MARKET SEGMENTATION,

TARGETING AND
POSITIONING
PRESENTED BY:
AAKANKSHA
RIYA CHUGH
PRAGYA
SUPRIYA
POOJA YADAV
 MARKET SEGMENTATION
 In marketing, market segmentation is
the process of dividing a broad consumer
or business market, normally consisting
of existing and potential customers, into
sub-groups of consumers (known
as segments) based on some type of
shared characteristics.
CHARACTERISTICS
 Identifiable
Marketers divide the market into exclusive segments on the basis of
common need by using the demographic, lifestyle, and other factors.
These factors are named as bases for segmentation.
For example, in demographic segmentation marketers use gender,
age, ethnicity to segment the market.
Sizeable
A profitable segment should have enough number of
consumers. A segment can be identifiable but may not be
sizeable.
Stable and growing
Marketers look for the segments those are stable and
growing in nature.
For example, students are identifiable and sizeable
segment for e-retailers. Marketers know that in India a
number of the customer using e-retailing will grow very
fast in the coming decade.
 Reachable
 A segment can be identifiable, sizeable and stable/growing, but if it is not reachable then it is not a
target segment. Reachable means the ability of a marketer to communicate with customers
effectively and economically.

 Congruent with marketer objective and resources

 Marketers may not be willing to target each and every segment, even if the segments qualify
preceding criteria.
 For example, Earlier Mahindra did not consider Scooter segment as one of the target segment
because it was not in congruence with the Mahindra’s objective. Now Mahindra changed its strategy
and its marketing objectives, and launched Mahindra Gusto in Scooter segment
MARKETING
SEGMENTATION
REQUIREMENTS FOR EFFECTIVE
SEGMENTATION
 There are many ways to segment a market, but not
all segmentations are effective. For example,
buyers of table salt could be divided into black and
brown hair customers. But hair color

obviously does not affect the purchase of salt.

Furthermore, if all salt buyers bought the same
amount of salt each month, believed that all salt is
the same, and wanted to pay the same price,
the company would not benefit from segmenting
this market.
 1. Measurable:
The size, purchasing power, and profiles of the segments can be
measured.
Certain segmentation variables are difficult to measure. For example,
there are approximately
30.5 million left handed people in the United States, which is nearly the
entire population of
Canada. Yet few products are targeted toward this left-handed segment.
 2. Accessible:
The market segments must be effectively reached and served.
Suppose a
fragrance company finds that heavy users of its brand are single men
and women who stay out
late and socialize a lot. Unless this group lives or shops at certain
places and is exposed to certain
media, its members will be difficult to reach.
 3. Substantial:
The market segments are large or profitable enough to serve. A
segment should
be the largest possible homogeneous group worth pursuing with a
tailored marketing program. It
would not pay, for example, for an automobile manufacturer to
develop cars especially for
people whose height is greater than seven feet.
 4. Differentiable:
The segments are conceptually distinguishable and respond
differently to
different marketing mix elements and programs. If men and women
respond similarly to
marketing efforts for soft drinks, they do not constitute separate
segments.
 5. Actionable:
Effective programs can be designed for attracting and serving the
segments. For
example, although one small airline identified seven market
segments, its staff was too small to
develop separate marketing programs for each segment.
 BASES OF
SEGMENTATION
 No
Image
GEOGRAPHIC
SEGMENTATION
• Dividing a market into different geographical units.
DEMOGRAPHIC
SEGMENTATION
Segmenting market on the basis of demographic variables such as:
 PSYCHOGRAPHIC
SEGMENTATION
Segmenting customer base based on their psychological traits.
BEHAVIOURAL
SEGMENTATION
Sorting and grouping customers based on the behaviours they exhibit.
MARKET TARGETING
WHAT IS TARGETING IN
MARKETING?
A target market is a group of customers that the
business has decided to sell their product or
service or to aim it’s marketing effort.
Targeting in marketing is a strategy that breaks a large
market into smaller segments to concentrate on a
specific group of customers within that audience.
 TARGETING APPROACHES

Undifferentiated Differentiated Concentrated

Micromarketing
Marketing Marketing Marketing
1. UNDIFFERENTIATED (MASS) MARKETING:

A market coverage strategy in which a firm decides to ignore market segment differences
and go after the whole market with one offer.

2. DIFFERENTIATED (SEGMENTED) MARKETING:

A market coverage strategy in which a firm decides to target several market segments and
designs separate offers for each.
3. CONCENTRATED (NICHE) MARKETING:
A strategy in which a firm goes after a large share
of one or few segments.

4. MICROMARKETING:
It is the tailoring of products and programmes to
suit the taste of specific individuals and locations.
IT INCLUDES LOCAL MARKETING and INDIVIDUAL
MARKETING.
 
WHAT IS POSITIONING IN MARKET?

Market Positioning refers to the ability to

influence consumer perception. It allows a
company to achieve superior margins regarding a
brand or product relative to competitors. The
objective of market positioning is to establish the
image or identity of a brand.
STRATEGIES OF
POSITIONING
TYPES OF POSITIONING STRATEGIES
 Attribute positioning:- Saffola No Cholesterol
 Benefit positioning: Hero Honda- Better in mileage
 User Positioning: Business Today - Business Magazine
 Competitor based positioning -Pepsodent in fightingthe germs
 Product category positioning:
 Quality or Price Positioning
THANK YOU