segmentation targeting and positioning

Segmentation, Targeting And

Positioning

Presented ToDr. Rahul P. S. Kaurav

Presented ByRohit ,Kirti,Somendra

andMayank

MARKET SEGMENTATION

Definition:This is the process of dividing the

total market for a good or service into several smaller, internally similar (or homogeneous) groups.

All members in a group have similar factors that influence their demand for the particular product.

PROCESS OF MARKET SEGMENTATION

MARKET SEGMENTATION CONDITIONS

Measurable and Obtainable Data

Large enough to be Profitable

Segment is Accessible

SEGMENTATION BASES FOR CONSUMER MARKETS

1.Geographic 2.Demographic

3.Psychographic 4.Behavioral

SEGMENTATION BASES FOR BUSINESS MARKETS

1.Customer Location

2.Customer Type

3.Transaction Condition

Targeting

Target Market

Target Market◦Consists of a set of buyers who share common needs or characteristics that the company decides to serve

TARGET MARKETEvaluating Market Segments◦Segment size and growth◦Segment structural attractiveness Level of competition Substitute products Power of buyers Powerful suppliers

◦Company objectives and resources

TARGET MARKET

Selecting Target Market Segments◦Undifferentiated (mass) marketing

◦Differentiated (segmented) marketing

◦Concentrated (niche) marketing◦Micromarketing (local or individual)

TARGET MARKET STRATEGYThe target market should be

compatible with an organisation’s goals and image.

The marketing opportunity presented by the segment must match the company’s resources.

The business must generate a profit if it is to continue its existence.

TARGET MARKET Socially Responsible Targeting

◦Some segments, especially children, are at special risk

◦Many potential abuses on the Internet, including fraud Internet shoppers

◦Controversy occurs when the methods used are questionable

POSITIONING

POSITIONING Firm creating and maintaining in the

minds of a target market a particular image relative to competing products.

Three StepsSelect position conceptCoordinate the marketing mix to convey

positionDesign the feature that conveys position

MARKET POSITIONINGPositioning is defined as the process of

designing the company’s products and image to occupy a unique place in the target market’s mind.

Many marketers favor promoting only one major benefit and Rosser Reeves called it as “a unique selling proposition”. Some unique selling propositions (USPs) companies use are best quality, best service, lowest price, best value, safest, more advanced technology, etc.

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THE FOUR MAJOR POSITIONING ERRORS• Under positioning: Some companies find

that buyers have only an unclear idea of the brand.

• Over positioning: Buyers have very narrow image of the brand.

• Confused positioning: Buyers have confused image of the brand because the company has made too many claims or changed the brand positioning too frequently.

• Doubtful positioning: Buyers do not easily believe the claims made by brands about the product’s features, price or manufacturer.16

BASES OF POSITIONING THE PRODUCT Attribute positioning: The company positions itself on

the basis of attribute like size or number of years in existence. Sunfeast positions its snacky brand as bigger, lighter and cheaper.

Benefit positioning: The company positions its product as leader in providing a certain benefit. For example Santro positioned itself as India’s simplest car to drive.

Use or application positioning: The company positions its products as best for certain use or application. For example, Kenstar positioned its products as unexpectedly cold.

User positioning: The company positions its product as best for some user group. For example, Parle-G positions the boy in the advertisement as rock star targeting the kids and boys.

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BASES OF POSITIONING THE PRODUCT Competitor positioning: The company

claims its products as better than a named competitor.

Product category positioning: The company positions its product as leader in certain product category. For example, Bajaj CT 100 was positioned as leader in the entry segment bikes.

Quality or price positioning: The product is positioned as offering the best value. For example, the vegetable oil brand Dhara positions itself as ‘anokhi shuddata, anokha asar’. This means the company offers unique purity and unique effect. 18