Market

Segmentation
Research

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Outline
 Market segmentation
 Bases for segmentation
 Effective Market Segmentation
 Target Marketing
 Brand Positioning
 Components of positioning
 Repositioning
 Integration of market segmentation & Brand
Positioning

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Market segmentation
 The process by which the diverse market for a product is
divided into several segments & sub segments.

 Why?
 Difficulty in catering to the demand of the total market.

 Components
 Each segment content is homogenous in all aspects.
 Each segment is different from one another.
 Each segment has a separate demand type/schedule.

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Segmentation variables
I. Consumer Market e.g. ITC
II. Business Market e.g. SAP, Infosys

Segmentation variables for Consumer Market

a) Demographic Segmentation
b) Geographic segmentation
c) Psychographic Segmentation
d) Behaviorist Segmentation

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Demographic segmentation
 Age and life cycle stage

 Gender

 Income

 Generation

 Social class

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Psychographic Segmentation
 Psychology or personality traits

 Lifestyle: Culture oriented, Sports oriented, Outdoor oriented,

Time Constrained Customers
E.g. Cadbury’s Diary Milk Celebration, Puma, Ford Endeavor,
Instant Noodles; Titan Watches

 Personality: Compulsive (Harley Davidson), Gregarious (Mountain

Dew), Authoritarian (Reid and Taylor), Ambitious (Citizen
Watches, Adidas)

VALS Framework classification

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Behavioral segmentation
 Occasions

 Benefits

 User status

 Usage rate

 Loyalty status

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 Segmentation Variables for Business
Markets
 Demographic:
 Industry
 Company size
 Location
 Operating Variables
 Technology
 User or non-user
 Purchasing approaches:
 Purchasing-function organization: Centralized or decentralized ?
 Power domination structure: Engineering, Financial, Software
 Relationship
 Purchasing criteria of the Companies: Quality? Price? Service?
 Situational factors
 Urgency: time factor?
 Size of order: Large or Smalls?
 Personal characteristics
 Attitudes toward risk: Risk Takers or Risk Avoiders?
 Loyalty: Loyals or Switchers?
 Buyer-seller similarity: value similar?

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Requirements for Effective Market
Segmentation
 Measurable.

 Substantial.

 Accessible.

 Differentiable.

 Actionable.

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Target Marketing
 After identifying market-segment opportunity
 How many & how to target?

 Three strategies for what to Target:

 Undifferentiated Marketing
 Concentrated marketing
 Differentiated marketing;

 How to do:
 Analysis of each segment as a distinct opportunity.
 Variables such as: resources, product life cycle stage.
 Concentrated Marketing efforts
 Positioning

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Brand positioning
 Act of designing the company’s offerings and
image to occupy a distinctive place in the mind
of the target market.

“It is what you do to the mind of the target to get an

entry, to stay there further and to become the
most preferred”

-Al Rice and Jack Trout

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Four components of positioning
 Market structure

 Consumer segmentation

 Consumer perception: Perceptual mapping

 Benefits vs cost

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Perceptual Mapping

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Repositioning
 Changing the position of a brand.

 for
 Increase relevance to the consumer
 Increasing occasions for use
 Search for a viable position
 Making the brand serious
 Making the brand contemporary
 Targeting new customers
 Differentiating from other brands

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 Thank You

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