segmentation of market
TRANSCRIPT
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MARKET SEGMENTATION
TARGETING ANDPOSITIONING
presented byAnand Kumar.
R
Kanimozhi .TNaveen Kumar .K.R
Satheesh .D
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INTRODUCTION
Target marketing includes 3 activities:
1. Market segmentation,2. Market targeting,
3. Market positioning.
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The STP process Segmentation is the process of classifying customers into
groups which share some common characteristic
Targeting involves the process of evaluating each segments
attractiveness and selecting one or more segments to enter
Positioning is arranging for a product to occupy a clear,
distinctive and desirable place relative to competing products
in the mind of the consumer
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Steps in Segmentation,
Targeting, and Positioning
1. Identify Bases for Segmentingthe Market
2. Develop Profiles
of Resulting Segments
3. Develop Selection Criteria
4. Select TargetSegment(s)
5. Develop Positioningfor Each Target Segment
6. Develop MarketingMix for Each Target Segment Market
Positioning
MarketTargeting
Market Segmentation
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WHAT IS MARKET SEGMENTATION?
Market segmentation is the sub-dividing
of a market into homogeneous sub-sects
of customers where any sub-sect mayconceivably be selected as a target market
to be reached with a distinct marketing
mix-Philip Kotler
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WHY SEGMENT THE MARKET?1. Facilitates proper choice of target market
2. Facilitates Tapping of the market,
Adapting the Offer to the market
3. Makes the Marketing Effort more
Economic and Efficient
4. Benefits the customer as well
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MARKET SEGMENTATION
Marketsegmentation
Geographic
Socio-Cultural
Psycho-Graphics
BuyingBehavior
Demographic
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SEGMENTATION APPROACHES
GEOGRAPHICDEMOGRAPHIC PSYCHOGRAPHIC
1.REGION
2.CITY SIZE
3.DENSITY
4.CLIMATE
1.AGE
2.GENDER3.FAMILY SIZE
4.INCOME&
EDUCATION
5.OCCUPATION
6.SOCIAL CLASS
7.RELIGION
1.PERSONALITY
2.LIFE STYLE
BEHAVIOURAL
1.OCCASSIONS2.BENEFITS
3.USER STATUS
4.USAGE RATE
5.READINESS STAGE
CONSUMER CHARACTERISTICS
MAJOR BASES FOR SEGMENTATION
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Effective Segmentation1.Must be measurable in terms of both purchasing power &
size
2. Must be able to effectively promote to & serve a marketsegment
3. Must be sufficiently large to be potentially
profitable
4. The number of market segments must match the firm'scapabilities
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MARKET TARGETING
Market targeting is the selection ofsegments
Evaluation of segments:
1. Is it sizeable?2. Is it growing?
3. Is it profitable?
4. Is it accessible?
5. Is it compatible with firms resources &capabilities?
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TARGET MARKET SELECTION :
Once the firm has segmented the total market , it should select
the target market segment or segments for marketing.
This requires the evaluation of different segments in terms of
market size, competition, growth rate, companys resources,
profitability, scale of economics etc. The firm may consider the
following patterns of target markets.
1. Single segment concentration strategy.
2. Multi- segment strategy or Differentiated marketing Strategy.
3. Un-differentiated Marketing strategy.
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1. Single segment concentration strategy:
Car maker
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2. Multi- segment strategy or Differentiated marketing Strategy:
Car maker
`
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Car maker
1. Un-differentiated Marketing strategy :
Whole Market
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MARKET POSITIONING
Positioning is the strategy that enables a firm tocompetitively and strongly place its brand in thecustomers mind
Positioning Strategies:
Approaches of positioning Strategies :1. Customer Benefits.
2. Price & Quality.
3. Product Users.
4. Product class.
5. Cultural Symbols.
6. Competitors.
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Selecting the Positioning Platform:Superior
Communicable
Affordable
Profitable to the company
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Steps to Choosing a Positioning Strategy
Step 1. Identify the strategic group.
Step 2. Understand the customers perception of brands ofstrategic group.
Step 3. Determine Customers needs , aspirations.
Step 4. Select the best one for advertising campaign.
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Perceptual Map for Soft Drinks:
Cola
Diet Non-Diet
Non-Cola
Diet Pepsi Tap
Coca-Cola Pepsi
FrescaDiet 7-up
Sprite 7-Up
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CASE STUDY Local marketing
Niche marketing
Geographic & Demographic segments
Discussion Questions:
1. Key success factors for HSBC?2. Where is HSBC vulnerable? Where should it watch out
for?
3. Recommendations to senior marketing executives going
forward? What should they be sure to do with its
marketing?
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REFERENCES :
1. Principles and Practices of marketingmanagement .
Dr.P.C.Sekar & M.Selvaraj
2. Marketing Management.
- V S Ramaswamy & S Namakumari3. Marketing Management.
-S Jayachandran
4. Marketing Management.
-Philip Kotler & Kevin Lane Keller& Abraham Koshy & Mithileshwar Jha
5. Marketing Management.
-Rajan Saxena
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