Segmentation

Targeting
Positioning
Segmentation
What is
• The process of breaking of buyers into groups
that are different from each other but internally
almost similar.

• The process of diving a market into smaller

homogeneous market with similar
characteristics in called market segmentation.
Why
• All buyers are not same & its not really
possible for a company to satisfy the need of
whole market.
• Segmentation allow you to choose which
buyer to target according to homogeneous
preference.
• Prevents promoting products to the wrong
audience.
Levels of Market Segmentation
Mass Marketing One standardize product for all

Market Segments Homogeneous group of customers having similar characteristics

Local Marketing Concentrates only the local market

Niche Marketing Group of buyers who requires very specialized product & services

Customized Marketing Segment of one

Mass Marketing
Market Segments
Local Marketing
Niche Marketing
Customized Marketing
Segmentation of Customer Market

Market
Segmentati
on
 Geographical Segmentation
• Geographic segmentation is a common strategy when you
serve customers in a particular area, or when your broad
target audience has different preferences based on where
they are located. This marketing approach is common for
small businesses that serve a wide demographic customer
base in a local or regional territory.
• Local
• National
• International
• Regional
 Demographic Segmentation
• Demographic segmentation is market
segmentation according to age, race, religion, gender,
family size, ethnicity, income, and education.
Demographics can be segmented into several markets
to help an organization target its consumers more
accurately
• Age
• Gender
• Marital Status
• Income
 Psychographic Segmentation
• Psychographic segmentation involves dividing
your market into segments based upon different
personality traits, values, attitudes, interests, and
lifestyles of consumers. This segmentation is
advantageous because it allows you to engage in
product design and marketing in a focused
manner.
• Life style
• Personality Variables
 Behavioral Segmentation
• Behavioral Segmentation is  form of
market segmentation that group consumers based on
specific behavioral patterns they display when making
purchasing decisions. It divides the market into groups
of customers according to their knowledge of, attitude
towards, use of or response to a product
• Benefit
• Usage Rate
• Usage Pattern
Key points of
• Measurable
• Accessible
• Differentiable
• Sustainable
Targeting
 Targeting is…

• After segmentation next stage is target the market.

Once the marketer has identified the segments it
must be decided how many and which customer
groups/segments to target. The ways of target the
market is as follows :
• Undifferentiated marketing
• Differentiated marketing
• Concentrated marketing
 Undifferentiated Marketing

• Undifferentiated targeting occurs when the

marketer ignores the apparent segment differences
that exist within the market and uses a
marketing strategy that is intended to appeal to as
many people as possible.
 Differentiated marketing

• A differentiated marketing strategy is when a

company creates campaigns that appeal to at least
two or more market segments or target groups
 Concentrated marketing

• It is referred as niche marketing, involves

going after a larger share of one or a few
segments. By using niche marketing the
company can market more effectively due to a
strong position and great knowledge of the
customers’ needs within each segment.
Positioning
 Positioning is

• The final step in the market segmentation process

deals with positioning. Once the company has
identified the segments and chosen which
segment to target the final step is to decide on,
what position it wants to occupy in the mind of
consumer. Positioning is developing a marketing
mix for the chosen segment.
 Three steps of Positioning
• Identify Possible Competitive Advantages
• Choosing the Right Competitive Advantages
• Selecting an overall Positioning Strategy
Identify Possible Competitive Advantages
 Choosing the Right Competitive
Advantages

Which differences to promote?

• A company should carefully select the way in

which it will distinguish itself from competitors.
• A difference is worth establishing to the extent
that it satisfies the following criteria…
Cont’d…
• Important
• Distinctive
• Superior
• Communicable
• Preemptive
• Affordable
• Profitable
 Selecting an overall Positioning Strategy

Value Proposition

•The full Positioning of a brand.

•In simpler words, the full mix of benefits upon which a brand is
positioned.
More for more
More for the same
The same for less
Less for much less
More for less
More of More :
• Providing the most upscale product or service
and charging a higher price to cover the higher
costs.
More for the Same :
• Providing equivalent quality products at a
Lower Price. It can be a powerful value
proposition.
The Same for Less :
• Providing equivalent quality products at a Lower
Price. It can be a powerful value proposition.
Less for much less :
• Providing lower performance or quality products
as required by the consumers at a Much Lower
Price.
More for less :
• Providing even better or the best products or
services compared to the competitor/s at Lower or
the Lowest Prices.
• Thank you