SEGMENTATION ,TARGETING POSITIONING

Prof Javed/Aug 2009

Some interesting insights!!

 Allen Solly  Emami fair and handsome  Fair and lovely mens active Vs fair and lovely

(regular)  TVS Victor Vs TVS Scooty pep ( pach rangi satrangi )  Hero Honda Pleasure ( Priyanka Silly village girl, Why should boys have all the fun ?)

 Mehr Jessia Rampal , Sushmita in Oil of Olay ,

anti ageing creamsDo you apply anti ageing creams ??? Why ?  How many of us have Nutralite , Diet Pepsi , Diet Coke , Sugar free Amul lite ? Why and Why not ?

Can we practice one size fits all?

 Tastes and preferences vary  Income of different individuals is different  Climatic conditions and other geographical

conditions in which different people stay varies across the globe  Lifestyles of different people are different  Family size , gender, interests ,buying habits are not the same for every individual

What is a segment ?
 Marketer needs to identify various groups in

the market place who may be mutually exclusive but individuals within a particular group will have similar wants ,purchasing power, geographical location, buying habits etc.

Understanding a Market segment

 A segment is an identifiable group in the

market with similar wants ,purchasing power, geog location , buying habits

Which segment am I looking for ?

Car  For basic transportation  For luxury  For safety  High performance

Levels of segmentation
 Market Segment  Niche  Local marketing  Individual marketing

Basis for Market Segmentation



Geographic segmentation Dividing the market into different geographical unitsunits-nations ,states , regions, neighborhoods The company can operate in one or few areas or all geographical areas Makke di roti and sarso da saag Mustard oil North India Groundnut oiloil- Southern and western India

DEMOGRAPHIC SEGMENTATION
 Market is divided into groups on the basis of :  Age : baby foods ,toys, adult diapers, Insurance,mediclaim  Income: Automobiles  Gender: clothing , hairstyle ,cosmetics ( Emami Fair & Handsome, Nail paints). Family size(cars,apartments), education ,generation (for movies), Occupation ( white collared blue collared workers)

Income

Study of lifestyle of customers Psychographic Segmentation Buyers are divided on the basis of : Personality :Endow brands with a personality A brand also has a personality Enfield indicates masculinity, impulsive ,alert personality Lifestyle : cosmetics (water proof eyeliners for working women), furniture, apparel , consumer durables Values : belief system, social awareness campaigns, family planning , patriotism Some brands promote that a part of the revenue would be directed towards upliftment of underprivileged sections in the society

Behavioral segmentation
 Buyers are divided on the basis of :    
occasions they develop a need to use a product E.g: Thomas cook serves a group of people who fly to a vacation destination. Mothers day , Fathers day were promoted to increase sale of candy , flowers. Buyers are divided on the basis of benefits they seek from the product Travel for fun / adventure etc .

Behavioural segmentation
 Buyers

are divided on the basis of usage

rate Non users, ex users, potential users, first time users, regular users loyalty statusstatus-hard core loyals, split loyals , shifting loyals , brand switchers light users /medium/heavy users

Benefits of Segmentation
 More fine tuned products/service for the

target audience  Choice of channels of distribution becomes easier.  May combat competition or face competitors in a better way  Different marketing mix may be used for different segments

TARGETING

Targeting

 Selecting one or more market segments and

developing a product to be offered to these segments

Targeting strategies
 Single segment concentration-risky ,e.g : Sports car  Selective specialization- Multisegment coverage, diversify your risk  Product specialization: a product can be offered to many segments

E.g: Aqua fresh three segments sparkling white teeth , fresh breath ,anti cavity protection  Market Specialization : Serve many needs of a market .  Full market coverage : a product for every purse ,purpose and personality

Positioning
 Al Ries and Trout -1960  Creating and offering an image distinctive in

the minds of the customers.  If you do something to the product differentiation  If you attempt to do something to the customers mind - positioning

Positioning
 USP Unique Selling Proposition( Rooser

Reeves) Maggi : 2 minutes  Knorr : Instant soups  Whirlpool: fastest cooling  Mercedes: great engineering
 Double benefit positioning  Triple benefit positioning  HUL-Pepsodent :10 nahi to bas nahi

Positioning strategies
 Attribute-10 Downing street pub - largest  Benefit: tasy experience-Essel World  Competitor: More Wild animals in Ranthambore

sanctuary than Salim Ali bird sanctuary ,Bharatpu  Application: last minute revision-Navneet 21  Users: thrill seekers in a water park  Quality /price: Bajaj Value for money for years

Project
 Study

of Market segmentationsegmentation- Targeting and positioning  Marketing mix variables  A- Pizzeria / Restaurant / leading hospital /Beauty Parlour /Hotel  B-Cosmetics / Magazines /Tractors / Laptops/ Apparel / tourism  Choose one each from A or B

Modus operandi
       

A report compulsory ( 10 marks ) Presentation of Randomly called upon students in each class ( 5 marks ) Cover page with the Instt name , title , roll no , Division, year Profile of the marketer Details abt how market segmentation has been done . Marketing mix variables in detail Key learnings Pictures /illustrations would add value to your effort !

DEADLINES : UNCOMPROMISED!!
 Report

Submission on 10 Sept 2009 before 3.30 pm in the box kept in the faculty cubicle.  No calls / requests shall be entertained for deadlines .  Two students only ( per group)