MODULE 5 PRESENTATION ON SEGMENTATION , TARGETING , POSITIONING

GAUIDED BY : MS Rupal Bhatt

SUBJECT : MARKETING MANAGEMENT

PREPAID BY :

VALA PUNIT VAMJA RAVI

Introduction
The Automobile sector is one of the fastest growing manufacturing sectors in India. The Government is also formulating an Auto Policy, which would give a proper direction to the growth of the sector. There are more than 20 auto component manufacturing companies in the State, manufacturing components such as precision aluminum castings, oils and lubricants, diesel fuel injection equipment, electronics and auto electronics etc.

About the company

Hero Honda Motors Ltd. is the world's largest manufacturer of two wheelers, based in India. The company is a joint venture between India's Hero Group and Honda Motor Company, Japan that began in 1984. In 2001, largest two-wheeler manufacturing company in India and the World No.1 two wheeler company in terms of unit volume sale.

SEGMENTATION
Process of subdividing a total market into different subsets or groups. Where the marketer may select one or more segments. To be reached with an appropriate marketing mix.

Geographic Segmentation
Subdividing the whole market into different geographical units which can be further subdivided into smaller units. A national marketer may take whole nation as his market. The relationship hero group with their dealer is unique in its closeness. The dealer are considered a part of HHML, a national wide dealer network comparison of 5000 out late.

Demographic Segmentation
Subdividing the market in terms of demographic features of a country or a region. Variables that may be considered are age, gender, marital status, family size, etc. Demographic data is essential for estimating the size of the target market.

Psychographic segmentation
Sub division of different groups on the basis of personality, life style and values.

Automobile manufacturers must consider different personality traits in dividing the market.

Behavior Segmentation
In behavioral segmentation, marketers divide buyers into groups on the basis of their knowledge of, attitude toward, use of, or response to a product. 1. Decision Roles: Initiator Influencer Decider Buyer User

2. Behavioral Variables Many marketers believe behavioral variablesoccasions, benefits, user status, usage rate, buyer readiness stage, loyalty status, and attitude-are the best starting points for constructing market segments.

Bases for segmenting

Splendor CBZ

GEOGRAPHIC Region All over India All over India

Areas DEMOGRAPHIC Age Gender

Rural & semi-urban

Urban & semi-urban

20-50 Male

20-45 Male

Income

20000 or more then

50000 or more then

Splendor PSYCHOGRAPHICS Life style Personality Culture oriented compulsive

CBZ

Sports oriented Authoritarian

BEHAVIORAL Benefit User status Loyalty status Attitude product toward Economy, good Sporty, good style, mileage, comfortable good speed, 5 stock. Regular Strong Positive Existing Absolute Enthusiastic

Targeting
Once the firm has segmented the total market ,it should select the target market segment or segments for marketing. Investing in a particular segment should be sensible in terms of companys mission, objectives, skills and resources.

Effective segmenting criteria

Single concentration
M1 M2

segment
M3

Selective specialization
M1 P1 P2 P3 M2 M3

P1
P2 P3

 Market specialization
M1 P1 P2 P3 M2 M3

Product specialization
M1 P1 P2 P3 M2 M3

 Full market coverage

M1 P1 P2 P3 M2 M3

HERO HONDA TARGETING

Splendor Hero Honda used Product Specialization for target market of Hero Honda Splendor. Hero Honda builds a strong reputation in the specific product area. CBZ Under HERO HONDA used a market specialization for target market. Hero Honda gains a strong reputation in serving this customer group and becomes a channel for additional products the customer group can use.

Positioning

Positioning of a product or service is creating an image in the consumers mind. Consumers generally buy images rather than actual product. Marketers mostly use advertising as a tool to build up brand or corporate image.

CBZ: Positioning of CBZ Extreme 150 cc segment market with respect to price and product attributes. The urban customers are pretty loyal towards this brand. Splendor Positioning of splendor segment market with good quality, attributes, and number of users present.

Thank you