1. AGRI INPUT MARKETING
CHAPTER IV
MARKETING STRATEGY
R.SHRIKANTH
ASSOC.PROFESSOR
FOOD AND AGRI BUSINESS SCHOOL

2. Marketing Strategy
Segmentation
Targeting
Positioning

3. SEGMENTATION
• Market segmentation is the process of dividing
the total market into relatively distinct
homogeneous sub-groups of consumers with
similar needs or characteristics that lead them to
respond in similar ways to a particular marketing
program.
• Market segment is a portion of a larger market in
which the individuals, groups, or organizations
share one or more characteristics that cause them
to have relatively similar product needs.

4. SEGMENTATION…. CONTD…
WHY SEGMENTATION ?
• Segmentation studies are used to uncover
needs and wants of specific groups of
consumers for whom the marketer
develops especially suitable products and
services to satisfy their needs.

5. SEGMENTATION…. CONTD…
Five conditions must exist for segmentation to be meaningful:
1. A marketer must determine whether the market is
heterogeneous. If the consumers’
product
needs
are
homogeneous, then it is senseless to segment the market.
2. There must be some logical basis to identify and divide the
population into relatively distinct homogeneous groups,
having common needs or characteristics and which will
respond to a marketing program. Differences in one market
segment should be small compared to differences
across
various segments.
3. The total market should be divided in such a manner that
comparison of estimated sales potential, costs, and profits of
each segment can be done.

6. SEGMENTATION…. CONTD…
4.One or more segments must have enough
profit potential that would justify developing
and maintaining a marketing program.
5.It must be possible to reach the target segment
effectively. For instance, in some rural areas
in India, there are no media that can be used to
reach the targeted groups. It is also possible
that paucity of funds prohibits the development
required for a promotional campaign.

7. SEGMENTATION…. CONTD…
BASES FOR SEGMENTATION :
• A segmentation variable is a
characteristic of individuals, groups or
organizations that marketers use to
divide and create segments of the total
market.

8. SEGMENTATION…. CONTD…
Geographic variables
Region , Nation ,Urban,
Rural State ,City size
Climate, Terrain,
Market density
Psychographic variables
Personality attributes
Motives
Lifestyle
Demographic variables
Gender ,Family size ,Age
Occupation ,Race, Family
life, Cycle, Religion, Income
Social class , Education
Behaviouristic variables
Usage volume, Occasion
End use Benefits sought
Brand loyalty
Price sensitivity
SEGMENTATION VARAIABLES

9. SEGMENTATION…. CONTD…
GEOGRAPHIC SEGMENTATION:
• Dividing the market into different geographic
units
– Nations
– States
– Regions
– Counties
– Cities
– Neighborhoods

10. SEGMENTATION…. CONTD…
DEMOGRAPHIC SEGMENTATION:
• Dividing the market into groups based on
demographic variables
– Age
– Gender
– Income
– Occupation

11. SEGMENTATION…. CONTD…
PSYCOGRAPHIC SEGMENTATION:
• Dividing buyers into different groups based on
• social class
• lifestyle
• Personality characteristics

12. SEGMENTATION…. CONTD…
BEHAVIORISTIC SEGMENTATION :
• Buyers are divided into groups based on :
• knowledge
• Attitude
• Use or response to a product

13. SEGMENTATION…. CONTD…
Requirements for Effective Segmentation:
• Measurability
• Accessibility
• Substantiality
• Actionability

14. SEGMENTATION…. CONTD…
Requirements for Effective Segmentation
•
Measurable
Measurable
Accessible
• Size, purchasing power,
profiles of segments can be
measured.
• Segments can be effectively
reached and served.
Substantial
• Segments are large or
profitable enough to serve.
Actionable
• Effective programs can be
designed to attract and serve
the segments.

15. TARGETING
Target Market :
Consists of a set of buyers who share
common needs or characteristics that the
company decides to serve.

16. TARGETING… contd..
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.

17. TARGETING… contd..
Selecting Target Market Segments :
– Undifferentiated (mass) marketing
– Differentiated (segmented) marketing
– Concentrated (niche) marketing
– Micromarketing (local or individual)

18. Company
Marketing
Mix
Market
A. Undifferentiated Marketing
Company
Marketing Mix 1
Company
Marketing Mix 2
Company
Marketing Mix 3
Segment 1
Segment 2
Segment 3
B. Differentiated Marketing
Segment 1
Company
Marketing
Mix
Segment 2
Segment 3
C. Concentrated Marketing

19. TARGETING… contd..
Choosing a Target Marketing Strategy :
– Company resources
– The degree of product variability
– Product’s life-cycle stage
– Market variability
– Competitors’ marketing strategies

20. Patterns of Target market selection

21. Patterns of Target market selection

22. Patterns of Target market selection

23. POSITIONING
Act of designing the company’s offering and
image to occupy a distinctive place in the mind
of the target market.

24. POSITIONING…. CONTD…
• Step 1. Identifying Possible Competitive
Advantages
• Step 2. Selecting the Right Competitive
Advantage
• Step 3. Communicating and Delivering the
Chosen Position

25. POSITIONING…. CONTD…
Developing and Communicating a Positioning
Strategy :
• Positioning: How many ideas to promote?
•
Unique selling proposition
– Four major positioning errors
1.
2.
3.
4.
Under positioning
Over positioning
Confused positioning
Doubtful positioning

26. POSITIONING…. CONTD…
Differentiation Strategies :
Product
Personnel
Channel
Image

27. POSITIONING…. CONTD…
Product Differentiation :
• Product form, Features ,Performance
Conformance ,Durability
• Reliability ,Reparability ,Style ,Design
• Ordering ease ,Delivery ,Installation
• Customer training ,Customer consulting
• Maintenance

28. POSITIONING…. CONTD…
Identity:
The way a company aims to identify or
position itself.
Image:
The way the public perceives the company or
its products.

29. ASSIGNMENT
• Choose any upcoming or lesser known Agri
Input product and prepare a hypothetical
marketing strategy for the same. Prepare hard
and soft copy of the same.
• Note : soft copy in form of PPT.
• Last date for submission : 24/02/2014
• Secondary data can be used .