Focusing Marketing Strategy with Segmentation

and Positioning

Target
Market
Marketing Segmentation

Market segmentation: Definition, Need & Benefits.

Bases for market segmentation of consumer goods,
industrial goods and services
Segment, Niche & Local Marketing,
Effective segmentation criteria,
Evaluating & Selecting Target Markets,
Concept of Target Market and Concept of positioning
Value Proposition & USP.
 As any business or organization
cannot meet needs of each and
every individual in the market,
that is why market is divided into
meaningful, relatively similar
and identifiable groups. It
enables marketers to tailor /
change marketing activities to
meet the needs of one or more
specific groups.
Focusing Marketing Strategy with Segmentation
and Positioning

Segmentation
• Defining markets
• Dimensions to use
• Identifying segments
• Identifying segments to target
• Segmentation approaches
Positioning
• Understanding customer’s view
• Positioning techniques
• Evaluating segment preferences
• Differentiating your offerings
• Relationship between
positioning & targeting
 Market Segmentation

Market segmentation is the process

that organizations / marketers use
to divide large heterogeneous markets
into small markets
that can be reached more efficiently
and effectively
with products and services
that match their unique needs
Market Segmentation Defines Possible Target
Markets

The bicycle-riders product-market

Submarket 1
(Exercisers) Submarket 3 Submarket 4
(Transportation riders) (Environmentalists)

Submarket 2
(Off-road
adventurers) Submarket 5
(Kids - Toy)
Need for Segmentation
 Better Matching of customer needs
Creating separate products for separate
segments
Differentiate channel mix according to
segment
 Enhanced profits for business
Can charge higher prices for those segments
which are not price sensitive
Each segment’s cost to serve as well as
 Tailor marketing communications to
make it effective
 Gain share of the market segment
 Better opportunities for growth
All four components are interlinked that is why
it is referred as
‘STDP Process’.
Bases for segmentation
a) Consumer Goods
b) Industrial Goods & Services
 segmentation –
Consumer Goods
Demographi Psychograph
Geographical c ic Behavioral
Segmentatio
Segmentatio Segmentatio Segmentation
n
n n • Decision
• Nations • Age • Innovators
• State • Life Cycle • Thinkers Roles
• Regions stage • Achievers • Behavioral
• Life stage Variables
• Countries • Experience • Occasion
• Cities • Income • Believers • Benefits
• Gender • Strivers • User
• Generation • Makers Status
• Social Class • Usage
• Survivors
Rate
• Buyer
Readines
s
• Loyalty
• Attitude
Geographical Segmentation
Division of markets into geographical units
such as Nations, State, Regions, Countries,
Cities, etc.
 In India marketers are dividing markets
into rural & urban markets. This division is
handy for the marketers as these markets
differ on many parameters such as
Literacy Level
Income
Spending Power
Social & cultural preferences
Availability of infrastructure
Geographical Segmentations – Rural Vs
Urban
More than more than 300 Tea brands in India
dominated by HUL and Tata tea. 80 Regional
brands like Duncan’s, Everready, Goodricke,
Pataka, GPI, Waghbakri, Girnar, Sapat, Dhunseri,
Mohini, Society, Marvel, Vikram, etc.
Tea – Geographical
Segmentation
State No. of Branded Tea
Household penetration  per
(in millions) cent
Delhi 2.6 m 91 per cent
Ahmedabad 1.0 m 90 per cent
Bangalore                    1.4 m 69 per cent
Chennai 1.4 m 72 per cent
Kolkata 2.9 m 20 per cent
Mumbai 3.7 m 72 per cent
Hyderabad 1.2 m 59 per cent
Pune 0.9 m 64 per cent
Tea – Geographical
Segmentation
Tea available in the south of India is
mainly dust
North Indians prefer leaf tea.
Western market of Gujarat and
Maharashtra prefer good quality packet
and loose tea.
In MP and Rajasthan CTC fanning is
preferred.
States like West Bengal and Assam
mostly go for loose tea.
Many marketers understand geographical
differences & incorporate those in their
Marketing Plans ………
 Spices
 Curry Powder
 Ready to cook foods
 Packaged Foods
 Beverages
 Pickles
 Air coolers / Air conditioners (Desert coolers,
Air conditioners)
 Media / Broadcast Business
Indian Express Group – Regional
Marketing
Two broadcasters –
different
geographical focus
Finally, companies wake up to a million
India (Rather than billion people) – Regional
Marketing

 HUL (Winning in Many Indias)

WIMI strategy divided India into
14 regions
 Godrej Conquering many
markets (CMM)
 Dabur India’s Project RISE
(Regional Insights and speed in
Execution)
International Marketers are using
geographical segmentations
McDonald – Special Jain Pizzas in Gujarat
McDonald Pure Veg outlets – Amritsar,
Vaishno Devi (J&K)
Pearson Education - Kotler’s Marketing
Management: - South Asian Perspective
Many International publishers are coming
out with low priced book (paper back)
editions for markets like Sri Lanka,
Bangladesh, Pakistan, Nepal, etc.
Demographic Segmentation
Age
Age and
and Life
Life Cycle
Cycle
Life
Life Stage
Stage
Gender
Gender
Income
Income
Generation
Generation
Social
Social Class
Class
Demographic Segmentation – Age &
Life cycle stage
Customer’s wants & needs changes with
the age and life cycle
Johnson & Johnson- Baby Soaps
Pears – Kids
Broadcasting Business
TV Channels
Kids – Cartoon Network. Nick
Youth - MTV, UTV Bindass, V Channel
 Age Segmentation – Baby
Diapers
Newborn (0-1 months)
Infant (2-5 months)
Cruiser (6-12 months)
Toddler (13-18 months)
Explorer (19-23months)
Preschooler (24+ months)

This approach is also

prevalent in toys, kids wear,
baby food, etc.
Demographic Segmentation –Life stage
Life stage is nothing but person’s major concern.
(Usually resembles with life cycle but may vary some
times)
Looking for a job Going Through
Looking for partner divorce
Buying a small Second Marriage
home Taking care of
Parenting older parents
Buying large house Spending Post
Children’s Retirement life
Education Health
Children's Marriage
Life stage Segmentation -
Kesari

Education – “Masti ki
pathsahala ”

Single – “Prince
Charming - Men's Tours,
Men's Way!”

Marriage – “Honeymoon
Tours”
Demographic Segmentation –
Gender
Men & women differ on attitudinal
& behavioral orientations.
More information read book titled
“Men are from Mars & women are
from Venus”
Scooter market in India
Scooty, Pleasure,
Mahindra Duro, Rodeo
Hero Maestro
Scooter market – Three
Segments
Yamaha
Scooter
s
Focusing on
women
segment
Income – Expenditure Relation across
Product Categories
Demographic Segmentation – Income
Customers wants & needs changes with their
income levels
Income segmentation divides the market into
affluent or low‐income consumers
 Railways  Movie Theatres,
 Second Class (General) Multiplex
 Sleeper  State Transport
 AC Chair car  Simple
 3 Tier AC  Semi Luxury
 2 Tier AC  Luxury
 First Class (First AC)  AC Volvo
 Airlines  Asian Paints (Interior
 Economy Class Walls)
 Business Class  Utsav
 Tractor Distemper
 Royale Emulsions
 Royale Play
Two approaches to cover
lower income segments
Use Current brand
& add options
Kesari Cost saver
tours
Create Unique
brands
Narayan Hrudalaya
(Heart Hospitals)
Arvind Eye Hospital
Igo TV (from
Onida)
Colgate Acquired
Cibaca Brand to
Demographic Segmentation –
Generation
Customers wants & needs may changes
with the generation they belong.
Generation shows acute differences
towards some product categories
Fashion cloths & Fashion Accessories
 Female (Hand Bags)
Architectural Styles
 Veneers
 Plywood
 Material used in furniture
 Color Preferences
 Building Materials like doors, windows, paints, Tiles,
bathroom fittings, etc.
Demographic Segmentation –
Social Classes
The new SEC system is used to classify
households in India.
 It has 12 grades in the new SEC system,
ranging from A1 to E3
It’s based on two variables:
 Education of chief earner
Number of “consumer durables” ( from a
predefined list)- owned by the family. The list
has 11 items, ranging from ‘electricity
connection’ and ‘agricultural land’- to cars
and air conditioners .
SEC segments are popular while
devising communication strategies

The commercial, which has been dubbed in regional

languages and is supported by press, radio and digital
advertising, targets the SEC A/B segment. The brand
wants to rope in the everyday consumer who is concerned
about his health, but is not fanatical about it.
Understanding Psychographic
Segmentation
Psychographics is the science of using
psychology and demographics to better
understand consumers.
Buyers are divided in groups on the basis of
Personality Traits
Lifestyle
Values
Femina Magazine – Woman of substance
Hidesign – “Style & elegance in classical
sense”
Maggi, Top Ramen, Chigs – Time constraint
people with western tastes / food
preferences
Psychographic segmentation @
Titan
Titan Raga – Exclusively for women
Seamlessly blends tradition into her
modernity. “Life is now”
Titan Purple - Purple lives in a world
where rules are for other people and
laws of attraction are in your hands.
Titan Nebula - A collection of watches
crafted from solid gold, Nebula is a
delicate blend of the finest
craftsmanship in jewellery making and
the latest in watch technology.
Titan obaku - The philosophy of
Psychographic segmentation @
Titan
 Titan Orion - Titan salutes the original spirit of
exploration in a modern world through Orion, a
collection of precision watches inspired by the
last unexplored frontier, and the stars that
guide the way.

 Titan Zoop - Zoop is a range of funky watches

from Titan, designed for the imaginative,
talented and energetic child of today.
 The VALS (Value, Attitude & Lifestyles) Segmentation
System in USA
Demonstrate Success
To there peers

Guided by Knowledge
and Principals

Desire social or
physical
Activity, variety
& risk
The VALS Segmentation System
in USA
Individual’s Resources are
based on
Energy
Self confidence
Intellectualism
Novelty seeking
Innovativeness
Impulsiveness
Leadership
Vanity
Key Demographics
 Occupation,
 Income
The VALS Segmentation System
in USA
Innovators – Successful,
Sophisticated, Active, Take Charge
people with high esteem. Purchases
often reflect cultivated tastes and
unique products & services
Thinkers – Mature, satisfied, and
reflective people who are motivated
by ideals and who value order,
knowledge and responsibility. They
want durability, functionality and
value in the product.
Achievers – Successful, goal oriented
people who focus on career and
family. They favor premium products
that demonstrate their success to
The VALS Segmentation System
in USA
Believers – Conservative,
conventional and traditional people
with concrete beliefs. They prefer
familiar products and loyal to
established brands.
Strivers – Trendy, fun loving people
who are resource constraints. The
favor stylish products that emulate
purchases of those with greater
wealth.
Makers – Practical, down to earth,
self sufficient people who like to
work with their hands. They seek
products with practical or functional
 Applying VALS segmentation
to Newspapers in Trichy &
Bangalore
The New
VALS Indian Times of
Segments Hindu Express India
Innovators 40 20 30
Thinkers     5
Achievers 20 5 5
Experiencers     15
Believers   35  
Strivers 35 25 45
Makers   15  
Survivors 5    
Source: - Anandan, et al (2006), Vilakshan, XIMB
Journal of Management
 Behavioral Segmentation
Decision Roles Behavioral
Initiator Variables
Influencer Occasions
Decider Benefits
Buyer User Status
User Usage Rate
Buyer-Readiness
Loyalty Status
Attitude
Behavioral Segmentation – Decision
Roles

These bases are important in those

products (High Involvement Products)
where perceived risk is high. Consumer
buying decision process is complex.
Very useful in planning customer
communication.
e.g. Doctors, Television Set, PC,
Consumer Durables, etc.
Initiator (recognize the need), Influencer
(Determines attributes), Decider (Take
the decision), Buyer (Actually purchase
the product), User (use the product)
Understandin
g decision
roles while

communicatin
g
Gifting as an occasion – A
Behavioral segmentation
Festivities as an occasion – As a
segmentation
Behavioral Segmentation -
Benefits
 Breeze – goodness of glycerin gives soft, fragrant and
smooth skin.
 Rexona – Rexona gives you silky skin, irresistible to
touch that keeps the romance alive!
 Dove – Soft, silky and moisturizing
 Lifebuoy – feel safe and secure by meeting their
personal care hygiene & health needs
 Hamam - Ten skin problems…No tension! / Go safe
outside
 Liril 2000 – keep every part of our skin fresh and
clean because only fresh, clean skin is touchable.
 Lux – world’s most iconic beauty bar & has a 90+
years history of glamour and pleasure.
 Pears – With the goodness of glycerin & natural oils,
Pears is trusted for being gentle, and is recommended
by doctors and pediatricians worldwide.
Aesthetics as benefit /
feature
Behavioral Segmentation – User
Status
Non users
Ex Users
Potential Users
First Time users
Regular users

Customers are rather moving through these

segments.
Mothers – to – be are potential users who will
turn heavy users for infant related products &
services.
Leaders tend to focus on attracting potential
users while smaller firms focus on attracting
current users from the leader.
Behavioral Segmentation –
User Rate
Light
Medium
Heavy

Mobile service operators are

changing their marketing activities
based on usage.
Behavioral Segmentation – Buyer
Readiness

Especially important in new products /

concepts like Stem Cell Banking, Medical
tests like cervical cancer test, Vaccines, 5G
services, etc.

Aware or Not aware

Tried Vs Not tried
Favorable Opinion Vs Unfavorable Opinion
Rejected Vs Repeated
Behavioral Segmentation – Loyalty
Status
Hard core loyals – Only buy one brand all
the time (help you in identifying products
strength)
Split Loyals – Consumers who are loyal to
two or three brands (shows which brands
are your competitors)
Shifting Loyals – shift loyalty from one
brand to another brand (shows which
brands are better than you)
Switchers – Show no loyalty to any brand

Marketers in Industries like retailing,

Behavioral Segmentation Breakdown
Behavioral Segmentation –
Attitude

Enthusiastic Customers
Positive customers
Indifferent customers
Negative customers
Hostile customers

Attitude towards technology.

Attitude towards internet banking,
ATMs, mobile banking, etc.
Segmenting for Business Markets
Demographic
Demographic

Operating
Operating Variable
Variable

Purchasing
Purchasing Approaches
Approaches

Situational
Situational Factors
Factors
Personal
Personal
Characteristics
Characteristics
Segmenting Business Markets

Demographic
Which industry to serve? (Industry)
Which size companies should we serve?
(Company Size)
What geographical areas should we serve?
(Location)
Operating Variable
Technology (Which technologies should we
focus?)
Should we serve medium users, high users,
heavy users? (User Status)
Should we serve customers needing many
but few services?
Segmenting Business
Markets
Purchasing Approaches
 Should we serve companies with highly centralized or
decentralized purchasing departments?
 Whether to serve finance dominated or engineering
dominated?
 Nature of existing relationship
 Purchasing Policies (Leasing, bidding, system
purchases, service contracts)
 Quality conscious or service conscious or price
conscious
Situational Factors
 Urgency
 Specific Applications
 Large vs small orders

Personal Characteristics
 Buyer – seller similarity
 Attitude towards risk (risk taker, risk averse)
 In Reality,
Need to use
Multiple
segmentation
bases
Tata Tea – What bases of
segmentation?
 Segmentation @ Titan

Only Men Men & Only

Women Women
HTSE Purple Raga
Edge Obaku Nebula
Tycoon Automatic
Octane Bandhan
Orion Zoop
Combination of age, income, lifestyle, values,
gender, decision roles.
Psychographics + Behavioral
Effective Segmentation Criteria
Measurable
Measurable Size, purchasing power, profiles
of segments can be measured.
Accessible
Accessible
Segments can be effectively
reached and served.
Substantial
Substantial
Segments are large or profitable
enough to serve.
Differential
Differential Segments must respond
differently to different marketing
mix elements & programs.

Effective programs can be

Actionable
Actionable
designed to attract and serve
the segments.
Market Targeting - Defined
After Segmenting, firm now has to
evaluate various segments and decide
how many and which segments it can
serve the best.
Through market targeting marketer
come to know two things
A target market consists of set of
buyers who shares common needs or
characteristics that the company
decides to serve.
How to serve the target market?
Approach.
 Market Targeting
Evaluating Market Segments
Segment Size and Growth
Analyze current sales, growth rates and expected
profitability for various segments.
Segment Structural Attractiveness
Consider effects of: competitors, availability of
substitute products and, the power of buyers &
suppliers.
Company Objectives and Resources
Company skills & resources needed to succeed in
that segment(s).
Look for Competitive Advantages.
 C. Concentrated Marketing
Segment
Segment33
Company
Company
Segment
Segment22 Marketing
Marketing
Plan
Plan
Segment
Segment11
B. Differentiated Marketing
Company
Company
Segment
Segment33 Marketing
MarketingPlan
Plan33
Company
Company
Segment
Segment22 Marketing
MarketingPlan
Plan22
Segment Company
Company
Segment11 Marketing
MarketingPlan
Plan11
A. Undifferentiated Marketing
Company
Company
Market
Market Marketing
Marketing
Plan
Plan
Market Targeting - Market Coverage Strategies
Factors affect Market
targeting
Company resources
Product variability
Product life‐cycle stage
Market variability
Competitor’s marketing
strategies
Basic Market Preference Patterns for Ice
Creams
One to one Niche Marketing
Marketing

Niche 1
Niche 3

Niche 2

Segment
Marketing
What approach? How?
Two Approaches for Market
Targeting

Mass Marketing –
Undifferentiated
Marketing (Broad)
Micro Marketing/
Differentiated Marketing
(Narrow)
Segment Marketing
Niche Marketing
Ford’s Model T / Coca Cola Followed
a Mass Market Approach
 Increasingly mass
marketing is becoming
inappropriate. Why?

As satisfying all the

customers with this
approach is almost
impossible.
 Market Targeting Strategies
Micromarketing is the practice of
Concentrated marketing tailoring products and marketing
targets a small share of a programs to suit the tastes of
large segment specific individuals and locations
• Limited company Local marketing – Changing products /
resources brands, communication according to needs
in of Cities, Neighborhoods, Stores
• Knowledge of the
Individual marketing - tailoring products
market and marketing programs to the needs and
• More effective and preferences of individual customers. (One
efficient to one marketing, Mass customization)

Undifferentiated marketing Differentiated marketing

targets the whole market
with one offer
Mass marketing Focuses on
common needs rather than
what’s different
targets several different
market segments and
designs separate offers for
each
Goal is to achieve higher sales
and stronger position
 Niche Marketing
A niche is more narrowly
defined customer group
seeking a distinctive mix of
benefits.
Dividing segments into sub
segments
Fabric washing detergent
for woolen cloth (Godrej
Ezee), Fabric stain
removal (Vanish), Stain
remover for baby cloths
(All stain lifters)
Crack – Specially targeted
to women for healing
What makes a niche
attractive?
Distinct set of needs
Customers are ready to
buy more (get price
premium)
Loyal customers
Competition is not intense
Profit, Growth potential
Royal Enfield & Honda –
Segment Marketers in Power
Bikes
Honda focusing on sub 250 CC market
Royal Enfield - building its brand around
the values that the brand stands for -
riding and eating up the miles.
 Organize various rides and events to further
strengthen the cult status.
 Royal Enfield strongly promotes leisure motorcycling
as a lifestyle and encourages Royal Enfield
riders/owners to keep riding. In this regard, the
company organizes annual events and rides. It also
organizes the Annual festival of biking.
 Also supply to Government, Police, etc.

Companies / Brands concentrating on

higher end of the power bike market
 Segment wise Growth in 150 CC
+Market

Niche
segment
s
Harley Davidson, Hyosung –
Niche Marketers in Power Bikes
 Harley Davidson does not sell transportation,
we sell transformation. We sell excitement,
way of life. Give people way to transform.
People buy bike to get away from the
increasingly over sanitized way of life, to
take some risks, to hone the skills.
 Touring Motorcycles (offered bikes towards
high end of the market)
 The US customer profile
 Male, Early 40s, At least one year Higher Education, An
experienced motorcycle rider
 Purpose recreation
 Household income more than $65000
 Niche Marketers in
abundance
For She, an exclusive ladies taxi service
driven by lady chauffeurs in three cities
Fujifilm’s disposable camera for 1000 Yens

Midnight Express Delivery

Diet chocolates like Kit-Kat Lite

‘Barista Crème’ – an exclusive luxurious

lounge for coffee lovers.

Plus size apparels, where stores like

Musturd, Pluss, ‘Just Your Size
Designers’ (Bangalore)

Amul Calci+ (a high calcium milk, which

Calcium Sandoz Woman caters to the to-be-moms)
Niche can become
segment over the
period
e.g. Heavy Duty Vehicles in 1980s Vs
today, Tooth paste catering to sensitivity
 Toothpaste for sensitive Teeth
(Niche became segment in quick time)
Detergent for automatic washing
machine – Niche became segment
Local Marketing
 Marketing programs are tailored to suit needs
of local customer groups in cities,
neighborhoods or even individual stores.
 Also known as “Grassroots marketing”
 Many Hollywood films are released in various
local languages. (especially South Indian)
 BharatMatrimony e.g. Micro-websites covering
Bengali, Punjabi, Tamil, etc.
 Banks in India tailor made their branch network
as per the local needs
 NRI Branch Banks – Kerala
 SME branch – Cities where lot of SMEs are operating
 Corporate Braches – Areas where lot of corporate
offices are operated.
Kalyan Jewelers
One to one Marketing
Also known as customized marketing
Customers can design their own products.
This can raise the cost but if customer is
willing to pay then this approach is
suitable / value creating.
Examples
Nike
Dell computers
Toyota
Example of customization - Galleria Picture
Credit Card
Example of customization – De
Beers
One to one Marketing @ Nike
Segmenter Vs
Combiner
How Far Should the Aggregating Go?

B.
A. Product-market showing
Status dimension six segments
three segments

Dependability dimension
 Examples
of
combining
Segmenting vs. Combining

Combiners
Combiners
Try
Try to
to Satisfy
Satisfy
Profit Is the “Pretty
“Pretty Well”
Well” Too
Too Much
Much
Balancing Combining
Combining Is
Is
Point Risky
Risky
Key
Key
Issues
Issues

Segment Segmenters
Segmenters
Segment or
or
Combine? Try
Try to
to Satisfy
Satisfy
Combine?
“Very
“Very Well”
Well”
Segmenting
Segmenting
May
May Produce
Produce
Bigger
Bigger Sales
Sales
 Socially
Responsible Target
Marketing
Marketers should not target
vulnerable segments in
unethical manner
 Market targeting can generate public
controversy .
 Public / Society is always concerned when
marketer take advantage of
Vulnerable group (Children)
Disadvantaged groups (Physically
challenged, very poor)
Promote potentially harmful products
(Cereals, Toy, Pizza )
Socially responsible marketing
calls for targeting that serves
not only in the company’s
segments of the market it
will target, the marketer
must decide on
a value proposition—how it
will create differentiated
value for targeted segments
and what
positions it wants to occupy
in the minds of those
customers (target market).
Differentiation
 Defining Associations
Points-of- Points-of-
difference parity
(PODs) (POPs)
 Attributes or benefits Associations that
consumers strongly are not
associate with a brand,
necessarily
positively evaluate, and
believe they could not unique to the
find to the same extent brand but may be
with a competitive shared with other
brand brands
 For example: -
Apple (design, ease-of-
use, and irreverent
attitude),
Association with brands
Savlon (when
Dettol marketed by J&J)
Cloudiness in water No burning
Burning sensation sensation
when applied on Different color
wound No smell
Strong Smell Better performance
Color
 Criteria for PODs

Consumer Deliverability
Desirability (Marketer’s
Relevance point of view)
Distinctiven Feasible
Communica
ess
Believable ble
Sustainable
 Examples of Negatively
Correlated Attributes and
Benefits
Low-price vs. Powerful vs.
High quality Safe
Taste vs. Low Strong vs.
calories Refined
Nutritious vs. Ubiquitous vs.
Good tasting Exclusive
Efficacious vs. Varied vs.
Mild Simple
Differentiation Strategies

Product Personnel

Channel Image
Product Differentiation
Product form Style
Features (Smart Design (Ikea)
phones) Ordering ease
Performance (Dell)
(Toyota) Delivery (Domino’s
Conformance (Big Pizza)
Bazzar) Customer training
Durability (Asian (software
Paints Ultima) companies)
Reliability Customer
Repairability consulting
Installation (Accenture, Cape
Differentiating Soap based on
form
Differentiating on the basis of
Product Form – Mosquito
Repellants
Personnel or Employee
differentiation.
Companies can differentiate on
the basis of better-trained
employees who provide superior
customer service.
Singapore Airlines is well regarded in
large part of the world because of its
flight attendants.
The excellent reputation of
companies such as Starbucks,
Oberoi Hotels, Hilton Hotels, General
Electric, Deloitte, Cisco can be
Channel differentiation.
Companies can more effectively
and efficiently design their
distribution channels’ coverage,
expertise, and performance to make
buying the product easier and more
enjoyable and rewarding.
Quantum Mutual Fund (available
through online channels only)
Nexa for high end models from
Maruti
Image differentiation
Companies can craft powerful,
compelling images that appeal to
consumers’ social and psychological
needs.
Marlbaro - “macho cowboy” ; Jeep –
Ruggedness;
Even a seller’s physical space can be a
powerful image generator.
Hyatt Regency hotels developed a distinctive
image through its atrium lobbies, CCD Vs
Barista
Service Differentiation
A service company can differentiate
itself by designing a better and faster
delivery system that provides more
effective and efficient solutions to
consumers.
There are three levels of differentiation.
The first is reliability: Some suppliers are
more reliable in their on-time delivery, order
completeness, and order-cycle time.
The second is resilience: Some suppliers are
better at handling emergencies, product
recalls, and inquiries.
The third is innovativeness: Some suppliers
Positioning
Positioning

Act of designing the company’s

offering and image to occupy
a distinctive place in the mind of
the target market.
Positioning - Defined
Positioning creates unique,
credible, sustainable and valued
place in consumers’ mind for
the brand / product.
It refers to consumers’ perception
of products attributes, use, quality,
advantages and disadvantages in
relation to competition brands.
It refers to consumers’ perception
of the place a product or brand
 Positioning is linked with
consumer’s mind and can
be built with the help of
various marketing
activities such as product,
brand, communication,
advertising, etc.
The Uncola idea – 7 Up
The unfixed deposits - SBI
Positioning is less what to
do with the product and
more what marketer does
with the consumer’s
perception of the product
Same product – Many
positions
Multiple repositioning
Cadbury Milkmaid
Initially targeted at Creamer &
children
Later middle age
whitener for tea
groups and coffee
Older people Substitute to
subsequently milk
Trying to become a
Milkmaid as a
generic product
Celebrations topper
Kuch meetha ho jai Desert recipe
Meetha (Culinary
synonymous to
Cadbury’s
positioning)
Who am I ?
Positioning by corporate identity
Using corporate identity or source.
A Quality product from Unilever
A Tata Product
ITC, Godrej, etc.
Positioning by brand endorsement
 Using a successful and popular
brand for another product category
Parentage positioning
What am I ?
Category related positioning
If the category is overcrowded position your
product away from the category. (e.g.
Quicko Hair Perfume, MTR – Breakfast,
Prolite - Ice Cream for Diet conscious, Livon,
Perfumed Powder, )
Also known as “macro positioning” or
“inner set positioning”
Benefit related positioning
Through benefits, Features, Emotional
Benefits
 “Its not a car its caaaaar”
 “Taller, stronger & sharper”
 “Secrets of my energy”
What am I ?
Positioning by usage
time/occasion
Knorr Soups (Choti choti bhukh
bye bye)
Moti Soaps – Diwali
Price quality positioning
Detergents
Positioning
by
competitor
 Choosing a Positioning Strategy

Step 1. Identifying
Possible Competitive
Advantages
Step 2. Selecting the
Right Competitive
Advantage
Step 3. Communicating
and Delivering the
Chosen Position
Developing and Communicating
a Positioning Strategy
 Positioning: How many ideas to
promote?
 Unique selling proposition
 Four major positioning errors
1. Underpositioning
2. Overpositioning
3. Confused positioning
4. Doubtful positioning
 Value Preposition

Value
proposition is
the full mix of
benefits upon
which a
brand is
positioned
Over the period positioning
may become inappropriate,
irrelevant due to changes in
customer needs,
competitors, or any other
external factor.
Dettol – antiseptic lotion
Dettol antiseptic lotion
Dominated cuts/wounds market
Declining market
Occasional product
Substitutes
How to increase usage
Reposition from occasional to
daily
Use for shaving
Bathing
washing baby nappies
Brand Repositioning
Identity and Image

Identity: Image:
The way a The way the
company aims to public perceives
identify or the company or
position itself its products