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Companies cant connect with all the customers in a large, board or diverse market

But they can divide such markets into groups of consumers or segments
A company then needs to identify which market segment (s) it can serve effectively This decision requires a keen understanding of consumer behavior & careful strategic thinking

Segmentation

Dividing the market into certain groups

Selecting market Segment(s)

Targeting

Positioning

Creating a unique image in the minds of the consumers

MASS MARKETING

SEGMENT MARKETING

NICHE MARKETING

INDIVIDUAL MARKETING OR CUSTOMIZATION

The starting point of segmentation begins with mass marketing In mass marketing the buyer offers one product to the whole market Henry Ford epitomized this strategy when he offered the Model-T Ford in one color black.

Coke also used this strategy when it sold only one kind of Coke in 6.5 ounce bottle
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Dividing the market into certain segments & clusters

Many marketers actually believe that Market segmentation on the basis of demand concept lead to the evolution of Marketing Concept
Market Segmentation can be done on the basis of several factors which will be discussed later

A niche refers to a very narrowly defined customer group seeking distinctive benefits
Marketers usually identify niche by dividing the market segments in to sub-segments

Increase in competition & change in consumers demand pattern has forced many companies to adopt niche marketing strategy A prime example of niche marketing is Star Sports, Ten Sports launching Channels such as Star cricket, Ten Cricket, etc.
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It is the ultimate level of segmentation It is also called customized marketing or one to one marketing
In modern day business customization is the name of the game

It is believed to the hottest topic in the modern day marketing

Geographic Region Urban/Rural/Sub-urban

Demographic Age Gender Income Socio-economic group

Behavioral Rate of Usage Benefits Sought Loyalty Status Readiness to Purchase

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Dividing the market into different geographical units such as nations, states, regions, cites, etc. Geographic Segmentation of the market into rural & urban areas is quite popular in India

Rural markets differ from urban markets on a number of parameters such as literacy levels, income, spending power, etc.
Geographic segmentation can also be done based on the product preference of the consumers.

E.g. Consumers in southern part of India like TamilNadu prefer coffee, where as people living in the northern part of the country prefer tea
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Project- Shakti by HUL Project Sikhsa by P &G Phone Ladies

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HIGHER CLASS

MIDDLE CLASS

LOWER CLASS
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Lower Class is the one which is financially weak So why should we develop any product for them????

Hold on they are the base of our society also

If they go down the whole society goes down

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It is probably the most widely used segmentation

& the most popular base

for market

Segmenting the market on the basis of demographic factors such as Age Sex
Fair & Lovely Fair & Lovely for Men

Income
Nirma Washing Powder launched at lowest price Shampoos, Hair Oil, etc. launched in pouch & sashes for lower income group However segmentation based on income can be quite tricky
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Johnson & Johnson's Baby Soap Baby Talcum Powder

Bajaj Pulsar Bike for Men Unish Kuri for Teenagers Cartoon Network for Kids

Bajaj Wave DTS-I scooty for women

MTV , VTV for youngsters

In behavioral segmentation marketers look to classify the buyers according to their buying & post purchase behavior

1. 2. 3. 4.

Behavioral Variables Include

Benefits Brand Loyalty

User Status
Usage Rate

On purchase of a product customers look for different kinds of benefits which satisfy their needs

For example the basic function of a car is to provide transportation

But a part form the core benefit the consumers look for additional benefits also such as Additional Attributes

1. 2. 3.

Design & Style

After Sales Service

4.

Economy

Markets can also be divided based on the user status Let us consider the following example of a deodorant Non user : A 10 year old child Potential User : A teenager First Time Users: Teenagers first deodorant used Regular User: Corporate People, College going girls & girls users

1.

2.

3.

4.

5.

Ex Users: Some one who stopped using Deodorants due to some reason like allergy or may be shifted to a substitute product like Perfume

Light User: An average housewife who is not very fashion conscious

Medium Users: Fashion Conscious teen agers who use cosmetics very frequently

Heavy Users: Celebrities or Models etc.

Consumers can be segmented based on their loyalty status Let us discuss it via the following example Hard Core Loyalty :People who use Colgate all the time

Shifting Loyalty: People who shift from Colgate to Close Up & Pepsodent without any consistency Switching Loyalty : People who show no loyalty what so ever & will any brand that is available

A target market is defined as the market segment to which a company is planning to sell its goods

It is the segment that has been identified as the likely customers of the product
Target marketing aims to provide marketing mix at a specific group of customer(s)

Undifferentiated Marketing : One marketing Mix for whole market. E.g. Use and Throw Pens

Concentrated Marketing : One marketing Mix for one market segment only. E.g. JLR for HIG

Differentiated Marketing : Different marketing Mix for different market segments. E.g. Dove, Lirl, Lux, etc.

The modern business environment is very competitive & over communicated

Consumers are constantly bombarded with numerous advertising messages & have plenty of options to buy in almost all product categories There for the marketer must develop a distinct & unique image in the minds of the consumers ( Positioning)
According to Mr. Subroto Sengupta while positioning the marketers should look to answer the following questions Who am I , What am I, For whom am I, Why me

Best Quality

LG Videocon
Least Cost Sony

Most Cost

Ronix

Oscar

Least Quality

Over Positioning Under Positioning Doubtful Position

Companies have successfully used the brand name while positioning

Lux, Surf, Titan, Reebok etc. are prime examples of such positioning
Brand positioning is most successful during product launch

This is probably the most widely used way of positioning In this approach the product is positioned based on its key attributes It is mainly based on What am I

Price Quality Approach is quite a powerful one especially in a growing economy like India Price Quality approach looks to satisfy the consumers via value for money It makes the consumers feel good about a very wise buying decision

Many companies like Nirma, Zenith etc. have adopted price quality approach with great success

In this case the products are positioned based on the target market segement It mainly looks to answer the question For whom am I? Dabur Chyavanprash for all ages Johnson & Johnson baby Soap, Cerelac for Kids

Such positioning is usually seen in case of comparative advertising In India we have seen such positioning in big brand fights between Pepsi & coke; Horlicks & Complan; Hindu & TOI Ethical issues are one of the most important things to be kept in mind while going for such positioning strategies However if used well it can be a big hit Avis- a car rental company used it to great effect against its arch rival Hertz

No matter how well a product appears to be positioned, the marketer may be forced to repositioning in response to new opportunities Over the year we have witnessed many prominent brands go for repositioning However we will discuss about One such brand- Cadbury India A brand which has quietly made chocolates made popular among the adults even before we knew it It used a series of campaigns such

1.
2.

Kid in all of us
Real Taste of Life

3.
4. 5.

Kuch Khaas Hai Zindagi mein

Miss Palam Pur

Shubh Aarambh add

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