29382749 segmentation targeting positioning of services

7/29/2019 29382749 Segmentation Targeting Positioning of Services

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Segmenting, Targeting, and

Positioning


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Marketing Process Involves

Market segmentation

Targeting market

Positioning

Marketing mix


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Job seekers(Market Size 20 %)

Students(Market Size 30 %)

Foreign

Travelers(Market Size 5 %)

Conversion Possibility

40%

Conversion Possibility70%

Conversion Possibility

50%

Middle Class Population

Target


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Steps in Market Segmentation, Targeting,and Positioning

1. Identify

segmentationvariables and

segment the

market

2. Develop

profiles of

resulting

segments

MarketSegmentation

3. Evaluate

attractivenessof each

segment

4. Select the

target

segment(s)

MarketTargeting

5. Identifypossible

positioningconcepts foreach target

segment

6. Select,develop, andcommunicate

the chosenpositioning

concept

MarketPositioning


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Basic Market-Preference Patterns

(a) Homogeneous (c) Clustered(b) Diffused

Market

Costumer / Consumer

Market

Costumer / Consumer

Market

Costumer / Consumer


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HomogeneousHeterogeneous Market

A market in which distinctive and different customer needs can be identified and which can then be used

as a basis for segmentation; opposite of homogeneous.


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HomogeneousHeterogeneous Market


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Diffused


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Clustered


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Step 1. Market SegmentationLevels of Market Segmentation

Mass MarketingSame product to all consumers (no segmentation)

Segment Marketing

Pdt./ service to one or more segments (some segmentation)

MicromarketingProducts / service to suit the tastes of individuals and locations

(complete segmentation)

Niche MarketingPdt./service to subgroups within segments (more segmentation)

Local Marketing

Tailoring brands / promotionsto local customer groups

Individual Marketing

Tailoring products / programsto individual customers


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Target the Mass Market versus the

Individual Consumer

12

MassMarket

Niche Micro-

marketingThe

Individual

Personal-

izationMicro-

marketingNicheStandardized

Marketing Mix

Segment

Marketing

Segment

Marketing


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Mass MarketingSame product /service to all consumers (no segmentation)


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Segment MarketingProducts / service to one or more segments (some segmentation)


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Niche MarketingProducts / service to subgroups within segments (more segmentation)


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MicromarketingProducts / service to suit the tastes of individuals and locations

(complete segmentation)


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Local MarketingTailoring brands / promotions to local customer groups

Salary Account

Suvidha Account

Privileged Account Training Center


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Individual MarketingTailoring products/ programs to individual customers

Computer Institution

Designer Outfits


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Steps in the Market SegmentationProcess

Determine Market Boundaries

Decide Which Segmentation Variables to

Use

Collect and Analyze Segmentation Data

Develop a Profile of Each Segment

Target Segments to be Served

Design a Marketing Plan


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Effective Segmentation

Measurable

Accessible

Substantial

Differential

Segments must be large orprofitable enough to serve.

Segments can beeffectively reached andserved.

Actionable

Size, purchasing power,profiles of segments canbe measured.

Segments must responddifferently to different

marketing mix elements &actions.

Must be able to attract andserve the segments.


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Bases of Market Segmentation

Geographi

c

Demographic Psychograph

ic

Behavioral Occasion Benefits-

Sought

Region /Country

DensityClimate

AgeGender

Family SizeIncomeOccupationEducationReligion

RaceNationality

SocialClass

LifestylePersonality

BenefitsUser Status

UsagerateLoyaltyStatusReadinessAttitude

Segmenting market

based onoccasionwhenbuyers getthe idea tobuy or

actuallymake theirpurchase,or use thepurchaseditem.

Marketscan be

segmentedbased onthe benefitsthatconsumersdesire from

using aspecificproduct


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Geographic Segmentation


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Demographic Segmentation


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Psychograph Segmentation


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Behavioral Segmentation


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Occasion Segmentation


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Benefits-Sought Segmentation


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Step 2 Market TargetingEvaluating Market Segment

Segment Structural Attractiveness Consider effectsof: Competitors, Availability of Substitute Productsand, the Power of Buyers & Suppliers.

Segment Size and Growth

Analyze sales, growth rates and expected profitability forvarious segments.

Company Objectives and Resources

Company skills & resources relative to the segment(s).

Look for Competitive Advantages.


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Target Market

A set of buyer sharing common needs or

characteristics that the company decide to

serve


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Five Patterns of Target Market Selection

Single-segmentconcentration

Productspecialization

M1 M2 M3P1

P2P3

Selectivespecialization

M1 M2 M3

P1

P2P3

M1 M2 M3

Full marketcoverage

P1

P2

P3

Marketspecialization

M1 M2 M3P1

P2

P3

P1

P2P3

M1 M2 M3

P = ProductM = Market


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Single-segmentconcentration


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M1 M2 M3

P1

P2

P3


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M1 M2 M3

P1P2

P3


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Productspecialization

M1 M2 M3P1

P2

P3


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Marketspecialization

M1 M2 M3

P1

P2

P3


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M1 M2 M3

Full marketcoverage

P1

P2

P3


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Step 2. Market TargetingMarket Coverage Strategies

Segment 1

Segment 2

Segment 3

Segment 1

Segment 2

Segment 3

CompanyMarketing

Mix

CompanyMarketing

Mix

Company

Marketing Mix 1

Company

Marketing Mix 2

Company

Marketing Mix 3

Market

A. Undifferentiated Marketing

B. Differentiated Marketing

C. Concentrated Marketing


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CompanyMarketing

MixMarket

B. Differentiated Marketing


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Segment 1

Segment 2

Segment 3

CompanyMarketing Mix 1

CompanyMarketing Mix 2

Company

Marketing Mix 3


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Segment 1

Segment 2

Segment 3

CompanyMarketing

Mix

C. Concentrated Marketing

Step 2 Market Targeting


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Step 2. Market TargetingChoosing a Market-Coverage

StrategyCompanyResources

Product

Variability

Products Life-CycleStage

MarketVariability

Competitors

Marketing Strategies


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Positioning the Offering

Positioning is the act of designingthe companys offering and image

to occupy a distinctive place in thetarget markets mind.

h CG C titi


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The BCG Competitive

Advantage Matrix

Volume

FragmentedStalemated

Specialized

Sizeo

fthe

Advantage

Small

Large

Number of Approachesto Achieve Advantage

Few Many


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Product Differentiation

Form Features

Perfor-

mance Quality

Conform-

anceQuality

DurabilityRelia-bility

Repair-ability

Style Design


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Performance of a Product


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Consistency

(Conformance of a Product)


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Reliability


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Durability


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Accuracy


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User Friendly (Ease of Operation)


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Repair


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Other Value Added Services


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Value of a feature and cost


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Usefulness


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Looks


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Performance


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Services Differentiation

Delivery

Ordering

Ease

Maintenance& RepairCustomerTraining

InstallationCustomer

Consulting

Miscellaneous

Services


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Ordering Ease


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Installation


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Delivery


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Customer Consulting


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Customer Training


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Maintenance & Repair


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Differentiation

Personnel

Channel


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Image Differentiation

Media Atmosphere

Symbols

Events


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Media


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Differences WorthEstablishingAffordable Superior

Profitable

Preemptive

Distinctive

Important


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Perceptual Map

0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6-1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2

1.0

0.8

0.6

0.4

0.2

-0.2

-0.4

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MagicMountain

JapaneseDeer Park

BuschGardens

KnottsBerryFarm

LionCountrySafari

Marinelandof thePacific

Disneyland

Economical

Fun rides

Exercise

FantasyGood food

Easy to reach

Educational,animals

Little waitingLive shows


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Positioning Process

1. Market Positioning

2. Psychological Positioning Objective Positioning

Subjective Positioning

3. Positioning Approaches


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Market Positioning

The market positioning process ofidentifying and selecting markets to

determine the criteria for competitive

success.


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Psychological Positioning

Psychological Positioning enablesmarketers to create a unique product

image with the objective of creating

interest.


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http://www.iciciprulife.com/public/Life-plans/Plan-Life-need.htm


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Objective Positioning


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Objective Positioning


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inspiring customer with some intangible offering


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S i / P d t Att ib t


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Service / Product Attributes


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Benefits, Problem Solutions & Basic


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Benefits, Problem Solutions & BasicNeeds


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S ifi U


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Specific Use

A i t Oth P d t


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Against Other Products


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Empathy


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Empathy

Service Evidence


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Service Evidence

Types of Mass Customization (1)


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Types of Mass Customization (1)

The Four Faces of Mass Customization Joseph Pine and James Gilmore - Jan.-Feb. 1997 Harvard

Business Review

1. Collaborative Customization: Consumer and producer engage in a dialogue to determinecustomer requirements

Computers, clothing and footwear, furniture, some services

2. Adaptive Customization: Product is designed so that users can alter it themselves to fit

unique requirements on different occasions

High-end office chairs, R7 golf club, certain electronic devices


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3. Cosmetic Customization: Product is unique in appearance only

Customers chosen text or image on T-shirts, mouse mats,baseball caps, mugs etc.

Also called Personalization

4. Transparent Customization:

Producer provides customized product without consumerbeing necessarily being aware that it has been customized

Can be used when consumers needs are predictable or can

be easily deduced, and when customers do not want theirrequirements repeated.

Example- repeat orders for customized clothing, chemicals

Collaborative Customization


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Collaborative Customization

Adaptive Customization


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Adaptive Customization


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Transparent Customization


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Transparent Customization

True Mass Customization


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True Mass Customization

True Mass Customization requires: System for customer to specify requirements

easily e.g. Costumer service department, onlineordering, call centre.

Advanced manufacturing & communicationsystems

Enable economies of scope (keep cost and price low)

Build-to-order approach

product is not made until order is received (Book: Buildto Order and Mass CustomizationDavid M. Anderson)

Minimum order quantity of one

Advantages of MC


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Advantages of MC

Customer has control over product Does not have to pay for features he/she does

not want (computers etc.)

Company does not have finished product

inventory better use of working capital Easier for company to differentiate product

Levels out economic fluctuations

When slowdown occurs, less backlog of inventory

Prices do not have to be cut as much

Therefore, less likelihood of recession


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Examples of Mass Customization


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Examples of Mass Customization

Dell Build to order computers

Assembly, not manufacture (modularcomponents)

MC sometimes associated with higher prices butDell cheaper than most

Why? Massive efficiency of supply chainmanagement

Living in Dell Time - Fast Company, Nov. 2004


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Clothing and Footwear NikeID, MiAdidas, Otabo Shoes, Vans

Bivolino (shirts), U-Jeans, Lands End, Target,Tommy Hilfiger

Clothing and footwear very suited to MC due toeach person being unique in size and shape

Sports Equipment Nautilus (treadmills)

Industrial equipment, construction Kingspaninsulated roof and wall panels, made

to order for size, colour, insulation type


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29382749 segmentation targeting positioning of services

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