Market Segmentation,

Targeting, and
Positioning
What is Market Segmentation?
Division of the heterogeneous market into smaller, relatively
homogeneous sub units
The consumers in the various segments will vary across
segments, but be homogenous within
It is the consumers who are segmented, not products, nor,
price

Why Segment the market?
Facilitates right choice of target market
Facilitates effective tapping of the chosen market
Makes the marketing effort more efficient & economic
Helps identify less satisfied segments & concentrate on them
Helps offer a compelling value-proposition to each segment
Ensures a proper match between chosen market & company resources
Divide the market for conquering the market
Market Segmentation
Geographic Segmentation
Demographic Segmentation
Psychographic Segmentation
Behavior Segmentation
Geographic Segmentation
Dividing the market into different geographic units
Nations
States
Regions
Counties
Cities
Neighborhoods
Demographic Segmentation
Dividing the market into groups based on demographic
variables
Age
Gender
Income
Occupation
Psychographic Segmentation
Dividing buyers into different groups based on social class,
lifestyle, and personality characteristics
Dividing a population into groups that have similar
psychological characteristics, and lifestyles.
Lifestyle: peoples decisions about how to live their daily lives,
including family, job, social, and consumer activities
( A lot can happen over coffee: CCD)
Behavior Segmentation
Buyers are divided into groups based on their knowledge, attitude, and use
or response to a product
The best starting point for building market segments
Types
Special occasion segmentation
Benefits sought
User status
Usage rate
Loyalty status
Value Segmenting- Titan Watches Carves out
many distinct markets
Initially did segmentation based on income: HIGH, MIDDLE & LOW
Then went for value segmenting ( within a given segment, do all the buyers
look for the same experience in owning a watch)
The LUXURY segment.XYLUS, EDGE(10000-50000)
The GOLD LOVERSAURUM, ROYALE, NEBULA18 carat
gold(20k-50k)
LIFESTYLE SEGMENT.FastrackFastrack digital
THE DESIGNER SEGMENTthe EURO collectionmatches to
Swiss counterparts ranging 5000-8000
WEDDING gifts in the form of Titan WEDDING COLLECTION
For the childrenDASH!!!!....ZOOP!!!!
For the middle income groupSTURDY watch seeking
segmentEXACTA was launchedranging 500-700.
For the middle income women seeking fashion.RAGA
For the lower income segment.SONATA.VALUE FOR
MONEY..
Size, purchasing power, profiles
of segments can be measured.
Segments can be effectively
reached and served.
Segments are large or profitable
enough to serve.
Measurable
Accessible
Substantial



Actionable
Effective programs can be
designed to attract and serve the
segments.
Requirements for Effective Segmentation
TARGETING
Choosing one or more segments for which to design your marketing
operations
Which segments should you choose to serve?
Evaluating Market Segments
Selecting Market Segments
Choosing a Market-Coverage Strategy
Evaluating Market Segments
Segment Size and Growth
Segment Structural Attractiveness
Company Objectives and Resources
Undifferentiated Strategy

Differentiated

Concentrated
IDENTIFY THE APPROPRIATE TARGETING
STRATEGY
UNDIFFERENTIATED STRATEGY
Single
Marketing
Mix
Target Market
Organization
DIFFERENTIATED STRATEGY
Organization
Marketing Mix 1
Target Market
Marketing Mix 2
CONCENTRATED STRATEGY
Single
Marketing
Mix
Target Market
Organization
Cannibalization
Situation that occurs when sales
of a new product cut into sales of a
firms existing products.

Cannibalization
Product Differentiation
Making the product-offer different from the rest.
The route for adding value to the product offering
Takes the firm away from the price-based competition i.e. it
allows the firm to fight on the non-price plank.
Elevates the product from the generic level to the higher level.
Product Differentiation
Product Ingredients
Functional features
Design/Styling
Product Quality/Technology
Service/Customer Care
Packaging
Image
Sentiments/Belief
Positioning
Positioning starts with a product.
A Piece of merchandise, a service, a company, an
institution, or even a person...
But positioning is not what you 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.
Differentiation & positioning are interrelated
Differentiation is in a way, a prelude to positioning
Former aims to endow the product offer with certain distinctive
attributes, which in turn offer some special value to the
consumer, while positioning attempts to lodge/place the
differentiated product in particular locus in the minds of the
target consumers.
Former revolves around endowing the product with certain
differential advantage, positioning attempt is to reach this offer
to a particular place in the mind of the prospect.
Tasks in Positioning
Deciding the locus: where to lodge your brand?
Analyzing competitor's positioning
Fixing the positioning plank/theme (derived form differentiation)
Ensuring the infrastructure
Developing the value proposition
Communicating the value proposition to target consumers
Monitoring how the positioning if faring in the market
Repositioning the offer, if required
Product Positioning Dimensions
Product Attributes / Differences / Benefits
Product User / Usage
By Association
Problem Solution
Against a Competitor / Away from Competitors
Selecting the Right Competitive
Advantages
Avoid:
Underpositioning - failing ever to position the company at all
Overpositioning - giving buyers too narrow a picture of the
company
Confused positioning - leaving buyers with a confused image
of a company
Positioning Measurement
Perceptual mapping is a research tool used to measure a
brands position

Perceptual Mapping
A means of displaying or graphing, in two or more
dimensions, the location of products, brands, or groups of
products in customers minds.
Product Positioning using perceptual maps
Repositioning
Changing consumers perceptions of a brand in relation to
competing brands after the product has been positioned once
& is not faring well in the market.

Product positioning & Brand
positioning
Marginal distinction??????

Repositioning
Milkmaid: Convenient form of milk to all uses involving milk
Lifebuoy: Nature, Cool fresh, Handwash, Sanitizer, talcum
Powder
Saffola: Change in advertising positioning from the platform
of fear from heart attack to celebration of a healthy life
Cadbury: from childs delight to a sweet thing any adult can
enjoy anytime
THANK YOU