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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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2020
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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,
Positioning for Competitive Advantage
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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
Positioning for Competitive Advantage
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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.
Positioning for Competitive Advantage
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References
Keller, Ang, Leong & Tan4th
Edition: VALS SegmentationSystem
Philip Kotler, 4rth Edition
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Queries???