Marketing project

Topics
1)Market segment
2) market targeting
3)Positioning

By- Arjun Nair r

Class- 11(commerce)
Subject-marketing
 Marketing
• Marketing is the process of exploring, creating, and delivering value to meet the
needs of a target market  in terms of goods and services; potentially including
selection of a target audience; selection of certain attributes or themes to
emphasize in advertising; operation of advertising agency; attendance at trade
shows  and public events;design of products and packaging attractive to buyers;
defining the terms of sale, such as price, discount   and return policy;product
placement  in media or with people believed to influence the buying habits of others;
agreements with retailers, wholesale distributors, or resellers; and attempts to
create awareness of loyalty to , and positive feelings about a brand. Marketing is
typically done by the seller, typically a retailer or manufacturer. Sometimes tasks are
contracted to a dedicated marketing firm or advertising agency. More rarely, a trade
association or government agency (such as the agricultural marketing services)
advertises on behalf of an entire industry or locality, often a specific type of food
(eg. Got milk? ), food from a specific area, or a city or region as a tourism
destination.
Marketing segmentation
• In marketing, market segmentation is the process of dividing a
broad consumer or business market, normally consisting of
existing and potential customers, into sub-groups of consumers
(known as segments) based on some type of shared
characteristics.
In dividing or segmenting markets, researchers typically look for
common characteristics such as shared needs, common
interests, similar lifestyles, or even similar demographic profiles.
The overall aim of segmentation is to identify high yield
segments – that is, those segments that are likely to be the
most profitable or that have growth potential – so that these
can be selected for special attention (i.e. become target
markets). Many different ways to segment a market have been
identified.business to business (B2B) sellers might segment the
market into different types of businesses or countries, while
business to consumer (B2C) sellers might segment the market
into demographic segments, such as lifestyle, behavior, or
socioeconomic status.
Market segmentation assumes that different market segments
require different marketing programs – that is, different offers,
prices, promotion, distribution, or some combination of marketing
variables. Market segmentation is not only designed to identify the
most profitable segments, but also to develop profiles of key
segments in order to better understand their needs and purchase
motivations. Insights from segmentation analysis are subsequently
used to support marketing strategy development and planning.
Many marketers use the S-T-P approach; Segmentation → Targeting
→positioning to provide the framework for marketing planning
objectives. That is, a market is segmented, one or more segments
are selected for
Targeting,and products or services are positioned in a way that
resonates with the selected target market or markets.
Definition and brief explanation
• Market segmentation is the process of dividing up mass
markets into groups with similar needs and wants.The rationale
for market segmentation is that in order to achieve competitive
advantage and superior performance, firms should: "(1) identify
segments of industry demand, (2) target specific segments of
demand, and (3) develop specific 'marketing mixes' for each
targeted market segment. “ From an economic perspective,
segmentation is built on the assumption that heterogeneity in
demand allows for demand to be disaggregated into segments
with distinct demand functions.
The Importance of Market Segmentation
Market segmentation can help you to define and better understand your
target audiences and ideal customers. If you’re a marketer, this allows you
to identify right market for your products and then target your marketing
more effectively. Similarly, publishers can use market segmentation to offer
more precisely targeted advertising options and to customize their content
for different audience groups.
• Say, for example, you’re a marketer who’s advertising a new brand of dog
food. You could split an audience into segments based on whether they
have a dog. You could then segment that audience further based on what
kind of dog they have and then show them ads for food formulated for
their dog’s breed. A publisher could use this same information to show
content about dogs to people who have or like dogs.
Market segmentation allows you to target your content to
the right people in the right way, rather than targeting your
entire audience with a generic message. This helps you
increase the chances of people engaging with your ad or
content, resulting in more efficient campaigns and
improved return on investment (roi).
 Types of Market Segmentation
• There are many different kinds of market segments you can
create. Below are the four main methods of marketing
segmentation. You can also create more niche segments within
the types below.
1. Demographic Segmentation

• Demographic segmentation is one of the most common forms. It

refers to splitting up audiences based on observable,people based
differences . These qualities include things like age, sex, marital
status, family size, occupation, education level, income, race,
 nationality and religion.
• Segmenting a market according to demographics is the most
basic form of segmentation. Combining demographic
segmentation with other types can help you to narrow down your
market even more. One benefit of this kind of segmentation is
that the information is relatively easily accessible and low-cost to
obtain.
Some products are targeted explicitly towards a specific demographic. One
personal care company, for example, might make two deodorant products —
one labeled as men’s deodorant and one labeled as women’s deodorant.
Automotive companies often segment their audience by income and market
different makes and models of cars to each segment. One company may
have a luxury brand, an economy brand and a mid-range brand.

There are numerous ways to gather demographic data. One way is to ask
your customers directly. This can be time-consuming, but getting the
information directly from customers will help ensure its accuracy. If you
go this route, be careful to be respectful in how you ask and give
customers sufficient response options so you get accurate results. You
may also be able to obtain demographic data directly from customers by
looking at social media and other online profiles where they may provide
information about themselves.
You can also get demographic from
second party and third party data
providers including marketing service
providers and credit bureaus. Public
records, such as those kept by the U.S.
Census Bureau and the U.S. Postal
Service, can also provide useful
information.
Collecting this data in a data
management program (DMP) will help
you to organize it and use it to target
your marketing campaigns or content
personalization efforts.
2. Behavioral Segmentation
• You can also segment your market based on consumers’
behaviors, especially regarding your product. Dividing your
audience based on behaviors they display allows you to
create messaging that caters to those behaviors. Many of
the actions you might look at relate to how someone
interacts with your product, website, app or brand.
• Some types of behaviors to look at include:

•Online shopping habits: You might consider a users’

online shopping habits across all sites, as this may
correlate with the likelihood they will make an online
purchase on your website.
•Actions taken on a website: You can track actions users take on your online
properties to better understand how they interact with them. You might look at
how long someone stays on your site, whether they read articles all the way to the
end, the types of content they click on and more.
•Benefits sought: This refers to the need a customer is trying to meet by
purchasing a product.
•Usage rate: You can categorize users based on usage rate. Your messaging will be
different depending on whether someone is a heavy user, medium user, light user
or non-user of your product.
•Loyalty: After using a product for some time, customers often develop brand
loyalty. You can categorize customers based on how loyal they are to your brand
and tailor your messaging accordingly.

Behavioral data is useful because it relates directly to how someone

interacts with your brand or products. Because of this, it can help you market
more effectively to them.
3. Geographic Segmentation
• Geographic segmentation, splitting up your market based on their
location, is a basic but highly useful segmentation strategy. A
customer’s location can help you better understand their needs and
enable you to send out location-specific ads.
• There are several kinds of geographic segmentation. The most basic
is identifying users based on their locations such as their country,
state, county and zip code. You can also identify consumers based
on the characteristics of the area they live in, such as its climate, the
population density and whether it’s urban, suburban or rural.
Identifying characteristics can require you to get more specific since
one county could have rural, suburban and urban areas.
Dividing a market according to location is critical if you need
to target an ad to people in a specific area, such as if you’re
advertising a small local business. It can also be useful if
you’re targeting a broad area because it enables you to tailor
your messaging according to regional differences in
language, interests, norms and other attributes as well as
the differing needs of people in different regions.
You may need to change the language your messaging depending on
the region you’re targeting. People who live in different countries may
also have different interests. Baseball is very popular in the United
States, for example, while cricket is more popular in India. If you’re
marketing sports equipment or publishing sports articles, you will
want to take these different preferences into account.
Companies can also consider
different needs in different
regions. A clothing company, for
instance, will show ads featuring
warmer clothing to people living
in cooler climates and show the
opposite to people living in
warmer climates.
4. Psychographic Segmentation

• Psychographic segmentation is similar to demographic

segmentation, but it deals with characteristics that are more
mental and emotional. These attributes may not be as easy to
observe as demographics, but they can give you valuable insight
into your audience’s motives, preferences and needs.
Understanding these aspects of your audience can help you to
create content that appeals to them more effectively. Some
examples of psychographic characteristics include personality
traits, interests, beliefs, values, attitudes and lifestyles.
If you find that members of a demographic segment are
responding differently to your content, you might want to
add in some psychographic information. While
demographics provide the basic facts about who your
audience is, psychographics give you insight into why
people decide to purchase or not purchase your product,
click on or ignore your ad and otherwise interact with you.

Say you’re a furniture and home decor company, and you have a market segment
consisting of newlyweds in their 20s and 30s with a household income above $60,
000. Some members of this segment are converting, while others are not. When
you add psychographic information into the mix, you may find that people that
purchase your products often value community and friendships and are
environmentally conscious. Based on this information, you could create ads that
show people entertaining friends in their home and emphasize the
environmentally friendly attributes of your brand.
You can collect this data in many of the
same ways you can gather demographic
data. You can ask your existing customers
for this information using surveys. You can
also look at the way people interact with
your website and see what types of content
they engage with, which gives you insight
into their interests and preferences. You can
also supplement your first-party data with
second-party and third-party data.
Target market
target market, also known as serviceable obtainable market
(SOM), is a group of customers within a business service
available market at which a business aims its marketing efforts
and resources. A target market is a subset of the total market for
a product or service.
• The target market typically consists of consumers who exhibit
similar characteristics (such as age, location, income or lifestyle)
and are considered most likely to buy a business's market
offerings or are likely to be the most profitable segments for the
business to service by OCHOM
Once the target market(s) have been identified, the business will normally
tailor the marketing mix (4 Ps) with the needs and expectations of the
target in mind. This may involve carrying out additional Consumer
researchin order to gain deep insights into the typical consumer's
motivations, purchasing habits and media usage patterns.
The choice of a suitable target market is one of the final steps in the
market segmentation process. The choice of a target market relies heavily
on the marketer's judgement, after carrying out basic research to identify
those segments with the greatest potential for the business.

Occasionally a business may select more than one segment as the focus
of its activities, in which case, it would normally identify a primary
target and a secondary target. Primary target markets are those market
segments to which marketing efforts are primarily directed and where
more of the business's resources are allocated, while secondary markets
are often smaller segments or less vital to a product's success.
 Definition
A target market is a group of customers (individuals, households or
organisations), for which an organisation designs, implements and maintains a
marketing mix suitable for the needs and preferences of that group.
Target marketing goes against the grain of mass marketing. It involves
identifying and selecting specific segments for special attention. Targeting, or
the selection of a target market, is just one of the many decisions made by
marketers and business analysts during the segmentation process.
. VARIOUS TARGET MARKETING STRATEGIES

Broadly the target marketing strategies are classified into the following
types
•Mass Marketing
•Segment Marketing
•Niche Marketing
•Micro Marketing
•Local Marketing

Few market targeting examples are:

•Nike with sports shoes targeting sports playing audience.
•A niche strategy example is Dior. The brand has set itself apart
with its unique designs.
•Lego has a mass market with its appeal to children.
A) Mass Marketing
Mass Marketing involves marketing to the entire population with a single strategy. Mass marketing focuses
to reach everyone with maximum exposure to the product. An attempt is made to spread the message to
everyone with mass media such as TV, newspaper, and mobile.

B) Segment Marketing

Segment Marketing known for its differentiated targeting strategy focuses on a section of people known
as the ‘target audience’. The target marketing concept is to attract customers to their products. This
segment of marketing fetches good results for new products entering to market with established
organizations. This differentiated marketing is expensive. The differentiated marketing strategy can be
designed uniquely for the different target audiences.

C) Niche Marketing
Niche marketing also known as concentrated marketing targets a small section of the market. The
entire campaign is around this small section of the market. Luxury goods like Rolex and Armani are
examples of niche marketing. Niche marketing yields results for small companies with limited
production and sales. There are advantages and disadvantages to niche marketing.
Advantages of niche market segment are:
•Generates high revenues.
•Loyal customer base.
•Competition is less.
Disadvantages of niche marketing are:
•The market is small.
•The scope for growth is less.
•Less competition so keenness to improve is minimal
D) Micromarketing
Micromarketing focuses on a much smaller section of people than niche marketing. Micromarketing definition is
customized marketing or one-to-one marketing. The products are customized to the requirements of the
customer. The micro marketing strategies involve customer tastes, whims, and wishes. A good example of a
micromarketing strategy is Etsy.com which focuses on handmade goods taking orders from customers with their
specific requirements.
E) Local Marketing
Local marketing strategy involves nearby and neighbourhood areas. The organizations use this
marketing strategy to thrive on local connections and make their presence felt. Amazon Local is a good
example of a local marketing strategy. The online service providers along with local businesses come
up with offers for hotel booking, spa treatments, and restaurant meals at regular intervals. The local
companies earn good revenue with sales. Another initiative is CSAs which are community-supported
agriculture shares. Local marketing works wonders for freshly grown greens, fruits, and vegetables by
creating a market in a nearby locality.
CONCLUSION
Every business looks for ways to increase sales. Every organization
keeps looking for new marketing strategies to grow its business. The
marketing life cycle begins even before the product is launched.
Understanding customer behaviour and knowing how the product or
service will meet the customer needs is where the target audience
evolves. Marketing has changed leaps and bounds with the above
strategies along with mobile marketing. The videos launched on online
platforms ensure the customers know about the product even before
they come across the product. This brand awareness aids in making
decisions when customers come face to face with the product.
How to select the Target Market ?
• It is essential for the organizations or marketers to identify the set of
people whom they want to target ?. Marketers must understand the
needs and expectations of the individuals to create its target market.
• The target audience must have similar needs, interests and
expectations.
• Similar products and brands should entice the individuals comprising
the target market.
• Same taglines and advertisements attract the attention of the target
audience and prompt them to buy.
• To select a target market, it is essential for the organizations to study
the following factors:
Understand the lifestyle of the consumers
Age group of the individuals
Income of the consumers
Spending capacity of the consumers
Education and Profession of the people
Gender
Mentality and thought process of the consumers
Social Status
Kind of environment individuals are exposed to

Always remember you would never be successful if you try to impress

everyone. Be specific
Identify individuals who show similar characteristics. Put them in one group
to create target market within a broad market.
Let us go through the below example:
Why do people use soaps ?
Some would use it against body odour
Some would use it to fight germs and infections
Some for a fair and spotless skin

In the above case the product is same but the needs

of the individuals are different. Consumers have
different reasons as to why they use soaps.

Target Audience 1
Against body odour - Soaps with a strong and lasting fragrance.
Marketing professionals
Sales Representatives
People exposed to sun for a longer duration
Individuals travelling by public transport
Target Audience 2
To fight germs and infections - Soaps with medicinal properties
Individuals working in hospitals, nursing homes and research centres
Individuals working in unhygienic conditions
Target Audience 3
For a whiter skin - Soaps which improve the skin tone of individuals.
Teenagers
College students
Target Audience 4
For a younger looking skin - Soaps which help get rid of wrinkles and fine lines of
ageing
Product Positioning Process - Steps in Product
Positioning
• The process of creating an image of a product in the minds of the
consumers is called as positioning. Positioning helps to create first
impression of brands in the minds of target audience. In simpler words
positioning helps in creating a perception of a product or service amongst
the consumers.
Example
• The brand “Bisleri” stands for purity.
• The brand “Ceat Tyre” stands for better grip.
 Steps to product Positioning
• Know your target audience well
• It is essential for the marketers to first identify the target audience and then
understand their needs and preferences. Every individual has varied interests,
needs and preferences. No two individuals can think on the same lines.
• Know what your customers expect out of you.
• The products must fulfill the demands of the individuals.

Identify the product features

The marketers themselves must be well aware of the features and benefits of the
products. It is rightly said you can’t sell something unless and until you yourself are
convinced of it.
A marketer selling Nokia phones should himself also use a Nokia handset for the
customers to believe him.
Unique selling Propositions
Every product should have USPs; at least some features which are unique. The
organizations must create USPs of their brands and effectively communicate the
same to the target audience.

Know your competitors

1. A marketer must be aware of the competitor’s offerings. Let the
individuals know how your product is better than the competitors?
2. Never underestimate your competitors.
3. Let the target audience know how your product is better than others.
4. The marketers must always strive hard to have an edge over their
competitors.
Ways to promote brands
1. Choose the right theme for the advertisement.
2. Use catchy taglines.
3. The advertisement must not confuse people.
4. The marketer must highlight the benefits of the products.

Maintain the position of the brand

1. For an effective positioning it is essential for the marketers to continue to
live up to the expectations of the end - users.
2. Never compromise on quality.
3. Don’t drastically reduce the price of your products.
4. A Mercedes car would not be the same if its price is reduced below a
certain level.
5. A Rado watch would lose its charm if its price is equal to a Sonata or a
Maxima Watch.
Bases of Positioning
Positioning or differentiation can be done through Physical
Positioning and Perceptual
Positioning. Physical positioning is done on the basis of physical
product characteristics. But
every customer doesn’t understand the features and buys the
product on the basis of what it
does rather than what it is. Thus all the products are not influenced
by factors other than
physical properties, including the way products are presented, past
experiences with them,
and opinion of others. Endorsement by celebrities makes the
differences. This all is known as
perceptual positioning. A marketer has to create both physical and
perceptual differences.
Let’s see some typical examples of marketing positioning:
•Tesla and Audi position themselves as a luxury status symbol
•Starbucks positions itself as a trusted source of upscale
quality coffee and beverage
•McDonald’s positions itself as a place to get quick and cheap
meals
•Microsoft and Apple position themselves as a tech company
that offers innovative and user-friendly products.
Positioning in marketing is about more than simply adding a category or
specialty page on your website. With positioning comes a need to live and
breathe that expertise - from generating content to conducting research and
branding your company to appeal to your defined target buyer. Therefore, it’s
essential to create content on your website that provides value for your
audience to build trust and brand awareness.
Source
• www.lotame.com
• Wikipedia
• Marketing textbook 11th