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Unit 5 Segmentation, Targeting & Positioning

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Mukul Mishra
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19 views27 pages

Unit 5 Segmentation, Targeting & Positioning

STP

Uploaded by

Mukul Mishra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Segmentation, Targeting &

Positioning
Dr.Mukul Mishra
Key Topics

• Segmentation & Segmentation Variables

• Targeting Strategy

• Positioning Strategy
Segmentation

• Dividing a market into distinct groups with


distinct needs, characteristics, or behavior
who might require separate products or
marketing mixes

• A market segment consists of a group of


customers who share a similar set of needs
and wants.
Steps in Segmentation, Targeting &
Positioning
Segmenting Consumer
Markets
Segmenting Variables-
Geographic Segmentation

• Geographic segmentation divides the market


into geographical units such as nations, states,
regions,counties, cities, or neighbourhoods.
Demographic Segmentation
• Demographic segmentation divides the
market based on a number of demographical
factors.
– Age and life cycle
– Life stage
– Gender
– Income
– Generation
– Social class
– Race and Culture
Psychographic Segmentation

• Psychographic segmentation divides the


market based on psychological factors such as
Personality, Lifestyle or Values & people with
in the same demographic group can exhibit
different psychographic profiles.
Behavioral Segmentation
• In behavioral segmentation, marketers divide
buyers into groups on the basis of their
knowledge of, attitude toward,use of, or
response to a product. Following three
aspects are used in assessing behavioral
segmentation.
– Needs and Benefits
– Decision Roles – Initiator / Influencer / Decider /
Buyer / User
– User and Usage – Occasions / user status / User
rate / User readiness
Loyalty Status

• Hard-core loyals

• Split loyals

• Shifting loyals

• Switchers
Behavioral Segmentation
Breakdown
Segmentation of Business
Markets
• Demographic (Industry / Company size / Location)

• Operating variable (Technology / Capacity)

• Purchasing approaches (Purchasing Policies /


Criteria)

• Situational factors (Urgency / Size of order)

• Personal characteristics (Risk Appetite / Loyalty)


Steps in Segmentation
Process
• Need-based segmentation
• Segment identification
• Segment attractiveness
• Segment profitability
• Segment positioning
• Segment acid test
• Market mix strategy
Effective Segmentation
Criteria
• Measurable
• Substantial
• Accessible
• Differentiable
• Actionable
Targeting
Targeting includes following;
• Ranking the market segments according to the market
• potential
• Selecting the target segments accordingly

Targeting decision will be basically taken after considering the


following two dimensions.
• Market attractiveness – profitability, market growth rate,
entry costs, economies of scale, price competition etc.
• Business strength – relative market share, company image,
learning curve effect, product quality, R&D, financial
strength,patent rights etc.
Targeting Strategies

• Undifferentiated Targeting (One product to the


Entire market)

• Concentrated Targeting(One product to One


segment)

• Differentiated Targeting(Different products to


Different segments)
Undifferentiated Marketing

• Single product addressing all segments with a


single marketing program.
• Mass production is possible giving scale
economies
• Pushes price downwards enabling to attract
price sensitive segments
Differentiated Marketing

• A separate market offering for every segment


• Marketing programs for every segment could
be different
• Pushes up costs at various levels, necessitating
sufficient volumes for viability
• Generates inter-segment rivalry
Positioning
• Positioning is the act of designing the company’s
offering and image to occupy a distinctive place in
the mind of the target market.

• Products can be positioned on specific attributes or


against another product class

• Identifying Competitors
• Analyzing Competitors
• Defining POD & POP
Positioning Strategy

1. Identifying a set of possible competitive


advantages upon which to build a position

2. Selecting the right competitive advantages

3. Effectively communicating and delivering the


chosen position to a carefully selected target
market
Product Differentiation

• Physical Attribute Differentiation

• Service Differentiation

• Personnel Differentiation

• Location Differentiation

• Image Differentiation
Analyzing Competitors
Defining Associations

Points-of-difference Points-of-parity
Attributes or benefits Associations that are
consumers strongly not necessarily unique
associate with a brand, to the brand but may be
positively evaluate, and shared with other
believe they could not brands
find to the same extent
with a competitive
brand
Value Propositions
Domino’s
A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price
Positioning Measurement

• Perceptual mapping is a research tool used to


measure a brand’s position
Perceptual Positioning Maps
Thank You !!

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