General Definition It is the process of grouping buyers into different
categories having common desires and needs.
DEFINITION According to Philip Kotler, It is sub-dividing of a market
into homogenous sub-sects of customers where any subsect may conceivably be selected as a market target to be reached with a distinct marketing mix.
Four steps in creating Customer Driven Marketing Strategy
Segmentation Differentiation
Creating value for Targeting Customers
Targeting
Positioning
Four steps in creating Customer Driven Marketing Strategy
Targeting Select the segment or segments to enter. Differentiation Differentiate the market offering to
create superior customer value. Positioning- Position the market offering in the minds of target customers.
Bases for Segmentation
Geographic world , region, country, climate
Demographic- age , gender, family size, family life cycle, income, occupation, religion, nationality Psychographic- social class, lifestyle, personality
Behavioral- occasions, benefits, user rates
Requirements for Effective Segmentation
Measurable- Size, purchasing power , profile of the
segments can be measured. Accessible- Market can be effectively reached and served. Substantial- Market segments are large or profitable enough to serve Actionable- Effective programs can be designed for attracting and serving the segments.
Market Targeting Targeting is the process of deciding and preparing the
marketing program for market or markets
Evaluating Segments Factors considered for evaluation are: Segment size and growth Segment structural attractiveness Company objectives and resources
Concentrated Marketing Micro Marketing (Local or Individual Marketing)
Undifferentiated Marketing A market coverage strategy in which a firm decides to
ignore market segment differences and go after the whole market with one offer.
Differentiated Marketing A market coverage strategy in which a firm decides to target several market segments and designs separate offers for each.
Concentrated Marketing A market coverage strategy in which a firm goes after a large share of one or a few segments or niches.
Micro Marketing (Local or Individual Marketing)
It is a practice of tailoring the products and marketing programs to the needs and wants of specific individuals and local customer groups.
Product Positioning According to Philip Kotler, Positioning is the act of designing the companys image and value so that the segments customers understand and appreciate what the company stands in relation to its competitors.
Positioning Maps Positioning Maps helps in planning the differentiation
and positioning strategies . Positioning maps shows the consumer perceptions of their brands versus competing products on important buying dimensions.
Choosing a Differentiation and Positioning Strategy
Identifying the Competitive advantage Choosing the right one
