Imagine

• You have set up your own company and have developed a range of fruit
juices with the following benefits:

Segmentation & Targeting • 100% organic

• Zero added sugar

• Enriched with Vitamin D

• Because of the organic raw materials, added vitamins etc., you are
pricing this at a 30% premium to the leading juice brands in the market

Lesson 3

Introduction to Marketing

Jishnu Changkakoti
• Who can potentially buy this product?

• Who do you want to sell it to? Why?

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Segmentation, Targeting and Positioning Segmentation, Targeting and Positioning

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 Segmentation

Who were the target audiences of the Dzire

& the Alto?
How did the ads convey whom they were
targeted to?

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Linkedin
Segmentation & Targeting
Vision
“..create economic opportunity for
every professional in the world”
• You can’t sell your product to everyone. Why?

• “luke-warm tea”
Focused target segment
Professionals
• A market can be divided into distinct segments, which each segment
differing in their needs

• A market segment is a group of customers who share a similar set of

Sub-segment Sub-segment
needs and wants
Sub-segment
2
1 3
Corporate Advertisers
Job Seekers
• Companies need to identify the segments that they can serve effectively
Recruiters

• "Identifying and uniquely satisfying the right market segments are are
often the key to marketing success”- Kotler, Keller

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 Segmentation Characteristics Of Practical

•
•
There are 4 broad ways of segmenting customers - geographic, demographic, psychographic and behavioural

Geographic - urban vs. rural, metros vs. smaller towns, North vs. South etc., specific states
Segments
• Demographic - age, gender, income, occupation, life-stage etc.
To be useful, market segments must have the following characteristics:

• India’s NCCS segmentation

• Pampers - new baby(0-5 months), baby (6-12), toddler(13-23), preschooler(24 months+)

• Measurable - the size, purchasing power etc. can be measured

• Life-stage - Ikea targets young working adults

• Income segmentation
• Substantial - the size of the segment must be big enough to be worth
• Cohort - Generations - Millenials, Gen X, Baby Boomers
targeting

• Life Stage - college, first job, new mothers, retired

• Psychographic - psychological/personality traits, lifestyle, values, attitudes & beliefs e.g. health conscious vs. hedonistic,
• Accessible

environmentally conscious etc.

• Psychographics is the science of psychology and demographics to better understand consumers

• Differentiable - can distinguish one segment from another + they
• Behavioural - based on knowledge or use of, attitude toward, or response to a product
respond differently to different marketing programs

• Needs and benefits - a pen to write vs. a pen as a status symbol

• Buyer, user, influencer

• Actionable - practical marketing programs can be formulated to target

these segments
• Heavy, light and medium users, regular users vs. special occasion users

• Brand loyalists, rejectors, switchers © 2020 Jishnu Changkakoti. All rights reserved.

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Group Assignment - 10 Marks

• Select any 2 brands in a category

• Analyse which are the target segments of these brands

and how do they differ?

• Which sort of segmentation is each of the brands Thank You

doing?

• Assess the level of success of these brands in their

segmentation efforts

• To be submitted by 22/09/2021

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 Gender segmentation -Venus India’s New Consumer
•
Classification System (NCCS)
Earlier women would use razors that were essentially
men’s razors in different colours

• Consumer research revelaed special needs for a

women’s razor:

• shaving a surface area 9x that of men

• shaving in a wet environment

• suit unique body shape

• women change their grip on the razor 30 times

during a shaving session

• Venus was launched with unique features

• oval shaped cartridge to fit tight areas like

underarms

• wide, sculpted rubberised handle to enable

different grips

• customised variants for 4 different types of shavers

• Venus is the most successful women’s shaving

product ever - more than 50% global market share
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Behavioural Segmentation Breakdown Levi’s

Upscale brand
Sold at high-end retailers
like Bloomingdales

Cheaper brand
Sold through Walmart & Kmart

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 Psychographic Segmentation: Cohorts In The US Population:

Sugar Free™ The Baby Boomers
Who are the Baby Boomers?

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Cohorts In The US Population Cohorts In The US Population

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Discussion for Tomorrow

• Form groups of 2-3 students each

• Work together in each group to create a short presentation that addresses the following
points

• Assuming similar cohorts exist in India, then

• To which cohort do your parents belong?

• To which cohort do you belong?

• In what ways are your parents behaviours, habits, thoughts, consumption behaviour,
dressing, interests etc. similar to you?

• In what ways are they different from you?

• If you were marketing a product to your parents, what would you focus on?

• If you were marketing the same product to your friends, what would you focus on?

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