SEGMENTATION

TARGETING
POSITIONING
 SEGMENTATION
IT IS THE PROCESS OF DIVIDING
MARKET INTO DISTINCT SUBGROUPS
OF CONSUMERS WHO MIGHT
REQUIRE SEPERATE MARKETING
MIXES.
 SHOTGUN VS RIFLE
SHOTGUN FIRES MULTIPLE SMALL
PELLETS INSIDE A SHELL, WHILE A RIFLE
FIRES A SINGLE BULLET IN ONE SHOT.
THIS MAKES A SHOTGUN GOOD FOR SELF-
DEFENSE AND SHORT RANGE USE AND
THE RIFLE GOOD FOR LONG-DISTANCE
USE .
 WHY SEGMENTATION
INSTEAD OF COMPANY SCATTERING ITS
MARKETING EFFORTS ON ALL
CONSUMERS (THE SHOTGUN APPROACH )
IT CAN FOCUS ON FEW (THE RIFLE
APPROACH ) TO AVOID HEAD-ON
COMPETITION IN THE MARKET BY
DIFFERENTIATING ITS MARKETING MIXES.
 TYPES OF SEGMENTATION

1. GEOGRAPHIC SEGMENTATION
2. DEMOGRAPHIC SEGMENTATION
3. BEHAVIOURAL SEGMENTATION
4. PSYCHOGRAPHIC SEGMENTATION
 GEOGRAPHIC SEGMENTATION
IT TALKS ABOUT MARKET COVERAGE. 4 MAJOR
STRATEGIES ARE ,

1. LOCAL MARKET STRATEGY

2. REGIONAL MARKET STRATEGY

3. NATIONAL MARKET STRATEGY

4. INTERNATIONAL MARKET STRATEGY

 LOCAL MARKET STRATEGY
HERE LOCAL AREA IS TARGETED.
BEST EXAMPLE OF THIS IS KIRANA
STORES WHO CATER TO LOCAL
MARKET.
 REGIONAL MARKET STRATEGY
HERE A PARTICULAR REGION IS
FOCUSSED WHICH MAY INCLUDE 2
OR MORE STATES OF A COUNTRY.

e.g:- MYSORE SANDAL SOAP

WAGH BAKRI TEA
 NATIONAL MARKET STRATEGY
HERE A PARTICULAR COUNTRY IS
FOCUSSED.

e.g:-

1. MARUTI SUZUKI IN INDIA

 INTERNATIONAL MARKET STRATEGY

HERE A COMPANY EXPANDS

BEYOND ITS COUNTRY OF ORIGIN.

e.g:-

1. UNILEVER

2. P&G
 DEMOGRAPHIC SEGMENTATION
IT IS SEGMENTING BY ,

1. AGE
2. GENDER
3. INCOME
 1. SEGMENTING BY AGE
THE VARIOUS AGE GROUPS
IDENTIFIED ARE ,
1. BABIES
2. KIDS
3. YOUTH
4. SENIOR CITIZENS
 CASE STUDY

MOTHERCARE – WE
ARE FOLLOWING
BABIES.
 MOTHERCARE
MOTHERCARE IS BRITAIN’S LEADING
BABYCARE RETAILER . IT ENTERED
INDIA IN 2006. THEIR SLOGAN IS ‘ WE
ARE FOLLOWING BABIES.’

IN INDIA ,73,787 BABIES ARE BORN

EVERY DAY COMPARED WITH 40,000 IN
CHINA .
 MOTHERCARE
MOTHERCARE LOOKS AT UPPER
MIDDLE CLASS AND RICH . ITS
HIGH-TECH PUSH CHAIR FOR
BABIES IS RS. 30,000 AND 2
PIECE KNITWEAR IS RS.999.
 2. SEGMENTING BY GENDER

THERE IS EVIDENCE THAT MEN AND

WOMEN DIFFER SUBSTANTIALLY IN
THEIR BUYING BEHAVIOUR .
 CASE STUDY

MARKETING TO WOMEN
 MARKETING TO WOMEN
FEMINA TARGETS WOMEN READERS WITH A
WIDE VARIETY OF ARTICLES WHICH THEY
WOULD ENJOY. REVITAL HAS COME OUT
WITH NATURAL SUPPLEMENT FOR WOMEN
CALLED REVITAL WOMAN. ACCORDING TO
INDUSTRY ESTIMATES , WOMEN ACCOUNT
FOR 80% OF THE TOTAL GEARLESS
SCOOTERS IN INDIA WHICH BOILS DOWN
TO 10 LAKH UNITS PER ANNUM.
 MARKETING TO WOMEN

HARLEY-DAVIDSON WHOSE
TARGET AUDIENCE IS MACHO
MEN HAS LAUNCHED 2 BIKES
STREET 500 AND STREET 750
EXCLUSIVELY FOR WOMEN IN
JUNE 2014.
 MARKETING TO WOMEN
HAIER , ONE OF THE WORLD’S LEADING
WHITE GOODS MANUFACTURER
REDESIGNED PRODUCTS TO SUIT
WOMEN . THE COMPANY MADE
ERGONOMIC CHANGES IN THEIR
APPLIANCES AFTER TAKING INTO
CONSIDERATION THE AVERAGE HEIGHT
DIFFERENCE OF 5 INCHES BETWEEN
MEN AND WOMEN.
 3. SEGMENTING BY INCOME
OUT OF VARIOUS ELEMENTS OF
DEMOGRAPHICS , PURCHASING CAPACITY IS
THE MOST IMPORTANT ONE.
e.g:-
TATA CHEMICALS LAUNCHED WATER PURIFIERS
TATA SWACH IN INDIA FOR THE LOWER INCOME
GROUPS WHO DID NOT HAVE ACCESS TO SAFE
DRINKING WATER . 3 PRODUCT VARIANTS COST
RS. 499, RS.749 AND RS.999 RESPECTIVELY.
 CASE STUDY

PEEPOO IN KENYA
 PEEPOO IN KENYA
IN 2010 ,SWEDISH COMPANY PEEPOOPLE AB
INTRODUCED PEEPOO A ENVIRONMENTALLY
FRIENDLY SINGLE USE PLASTICS BAG. THE
INSIDE IS TREATED WITH UREA . THE WASTE IS
REDUCED TO FERTILIZER (SAFE FOR
GROWING FOOD ) AFTER COMING IN CONTACT
WITH UREA. PEEPOO WAS A REPLACEMENT
FOR FLYING TOILETS ( PLASTIC BAGS FILLED
WITH HUMAN WASTE) USED BY EXTREMELY
POOR PEOPLE IN KENYA.
BEHAVIOURAL SEGMENTATION

1. SEGMENTATION BY BENEFITS
2. SEGMENTATION BY OCCASION OF USE
3. SEGMENTATION BY LOYALTY STATUS
 1. SEGMENTING BY BENEFITS.

BRAND BENEFIT

COLGATE STRONG TEETH

PEPSODENT FIGHTING GERMS
CLOSE-UP FRESH BREATH
SENSODYNE SENSITIVE TEETH

VICCO VAJRADANTI STRONG GUMS

2. SEGMENTING BY OCCASION OF USE
MANY CUSTOMERS BUY DURING
SPECIFIC OCCASIONS.
e.g:-
CADBURY SHOWED GIFTING OF
CADBURY CELEBRATONS DURING
RAKSHABANDHAN.
 3. SEGMENTING BY LOYALTY

SEGMENTATION IS DONE ACCORDING

TO LOYALTY OF CUSTOMERS.
e.g:-
CUSTOMERS COLLECT POINTS ON
THEIR LOYALTY CARDS WHEN THEY
FLY WITH AIRLINES.
PSYCHOGRAPHIC SEGMENTATION
HERE SEGMENTATION IS DONE ON
THE BASIS OF ,

1. LIFESTYLE
2. MOTIVE
3. PERSONALITY
 SEGMENTING BY LIFESTYLE

HERE SEGMENTATION IS DONE

ACCORDING TO THE WAY CUSTOMERS
SPEND THEIR TIME , THE IMPORTANCE OF
THINGS AROUND THEM .

e.g:-

FROZEN YOGHURT IS MARKETED TO

HEALTH CONSCIOUS CUSTOMERS.
 SEGMENTING BY MOTIVE

HERE RATIONAL AND EMOTIONAL MOTIVES OF

CUSTOMERS ARE TARGETED.

e.g:-

MARUTI SUZUKI TARGETS PEOPLE WITH

RATIONAL MOTIVES AND CARMAKERS LIKE
MERCEDES-BENZ , BMW TARGETS
CUSTOMERS’ EMOTIONAL MOTIVES.
 SEGMENTING BY PERSONALITY

PERSONALITY REFLECTS
PERSON’S TRAITS.

e.g:-
ROLEX ATTRACTS PEOPLE WHO
ARE SUCESSFUL.
 TARGETING
AFTER SEGMENTATION THE NEXT STEP IS
TO CHOOSE ONE OR MORE TARGET
MARKETS. FIRMS CHOOSE FOLLOWING
STRATEGIES-
1. CONCENTRATED TARGETING
2. UNDIFFERENTIATED TARGETING
3. DIFFERENTIATED TARGETING
4. MICRO MARKETING
 CONCENTRATED TARGETING

HERE A FIRM CONCENTRATES ON ONLY ONE

SEGMENT . THIS IS ALSO CALLED AS NICHE
MARKETING. CONCENTRATED STRATEGY
VIOLATES A OLD ADAGE ‘ DON’T PUT ALL YOUR
EGGS IN ONE BASKET .’

e.g:-

BURNOL IS A BURN SPECIALIST .

CAN CONCENTRATED STRATEGY
BACKFIRE ?

CASE STUDY - LUX

 LUX
LUX HAS STRONG ASSOCIATION IN THE MIND
OF CONSUMERS AS A BEAUTY SOAP. WHEN IT
LAUNCHED SHAMPOOS BY THE SAME NAME IT
GOT LUKEWARM RESPONSE . CUSTOMERS
FOUND IT DIFFICULT TO ASSOCIATE A SKIN
CARE BRAND WITH HAIR CARE.

THE COMPANY REALIZED ITS MISTAKE AND

EXPANDED IN SKINCARE CATEGORY BY
LAUNCHING BODYWASHES.
UNDIFFERENTIATED TARGETING
HERE FOCUS IS TO PRODUCE A
SINGLE PRODUCT AND MARKETING IT
TO ALL CUSTOMERS. THIS IS ALSO
CALLED AS MASS MARKETING.
e.g:-
THE BEST EXAMPLE IS HENRY
FORD’S COMMENT IN 1908 ABOUT
MODEL T , ‘ CUSTOMERS CAN HAVE
THEIR CAR IN ANY COLOUR AS LONG
AS IT IS BLACK.’
 DIFFERENTIATED TARGETING

HERE A FIRM TARGETS 2 OR MORE

MARKET SEGMENTS EACH WITH A UNIQUE
MARKETING MIX. THIS IS ALSO CALLED AS
MULTISEGMENT TARGETING .

e.g:-

TATA’S HAVE DIFFERENT BRANDS OF

WATCHES LIKE SONATA , TITAN , RAGA ,
ZOOP, XYLYS ETC.
 DIFFERENTIATED TARGETING

ANOTHER OUTCOME OF DIFFERENTIATED

TARGETING IS CANNIBALIZATION. HERE
SALES OF NEW PRODUCT MAY CUT INTO
FIRM’S EXISTING PRODUCTS. THERE WAS
DROP IN SALES OF IPODS AFTER LAUNCH
OF IPADS. SOME FIRMS PRFER TO STEAL
SALES FROM THEIR OWN BRANDS
RATHER LOSING SALES TO A
COMPETITOR.
CAN YOU CANNIBALIZE YOUR OWN
BRANDS ?

CASE STUDY - GILLETE

 BACKGROUND
IN NOVEMBER 2012 , GILLETE
DISPLAYED FUSION GAMER IN
FRONT PAGE AD OF TIMES OF
INDIA STATING THAT IT IS 3
TIMES BETTER THAN MACH 3 !
 MICRO MARKETING

HERE MARKETING MIX IS ALTERED TO

CATER TO SPECIFIC NEEDS OF AN
INDIVIDUAL CUSTOMER. IT IS ALSO CALLED
AS CUSTOMIZED MARKETING .

e.g:-
CUSTOM MADE PINK LAMBORGHINI OF
NICKI MINAJ COSTING $ 4 LAKH !
DIFFERENTIATING & POSITIONING

HERE THE MARKETER DECIDES HOW A

PRODUCT SHOULD BE PERCEIVED BY THE
TARGET AUDIENCE THROUGH A DISTINCT
COMMUNICATION. DIFFERENTIATION PRECEDES
POSITIONING. IN DIFFERENTIATION ATTEMPT IS
TO DIFFERENTIATE YOUR OFFERING AS
COMPARED TO COMPETITOR, WHILE IN
POSITIONING ATTEMPT IS MADE TO
COMMUNICATE THIS OFFERING.
 POSITIONING
A GOOD POSITIONING ANSWERS FOLLOWING 3 QUESTIONS ,

1. WHO IS THE TARGET CUSTOMER ?

2. WHAT IS THE VALUE PROPOSITION ?

3. HOW DIFFERENT IS THE VALUE PROPOSITION FROM COMPETITORS ?

CASE STUDY – RED BULL POSITIONING
 TARGET CUSTOMER
YOUNG URBAN MALES WHO LIVE ON
THE EDGE OR ASPIRE TO DO SO !
 VALUE PROPOSITION
TO FIGHT PHYSICAL AND MENTAL
FATIGUE .
 POD ( POINT OF DIFFERENCE )
EXTREME SPORTS
1. CLIFF DIVING
2. SKY DIVING
3. SKATEBOARDING
4. MOUNTAIN BIKING
5. AIR RACING
 PERCEPTUAL MAPPING
IT IS PLOTTING YOUR BRAND
IN 2 OR MORE DIMENSIONS
VIS A VIS COMPETITORS’
BRANDS AS PERCEIVED BY
CUSTOMERS.
CASE STUDY – PERCEPTUAL MAPPING OF
BATHING SOAPS
 MALE

ARAMUSK
LIFEBUOY

DETTOL CINTHOL

LOW PRICE HIGH PRICE

PEARS LUX DOVE

FEMALE
CASE STUDY – PERCEPTUAL MAPPING OF
BOLLYWOOD MOVIES
 ACTION
ORIENTED

BAAZIGAR
AGNEEPATH
PAAN SINGH TOMAR

EK VILLAIN RITEISH DESHMUKH

SIDDHARTH MALHOTRA

VILLAIN HERO
TURNED TURNED
HERO VILLAIN

MUNNA BHAI MBBS

COMEDY
 REPOSITIONING

IT IS CHANGING THE
EXISTING POSITIONING OF A
BRAND. IT IS DONE TO
INCREASE SALES IN SLOW
MARKETS.
 Image tuning

Dettol Soap
Beauty Soap Germ killing Soap
 Differentiating

Adult Candy

Mint with a hole All Mint no hole

(Polo – Nestle) (Mint-o - ITC)
 Changing Market Conditions

Milk maid (Nestle)

Whitener for Tea, Coffee Toppings for

Cakes, Puddings
 REPOSITIONING
e.g. :-
7 UP WAS INITIALLY POSITIONED AS A MIXER
FOR HARD LIQUOR . LATER IT WAS
REPOSITIONED AS UNCOLA . ITS SALES WENT
ROCKETING AFTER THAT . CONSUMERS
ENDORSED 7 UP AS A ALTERNATIVE TO
COLAS.
CASE STUDY

IMAGICA
REPOSITIONING
 REPOSITIONING
IMAGICA WHOSE PRIMARY TARGET AUDIENCE
IS KIDS HAD COME OUT WITH A SUMMER
CAMPAIGN GROUPBAAZI MEIN MAAZA IN
APRIL 2019. THE CAMPAIGN IS TARGETING THE
CHILD INSIDE ADULTS TO INCREASE ITS BASE !