stp analysis specific to indian sub continent
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Identifying
Market Segments
and Targets
8
Marketing Management
A South Asian Perspective, 13th
ed
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Effective Targeting Requires
Identify and profile distinct groups of buyers
who differ in their needs and preferences
Select one or more market segments to enter
Establish and communicate the distinctivebenefits of the market offering
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What is a Market Segment?
A market segment consists of a group of
customers who share a similar set of
needs and wants
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Why Segment the Market?
Facilitates right choice of target market
Facilitates effective tapping of the chosen market
Makes the marketing effort more efficient &
economic
Helps identify less satisfied segments & concentrate
on them
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The Himalaya DrugCompany serves a
growing niche
market by focusingon ayurvedic
medicines and
health supplements
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What is Customerization?
Customerization combines operationally driven
mass customization with customized marketing
in a way that empowers consumers to design the
product and service offering of their choice.
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Horlicks is sold in a number
of countries across world.In different countries, the
product has different
formulations in order to
cater to varying consumer
segments and serve
different consumer needs.
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Segmenting Consumer Markets
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Geographic
Demographic
Psychographic
Behavioral
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Demographic Segmentation
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Age and Life Cycle
Life Stage
Gender
Income
Generation
Social Class
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Dove Targets Women
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Adidas Targets Women in India
German shoemaker Adidas is trying to develop
the women segment in India for its products.While globally, Adidas derives about 35% of itseuro 6.4 bn. Revenue from women segment, itbrings less than 15% in India. So, it plans to
increase the number of women focused stores.One strategy to draw more women customersinto its stores is to expand the list of merchandise.The company is now planning to have as many as
68 items ofwomens footwear. It launched its allwomen store at Eva Mall at Bangalore, a mallexclusively targeting the woman customer.
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Behavioral Segmentation
Decision Roles
Initiator
Influencer
Decider
Buyer
User
Behavioral Variables
Occasions
Benefits
User Status
Usage Rate
Buyer-Readiness Loyalty Status
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Usage Based Segmentation
Currently user of the brand
Currently user ofcompetitors brand
Currently non users of the category as
such
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Contd
Start with current users of the brand
Tackle current users of competitors brands
Tackle non users, entering the category for
the first time
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Benefit segmentation
GSK Consumer
Healthcare & Pepsi have
created separate
segments with theirDiet Horlicks & Diet
Pepsi. Mother Dairy has
done the same thing
with their low calorieice cream
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Segmentation with Value orientation
Irrespective of the method applies, marketer hasto make the search in terms of the value needs ofthe buyers
All of them may be buyers for the product, butmay differ in their motivations & the value soughtin buying it
Marketer has to fully uncover the value needs. If
he stops with conventional segmentation, suchdifferences in motivations/ value needs lie withina segment cant be uncovered
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Example
Suppose you are targeting the market of holiday
lovers, and have chosen a broad segment applying theconventional segmentation methods. You work out a
travel package addressed to them. But, you find some
of them looking for privacy, some others are relishing
group activities, some are interested in exotic settings,and some more are concerned at the travel comforts.
All of them are holiday lovers & you have selected the
segment applying a combination of relevant
segmentation variables. But you find your purpose isnot fully served, given the diverging value needs of the
segment. You have to go deeper & capture the value
difference in the segment.Copyright 2009 Dorling Kindersley
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Loyalty Status
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Switchers
Shifting loyals
Split loyals
Hard-core
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Effective Segmentation Criteria
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Measurable
Substantial
Accessible
Differentiable
Actionable
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Choosing the Target Market
The marketer can choose one, or a few or all
of the segment
With segmentation the firm just divided the
market into segments to be examined further
All these segments need not necessarily form
its target market
A selection/ decision is thus involved after the
segmentation process
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Airtels Target Market for Broadband
services
Airtel does not select all segments/ cities as its
market for its broadband/ fixed line services. Airtels
broadband services are available in the top 50 cities
only, and even in those cities it does not select allparts of the city as its operating market. It selects
only those segments/ parts of the selected cities
where the costs would be low & profits would be
high. It is highly choosy about the areas it pick up. Itfeels that it doesnt make economic sense to lay
copper fibre across the length & breadth of any city.
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Steps involved in choosing the Target
Market
Look at each segment as a distinct marketing
opportunity
Evaluate the worth of each segment
Evaluate whether the segment meets all theattributes of effective segment
Examine whether it is better to pick up the whole
market or only a few segments Look at segments which are relatively less satisfied
by the current offers
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Contd
Check out if the firm has the differential advantage
capability for serving the selected segments
Evaluate the firms resources
Examine, whether the spotted segments match with& make the best fit for the firms distinctive
capabilities
Finally, select those segments that are most
appropriate for the firm as the target market
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Evaluating the Segments
Is it sizeable
Is it growing
Is it profitable Is it accessible
Is it compatible with the firms ambitions,
resources & capabilities
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