presentation imc group2

8/8/2019 Presentation IMC Group2

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Segment The Market

But Focus More On

Targeting And Positioning

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SegmentationTargeting&

Positioning

Reaching out to

the

Right Customers

By:

Shilpa Susan Philip

Sachin Kr. Sanu

Sunny Gupta

(Group2, IMC)22


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Our Focus

Segmentation

Target Marketing

Positioning

References

Contents

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OUR FOCUS:

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Steps to Follow

Three major steps:

Market segmentation

1.Identifybases forsegmentingthe market

1.2. Develop

segmentprofiles

Target marketing

3. Developmeasure ofsegmentattractiveness

4. Selecttarget segments

Market Positioning

5. Developpositioning fortarget segments

6. Developa marketing mixfor each segment

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Segmentation can be based on:-

Behavioral Psychographic

Demographic

For common consumer

For Business Market

Need Based


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Behavioral Segmentation

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Geographic Segmentation

Based on nations, states, regions, cities.

Eg:-Starbucks: more coffee and dessert forthe Southern states customers.

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Psychographic Segmentation

Social class, lifestyles or personalitycharacteristics.

Eg:-Mercedes. K2 cigarette

Psychographic classification system SRIC-BI VALSTM

Classifies adults into 8 primary groupsbased on personality traits & keydemographics

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11/34Source: Keller, Ang, Leong & Tan4th Edition: VALS Segmentation System

Innovators

upscale, niche-oriented

Thinkers

durability, functionality

Achievers

established & prestige

Experiencersfashion, entertainment

Believers

familiar & established

Strivers

stylish productsMakers

basic, practical

Strugglers:

Loyal to favorite brands

Contd..Contd..1111


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Demographic Segmentation

Consumer

Age

Gender

Family size

Family life cycle

Income

Occupation

Education Religion, race

Generation

Nationality

Business:

First-time prospects

NovicesSophisticatesPrice-oriented customers(transactional selling)Solution-oriented customers

(consultative selling)Strategic-value customers(enterprise selling)

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Demographical segmentation For Business Market

Dividing groups on the basis of industry, companysize.

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Requirements for Effective Segmentation

To be useful,market segments

must be:

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7 t N d b d M k t S t ti A h


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Needs-Based

Segmentation

Group customers -similar needs & benefits

segmentsIdentification Demographics, lifestyles, & usage behaviors make

segment distinct & identifiable (actionable)

Attractiveness Use predetermined segment attractiveness

Profitability Determine segment profitability

Positioning Create a value proposition - segments uniquecustomer needs & characteristics

Acid Test Create segment storyboards - test attractiveness

Marketing-Mix Expand strategy to include marketing mix

7-step Needs-based Market Segmentation Approach

Source: Kotler 4rth Edition

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Other Factors:-

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Target Market

Target Marketing

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What does a product do?

Whom is it helpful to?

Which region of the world will accept the product?

Attractiveness of a Market Segment

Suitability of Market Segments to the Firm

How to identify a target market?

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Attractiveness of a Market Segment

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Suitability of Market Segments to Firm

Whether the firm can offer superior value to the customers inthe segment

The impact of serving the segment on the firm's image

Access to distribution channels required to serve the segment

The firm's resources and capital investment required to servethe segment

2020

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TARGET MARKETING STRATEGY2121

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CONTINUEDCONTINUED

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Micromarketing: tailor products & marketing programs to the

needs & wants of specific individuals & local customer groups.

CONTINUEDCONTINUED

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Choosing a Target Marketing Strategy

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Positioning

For A Competitive Advantage

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POSITIONING for Competitive Advantage

Arranging for a product to occupy a clear, distinctive, and desirable

place relative to competing products in the minds of targetconsumers.

Examples:Apple Innovation,

Toyota Economy,Mercedes Luxury,Pepsi (My Can) Youth


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Choosing a Positioning Strategy

The positioning task consists of three steps:

1. Identifying possible competitive advantages:

Offer consumers greater value, either through lower prices orby providing more benefits that justify higher prices.

Differentiation is the Key !

Various ways a company can differentiate its offerings:Along the lines of product, services, channels, people or image.

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Positioning for Competitive Advantage

Product differentiation

Form: Shape and Size (Tetra packs and pouches of

shampoos)

Features: Oral B (Blue Dye)

Services differentiation: (Dominos, Pizza Hut Freshness

Indicators)

Personnel differentiation: (Training)

Channel differentiation: Dell, Caterpillar

Image differentiation: Sony

By Symbols: Vodafone Zoozoo, Mc Donalds Golden


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2. Choosing the right competitive advantages:

How many differences to promote: only one benefit (Quick fix)

more than one benefit (Floor Cleaners).

We must avoid three major positioning errors. Under positioning, Over positioning, Confused

positioning.

Which differences to promote: important, distinctive,

superior, communicable, preemptive, affordable,


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3. Selecting an overall positioning strategy:

Five winning value propositions upon which companies can position

their products would be:

More for more: Mercedes-Benz automobiles

More for the same: Mahindra Holydays

The same for less: Tata Nano

Less for much less: Adibas, Reedok and many more

More for less: winning value proposition, Dell


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Communicating and Delivering the Chosen Position:

Offer and Deliver

Example:

More for more: Produce high quality products, charge a high price,

distribute through high quality dealers, advertise in high-quality media.


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References

Keller, Ang, Leong & Tan4th

Edition: VALS SegmentationSystem

Philip Kotler, 4rth Edition

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