positioning and segmentation

8/11/2019 Positioning and Segmentation

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Positioning &

SegmentationBy: Samvedita Indrajit Jha


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Market Segments & TargetsO Companies cannot connect with all

customers in large, broad or diverse

markets but they can divide such marketsinto groups of consumers or segments

with distinct needs and wants.


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Steps to effective target

marketing:O Identify and profile distinct groups of

buyers who differ in their needs and

wants. (market segmentation)O Select one or more market segments to

enter. (market targeting)

O For each target segment, establish and

communicate the distinctive benefits ofthe companys market offering. (market

positioning)


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Major segmentation variables

for consumer markets Geographic

Demographic

Psychographic

Behavioural


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GeographicO Region South, West, North, East

O City Class I, Class II, metros

O Rural and Semi- urban areas


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ExamplesO In-Citycourier companies in many cities

in India specialize in delivering mail on the

same day within specified geographicalarea, usually within the city.


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ExamplesO Some parts of India have a distinctive

preference for strong tea from Assam

region, whereas consumers in other partsprefer Darjeeling or Nilgiri tea. This

difference has prompted major tea

marketing companies to offer different

blends of tea under the same brand name

in different regions based on consumerpreference.


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DemographicO Age

O Family Size

O GenderO Income

O Occupation

O Education

O Socio-Economic class A1, A2, B1, B2,

C, D


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Examples: (Age)O iBall Aasaan- a handset specificallytargeted at senior citizens under the brand

name iBall Aasaan.

O Features: keyboard with large buttons,and the display screen with bigger fonts. It

has a bright LED torch with a dedicated

button, a special indicator for incoming

calls and alerts for missed calls and low

battery charge. A SOS button which when

switched on, automatically dials 5

numbers, signalling the caller is in need of

urgent attention.


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Examples (Gender):


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Examples (Income):


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The groups with higher

resources are:O Innovators: Successful, Sophisticated,

active, people with high self esteem.

Purchases often reflect cultivated tastesfor relatively upscale, niche-oriented

products.

O Thinkers: Mature, satisfied, reflective

people who value order, knowledge and

responsibility. Seek durability, functionality

and value in products.


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The groups with higher

resources are:O Achievers: Successful goal-oriented

people who focus on career and family.

They favour premium products thatdemonstrate success to their peers.

O Experiencers: Young, enthusiastic,

impulsive people who seek variety and

excitement. They spend a comparatively

high proportion of income on fashion,

entertainment and socializing.


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The groups with lower

resources are:O Makers: Practical, down-to-earth, self

sufficient people who like to work with

their hands.O Surv ivors: Elderly, passive people

concerned about change and loyal to their

favourite brands.


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BehaviouralO Occasions Regular, Special

O Benefits Quality, Service, Economy,Speed

O User status Non user, Ex user, regularuser

O Usage rate Light, medium, heavy

O Loyalty status none, medium, strong,

absoluteO Readiness stage unaware, aware,

interested, informed, desirous

O Attitude toward the product enthusiastic,

positive, indifferent, negative, hostile

positioning and segmentation

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