MARKET SEGMENTATION

TARGET MARKET
IT IS THE GROUP OF CUSTOMERS (PEOPLE OR ORGANISATION ), FOR WHOM THE SELLER DESIGNS A PARTICULAR MARKETING MIX

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TARGET MARKETING
IT IS A PROCESS OF SELECTING ONE OR MORE MARKET SEGMENTS AND THEN DEVELOPING A PRODUCT / OFFER WHICH WOULD BE AIMED AT THOSE SELECTED SEGMENTS

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FACTORS FOR EVALUATION OF MARKET SEGMENTS

OVERALL ATTRACTIVENESS OF SEGMENT IN TERMS OF

SIZE GROWTH PROFITABILITY SCALE ECONOMICS RISK

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OBJECTIVES OF THE COMPANY AVAILABILITY OF RESOURCES LEVEL OF COMPETENCY

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PATTERNS OF TARGET MARKET SELECTION
SINGLE SEGMENT CONCENTRATION M1 M2 M3 P1 P2 P3
ADVANTAGE: STRONG MARKET PRESENCE DISADVANTAGE:COMPETITION, CHANGE IN TASTE
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SELECTIVE SPECIALIZATION M1 M2 M3 P1 P2 P3
ADVANTAGE : DIVERSIFY FIRM S RISK

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PRODUCT SPECIALIZATION M1 P1 P2 P3
ADVANTAGE: BUILD STRONG REPUTATION IN A PRODUCT AREA DISADVANTAGE: CHANGE IN TECHNOLOGY ?

M2

M3

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MARKET SPECIALIZATION M1 P1 P2 P3
ADVANTAGE : FIRM GAINS STRONG REPUTATION IN SERVING
ONE CUSTOMER GROUP DISADVANTAGE: CUT IN BUDGET ALLOCATION

M2

M3

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FULL MARKET COVERAGE M1 P1 P2 P3 ONLY VERY LARGE FIRMS CAN ADOPT THIS STRATEGY ( 2 WAYS ) M2 M3

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UNDIFFERENTIATED MARKETING

IGNORE SEGMENT DIFFERENCE GO AFTER WHOLE MARKET WITH ONE OFFER MASS DISTRIBUTION MASS ADVERTISEMENT

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DIFFERENTIATED MARKETING

OPERATE IN SEVERAL MARKET SEGMENTS DESIGN DIFFERENT PRODUCT FOR EACH SEGMENT CREATES MORE TOTAL SALES BUT ALSO INCREASES THE COST OF BUSINESS

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POSITIONING
IT IS THE ACT OF DESIGNING THE COMPANYS OFFERING AND IMAGE TO OCCUPY A DISTINCTIVE PLACE IN THE MIND OF THE TARGET MARKET

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MARKET SEGMENTATION
MARKETING STRATEGY IS BUILT ON THE PRINCIPLES OF STP

SEGMENTATION TARGETING POSITIONING

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A COMPANY DISCOVERS DIFFERENT NEEDS AND GROUPS IN THE MARKET PLACE, TARGETS THOSE NEEDS AND GROUPS THAT IT CAN SATISFY IN A SUPERIOR WAY, AND THEN POSITIONS ITS OFFERINGS SO THAT THE TARGET MARKET RECOGNIZES THE COMPANYS DISTINCTIVE OFFERING AND IMAGE
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MARKET SEGMENTATION
STP STRATEGY SEGMENTATION DONE ON THE BASIS OF

CULTURAL & SOCIAL VALUES PREFERENCES INCOME PATTERNS BEHAVIOUR CLASS EDUCATION LEVEL OCCUPATION USAGE PATTERN

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SEGMENTATION
IDENTIFY SEGMENT VARIABLE SEGMENT THE MARKET

TARGETING
EVALUATE THE SEGMENT EVALUATE ATTRACTIVENESS SELECT THE TARGET SEGMENT

POSITIONING
IDENTIFY POSITIONING CONCEPT SELECT THE CONCEPT DEVELOP & COMMUNICATE THE CONCEPT
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DEVELOP THE PROFILE

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PRODUCT POSITIONING

IS WHAT YOU DO TO THE MIND OF THE PROSPECT YOU CREATE & BUILD UP BRAND EQUITY

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MARKET SEGMENTATION

IT IS THE PERCEIVED VALUE OF PRODUCT POSITION IN THE MINDS OF THE CONSUMERS IT IS BASED ON USP

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EXAMPLES OF USP

FEVICOL .. NATARAJ PENCIL

HIGHLY ADHESIVE STURDY GOOD LEAD , DARKER / SMOOTHER WRITING SLEEK APPEARANCE, COLORS, VARIETY

SWATCH.

MARUTI

COMFORT , FUEL EFFICIENCY, ECONOMY

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MARKET SEGMENTATION
EXERCISE 1
CAN YOU THINK OF USPs OF FIVE PRODUCTS OR SERVICES? WRITE DOWN HOW THE COMPANIES USE THESE USPs.

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EXERCISE 2
A REPUTED MANUFACTURER OF READY MADE GARMENTS HAS APPROACHED YOU TO MARKET THEIR NEW RANGE OF DESIGNER SHIRTS . EXPLAIN HOW YOU WILL USE STP STRATEGY TO REACH THE MARKET

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EXERCISE 3
SHOPPER S STOP WOULD LIKE TO USE YOUR EXPERTISE TO MARKET THEIR NEW RANGE OF DESIGNER DUPATTAS. HOW WILL YOU USE THE STP STRATGEY ?

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