market segmentation, target &...
TRANSCRIPT
MARKET SEGMENTATION,
TARGET & POSITIONING
A Mass Market Approach
Level of Micromarketing
Segment Market: Customers sharing similar sets of needs and wants.
Niche Market: Narrowly defined, seeking a distinctive mix of benefits.
Local Marketing: Tailoring brands and promotions to the needs & wants of local customer groups.
Individual Marketing: Tailoring products to the needs & preferences.
Brands Created a Niche Market
Segmentation
The process that companies use to divide large
heterogeneous markets into small markets that can
be reached more efficiently and effectively with
products and services that match their unique needs
Segmenting Consumer Markets
Geographic Demographic
Behavioral Psychographic
Consumer Markets
Geographic
Geographic segmentation divides the market into
different geographical units such as nations, regions,
states, or cities
Demographic
Divides the market into groups based on variables
such as age, gender, family size, family life cycle,
income, occupation, education, religion, race,
generation, and nationality
Demographic Segmentation
Age and Life Cycle
Life Stage
Gender
Income
Social Class
Generation
Psychographic
Divides buyers into different groups based on social
class, lifestyle, or personality traits.
Personality: The unique psychological
characteristics that leads to relatively consistent and
lasting responses to one’s own environment.
Lifestyle: A person’s pattern of living as expressed
in his or her activities, interests, and opinions.
VALS: Strategicbusinessinsights.com
Behavioral Segmentation
Dividing the market into groups based on consumer
knowledge, attitudes, uses or responses to a
product.
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Loyal Status
Hardcore
Split Loyals
Shifting Loyals
Switchers
Requirements of effective segmentation
Measureable
Accessible
Substantial
Differentiable
Actionable
Market Targeting: whom to serve?
A set of buyers sharing common needs or
characteristics that the company decides to serve.
Target Market Selection
Target Market Selection
Target Market Selection
Positioning : How will we serve them?
The way the product is defined by consumers on
important attributes– the place the product occupies
in consumer’s mind relative to competing products.
Competitive Advantage
An advantage over competitors gained by offering
greater customer value, either through lower prices
or by providing more benefits that justify higher
prices.
Choosing a Positioning strategy
Identifying possible value differences and
competitive advantage.
• Product Differentiation
• Service Differentiation
• People Differentiation
• Image Differentiation
Choosing the right Competitive Advantage
Selecting an overall positioning Strategy
Socio Economic Classification
IlliterateSchool up to 4 years
School 5–9 years
SSC/HSCSome college
but not graduate
Graduate/Postgraduate
general
Graduate/Post
Graduate professional
Unskilled E2 E2 E1 D D D D
Skilled Workers E2 E1 D C C B2 B2
Petty traders E2 D D C C B2 B2
Shop Owners D D C B2 B1 A2 A2
Businessmen with No
employees D C B2 B1 A2 A2 A1
Businessmen with 1-9
employees C B2 B2 B1 A2 A1 A1
Socio Economic Classification
IlliterateSchool up to 4 years
School 5–9 years
SSC/HSCSome college
but not graduate
Graduate/Postgraduate
general
Graduate/Post
Graduate professional
Businessmen with 10+ employees B1 B1 A2 A2 A1 A1 A1
Self Employeed professional D D D B2 B1 A2 A1
Clerical/Salesman D D D C B2 B1 B1
Supervisory Level D D C C B2 B1 A2
Officers/Executives-Junior C C C B2 B1 A2 A2
Officers/Executives-Mid/Senior B1 B1 B1 B1 A2 A1 A1