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MODULEMODULE IVIV

SEGMENTATION, TARGETINGSEGMENTATION, TARGETING&&

POSITIONINGPOSITIONING

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SEGMENTATION

y It is the study of how individuals, groups, &organizations select, buy, use, & dispose of goods,

services, ideas, or experiences to satisfy their needsand wants

y It focuses on how individuals make decisions tospend their resources (time-money-effort) onconsumption related items

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STEPS IN MARKET SEGMENTATION, TARGETING & POSITIONING

1.

Identify segmentationvariables & segmentthe market

2. Develop profiles ofresulting segments

3.

Evaluate theattractiveness of eachsegment

4. Select the targetsegment(s)

5. Identify possible

positioning conceptsfor each target segment

6. Select, develop, &communicate thechosen positioningconcept

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Levels of Market Segmentationy Mass Marketing

One product for all buyers with mass production, distribution &promotion

y Segment Marketing

Grouping of buyers with same wants, purchasing power, location, buying

habits etc.

y Niche Marketing

A very narrowly defined group

y Local Marketing

For local customer groupsy Individual Marketing

Offerings of customized product

y Self-Marketing

Consumer determine what to buy

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GEOGRAPHIC SEGMENTATION

y Nations

y States

y Regionsy Cities

y Neighborhoods

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DEMOGRAPHIC SEGMENTATIONyAge & life-cycle stagey Social class

y Life stage

y Gender

y Income

y Generation

PSYCHOGRAPHIC SEGMENTATIONy Lifestyle

y Personality

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BEHAVIORAL SEGMENTATION

Attitude

Loyalty

Status

Buyer

Readiness

Stage

Usage Rate

User Status

Benefits

Occasions

Behavioral

Variables

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TARGETING

Single-segment

concentration

Selective

specialization

Product

specialization

Market

specialization

Full market

Coverage

P3

P1 P1

P2

P3

P1

P2

P3

P1

P2

P3

P1

P2

P3

M1 M2 M3 M1 M2 M3 M1 M2 M3 M1 M2 M3 M1 M2 M3

P=Pro ctM= Mark t

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POSITIONING

y It is the act of designing the companysoffering & image so that they occupy a

meaningful & distinct competitive positionin the target customers minds

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POSITIONING STRATEGIESy Product differentiation

y Service differentiation

y Personnel differentiation

y Channel differentiationy Image differentiation

y Identity v/s Image

y Symbols

yWritten & audio visual media

yAtmosphere

y Events

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Product Differentiation

Attribute

Benefit

se/

A licati n

serC m etit r

Pr

ductCateg

ry

Quality/

Price

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Service Differentiation

OrderingEase

Delivery

Installation

CustomerTraining

CustomerConsulting

Maintenance& Repair

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