of segmentation
– E.g. Price conscious customers
 Bases for market Segmentation
• Demographic
– Age Wipro Babysoft.flv ; HDFC Pension plans.flv
– Family Life Cycle
– Gender Fair and Handsome.flv ; Kellogg's Special
K.flv
• Income – Economy, Business, Charter planes
• Total Income
• Disposable Income
• Discretionary Income
– Occupation
– Education & etc
 Bases for market Segmentation
• Psychographic
– Lifestyles
• Harried Hurrier – No time
• Young-at-Hearts – Had Time, try new products
• Fastidious – Hygiene & Tidiness
• Begrudgers – Shopping out of obligations
• Perfect Wife & Mother – Concerned about balance diet
• Obsessive Fad-Followers – Dominated by brand image
& current trends
 Bases for market Segmentation
• Psychographic
– Attitudes
– E.g. Male cosmetics – Among males their may be a
significant segment of the population that posses
an attitude that it should be acceptable for men to
use cosmetics
– It can be done by appealing to wives / girlfriends
as key influencers on the decision to purchase
– Sprite Guitar Ad.flv
 Bases for market Segmentation
• Psychographic
– Occasions
– Dairy milk pahli tarikh he advertise.flv
– Cadbury - Diwali.flv
– Cadbury Dairy Milk Valentine Special.flv
– Raksha Bandhan - Cadbury Celebrations.flv
 Bases for market Segmentation
• Psychographic
– Benefit sought
• Group buyers according to different benefits
• Requires finding the major benefits people look
• Haggar Wrinkle-Free Cottons_Pants.flv
• New Active Wheel.flv
– Usage rate
• Light, Medium & Heavy product users
 Bases for market Segmentation
• Psychographic
– User status – Nonusers, Ex-users, Potential users,
first time users & regular users
– Loyalty status – Degree of loyalty
• Multiple bases of segmentation
 Bases for Segmenting Business
Markets
• Size of firm – Small, Medium, Large
• Formality of buying processes – Easy or
complex
• Industry sector – IT, Manufacturing, Retail,
Hospitality, Financial Services
 Evaluation of Market Segment
• Size of segment
• Growth prospects
• Profitability
• Competition for the segment
• Fit with company objectives
 Selecting Target Market Segment
• Target Market A set of buyers sharing
common needs or characteristics that the
company decides to serve
• Marketing Targeting Strategies
– Undifferentiated (Mass)
– Differentiated (Segmented) Marketing
– Concentrated (Niche) Marketing
 Undifferentiated Marketing
• A market coverage strategy in which a firm
decides to ignore market segment differences
& go after the whole market with one offer
 Differentiated Marketing
• A market coverage strategy in which a firm
decides to target several market segments &
designs separate offers for each
• HUL Eight varieties of soaps
• P&G markets 6 different laundry detergents
• Maruti separate car for every segment
 Concentrated Marketing
• A market coverage strategy in which a firm goes
after a large share of one or a few segments or
niches
• Strong market position because of greater
customer knowledge
• Can be more effective & efficient
– Uzazi
– So Whatttttt….
– Agri-Tourism
– Mitti Cool
– Zappos
 Differentiation & Positioning
• Product position The way the product is
defined by consumers on important attributes
– The place the product occupies in
consumers’ minds relative to competing
products
• Positioning Maps
– luxury Car Market
Differentiation & Positioning Strategy
• Two or more firms go after the same position
then firms has to differentiate its offer by
building a unique bundle of benefits
• Brand positioning must serve the needs &
preferences of well defined target markets
1. Company must effectively communicate &
deliver the chosen position to the market
 Three steps of positioning
1. Identifying a set of differentiating
competitive advantages upon which to build
a position
• An advantage over competitors gained by
offering greater customer value, either
through low prices or by providing more
benefits that justify higher prices
• Areas of differentiation:
– Product, services, channels, people, or image
 Three steps of positioning
2. Choosing the right competitive advantages,
and selecting an overall positioning strategy
• How many differences to promote
– USP
• Which Differences to promote
– Important - Preemptive
– Distinctive - Affordable
– Superior - Profitable
– Communicable
 Three steps of positioning
• Selecting overall positioning Strategy
Price More The same Less
Benefits

More More for More for More for

more the same Less

The same The same

for less

Less Less for

much Less
 Three steps of positioning
3. Developing a positioning statement
To (Target segments & need) our (brand) is
(concept) that (point of difference)
“To busy, mobile professionals who need to always
be in the loop, BlackBerry is a wireless
connectivity solution that gives you an easier,
more reliable way to stay connected to data,
people, & resources while on the go”
• Communicating & delivering the chosen position
Thank You