Segmentation,

Targeting,
Positioning

STP

https://www.youtube.com/watch?v=RcRFBVIvJHw

Market Segmentation
Dividing a market into smaller groups with distinct needs,
characteristics , or behavior that might require separate
marketing strategies or mixes
Targeting
The Process of evaluating each market segments attractiveness
and selecting one or more segments to enter
Differentiation
Actually differentiating the market offering to create superior
customer value
Positioning
Arranging for a market offering to occupy a clear, distinctive, and
desirable place relative to competing products in the mind of
target consumers

Why Segment the Market?

Facilitates Right Choice of Target Market
Facilitates Effective Tapping of the Chosen Market
Makes the Marketing Effort More Efficient and
Economic
Helps Identify Less Satisfied Segments and
Concentrate on Them
Benefits the Consumer as Well

Markets can be Segmented Using Several Bases

Demographic Segmentation

Age
Tweens, a new segment based on age
Gender
Women as a market segment for apparels
Adidas targets women in India
Purchasing capacity, a major base in
demographic segmentation

Buying Behaviour Segmentation (contd)

Benefit segmentation

Example of calorie watchers and health seekers: Diet Horlicks,

Diet Pepsi, Whole Wheat/ Brown Bread, Sugar Free

Volume segmentation

Quantity of purchase- actual or potential- is the base -CLV

Consumers segmented as light or medium or heavy users
Consumers segmented as bulk buyers and small scale buyers
Regular buyers and one-time buyers

Purchase occasion
Segmentation based on the specific occasion on which the
consumers buy the product

Attitude towards the product

Enthusiastic buyers, indifferent buyers, negative minded buyers

Loyalty to the brand

Extent of brand loyalty, another useful base

Buying Behaviour Segmentation is especially useful with new

products

Multi-Level Segmentation: A Market Can and Must be

Segmented Using Several Bases
The various bases discussed earlier are not mutually
exclusive; it is not an either or situation
Since customer characteristics stand distributed over
several variables, any market can be segmented through
several variables/ bases. They can also be used in
combinations
Multi-level segmentation enables sharper targeting and
choice of sharply focused marketing mix
Example of GM. GM identified 40 different customer needs in
passenger cars and correspondingly 40 different market
segments in which it would compete with its offers
http://www.srds.com/frontMatter/ips/lifestyle/reports/prizm.
html

Source: KPMG

Illustration: The time-starved consumers are ready to

pay a premium for better services and value
convenience

Selecting Target Market Segments

Indiv. Mrkting- Dell

Customized Vehicles
Service Industry : HNI

http://www.booktopia.com.au/
Gameday Boots
http://www.gamedayboots.com/#W10=|0

Unilever

Choosing a Targeting Strategy

Undifferentiated : Fords Model T

Firms resources limited------- Concentrated
marketing : Nycil
Multisegment Targeting : Horlicks

One-to-One Marketing : HNI customer

Choosing the Target Market

Evaluating the two segments

Is it sizeable?
Is it growing?
Is it profitable?
Is it accessible?
Is it compatible with the firms ambitions,
resources and capabilities?

Segment Attractiveness Analysis

Market Attractiveness (Size/Adaptability of consumer/Consumer resources)

Competitive Attractiveness (Entry barrier, Pioneer image, Potential & existing competition)

Channel Attractiveness

Internal Attractiveness (Core Competencies )

Organizational Goals

Market Gridding
Market Gridding means splitting the market based on the usage of the
product.

Home

Restaurant

Ice-Cream
Parlor

Factory

Positioning Statement

A positioning statement should identify the customer,

define the service or product, identify the benefit,
and communicate why the benefit is differentiated
from the competition.

Positioning
Positioning is not what you do to a product; it is
what you do to the mind of a prospect.
Ries and Trout (1972)

TWO-WHEELER GEARED VEHICLES

DIFFERENTIATION

Identifying Possible Value Differences & Competitive Advantage

Product (Features, Performance, Style, Design) Services

Channel, People, Image

Choosing the Right Competitive Advantage

How many differences to promote?- USP/ 2 or
More

Which Differences to Promote**

Selecting an Overall Positioning Strategy

Value Proposition

Which Differences to Promote**

Important

Communicable

Distinctive

Superior

Preemptive

Affordable

Profitable

COMPARING TWO DIFERENTIATION

The Westin Stamford was the world's
Tallest hotel building, Singapore
rising to a height of 226 metres
(741 ft).

The Marina Bay Sand Hotel

with Infinity pool -Singapore

POSSIBLE VALUE PROPOSITIONS

The price difference

exceeds the actual
increment in quality

Imitators,
Economic
Downturn

FILL IN THE BRANDS

Benefits

Price

POSITIONING STATEMENT

PUTTING A BRAND IN DIFFERENT CATEGORY

https://www.youtube.com/watch?v=3psVH8p9ia8

TYPES OF POSTIONING

Attribute- Based

Emotion-Based

Attribute/Emotion

ATTRIBUTES/EMOTION

Tangible

INTANGIBLE

Ingredients

Prestige

Style

Image

Technology

Sentiments

Service
Support

Packaging

POSTIONING -EXERCISE
Attribute
Colgate Dental Cream
Colgate Total 12
Colgate Max Fresh
Colgate Kids Toothpaste

Colgate Fresh Energy Gel

Colgate Herbal
Colgate Cibaca Family
Protection
Colgate Advanced
Whitening
Colgate Active Salt

Emotion

https://www.youtube.com/watch?v=OAEH3v_2r2g
Shopper Stops Bengali

SEGMENTATION B2C EXERCISE

TVS Apache Ex-showroom Price : INR 70,695 to

72,800 in Delhi
Bajaj Pulsar 220F Price Range: INR 82,023 to
82,023
Bajaj Discover Price Range: INR 48,500 to
50,499/Bajaj Platina 100 Price Range: INR 39,000
Yamaha Neo (50 CC) Price : Rs 30000/Mahindra Duro Ex-showroom Price : INR 45,100
in Delhi
TVS XL HD Mopeds Price In India: Rs. 30,588 /INR.

SEGMENTATION B2C EXERCISE

SEGMENTATION B2C EXERCISE

Source : Marketing Management : Venugopal

SEGMENTATION B2C EXERCISE

PRODUCT LEVEL

CREATE PRODUCT LEVEL

FURNITURE COMPANIES
BAKERY

LEVELS IN FURNITURE

CORE

EXPECTED

AUGMENTED

REVERSE POSITIONING

EXAMPLE : REVERSE POSITIONING

IKEA Withholds

1. No in-store sales assistance.

2. Limited variety ---

IKEAs furniture comes in just four basic styles

Scandinavian (sleek wood), modern (minimalist), country (neotraditional), and young Swede (bare bones)across three basic price
ranges (high, medium, and low).

3. No delivery.
4. Substandard quality.. IKEA openly acknowledges that its
furniture is not designed to last forever

5. No high-touch sales consultants, enormous product selections,

door-to-door delivery services, and furniture built to last a
lifetime.

IKEA OFFERS..

IKEA shoppers can drop their children off at a beautifully-designed,

company-operated daycare center while they shop. They can stop for
lunch at a delightful caf that serves delicacies such as smoked salmon,
lingonberry tarts, and Swedish meatballs. They can purchase items
besides furniturebrightly-colored housewares and cleverly-designed
toys that are not available at other retailers.
IKEA Retail environment is combined with a product selection that, despite
the limited number of choices, conveys a particular Scandinavian
styleone that communicates simplicity, clarity, and a lack of
pretentiousness all at once.
In short, IKEA has shunned the gloomy, warehouse-like atmosphere associated with most
discount furniture retailers in favor of a cheerful, airy, ultra-modern look-and feel. This
Euro-flavored retailtainment environment has enabled IKEA to create significant
psychological distance from other low-priced stores.

REPOSITIONING

CLASSIC EXAMPLE : REPOSITIONING

https://www.youtube.com/watch?v=uJGnar8vNAk
Changed positioning
https://www.youtube.com/watch?v=lhrga6yjPHk

PERCEPTUAL MAP
1. Denotes the brands perceived similarity by the consumers.
2. Denotes the brands that would be highest competition with
each others.
3. Attributes have to be identified Important to the consumer
4. Competitors have to be indentifies- Which consumers think
5. Change in attributes leads to change in positioning of the
brands on the map
6. Can be used for
1.
2.
3.
4.
5.
6.

Market Structure
Identify Segment or targets
Difference between Segments of consumer
New product opportunities
Improve areas for existing products
Improve perception of the products

PERCEPTUAL MAP

Exercise

Create a perceptual map of any product category .