Segmentation targetting and positioning

1. Market Segmentation, Targeting,
and Positioning

2. MARKETS
MARKET SEGMENTS
Groups of customers with different wants,
buying preferences or product-use behavior
TARGET MARKET
A market segment for which
the seller designs a marketing mix
MARKET SEGMENTATION
The process of identifying and describing
potential target markets

3. MARKET SEGMENTATION
Process of dividing the total market
for a good or service into several smaller,
internally homogeneous groups
Members of each group are
similar with respect to the factors
that influence demand

4. PROCESS OF MARKET SEGMENTATION
Determine size and satisfaction
Identify wants within a market
Identify characteristics

5. MARKET SEGMENTATION CONDITIONS
MICROMARKETING
Treat each single customer
as a separate segment
Measurable
and
Obtainable Data
Large enough
to be
Profitable
Segment is
Accessible

6. MARKET SEGMENTATION - FIRST CUT
Customer’s reason for buying
CONSUMER
Purchase for personal use
BUSINESS
Purchase to use in organizations,
to resell, or to make other products

7. SEGMENTATION BASES
FOR CONSUMER MARKETS

8. SEGMENTATION OF DETERGENT MARKET
IN INDIA
Segmentation Of
Detergent
Powder Market
Premium
Ariel- Ultramatic &
Spring clean Surf -
Automatic & Quick wash,
Mid – priced
Surf Excel Blue, Tide,
Stain Champion
Mass Market
Wheel , Fena,
Nirma,Ghadi etc.

9. TARGET-MARKET STRATEGY
Single
Marketing
Strategy
“shotgun”
Market-aggregation
Strategy
“mass-market”
“undifferentiated-market”
and
Product differentiation
Strategy

10. TARGET-MARKET STRATEGY
Single-Segment
Strategy
“concentration ”
NICHE
MARKETERS
One
Marketing
Mix

11. TARGET-MARKET STRATEGY
Multiple
Marketing
Mixes
Multiple-Segment
Strategy

12. SELECTING A TARGET MARKET GUIDELINES
Compatible
with company’s goals
Match
market opportunity
with resources
Profit that
justifies investment
Competitors
are few and/or weak

13.  Riding high on its success of mini-truck
Ace, Tata Motors launched Magic to
target market segment ranging from
rural interiors
 The new launches are done in a
process to get a substantial market
share in and also target the three-
wheeler passenger vehicle market. It
could also help Tata in improving its
market share in the light passenger
vehicle segment which has been
registering a decline recently.
 Tata Magic is aimed at the rural market
and built on similar platform to ‘Ace’. It
has a 16 hp 700 cc engine and a flexible
seating capacity of 4 to 7 passengers
with an ex-showroom price of Rs. 2.60
lakhs.

14. WHAT IS POSITIONING?
Positioning is the act of designing the
company’s offering and image to occupy a
distinctive place in the mind of the target
market.

15. DEFINING ASSOCIATIONS
Points-of-difference
(PODs)
 Attributes or benefits
consumers strongly
associate with a
brand, positively
evaluate, and believe
they could not find to
the same extent with
a competitive brand
Points-of-parity
(POPs)
 Associations that
are not necessarily
unique to the brand
but may be shared
with other brands

16. CONVEYING CATEGORY MEMBERSHIP
 Announcing category benefits
 Comparing to exemplars
 Relying on the product descriptor

17. CONSUMER DESIRABILITY CRITERIA FOR PODS
 Relevance
 Distinctiveness
 Believability

18. DELIVERABILITY CRITERIA FOR PODS
 Feasibility
 Communicability
 Sustainability

19. EXAMPLES OF NEGATIVELY CORRELATED
ATTRIBUTES AND BENEFITS
 Low-price vs.
High quality
 Taste vs. Low
calories
 Nutritious vs.
Good tasting
 Efficacious vs.
Mild
 Powerful vs. Safe
 Strong vs.
Refined
 Ubiquitous vs.
Exclusive
 Varied vs. Simple

20. ADDRESSING NEGATIVELY CORRELATED
PODS AND POPS
 Present separately
 Leverage equity of another entity
 Redefine the relationship

21. DIFFERENTIATION STRATEGIES
 Product
 Channel
 Personnel
 Image

22. PRODUCT DIFFERENTIATION
 Product form
 Features
 Performance
 Conformance
 Durability
 Reliability
 Reparability
 Style
 Design
 Ordering ease
 Delivery
 Installation
 Customer training
 Customer consulting
 Maintenance

23. CLAIMS OF PRODUCT LIFE CYCLES
 Products have a limited life
 Product sales pass through distinct stages
each with different challenges and
opportunities
 Profits rise and fall at different stages
 Products require different strategies in each
life cycle stage

24. WAYS TO INCREASE SALES VOLUME
 Convert nonusers
 Enter new market segments
 Attract competitors’ customers
 Have consumers use the product on more
occasions
 Have consumers use more of the product on
each occasion
 Have consumers use the product in new
ways

25. POSITIONING
Firm creating and maintaining
in the minds of a target market a particular
image relative to competing products
Coordinate the marketing mix
to convey position
Select position concept
THREE STEPS
Design the feature that
conveys position

26. POSITIONING MEASUREMENT

27. HORLICKS REPOSITIONING
 GlaxoSmithKline Consumer Health Care
claims that its 135-year-old Horlicks brand
makes kids taller, smarter and sharper.

28. TANISHQ REPOSITIONING
 It was positioned to the high income
urban group and priced higher and the
models were highly western. But the
norms for gold in India were 22 carat.
There was a contradiction of the
positioning as to why the high income
group should go in for low carat gold.
The product failed to generate the
expected sales volume. Titan worked on
their positioning at this juncture and
introduced a new collection of 22 carat
and it was positioned to high income
and upper middle income group and the
models was made more Indian and with
this repositioning the Tanishq business
accounts for about 20% of Titans
corporate revenue.
 https://www.youtube.com/watch?v=k5A4
zWJ2czM
 https://www.youtube.com/watch?v=wg_
As8OycpY