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is the process in which a particular segment of thecustomers which have same tastes or preferences and
are the potentialcustomers are targeted instead of targeting the customers as a whole.Segmentation
marketing offers a lot of benefits as compared to massmarketing like a co. can create a fine tuned
products for those selectedcustomers, can select the best distribution policies, best
communicationchannels and will have a clear picture of their competitors in the samesegment.
Therefore segmentation has become a major factor in everycompanys marketing policies.Various basis
of segmentation can be asfollows-1) Geographic segmentation.2) Demographic segmentation3)
Psychographic segmentation4) Behavioral segmentationFord India has mainly segmented the Indian
automobile market on various basis which are the parts of above mentioned factorsa) Segmentation on the basis of Areas/Cities
: for eg. Ford is mainlyconsidering the metro cities or the big cities of India as they are the
most potential customer areas for them. Since the metros or the big cities have avery high rate of
prospects for the newly established Ford in India. ThoughFord cars are present in the small cities also
but some of its models such asEndeavour and Mondeo are mainly segmented for the big cities
andtherefore they are concentrating more on these cities such as Delhi, Noida,Mumbai, Kolkata
Bangalore, Pune etc. Here the customers are much moreacceptable towards the Ford as compared to
the other small cities It hascreated a different segment of these cities and trying to concentrate on
that.May be later on it will increase its segmented areas. This is mainly a part of Geographical
b) Segmentation on the basis of Age:
Ford India has segmented this marketon the basis of age also like it is segmenting its cars for the youth
or middleage segment. Since different age groups have their own preferences andtastes therefore they
are needed to be catered in a different way . for eg:Ford Fusion is mainly segmented for the youth age .
This is mainly a part of the demographic segmentation

c) Segmentation on the basis of Income:

Ford India has also segmentedthe market on the basis of the income level of the customers .Like it
issegmenting its cars only in the upper middle level or the high level incomegroups. As it is not
producing the cars of small segments therefore it is notneeded to concentrate on the lower income
group of people as they are notthe potential customers for them. Eg : Ford fusion and Ford Fiesta
aremainly segmented for upper middle segment. This is mainly a part of thedemographic segmentation.

Segmentation on the basis of the Lifestyle :

It means that thesegmentation is done on the basis of the attitude ,interests etc of the
potentialcustomers. As the decision of a customer purchasing a car will be affected by his interests and
attitude towards the company or the product ,therefore itis one of the main basis of the segmentation .
like a customer will beattracted by the global brand name of the Ford company which will affectits
decision of purchase. It is mainly a part of psychographic segmentation.
e) Segmentation on the basis of Benefits Provided :
Ford India hassegmented the market on the basis of the benefits provided such as quality,service,
economy, speed comfort etc. As Indian Automobile market ishighly competitive and Ford has still not
established itself properly in Indiatherefore it needs to provide not only these benefits but also
somedistinctive benefits which will differentiate it from other cars in the samesegment .It is mainly a
part of behavioral segmentation.
f) Segmentation on the basis of the Readiness stage:
Ford India issegmenting the market on the basis of the aware customers, unawarecustomers, informed
and interested customers, desirous and intending to buycustomers. As there are some potential
customers and some non potentialcustomers therefore segmenting them is a useful task for the
company .It ismainly a part of the behavioral segmentation.


is the process which is performed after the company hasdone the segmentation of the market on
various basis. For targeting , acompany has to evaluate various segments and then decide upon totarget
accordingly. While doing so a company has to look on to theoverall attractiveness of the segment and
the companys objectivesand resources . Targeting is an important step in the performance of any
company because correct targeting helps a company to rightlychoose the potential customers.

As far as Ford India is concerned it has not confined itself to targetonly one segment. Though it has not
entered into the small car segment yet it has tried to cover many aspects of the Indianautomobile
market like it has its Ford Ikon model mainly for the entrylevel middle class group. It has Ford Fiesta for
the upper middle classgroup which competes with Honda city , Hyundai Accent etc in thesame segment
and for the higher income group or the premiumsegment it has its Mondeo and Endeavour in the
market. ThereforeFord India has tried to target mainly the upper middle and higher segments of the
Indian car market through its various models.

Ford Ikon
is mainly targeted for the middle class entry level groupwith a attractive price tag . It has tried to focus
on people with a driveof running a big car with not much financial burden.

Ford Fusion
company is targeting mainly the youth class of thesociety and also presented it as an urban activity
vehicle. It was a sortof Mini-SUV in the market

Ford Fiesta
is mainly targeted for the part of the society which ismainly attracted by the fuel efficiency of the car
therefore companyhas launched the diesel version along with petrol version of FordFiesta which
provides excellent mileage as compared to other cars inthe same segment.

Ford Mondeo

is mainly targeted for the upper class of income groupand therefore priced highly. It is mainly launched
keeping in mind theupper service class or the big business houses.

Ford Endeavour
was entered in to the market as Sports UtilityVehicle (SUV) It was specifically designed for the Asian

It was the biggest SUV to hit the market so far. It mainly targeted thehigh rich class with a passion of
sporty look vehicle. Therefore Ford India has mainly targeted various segments of the marketthrough
different models of cars..

Each firm needs to develop a distinctive positioning for its market offering.
is the act of designing the companys offering and image tooccupy a distinctive place in the target
markets mind. The end result of positioning is the successful creation of a market-focused value
proposition,a cogent reason why the target market should buy the product.Positioning starts with a
product. A piece of merchandise, a service, acompany, an institution, or even a person. . . . But
positioning is not whatyou do to a product. Positioning is what you do to the mind of the prospect.That
is, you position the product in the mind of the prospect.
How Many Differences to Promote?
Each company must decide how many differences (e.g., benefits, features) to promote. With this
approach, each brand is touted as number one on a particular attribute, such as best quality, best
service, lowest price, or most advanced technology. If a company hammers away at one positioning
and delivers on it, it will probably be best known and recalledfor this strength.
Communicating the Companys Positioning
Once the company has developed a clear positioning strategy, it mustcommunicate that positioning
effectively through all facets of the marketingmix and every point of contact with customers.A good
example is Ritz Carlton hotels, which signals high quality bytraining its employees to answer calls within

three rings, to answer with agenuine smile in their voices, and to be extremely knowledgeable about
allhotel information.On the other hand, companies risk confusing the target audience if their marketing
tactics run counter to their positioning.