Market Intelligence & Segmentation Class

8/14/2019 Market Intelligence & Segmentation Class

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Market intelligence:

Internal records:

Order to payment cycle must be fast and

efficient

Sales data, which must be interpreted in the right

way for your future planning

Marketing Intelligence System: Developmentshappening in the external market


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Macro Environment

Demographic: includes population growth, population-age mix, literacy rate

Economic environment: How is the income distributed

Socio-cultural environment Natural environment

Technological environment

Political-legal environment


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Macro-environment of India

Demographic:

Population: 1.1 billion (2006 est.)

Rural: 742.61 million

Urban: Age structure:014 years: 30.8%

1564 years: 64.3%

65 years and over: 4.9% (2006 est.)

Average age of Indians is 26 years

Population growth rate: 1.38%

Unemployment rate: 9.2%

Religions, languages, etc.


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Macro environment in India (contd.)

Economic environment GDP: Crossed $1 trillion in 2007 and growing at 7-8% Forex reserves: $310.68 billion (RBI) FDI target for 2008-09: $35 billion, China 42.78 billion in

1st

five months Indian middle class is approx. 30% of its population more

than entire population of USA Rural population is now moving upwards too and

becoming a huge potential market e.g. Hero Honda


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Income distribution (2006-07)

Income class(Rs. p.a.)

Households Estimatedpopulation

Rich (>215K) 5.2 30Consuming

Class (45-215K)75.5 432

Climbers (22k-

45k)

81.7 472

Aspirants (16-22k)

20.2 117

Destitute (


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Socio-Cultural Environment: General views that people hold about themselves, the environment, society,

world, etc.

Diversity in tastes and preferences in your target markets has to be takeninto account for products

e.g. Spencer Retail has different types of atta in local market in Gujarat, while inBengal, they have to cater to peoples leanings towards non-veg food

Apollo Tyres separate for North & South

Dominos is looking to customise its pizza offerings


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Natural Environment:

Companies have to abide either by regulation or whenmarkets become hostile e.g. Coca Cola in Plachimada,Bharat 2 norms followed by car makers.

Four trends to be careful about:

Shortage of raw materials

Increasing energy costs

Anti-pollution pressures

Changing role of Government


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Segmentation, targetting & Positioning(STP)

Mass Marketing: Mass production, distribution &promotion

Market segment: Group of customers with similar needs &wants. Customers may have homogenous,heterogenous or diffused preferences

Niche: A more narrowly defined customer group seeking a

distinctive set of benefits

Local marketing: Customised to local needs

Customerisation: Segments of 1 in the market


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STP (Contd.)

Segmenting consumer markets:

1) Geographic segmentation: Assumes that people in same area sharesimilar needs and wants.

India has 5,000 towns and 6,38,000 villages. How to reach this

market? What are the consumption patterns and awareness levels, et al?

Prahlads Bottom of the Pyramid focus

Also zones and state-wise segmentation

HLL brought in sachets for rural markets


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STP (Contd.)

2) Demographic segmentation:

Age & life cycle stage (marital status)

Gender

Income, education, occupation Generation: Baby Boomers: 1946-64; Gen X: 1965-76, Gen Y: 1977-1994. Itgives rise to cohort effects, what time you grew up in affects your behaviour.Most of that behaviour is defined in growing up years.

Social class, normally associated with wealth now.

Culture & Subculture

Cross cultural segmentation


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STP (Contd.)

3) Psychographic segmentation:

Based on psychology, personality traits, lifestyle & values

High income groups of four types:

a) Innovators: Niche oriented products

b) Thinkers: Utility based

c) Achievers: Products that demonstrate success

d) Experiencers: Young and impulsive; spend on Fashion, entertainment,

socialising


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STP (Contd.)

3) Psychographic segmentation (Contd.)

Low income groups of 3 types:

Believers: Conservative, conventional, traditional, loyal to establishedbrands

Strivers: Trendy, fun-loving; favour stylish products and try to emulate therich

Makers: Practical and down to earth; favour functionality

Survivors: Elderly, passive people, loyal to their favourite brands


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STP (Contd.)

Behavioural segmentation:

Five roles in decision making: Initiator, influencer,decider, buyer, user

Behavioural variables:

i. Occasion

ii. Benefits sought

iii. User status (non-user, ex-user, potential user, first-time user & regular user)


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STP (Contd.)

Behavioural variables (Contd.)

iv. Usage rate (light, medium, heavy)

v. Buyer readiness stage: Unaware, aware, informed,interested, desire, ready to buy

vi. Loyalty status: Hardcore loyals, split loyals (2-3brands), shifting loyals and switchers

vii. Attitude: Enthusiastic, positive, indifferent, negativeand hostile


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Targeting

Identifying the worthiness of segments:

1) You should be able to measure the potential2) You should be able to profitably do business as well as serve

the needs of the segment

3) You should be able to adopt unique marketing strategies for

the segments


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Targetting (Contd.)

P1

P2

P3

M1 M2 M3

P1

P2

P3

M1 M2 M3

Single segment concentration Selective specialisation


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Targetting (Contd.)

P1

P2

P3

M1 M2 M3

P1

P2

P3

M1 M2 M3

Product specialisation Market specialisation


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Targetting (Contd.)

P1

P2

P3

M1 M2 M3

Full market coverage


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Positioning

Definition:The act of designing the companys offering and image to

occupy a distinctive place in the mind of the target

market


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Positioning (continued)

Marketers are supposed to

Points-of-Difference (POD): Attributes that consumers

believe cannot be found with another brand.

Points-of-Parity (

POP

): Associations that are found in otherbrands as well. Of two types:

a) Category POPs: Automatically associated with the product

category.

b) Competitive POPs: Used to negate competitors points ofdifference.-

Advisable to establish category membership before

establishing PODs


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Positioning (continued)

PODs should be desirable, distinctive and believable.

They should be feasible, enduring

Multiple PODs may be negatively correlated or unrelated, so

marketers have to ensure customers do not get confused oralienated


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Positioning

Changing lifestyles of people Style, practicality &economy

Small MPV for family

Safety features, space

Looks, power, luxury. styleConcept, mileage, design
http://www.marutidzire.com/default.asp?nav=homehttp://www.marutiwagonr.com/index.asphttp://www.marutiomni.com/features.asp


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Segmentation (contd)

Documents

Market Intelligence & Segmentation Class