segmentation of market

7/31/2019 segmentation of market

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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


-Philip Kotler & Kevin Lane Keller& Abraham Koshy & Mithileshwar Jha


-Rajan Saxena


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segmentation of market

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