1

Market Segmentation,
Targeting and Positioning
 2

“ One cannot be everything to Everyone

but one can be everything to a selected
few ”

Shotgun v/s Rifle Approach

 Objectives:
3
 Identify and profile distinct group of buyers who
differ in their needs and preferences :
“Market Segmentation”

 Select one or more market segments to enter :

“Market Targeting”

 For each target segment, establish and communicate

the distinctive benefits of the company's offering:
“Market positioning”
Case Study:
4

Joyoung Soymilk Maker:

Segmentation, Targeting, and
Positioning

- HBR Case
teps in Segmentation, Targeting, & Positioning
5

6. Develop Marketing
Mix for Each Target Segment Market
Positioning
5. Develop Positioning
for Each Target Segment

4. Select Target
Segment(s) Market
Targeting
3. Develop Measures
of Segment Attractiveness

2. Develop Profiles
of Resulting Segments
Market Segmentation
1. Identify Bases
for Segmenting the Market
Bases for Segmenting the Market
6
Effective Segmentation
Measurable • Size, purchasing power, profiles of
segments can be measured.

Substantial • Segments must be large or

profitable enough to serve.

Accessible •Segments can be effectively

reached and served.

Differential • Segments must respond

differently to different marketing
elements & actions.

Actionable • Must be able to attract and

serve the
segments.

Segmenting and Targeting Market 7

 Segment Market-Preference Patterns
8
(a) Homogeneous (b) Diffused (c) Clustered
preferences preferences preferences
Creaminess

Creaminess

Creaminess
Sweetness Sweetness Sweetness
 9

Patterns of Target Market Selection

 Five Patterns of Target Market Selection

Single-segment Selective Product

concentration specialization specialization
M1 M2 M3 M1 M2 M3
M1 M2 M3
P1 P1
P1 P2 P2
P2 P3 P3
P3

C/C : IAS / CLAT / NIFT Microscope (Uni/Govt.)

M & M Tractor
Market Full market
P = Product specialization coverage
M = Market M1 M2 M3 M1 M2 M3
P1 P1
Different Products for
Universities only P2 P2
Maruti
P3 P3
 Positioning 11

“A marketing strategy that aims to make a brand

occupy a distinct position, relative to competing
brands, in the mind of customers”

Alternatively,

“It’s an attempt to manage how

Potential customers perceive a product or service”
 12

END