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8/8/2019 Hour 12,13, Aug 16,18 Market Segmentation, Targeting and Positioning
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Market Segmentation,Targeting and Positioning
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Related concepts: market segmentation,
target marketing, and positioning
Process of market segmentation, its benefits
and conditions for use Target-market strategies
Steps in developing a positioning strategy
Methods of forecasting demand of market
segments
Lesson Overview
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Indian Automobile Industry - STP
Zen, Alto
Economy
Mid SizeFamily
Luxury
Maruti 800
Getz, Swift Santo
Esteem, i10Ford Ikon,
Opel Corsa
Honda Civic
Toyota CorollaBaleno,
Accent
Chevrolet Optra,
Sonata
Mercedez Benz,BMW,
Toyota Lexus
3Who are the main passenger car manufacturers in India?
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Markets
MARKET SEGMENTS
MARKET SEGMENTS
TARGET MARKET
TARGET MARKET
MARKETMARKET SEGMENTATIONSEGMENTATION
MARKETMARKET SEGMENTATIONSEGMENTATION
4What are markets?
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Markets
1(Exercisers)
1(Exercisers)
3(Transportation riders)
3(Transportation riders)
2(School-goers)
2(School-goers)
4(Adventurers)
4(Adventurers)
Market segments for Bicycles
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Markets
MARKET SEGMENTSGroups of customers with different wants,buying preferences or product-use behavior
MARKET SEGMENTSGroups of customers with different wants,buying preferences or product-use behavior
TARGET MARKETA market segment on which
the seller decides to focus efforts
TARGET MARKETA market segment on which
the seller decides to focus efforts
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Market Segmentation
Process of dividing the total marketfor a good or service into several smaller,
internally homogeneous groups
Process of dividing the total marketfor a good or service into several smaller,
internally homogeneous groups
Members of each group are
similar with respect to the factorsthat influence demand
Members of each group are
similar with respect to the factorsthat influence demand
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Process of Market Segmentation
Determine potential of the segments andhow well they are being satisfied.
Identify wants within a market
Identify characteristics thatdistinguish the segments
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Market Segmentation Conditions
MICROMARKETINGTreat each single customer
as a separate segment
MICROMARKETINGTreat each single customer
as a separate segment
Large enoughto be
Profitable
Segment isAccessible
Measurableand
data obtainable
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Market Segmentation - First Cut
Customers reason for buyingCustomers reason for buying
CONSUMERPurchase for personal use
CONSUMERPurchase for personal use
BUSINESSPurchase to use in organizations,
to resell, or to make other products
BUSINESSPurchase to use in organizations,
to resell, or to make other products
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Segmentation Basesfor Consumer Markets
1.Geographic
Location
District, Mufussil
Urban- Rural
Metro, Non-Metro
Any Other
Possible Market Segments
Rural, UrbanMetro, Large towns,
Small towns, Villages
population > 1000,
< 1000 etcCoastal, Non-coastal
etc
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Segmentation Basesfor Consumer Markets (Contd)
2.Demographic
Age
Income
.More
More
Occupation
Possible Market Segments
Infant (newly born1 yr)
child (112 yr), teens(1319), adolescent (16
19), youth (2035),
middle-aged (36 50),
elders or seniors (50+ etc)
Male, Female
Blue/white Collar, traders,
teachers, university
professors, student,
housewife etc. ---- (Contd)
Gender
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Kids Reign Supreme in FMCG Purchase
71
59
52
20
40
60
80
% of
Kids
Who
Influence
What
FMCGBrand
Their
Family
Buys
Biscuits Burgers and
Pizzas
Fruit Juices
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Indias Upwardly Mobile Market (Households)
Very
Rich
(million)
Consuming
Class
(million)
Climbers
(Middle class)
(million)
Aspirant
(LowerIncome)
(million)
Destitute
(Poor)
(million)
15 265 429 192 1402001-02
30 432 472 117 952006-07
100
200
300
400
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Segmentation Basesfor Consumer Markets (Contd)
2.Demographic
Age
Gender
Family size &
Structure
Marital status
Education
Possible Market Segments
.
Illiterates, literates,high school,
secondary, graduate,
post graduate, post
doctorates. Unmarried, married
Families with 3 or members.
Occupation
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Socio-economic Pyramid ofIndian Population
A1 & A2
(9.5%)
B1 & B2 (17%)
C (19.5%) Skilled workers,
clerks, salespersons, etc
D (22.4%) Same as above,
occupation profile with SSC
E1 & E2 (31.6%) Unskilled labour
Typically SSC qualified,
about 40% Graduates;
occupation clerk/
shopkeeper
Graduates, white-
collar workers,
and professionals
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Segmentation Bases for ConsumerMarkets (Contd)
3.Psychographic
Personality
Values
Life-style
Possible Market Segments
-Ambitious, self-confident,
Aggressive, Introverted,Extroverted, Sociable,
Achievers, etc
-Activities (Spiritual, Yoga,
travel);Interests(Music,Politics, Art etc); Opinions
(Conservation, capitalism)
-Values and lifestyles (VALS),
List of Values (LOV)
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Segmentation Basesfor Consumer Markets (Contd)
4.Behavioral
Benefits Desired
Possible Market Segments
,
Virtually for allProducts (Titan, Garden
HMT, Pepsodent)
Heavy, Medium,
Low user, Non-user
Rasana Hard Core, Soft Core,
Switchers
Product Usage
Use Situations
Customer Loyalty
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Segmentation BasesSegmentation Basesfor Business Marketsfor Business Markets
Bases for
Segmentation
Customer LocationCustomer Location
Customer SizeCustomer Size
Possible Market SegmentsPossible Market Segments
Customer located in one
site will have one marketplan and other in another
Large, Medium and
Small buyers (Payment
terms, packaging, callfrequency etc different )
For steel manufacturer
it could be construction,
office furniture, cable,
automobile etc
Product End UseProduct End Use
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Segmentation BasesSegmentation Basesfor Business Marketsfor Business Markets
Bases for
Segmentation
BUYER Behavior,
Motivation, or
Purchase criteria
Possible Market SegmentsPossible Market Segments
In any end use segment , wecan further segment based on
purchase criteria say buyers
being insensitive, sensitive
and highly sensitive to price
change. We can also segment them
according to their needs, say
Standardized or Customised
products.20
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Segmentation BasesSegmentation Basesfor Business Marketsfor Business Markets
Bases for
Segmentation
- Purchase Criteria,
Size, & Geography
-Buying Situation
Possible Market SegmentsPossible Market Segments
Matrix Approach
New Task Buying,
Straight rebuy,Modified rebuy
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Target-Market Strategy
SingleMarketingStrategyshotgun
Market-aggregationStrategy
mass-marketundifferentiated-market
and
Product differentiation
Strategy
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Target-Market Strategy
Single-Segment
Strategyconcentration
NICHEMARKETERS
OneMarketing
Mix
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Target-Market Strategy
MultipleMarketing
Mixes
Multiple-SegmentStrategy
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Selecting a Target MarketGuidelines
Compatiblewith companys goals
Compatiblewith companys goals
Match target
market opportunitywith company resources.
Match target
market opportunitywith company resources.
Profit thatjustifies investmentProfit thatjustifies investment
Competitorsare few and/or weak
Competitorsare few and/or weak
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Positioning
Aposition is the way afirms product, brand, or
organization is viewed
relative to the competition
by current and prospective
customers.
What is a Position?
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So what is Positioning?
Firm creating and maintaining in the
minds of a target market a particular
image relative to competing products
Firm creating and maintaining in the
minds of a target market a particular
image relative to competing products
Coordinate the marketing mixto convey position
Design the feature thatconveys position
Select position concept
THREE STEPS
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How do you Position a Product?
Perceptual Map
Determine what is important to the
target market and how its members
view the competing products
How do you select the positioning concept?
STEP 1
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Perceptual Map for differentbrandsof barsoap
DeodorantNon-deodorant
Low moisturizing
High moisturizing
1
2
38
7
6
4 5
Lifebuoy
Dove
What barsoap?
Whatposition? 29
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How do you Position a Product?..Contd
Brand name
A Slogan
Appearance, or any otherfeatures of the Product,
the Place where it is sold,
the appearance of the employees, and
in many other ways
Design the feature that mosteffectively conveys the position
STEP 2
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How do you Position a Product?..Contd
What is repositioning?
Coordinate the Marketing-mixto convey a consistent position
STEP 3
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When the position of any product iseroded, or needs to be changed due to
competition, and the firm wants to re-
establish its attractiveness in its market
it is engaging in repositioning.
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Forecasting Market Demand
MARKET SHAREProportion of total sales of aProduct during a stated period
in a specific marketthat is captured by a single firm
MARKET FACTOR
1) exists in the market2) is measurable3) is related to the demandfor a product in a known way
brand x brand y
our company brand z
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Forecasting Market Demand
Total sales of a
Product during aPeriod in a specific
market underideal conditions
MARKET POTENTIAL
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Forecasting Market Demand
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Portion of market potentialthat a specific company
could expectunder ideal conditions
SALES POTENTIAL
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Forecasting Market Demand
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Estimate of salesfor one company
during a period in aspecific market
assuming a definedmarketing plan
SALES FORECAST
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Methods of Sales Forecasting
Market-FactorAnalysis
Survey ofBuyer Intentions
Sales-ForceComposite
ExecutiveJudgment
TestMarketing
Past Salesand
Trend Analysis
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