Marketing Management

~~Prof.
Prof.Abhi
AbhiBiswas
Biswas

“The idea of dividing a market up into homogeneous segments

and targeting each with a distinct product and/or message, is
now at the heart of marketing theory' ~ Michael J Croft

Segmentation, Targeting & Positioning~ Biswas 2-1

 I. Market Segmentation

People or organizations with

Market needs or wants and the ability and
willingness to buy

A subgroup of people or organizations

Market sharing one or more characteristics that
Segment cause them to have similar product needs.

The process of dividing a market into

Market meaningful, relatively similar, identifiable
Segmentation segments or groups.

Segmentation, Targeting & Positioning~ Biswas 7-2

 The Concept of Market Segmentation

Segmentation, Targeting & Positioning~ Biswas 7-3

 Basic Market Preference Patterns

Segmentation, Targeting & Positioning~ Biswas 7-4

 The Importance of
Market Segmentation

 Markets have a variety of product

needs and preferences

 Marketers can better define

customer needs

 Decision makers can define objectives

and allocate resources more accurately

Segmentation, Targeting & Positioning~ Biswas 7-5

 Segmentation Base

Characteristics of individuals,
groups,
or organizations used
to divide a total market
into segments.
(variables)

Segmentation, Targeting & Positioning~ Biswas 7-6

 Segmentation Bases

A.
A. Geographic
Geographic

B.
B. Demographic
Demographic

C.
C. Psychographic
Psychographic

D.
D. Behavioral
Behavioral

Segmentation, Targeting & Positioning~ Biswas 7-7

 A. Geographic Segmentation

Segmenting markets by region

of the country or world, market
size, market density, or climate.

Segmentation, Targeting & Positioning~ Biswas 7-8

 Geographic Segmentation

• Region of the country or world

• Market size

• Market density

• Climate

Segmentation, Targeting & Positioning~ Biswas 7-9

 B. Demographic Segmentation

Segmenting markets
by characteristics of the
population (eg: age, gender,
income, ethnic background,
and family life cycle)

Segmentation, Targeting & Positioning~ Biswas 7-10

 Demographic Segmentation

• Age
• Gender
• Income
• Ethnic background
• Family Life Cycle

Segmentation, Targeting & Positioning~ Biswas 7-11

Segmentation, Targeting & Positioning~ Biswas 712
 Who is being targeted…….?

Segmentation, Targeting & Positioning~ Biswas

 Strong Enogh For a Man, But Made For
a Woman

Segmentation, Targeting & Positioning~ Biswas

 Toyota Scion targets Gen Y

Segmentation, Targeting & Positioning~ Biswas 7-15

 Family Life Cycle

Segmentation, Targeting & Positioning~ Biswas 7-16

 C. Psychographic Segmentation

Market segmentation on
the basis of personality,
motives, lifestyles, etc.

Segmentation, Targeting & Positioning~ Biswas 7-17

 Bases for
Psychographic Segmentation

Psychological/
Psychological/ Personality
Personality

Lifestyle
Lifestyle

Psychographic
Psychographic Value
Value
Segmentation
Segmentation

Segmentation, Targeting & Positioning~ Biswas 7-18

 Taxonomy of Porsche Buyers

Segmentation, Targeting & Positioning~ Biswas 7-19

 Lifestyle Segmentation

• How time is spent

• Importance of things
around them
• Beliefs
• Socioeconomic
characteristics

Segmentation, Targeting & Positioning~ Biswas 7-20

 The VALS Segmentation System

Segmentation, Targeting & Positioning~ Biswas 7-21

 Benefit Segmentation
of the Snack-Food Market

Segmentation, Targeting & Positioning~ Biswas 7-22

 D. Behavioral Segmentation

Behavioral Variables
• Occasions
• Benefits
• User Status
• Usage Rate
• Buyer-Readiness
• Loyalty Status
• Attitude

Segmentation, Targeting & Positioning~ Biswas 7-23

Segmentation, Targeting & Positioning~ Biswas 724
 • Kwallty Walls: Post dinner
treat....10 o'clock
• Listerine: Night time
rinse....Get fresh tonight
• Clorets: After drinking,
smoking, eating....After
Anything
• Nescafe: Great start to the
morning
• Domino's Pizza: When
families are having fun
(example - watching TV)

Segmentation, Targeting & Positioning~ Biswas 725

 Behavioral Segmentation - Example

Segmentation, Targeting & Positioning~ Biswas 7-26

 Benefit Segmentation

The process of grouping

customers into market
segments according to
the benefits they seek
from the product.

Segmentation, Targeting & Positioning~ Biswas 7-27

 Usage-Rate Segmentation

Dividing a market by the amount

of product
bought or consumed.

Segmentation, Targeting & Positioning~ Biswas 7-28

 The 80/20 (Pareto) Principle

A principle of business that

states that 20 percent of all
customers generate 80 percent
of the demand (or revenue).

Segmentation, Targeting & Positioning~ Biswas 7-29

 Behavioral Segmentation Breakdown

Segmentation, Targeting & Positioning~ Biswas 7-30

 Effective Segmentation Criteria

Measurable
Measurable

Substantial
Substantial

Accessible
Accessible

Differentiable
Differentiable

Actionable
Actionable

Segmentation, Targeting & Positioning~ Biswas 7-31

 II. Strategies for Targeting

1. Undifferentiated 2. Concentrated 3. Multisegment

Strategy Strategy Strategy

Segmentation, Targeting & Positioning~ Biswas 7-32

 1. Undifferentiated Strategy

A strategy that assumes

that one product (one mktg
mix) can satisfy the needs
of most customers.
Focuses on what’s common
in needs of customers
rather than their
differences.

Segmentation, Targeting & Positioning~ Biswas 7-33

 2. Concentrated Targeting
Strategy

A strategy used to select one

segment of a market for
targeting marketing efforts.

What is “niche marketing”?

Segmentation, Targeting & Positioning~ Biswas 7-34

 Niche Marketing

Enterprise Rent-a-Car
targets the insurance-
replacement market

Segmentation, Targeting & Positioning~ Biswas 7-35

 3. Multisegment Targeting Strategy

A strategy that chooses

multiple well-defined market
segments and develops a distinct
marketing mix for each.

Segmentation, Targeting & Positioning~ Biswas 7-36

 III. Positioning

Developing a specific marketing

mix to influence potential
customers’ overall perception of
a brand, product line, or
organization in general.

Segmentation, Targeting & Positioning~ Biswas 7-37

 Position

The place a product, brand, or

group of products occupies in
consumers’ minds relative to
competing offerings.

Segmentation, Targeting & Positioning~ Biswas 7-38

 Effective Positioning

1. Assess the “positions” of competing

products

2. Determine the dimensions of these

“positions”

3. Choose an effective market “position”

Identifying and establishing

POPs and PODs

Segmentation, Targeting & Positioning~ Biswas 7-39

 Positioning 3M as ‘Highly Innovative’

Segmentation, Targeting & Positioning~ Biswas 7-40

 Product Differentiation

A positioning strategy that some

firms use to distinguish their
products from those of
competitors.

Segmentation, Targeting & Positioning~ Biswas 7-41

 Perceptual Mapping

A means of displaying or
graphing, in two or more
dimensions, the location of
products, brands, or groups of
products in customers’ minds.

Segmentation, Targeting & Positioning~ Biswas 7-42

 Positioning using Perceptual Mapping

Segmentation, Targeting & Positioning~ Biswas 7-43

Segmentation, Targeting & Positioning~ Biswas 7-44
 Positioning Bases

Attribute
Attribute

Price
Price&& Quality
Quality

Use
Useor
or Application
Application

Product
ProductUser
User

Positioning
Positioning Benefits
Benefits
Bases
Bases

Competitor
Competitor

Segmentation, Targeting & Positioning~ Biswas 7-45

 Repositioning

Changing consumers’
perceptions of a brand
in relation to
competing brands.

Segmentation, Targeting & Positioning~ Biswas 7-46