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SEGMENTATION

,TARGETING

POSITIONING

Prof Javed/Aug 2009

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Some interesting insights!!

Allen Solly

Emami fair and handsome

Fair and lovely mens active Vs fair and lovely(regular)

TVS Victor Vs TVS Scooty pep ( pach rangi

satrangi ) Hero Honda Pleasure ( Priyanka Silly village

girl, Why should boys have all the fun ?)

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Mehr Jessia Rampal , Sushmita in Oil of Olay ,anti ageing creamsDo you apply anti ageing

creams ??? Why ? How many of us have Nutralite , Diet Pepsi ,

Diet Coke , Sugar free Amul lite ? Why and

Why not ?

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Can we practice one size

fits all? Tastes and preferences vary

Income of different individuals is different

Climatic conditions and other geographicalconditions in which different people stay

varies across the globe

Lifestyles of different people are different

Family size , gender, interests ,buying habits

are not the same for every individual

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What is a segment ?

Marketer needs to identify various groups in

the market place who may be mutually

exclusive but individuals within a particulargroup will have similar wants ,purchasing

power, geographical location, buying habits

etc.

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Understanding a Market

segment A segment is an identifiable group in the

market with similar wants ,purchasing power,

geog location , buying habits

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Which segment am I looking

for ?Car

For basic transportation

For luxury For safety

High performance

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Levels of segmentation

Market Segment

Niche

Local marketing Individual marketing

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Basis for Market SegmentationBasis for Market Segmentation

Geographic segmentationGeographic segmentation

Dividing the market into differentDividing the market into differentgeographical unitsgeographical units--nations ,states , regions,nations ,states , regions,

neighborhoodsneighborhoodsThe company can operate in one or fewThe company can operate in one or few

areas or all geographical areasareas or all geographical areas

Makke di roti and sarso da saagMakke di roti and sarso da saagMustard oilMustard oil North IndiaNorth India

Groundnut oilGroundnut oil-- Southern and westernSouthern and westernIndiaIndia

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DEMOGRAPHIC SEGMENTATION

Market is divided into groups on the basisof :

Age : baby foods ,toys, adult diapers,Insurance,mediclaim

Income: Automobiles

Gender: clothing , hairstyle ,cosmetics

( Emami Fair & Handsome, Nail paints).Family size(cars,apartments), education,generation (for movies),

Occupation ( white collared blue collared

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Income

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Psychographic Segmentation Study of lifestyle of customers Buyers are divided on the basis of :

Personality :Endow brands with a personality

A brand also has a personality

Enfield indicates masculinity, impulsive ,alertpersonality

Lifestyle : cosmetics (water proof eyeliners forworking women), furniture, apparel , consumer

durables Values : belief system, social awareness

campaigns, family planning , patriotism

Some brands promote that a part of the revenuewould be directed towards upliftment ofunderprivileged sections in the society

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Behavioral segmentationBehavioral segmentation B

uyers are divided on the basis of :B

uyers are divided on the basis of :occasions they develop a need to use aoccasions they develop a need to use a

productproduct

E.g: Thomas cook serves a group ofE.g: Thomas cook serves a group of

people who fly to a vacation destination.people who fly to a vacation destination.

Mothers day , Fathers day wereMothers day , Fathers day were

promoted to increase sale of candy ,promoted to increase sale of candy ,

flowers.flowers. Buyers are divided on the basis of Buyers are divided on the basis of

benefits they seek from the productbenefits they seek from the product

Travel for fun / adventure etc .Travel for fun / adventure etc .

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Behavioural segmentationBehavioural segmentation

Buyers are divided on the basis of usageBuyers are divided on the basis of usageraterate

Non users, exNon users, ex users, potential users,users, potential users,first time users, regular usersfirst time users, regular users

loyalty statusloyalty status--hard core loyals, splithard core loyals, splitloyals , shifting loyals , brand switchersloyals , shifting loyals , brand switchers

light users /medium/heavy userslight users /medium/heavy users

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Benefits of Segmentation

More fine tuned products/service for the

target audience

Choice of channels of distribution becomeseasier.

May combat competition or face competitors

in a better way

Different marketing mix may be used fordifferent segments

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TARGETING

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Targeting

Selecting one or more market segments anddeveloping a product to be offered to thesesegments

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Targeting strategies

Single segment concentration-risky ,e.g : Sports car

Selective specialization-Multisegment coverage,

diversify your risk

Product specialization: a product can be offered to manysegments

E.g: Aqua fresh three segments sparkling white teeth ,fresh breath ,anti cavity protection

Market Specialization : Serve many needs of a market .

Full market coverage : a product for every purse,purpose and personality

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Positioning

Al Ries and Trout -1960

Creating and offering an image distinctive in

the minds of the customers. If you do something to the product

differentiation

If you attempt to do something to thecustomers mind - positioning

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Positioning

USP Unique Selling Proposition( Rooser

Reeves)Maggi : 2 minutes

Knorr : Instant soups Whirlpool: fastest cooling

Mercedes: great engineering

Double benefit positioning

Triple benefit positioning

HU

L-Pepsodent :10 nahi to bas nahi

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Positioning strategies

Attribute-10 Downing street pub - largest

Benefit: tasy experience-Essel World

Competitor:More Wild animals in Ranthamboresanctuary than Salim Ali bird sanctuary,Bharatpu

Application: last minute revision-Navneet 21

Users: thrill seekers in a water park

Quality /price: Bajaj Value for money for years

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ProjectProject

Study of Market segmentationStudy of Market segmentation-- TargetingTargetingand positioningand positioning

Marketing mix variablesMarketing mix variablesAA-- Pizzeria / Restaurant / leading hospitalPizzeria / Restaurant / leading hospital/Beauty Parlour /Hotel/Beauty Parlour /Hotel

BB--Cosmetics / Magazines /Tractors /Cosmetics / Magazines /Tractors /Laptops/ Apparel / tourismLaptops/ Apparel / tourism

Choose one each from A or BChoose one each from A or B

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Modus operandiModus operandi

A reportA report compulsory ( 10 marks )compulsory ( 10 marks ) Presentation of Randomly called upon students in eachPresentation of Randomly called upon students in each

class ( 5 marks )class ( 5 marks ) Cover page with the Instt name , title , roll no , Division,Cover page with the Instt name , title , roll no , Division,

yearyear Profile of the marketerProfile of the marketer Details abt how market segmentation has been done .Details abt how market segmentation has been done . Marketing mix variables in detailMarketing mix variables in detail Key learningsKey learnings Pictures /illustrations would add value to your effort !Pictures /illustrations would add value to your effort !

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DEADLINES :DEADLINES :

UNCOMPROMISED!!UNCOMPROMISED!!

Report Submission on 10 Sept 2009Report Submission on 10 Sept 2009before 3.30 pm in the box kept in thebefore 3.30 pm in the box kept in thefaculty cubicle.faculty cubicle.

No calls / requests shall be entertained forNo calls / requests shall be entertained fordeadlines .deadlines .

Two students only ( per group)Two students only ( per group)