Segmentation, Targeting and

Positioning
Steps in Market Segmentation,
Targeting,and Positioning
1. Identify
segmentation
variables and
segment the
market

2. Develop
profiles of
resulting
segments
Market
Segmentation
3. Evaluate
attractiveness
of each
segment

4. Select the
target
segment(s)
Market
Targeting
5. Identify
possible
positioning
concepts for
each target
segment

6. Select,
develop, and
communicate
the chosen
positioning
concept

Market
Positioning
Why Segmentation ?
Not all buyers alike
Subgroups may be identified
Subgroups smaller and more
homogeneous
Easier to satisfy smaller groups

How to Segment & Target?
1.
Break
market
down
2.
Group
into
segments
TARGET MARKET
3.
Choose
target
market
Bases for Segmenting Consumer Markets
Occasions, Benefits,
Uses, or Attitudes
Behavioral
Geographic
Region, City or Metro
Size, Density, Climate

Demographic
Age, Gender, Family size
and Life cycle, Race,
Occupation, or Income ...
Lifestyle or Personality
Psychographic
Bases for Segmentation
Geographic
World Region or Country North america, Middle East, Western Europe, India, China
Country Region Northern India, Southern India, Eastern India, Western India
Density Urban, Rural, Suburban
City Size under 5000, 5000-20000, 20000-50000,50000-100000.
Demographic
Age under 6, 6-12, 13-19, 20-30, 30-45, 45-60, 60 and above
Gender Male, Female
Family Size 1-2, 2-4, 5+
Family Life Cycle Young single, young married no children, young married with children
Income under Rs.100000, 100000-300000, 300000-500000, 500000+
Occupation Professional, Technical, Officials, Self Employed, Unemployed
Education Literacy rate
Religion Hindu, Muslim, Sikkha, Christen
Generation Baby Boomers, Generation X, Generation Y
Nationality Indian, Japanese, American, French, German
Bases for Segmentation
Life Style Extravagent, Rattional, Economic
Personality Extrovert, Introvert, Ambiovert
Behavioural
Occasions Regular, Special Occasion
Benefits Quality, Service, Economy, Convenience
User Status Non user, Ex user, Potential user, First time user, Regular user
User Rate Light user, Medium user, High user
Loyalty Status None, Medium, Strong
Radiness Stage Unaware, Aware, Interested, Desirous, Intending to buy
Market Targeting
1. Evaluating Market Segment
Segment Size and Growth
Segment Structural Attractiveness
Company Objectives & Resources

2. Selecting Target Segment

3. Targeting Strategies
-Standardization
-Differentiation
-Focus
Five Patterns of Target Market
Selection
Single-segment
concentration
Product
specialization
M1 M2 M3
P1

P2

P3


Selective
specialization
M1 M2 M3
P1

P2

P3


M1 M2 M3
Full market
coverage
P1

P2

P3
Market
specialization
M1 M2 M3
P1

P2

P3
P1

P2

P3


M1 M2 M3
P = Product
M = Market
Choosing a Positioning
Strategy
Products Position - the way the product is
defined by consumers on important
attributes - the place the product occupies
in consumers minds relative to competing
products.
Marketers must:
Plan positions to give their products the
greatest advantage in selected target markets,
Design marketing mixes to create these
planned positions.
Positioning
Positioning is an act of creating an image
of the product in the minds of customers.
Positioning involves the brands unique
benefits and differentiations in customers
mind.
Ex: Complan A complete planned food
Videocon Indian Multinational



Services
Differentiation
i.e. Delivery, Installation,
Repair Services, Customer
Training Services
Product
Differentiation
i.e. Features,
Performance, Style &
Design, or Attributes
Image
Differentiation
i.e. Symbols,
Atmospheres, Events
Personnel
Differentiation
i.e. Hiring, Training
Better People Than
Competitors Do
Positioning Strategy
Identifying Possible Competitive Advantages
Product Differentiation
Form
Fea-
tures
Perfor-
mance
Quality
Dura-
bility
Relia-
bility
Repair-
ability
Style Design
Product Differentiation
Form: size, shape or physical structure
Ex. Sony Handicam, Product of Asian sky shop
Features: These are the characteristics that supplements the product
basic functioning
Ex: Mobile phones with blue tooth, touch screen, recorder
Performance : Buyers will pay more for the better performance
Ex: Quick service offered in 5 star hotels
Quality
Ex: Mac Donalds Burger, Barista Coffee, Surf Excel Powder
Durability
Reliability Ex: Godrej Almirah
Reparability easy to repair
Style How well the product looks and feels to the customer
Ex: Parker Pens, Ray Ban Sun glasses,
Design Is the totality of features that affect how a product looks and
works in terms of customer requirements ( Pleasing look, easy to open,
operate to repair, )
Ex: Gillette in electric shavers

Delivery
Ex: Home Delivery,
Dominos
Services Differentiation
Ordering
Ease
Ex. Telephone
ordering,
Internet
Maintenance
& Repair
Ex: LG
Samsung
Customer
Training
Ex: SPSS,
Data base
software
Installation
Ex. Reliance
WLL phones,
Airtel,
Tata Sky
Customer
Consulting
Ex. Investment
Companies
M
i
s
c
e
l
l
a
n
e
o
u
s

S
e
r
v
i
c
e
s

Companies can gain a strong competitive advantage
through having better trained people. Trained
personnel exhibits following characteristics
Competence possess the required skills &
knowledge
Courtesy Friendly, respectful
Credibility Trustworthy
Reliability perform the service consistently and
accurately
Responsiveness respond quickly to the customers
problem
Communication make an effort to understand the
customer and communicate clearly
PERSONNEL Differentiation
Channel Differentiation
Coverage
Expertise
Performance
Media Atmosphere
Symbols
Events
Image Differentiation
Differences Worth
Establishing
Affordable Superior
Profitable
Preemptive
Distinctive
Important
Which Differences to Promote
Distinctive: Company can offer better than competitors
Superior: Customer might not obtain the same benefit
elsewhere
Profitable: Introduce the difference with profit
Preemptive: Competitors can not imitate the difference
easily
Affordable: Buyers can afford to pay for the difference
Communicable: The difference is communicable and
visible to the buyers
Important The difference delivers a highly valued benefit
to the target buyers
Perceptual Map Stylish, Prestigious
Practical, Economical
Conservative,
Older
Sporty,
Fast
Rolls Royce
Maruti Alto
Baleno
Ambassador
Mercedes
Honda Accord
Ferrari
Maruti Omini
Swift
Palio