process of identifying a group of homogenous customers with similar needs, characteristics and behavior. Levels of market segmentation Segment marketing Niche Marketing Local Marketing Individual Marketing Patterns of marketing Segmentation Homogenous Preference Diffused Preference Clustered preference Procedure Survey stage Analysis stage Profiling stage Basis for segmenting consumers Geographic Region Density Climate EX Amul which first marketed its product in Gujarat
Demographic
Age, Family size, Family life cycle, Gender, income, P&G ARIEL and Tide Surf and surf excel Occupation , education, religion Race, generation, nationality and social class Ex- cosmetic manufacturers Gender DEO for men and women by same company Behavioral Segment Occasion Asmi Diamonds- Buy diamond for diwali, Birthday Benefits Close-up fresh breath, Pepsodent 24 hr protection Usage rate Big Bazaar Segments consumer on volume of monthly purchase to give discounts Loyalty status AIR INDIA- frequent flier plan Retail outlets loyalty programs Readiness Stage Attitude towards the product Psychographics Segmentation Lifestyle Ashirvad ready to eat package foods Personality
Values Raymonds the complete man Multi-attribute Segmentation Age, Family size, Family life cycle, Gender, income Occasion Benefits User status Region
Target Marketing A market segment must be Measurable Substantial Accessible Differentiable Actionable Selecting the market segment Single segmentation concentration Ex woodland shoes Selective specialization Anchor tooth paste Product specialization M&M and Bajaj Market specialization Pearsons publication of management books Full Market coverage PEPSI, Coke, Bata Other issues Segment Interrelationship Segment by segment invasion plans Megamarketing Intersegment cooperation
Positioning Positioning is the act of designing the companies offering and image to occupy a distinctive place in the mind of the target market
Building value proposition Define the customer value Building the customer value hierarchy Deciding the customer value package
Product differentiation Differentiation is designing a set of meaningful differences to distinguish the companys offering from competitors offering Developing and communicating a media strategy Important Distinctive Superior Preemptive Affordable Profitable
Four positioning errors Under positioning Over positioning Confused positioning Doubtful positioning Positioning strategy Attribute positioning Benefit positioning Close-up fresh breath, Pepsodent 24 hr protection Use or application positioning User positioning Competitor positioning Product category positioning Quality or price positioning
Positioning strategy Life style positioning Ashirvad ready to eat package foods Positioning by personality of celebrity Provogue and Fardeen Khan Benefit positing
Headline: Charge up your workplace Subhead: Tencel A 100. 440 V Collection Bodycopy: What's new? Allen Solly's Tencel A100 fabric absorbs colour like no other. Making it the brightest shirt you'll ever wear. In 35 different patterns!
Product category positioning
Subhead: To Indian housewives, our salt always come first. Bodycopy: Tata salt was rated the most trusted brand by housewives across India, in a recent Brand Equity-ORG Marg Survey. Thank you for the faith. Baseline: Maine desh ka namak khaya hai!