Prof.

Shrinivas S Shikaripurkar

Marketing
05-08-21
Session plan coverage

• Chapters 9 & 10
 Chapter 9

Identifying Market Segments & Targets

Learning Objectives

1. In what ways can a company divide the consumer

market into segments?
2. How should business markets be segmented?
3. Porter’s 5 forces framework
Bases for Segmenting Consumer Markets

• Market segment
• A group of customers who share a similar set of needs and wants

Demographic
Geographic segmentation
segmentation

Psychographic Behavioural
segmentation segmentation
 Geographic Segmentation

• Geographical units
• Nations, states, regions, counties, cities, or neighborhoods
• Nielsen Claritas’ PRIZM
• Education and affluence
• Family life cycle
• Urbanisation
• Race and ethnicity
• Mobility

*Potential Rating Index by Zip Markets

PRIZM CLusters

14 distinct groups, 66 distinct lifestyle segments

Geographic Segmentation
Demographic Segmentation

Age & life-

Life stage
cycle stage

Race & Gender

culture

Generation Income
 Demographic Segmentation
• Age and life-cycle stage
• Our wants and abilities change with age
• Life stage
• A person’s major concern (e.g., divorce)
 Demographic Segmentation
• Gender
• Men and women have different attitudes
and behave differently
• Income
• Income segmentation is a long-standing
practice
Gender Matters
 Demographic Segmentation
• Generation

early 1980s as starting birth years and

the mid-1990s to early 2000s as ending 1960s to the early 1980s
birth years

Millennials (Gen Y) Gen X

Baby Boomers Silent Generation

early-to-mid 1940s and ending birth

years ranging from 1960 to 1964. mid-1920s to the early-to-mid 1940s.
 Demographic Segmentation

• Race and culture

Hispanic Americans Asian Americans

African Americans LGBT

“Spanglish”
 Psychographic Segmentation

• Buyers are divided into groups on the basis of

psychological/personality traits, lifestyle, or values

Online buzz-Rock band Foo Fighters created a digital street team that sends targeted e-mail blasts to
members who "get the latest news, exclusive audio/video sneak previews, tons of chances to win great
Foo Fighters prizes, and become part of the Foo Fighters Family."
Figure 9.1: VALS
Segmentation System
Behavioural Segmentation

• Marketers divide buyers into groups on the basis of

their knowledge of, attitude toward, use of, or
response to a product
Behavioural Segmentation

• Needs and benefits

• Decision roles
• Initiator
• Influencer
• Decider
• Buyer
• User
User and usage-related variables

Occasions User status

Attitude Usage rate

Buyer-
Loyalty status readiness
stage
Hard core loyals
Split loyals -2,3 brands
Shifting loyals
Switchers
Figure 9.3
Behavioural Segmentation Breakdown
How Should Business Markets Be
Segmented?

ü Demographic
ü Operating variables
ü Purchasing approaches
ü Purchasing approaches
ü Situational factors
ü Personal characteristics
Market targeting
Effective
Segmentation Criteria

ü Measurable
ü Substantial
ü Accessible
ü Differentiable
ü Actionable
Porter’s five forces

Threat of Rivalry

Threat of Threat of
New Entrants Substitutes

Threat of Buyer Threat of Supplier

Bargaining Power Bargaining Power
 Chapter
10
Crafting the
Brand Positioning
Learning Objectives

1. How can a firm develop and establish an effective

positioning in the market?
2. What are the differences in positioning and branding for
a small business?
 Brand definition

“ A brand is a name given to a product and/or service such that it takes on

an identity by itself.
Description: In today's marketplace teeming with thousands of products
and services, all of which are being rapidly commoditized,
a brand stands out from the clutter and attracts attention.”
 Developing a Brand Positioning
• Positioning
• The act of designing a company’s
offering and image to occupy a
distinctive place in the minds of the
target market
• Value proposition
Value proposition
“A value proposition captures the way a product or a service’s key
benefits provide value to the customers by satisfying their needs”
 Points-of-Difference
and Points-of-Parity
• Points-of-difference (PODs)
• Attributes/benefits that consumers
strongly associate with a brand,
positively evaluate, and believe they
could not find to the same extent with
a competitive brand
SPODs Vs MPODs
• Longest lasting battery life

• Most stylish handbags

• Design, ease-of-use, irreverent attitude

• Performance, innovative technology,

winning
 Points-of-Difference
and Points-of-Parity
• POD criteria

Desirable

Deliverable

Differentiating
Desirable
Deliverable
Differentiating
Points-of-Difference
and Points-of-Parity
• Points-of-parity (POPs)
• Attribute/benefit associations that are not necessarily unique to the
brand but may in fact be shared with other brands

PoD = Low price

PoP = Quality/ Design
Visa vs Amex

• PoD
• Most widely available card
• Prestige
• PoP
• Gold & Platinum
• More Merchants
PoD Vs PoP

• QSR

PoD = Quality, Image, Experience & Variety

PoP = Convenience & Value

 Pop vs. pod
• Multiple Frames of Reference

• Straddle Positioning

Luxury & Performance

“Ultimate Driving Machine”

 Perceptual Maps
On-Time
Air India
Jet
Vistara
Spicejet
Indigo
GoAir

High Low

Price

Off-time Timings
 Perceptual maps
Price
High

Toyota
Mercedes Benz
Tata Motors
Hyundai
Low High BMW
RR
Honda
Quality VW
Renault
Tesla
Mahindra
JLR

Low
 Perceptual maps
Price
High

KIT KAT
Cadbury Dairy Milk
Ferrero Rocher
Lindt
Low High Mars
m&m’s

Quality

Low
 Perceptual maps
Price
High

Sony Vaio
Apple
Dell
Lenovo
Low High HP
Toshiba
Fujitsu
Quality

Low
 Perceptual Maps
Low
Maybeline
Revlon
L’Oreal
MAC
BB

Low High

Price

High Quality
 Perceptual Maps
Low

MAYBELINE

REVLON High
Low

Price

L’OREAL

MAC

High Quality BB
Brand-positioning
bull’s-eye

*Reasons to Believe
Thank You J