market segmentation , positioning and targeting
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8/8/2019 Market Segmentation , Positioning and Targeting
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In Mass Marketing, the seller engages in themass production, mass distribution, and masspromotion of one product for all buyers.
Henry Ford- Model T Ford in one color.
Coca-Cola -6.5 ounce bottle.
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AMarket Segment consists of a group ofcustomers who share a similar set of needs andwants.
Rather than creating the segments, themarketer·s task is to identify them and decidewhich one(s) to target.
Segment marketing offers key benefits overmass marketing.
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The company can offer better design, price,disclose and deliver the product or service andalso can finetune the marketing program and
activites to better reflect competitorsmarketing.
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A niche is a more narrowly defined customergroup seeking a distinctive mix of benefits.
Marketers usually identify niches by dividingsegment into subsegments.
Eg: Ezee , the liquid detergent from Godrej, is afabric-washing product for woolen clothes.
Because of its mildness, customers use thisdetergent to wash delicate clothes that couldget damaged if harsh and strong detergnts areused instead.
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Crack cream from Paras pharamaceuticals.
Itch guard.
Neem active by Henkel india,
Vicco vajradanti
Meswak and babool
Astha in india, Qtv in Pakistan
Star Sports, ESPN, Ten sports, Zee sports.
Star Cricket
Better photography
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The customers have a distinctive set of needs.
They will a premium to the firm that bestsatisfies them
The niche is fairly small but has size, profit andgrowth potential and is unlikely to attractmany other competitors.
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Hall mark personal expressions account for oneof every two greeting cards purchased in theUNITED STATES.
Ayurvedic products and all natural productsusually command a premium.
Himalaya Drug company.
Revolution clothing ltd.
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Target marketing is leading to marketingprograms tailored to the needs and wants of localcustomer groups in trading areas,
neighnbourhoods, even individual stores. Many banks in indai have specialised brands that
exclusively cater to the corporate customers.
In kerala, there are banks that have NRI branches.
Spiderman 3 in five different languages includingBhojpuri.
Bharath matrimony.
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What is grassroot marketing?
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The ultimate level of segmentation lead to´segments of oneµ, customized marketing orone ²to-one marketing.
Paint companies such as Asian Paints, KansaiNerolac, Jenson and Nicholson, and BergerPaints follow the mass-customsation strategy.
Ruff and tuff jeans byA
ravind mills. Galleria credit card by United bank limited.
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GEOGRAPHIC
DEMOGRAPHIC
PSYCHOGRAPHIC
BEHAVIOURAL
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Geographic segmentation calls for division ofthe market into different geographical unitssuch as nations, states, regions,countries,cities
or neighborhoods. In the south Asian context, geographic
segmentation assumes importance due tovariations in consumer preferences andpurchase habits across different regions, acrossdifferent countries and across different states inthese countries.
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One of the major geographical segmentationvariables in south Asia is rural and urban.
Literacy levels,income, spending power, and
availabiltiy of infrastructure such as electricity,telephone network, roads as well as social andcultural orientations of people that effect themarket potential.
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Geographical markets also vary in theirproduct requirements.
In arid regions of india,and Pakistan, during
hot and dry summer seasons , air coolers areused.
However, this product is ineffective in
geographical areas where the climate is hot andhumid during the summer season, airconditioners are preferred.
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Consumers in southern states like tamil nadushow a preference for freshly brewed coffeewhereas consumers in many other states in
idia tend to prefer tea. Even the taste and quality parameters of tea
vary across various regions.
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Division of market on the basis of variablessuch as age, family size, family life cycle,gender, income, occupation, education,
religion, race, generation, nationality and socialclass.
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Consumers wants and abilities change withage.
Therefore age and life-cycle stages are
important variables to define segments.
Eg: Johnson·s baby soap and baby talcumpowder, which are popular in almost all thesouthAsian countries are classic examples ofproducts for infants and children.
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Hindustan unilever limited introduced Pearssoap in pink color, specifically targeted towardchildren.
The magazine Magic Pot published by theMalayala Manorama group in India is targetedat nursery and primary school children. It hasfeatures like joining dots or finding the hiddenanimal by coloring the picture.
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Fortnightly magazine published from Mumbai, JAM is targeted at young adults,defined aspeople below 24 years of age with a metro
mindset. Channels like aastha or sanskar focussed on the
older generation;
Cartoon network , disney, hungama Tv andNickleodon are channels addressing children.
MTv, VTV are channels for youngsters.
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Clearsil at adolescents for acne has beentargeted at adolescents for acne treatment.
Johnson and Johnson·s No Tears shampoo
appealed to mothers and adults for regular use,and hence the company positioned it as a mildshampoo meant for regular use for adults.
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Persons in the same part of the life cycle maydiffer in their life stage.
Life stage defines a person·s major concern,
such as getting married, deciding to buy ahome, sending the child to the school, takingcare of older family members, marrying offtheir children, planning for retirement.
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These life stages present oppurtunities formarketers who can help people cope with theirmajor concerns.
Need for furniture and home appliances Savings cum insurnce schemes to help young
parents plan for the education of their children. Insurance companies offer schemes for people who
are planning their retirement life. Eg:ALHABIB bank of Pakistan targets seniorcitizens with special savings schemes that yeild ahigher interest rate.
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Men andWomen have di
egfferent attitudes.
A research study examining how men andwomen shop found that men often need to beinvited to touch a product, whereas women arelikely to pick it up without prompting.
Men often like to read product information;women may relate to a product on a morepersonal level.
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Product categories such as clothing, hairstyling,cosmetics and magazines.
ParkAvenue for men
Women drive Hero Honda Pleasure
Emami for men
DOVE·S CAMPAIGN.
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OGILVYAND MATHER
PIERRE CARDIN
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INCOME segmentation is a long-standingpractice in a variety of products and services.
Even if two consumers have similar income
levels, each may own different types andbrands of products bases on a host of factorssuch as lifestyle, attitudes and values.
Eg: Nirma washing powder.
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Each generation is influenced by the times inwhich it grows up-the music, politics, anddefining events of that period.
Members share the same major cultural,political and economic experiences and havesimilar outlooks and values.
The younger generation play significant roles,not only as consumers, but also as initiatorsand influencers of buying decisions.
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Social Class has a strong influence onpreferences in cars, clothing, home furnishings,leisure activities, reading habits and retailers.
The concept of social class in india is influencedby the caste system.
Senior level executives with higher educationalqualifications exhibit different purchasepreferences and habits compared to a personwith a similar income level but a differentoccupation, and lower education level.
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Buyers are divided into different groups on thebasis of psychological/personality traits, lifestyleor values.
People within the same demographic group canexhibit very different psychographic profiles.
Titan watches have a wide range of sub brandswith in their titan range such as Edge, Regalia,Nebula and Raga to appeal to different lifestyle
segments. Some with gold-plated bracelets and some with
leather straps.
Fast track brand
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VALS
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Positioning is what you do to the mind of theprospect. That is , you position the product inthe mind of the prospect.
Positioning is more concerned with thecustomer·s perception of the product offer,than the offer as such.
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The aim of positioning is to create a perceptionfor our brand in the prospect·s mind so that itstands apart from competing brands.
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A product cannot be everything to everyone;hence the importance of positioning.
Positioning means putting the product in a
predetermined orbit. Positioning connects product offering with
target market.
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CONSUMER·S MIND IS A GEOMETRICPERCEPTUAL SPACE; THEPRODUCT/BRAND SEEKS A LOCUS IN THE
SPACE THROUGH POSITIONING. WHILE POSITIONINGA BRAND , THE FIRM
HAS TO RECKON COMPETITOR·S-ESPECIALLY THE LEADER·S ²
POSITIONING.
Eg: IBM, CADBURY·S
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Positioning is not over at one stroke; it has tobe monitored and adapted.
Eg: complan
Product positioning and value Proposition.
A value proposition is the assertion/statement
of the benefits and satisfaction that the productis offering. Infact the rule in positioning is thatit should state the value proposition andthereby appeal to the target consumers.
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POSITIOINNG VIZ-A-VIZ COMPETITION, ITSPERFORMANCE GAPS.
POSITIONING ON THE CONSUMER·SEXPECTATIONSAND DESIRES
POSITIOINING ON THE PLANK OF QUALITYON THE PLANK OF PRICEPLANK OF SERVICEON THE PRODUCT·S CONFIRMITYWITH SOCIAL
DEMA
NDS.CAN BE POSITIONED ON ANY FACTOREXISTINING OR EMERGING,WHICH IS OFIMPORTANCE TO THE TARGET MARKET.
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Relate and link your positiong to yourdifferentiation theme. Differentiation andpositioining are to be employed in alighment;
differentiation is actually the predlude topositioning.
Find out the positioinig gaps in the prductcategory and the attributes that can fill them in
the minds of the consumers. Analyse your competitor·s positions and
identify the possible position for your product.
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In particular, evaluate the leader·s position; theleading brand that occupies a special positionin the consumer·s mind (cadbury·s in
choclates); other brands have to necessarilyrelate themselves in some way to the leader·sposition; they cannot ignore the position of theleader, nor wish it away.
Decide the locus you seek in the mind so theconsumers and the attributes of your offer withwhich you will secure it.
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Relate and link your positioning to your targetconsumers (for whom it is intended). Andensure that the positioining appeals to them.
Segmentation/targeting anddifferentiation/positining are to be handled ina composite manner.
Communicate effectively to the target market
the positioing you have chosen. Link your positioning to your value
proposition; ensure, it actually from your valueproposition
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Monitor the positioning as the product picksup. Check whether any variance occursbetween your intended positioning and the
actual position the consumer assigns to it in hismind.
Tackle the variance; go for a new positioing , ifrequired.
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WHAT IS PRODUCT POSITIONGANDBRAND POSITIONING?
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Where is the new offer going to compete?Atwhat?
Which product function/customer need is it
trying to meet? What other products categories serve this
need? In other words, what are the substituteproducts that serve the same need?
Where is the real gap, where is such a newoffer most welcome and wanted by the market?
What are the company·s competencies to fightthere?
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Which are the competing brands in the chosen productcategory?
What are the unique claims/strengths of the variousbrands?
What position do they enjoy in consumer·s evaluationand perception? According to the consumer rating will of the
competing brands, is there a wide gap in expecataions-performance?What kind ofproduct/new/attrtibutes/new funcitons will atract theconsumer?
What is the most favoured position«and yet vacant? Can the new brand claim the needed distinction and
take the position and satisfy that need?
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Products do undergo repositioining as they goalong their life cycle. In some cases, evenproducts that are faring well are repositioned.
This is done mainly to enlarge the reach of theproduct offer and to increase the sale of theproduct by appealing to a wider target market.
The product is provided with some newfeatures or it is associated with some new usesand is repositioned for existing as well as newtarget segments.
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Milkmaid is a good example of repositiong.
When the product was introduced in the sixties, itwas positioned as a convenient form of milk foruse in tea and coffee.
When the sales reached a plateau in the 1980s , thecompany studied the situation in detail anddecided to repostioned it as a product for usesinvolving milk.
Awell planned advertising campaign waslaunched, repositioning milkmaid as an idealingredient for a varitey of sweets and otherpreparations, in addtion to daily use in tea/coffee.
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THE BRANDWAS POSITIONED TO APPEAL TO THE TOP 1 PERCENT OF THE URBANPOPULATION IN INDIA
DESIGNSW
EREW
ESTERN, SHOW
ROOMSVERY GLAMOUROUS,ANDADVERTISINGTOO SOPHISTICATED
THE PRODUCT OFFERWAS PERCEIVEDAS
TOO EL
ITIST. NATURALLY, THIS POSITIONING FAILED
TO GENERATE THE EXPECTED SALESVOLUME.
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TITANWENT TO THE MARKETWITH 18 CARAT JEWELLERY, THE NORM FOR JEWELLERY IN INDIA IS22 CARAT. 18 CARAT STUFF COULD NOT BEEFFECTIVELY POSITIOINED AS JEWELLERY.
AND THE FACT THAT THE BRANDWAS POSITIONEDFOR THE RICH, ELITIES SEGMENT AGGRAVEATED THEMISMATCH.WHY SHOULD THIS SEGMENT AFTER ALL BUY 18 CARAT JEWELLERY?
OBVIOUSL
Y, THEREWA
S CONFUSIONA
BOUT THEVALUE PROPOSITION AND THE PRODUCTATTRIBUTES, ASWELL AS THE TARGET MARKET ANDMARKETING COMMUNICATIONS. THE ADVERTISINGAND THE MARKETING CHANNEL TOOK THEPOSTIONING TO AN UNINTENDED TARGET.
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TITAN HAD TO TOTALLY REWORK ITSSTRATEGY FOR THE JEWELLERY BUSINESS.
TITANADMITTED IN INDIA , THE ENTRY
CA
RD FORW
IDERA
PPEAL
IN JEWELELLERY IS 22 CARAT GOLD, NOT 18CARAT
TITAN CHANGED THE MA JOR PRODUCTA
TTRIBUTES. IT INTRODUCEDA
NEW
COLLECTION IN 22 CARAT JEWELLERY.
THE DESIGNWAS ALSO MADE MOREINDIAN
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TITANALSO CHANGED ITS ADVERTISINGAND CHANNEL STRATEGY TO MAKETANISHQUE LESS ELITIEST. THE AIMWAS
TO MAKE APPEAL TO A WIDERCLIENTELE, INCLUDING THE UPPERMIDDLE CLASS.
WITH THE REPOSITING, THE JEWELLERY
BUSINESS NOW CONTRIBUTES 20PERCENT OF TITAN·S CORPORATEBEHAVIOUR.
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