SEGMENTATION, TARGETING,

POSITIONING
THE TRANSITION….

• Mass production
• Mass distribution
Traditional/ • Creates largest potential market
Mass marketing (everyone)
• Economies of scale- higher
margins

• Market is splintering
• It is tough to reach a huge
Modern/ Micro audience in one go
• Mass marketing is fading as a
marketing thing of the past
FROM MASS MARKET TO MARKET SEGMENTATION

From Heterogeneous
Market

Homogeneous
Market (s)

Specialized
products/
services
 STEPS IN SEGMENTATION, TARGETING, &
POSITIONING

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

4. Select Target Segment(s)

Market
3. Develop Measures Targeting
of Segment Attractiveness
2. Develop Profiles
of Resulting Segments
Market Segmentation
1. Identify Bases for
Segmenting the Market
 BASIC MARKET-PREFERENCE
PATTERNS

(a) Homogeneous (b) Diffused (c) Clustered

preferences preferences preferences
Flavour

Flavour

Flavour
Sweetness Sweetness Sweetness
BASES FOR SEGMENTING CONSUMER
MARKETS

Geographic
Nation, state, Region, City,
Size, Density, Climate
Demographic
Age, Gender, Family size
and Life cycle, Race,
Occupation, or Income,
education, social class,
generation ...

Psychographic
Lifestyle, Values or
Personality
Behavioral
Roles, Occasions,
Benefits, User status,
Usage rate, Loyalty,
Readiness or Attitudes
 BASES FOR SEGMENTATION

Consumer Characteristics Consumer Responses

Occasions User Status

Geographic
Demographic Benefit Sought
Psychographic
Usage Rate

Loyalty Status

Buyer Readiness Stage

Attitude
 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
Market Full market
specialization coverage
M1 M2 M3 M1 M2 M3
P1 P1
P = Product
M = Market P2 P2
9-8
P3 P3
SOCIO- ECONOMIC
CLASSIFICATION (SEC)
 Created in 1988
 Originally developed by IMRB International

 Considers Occupation and Education of the chief

wage earner (Head- CWE) of the households
Socio- economic Classification
(urban)- OLD
Socio- economic Classification
(rural)- OLD

Education of Type of House

Chief wage
earner
Pucca Semi- pucca Kutcha

Illiterate R4 R4 R4
Self- learning/ No R3 R4 R4
school
Upto class 4 R3 R3 R4
Upto class 9 R3 R3 R4
HSC/ SSC R2 R3 R3
College R1 R2 R3
Graduation/ PG- R1 R2 R3
General
Graduation/ PG- R1 R2 R3
Professional
 Socio- economic Classification
(rural and urban)- NEW
 Modified in 2011

 ConsidersEducation of the chief wage earner (Head-

CWE) of the households and the number of consumer
durables owned by the household (out of a list of 11)