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Recap
• What is market segmentation and why it is done?
• What are the different levels of market
segmentation? Four – Segments, Niche, Local,
Individual
• How can a company divide a market into
segments? Four Bases – Geographic,
Demographic, Psychographic and Behavioural.

RAJNISH, IMS, DAVV 1

Objectives
• How should a company choose the most
attractive target markets? Targeting.
• What is positioning?
• Identify Differentiating Attributes
• Choosing & Communicating Effective
Positioning

RAJNISH, IMS, DAVV 2

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Market Targeting

• Deciding which segments and how many

segments to enter.
• Identify and profile distinct groups of buyers who
differ in their needs and preferences.
• Select one or more market segments to enter.
• Establish and communicate the distinctive benefits
of the market offering.

RAJNISH, IMS, DAVV 3

Evaluation Criteria
Size, purchasing power,
Measurable profiles of segments can
be measured.

Segments must be large or

Substantial profitable enough to serve.

Segments can be
Accessible effectively reached and
served.

Segments must respond

Differential differently to different
marketing mix elements &
actions.

Must be able to attract and

Actionable RAJNISH, IMS, DAVV serve the segments. 4

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Five Patterns of Target Market

Selection
Single-segment Selective Product
concentration specialization specialization
M1 M2 M3 M1 M2 M3 M1 M2 M3
P1 P1 P1
P2 P2 P2
P3 P3 P3
Market Full market
specialization coverage
M1 M2 M3 M1 M2 M3
P1 P1
P = Product
M = Market P2 P2
P3RAJNISH, IMS, DAVV P3 5

Positioning
Act of designing the company s
offering and image to occupy
a distinctive place in the mind of
the target market.

It is the art of shaping customer

perceptions.
Unique Selling Proposition
Decisions on Creating differentiation and
Communicating differentiation
RAJNISH, IMS, DAVV 6

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Differentiation Strategies
• Product
• Personnel
• Channel
• Image

RAJNISH, IMS, DAVV 7

Product Differentiation

Conform-
Fea- Perfor-
Form Quality ance
tures mance
Quality

Dura- Relia- Repair-

Style Design
bility bility ability

RAJNISH, IMS, DAVV 8

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Product (Services)
Differentiation

Ordering Customer
Installation

Miscellaneous
Ease Consulting

Services
Customer Maintenance
Delivery
Training & Repair

RAJNISH, IMS, DAVV 9

Personnel Differentiation

Competence
Courtesy
Credibility
Reliability
Responsiveness
Communication

RAJNISH, IMS, DAVV 10

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Channel Differentiation

Coverage
Expertise
Performance

RAJNISH, IMS, DAVV 11

Image Differentiation
Media Atmosphere

Symbols

Events

RAJNISH, IMS, DAVV 12

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Identity and Image

Identity: Image:
The way a The way the
company aims to public perceives
identify or the company or its
position itself products

RAJNISH, IMS, DAVV 13

Important

Profitable Distinctive

Differences Worth
Establishing
Affordable Superior

Preemptive

RAJNISH, IMS, DAVV 14

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Value Propositions
• Domino’s
– A good hot pizza, delivered to your door within
30 minutes of ordering, at a moderate price

RAJNISH, IMS, DAVV 15

Writing a Positioning Statement

Mountain Dew: To young, active

soft-drink consumers who have
little time for sleep, Mountain Dew
is the soft drink that gives you
more energy than any other brand
because it has the
highest level of caffeine.

RAJNISH, IMS, DAVV 16

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Defining Associations
Points-of-difference Points-of-parity (POPs)
(PODs) • Associations that are
• Attributes or benefits not necessarily unique
consumers strongly to the brand but may
associate with a brand,
be shared with other
positively evaluate,
and believe they could brands
not find to the same
extent with a
competitive brand
RAJNISH, IMS, DAVV 17

Consumer Desirability Criteria for

PODs
• Relevance
• Distinctiveness
• Believability

RAJNISH, IMS, DAVV 18

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Deliverability Criteria for PODs

• Feasibility
• Communicability
• Sustainability

RAJNISH, IMS, DAVV 19

Examples of Negatively Correlated

Attributes and Benefits
• Low-price vs. High • Powerful vs. Safe
quality • Strong vs. Refined
• Taste vs. Low calories • Ubiquitous vs.
• Nutritious vs. Good Exclusive
tasting • Varied vs. Simple
• Efficacious vs. Mild

RAJNISH, IMS, DAVV 20

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Addressing Negatively Correlated

PODs and POPs
• Present separately
• Leverage equity of another entity
• Redefine the relationship

RAJNISH, IMS, DAVV 21

Positioning
• How many differences to promote?
• How to promote?
• Effective marketing communication
strategy.

RAJNISH, IMS, DAVV 22

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RAJNISH, IMS, DAVV 23

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