Segment

Car maker Toyota Kirloskar Motor plans to expand its

dealership network in the North East targeting

"significant contribution" from this region even as its total

sales in the country has fallen in recent months.

The company, which is planning to set up an area office in

Guwahati to boost sales in the region, will target smaller

towns and open two more outlets by the end 2013.

Right now we are focusing on expanding our dealer

network in the North East with 9 dealer outlets by the

end of 2013," Toyota Kirloskar Motor (TKM) Deputy

Managing Director and COO (Marketing and

Commercial) Sandeep Singh

Market Segmentation, Targeting, and Positioning

Large

Heterogeneous

Segment

Segment1

Segment2

Segment3

Chapter Objectives

Explain market segmentation and identify several possible bases for segmenting markets

List and distinguish among the requirements for effective segmentation

Chapter Objectives

Outline the process of evaluating market segments

Illustrate the concept of positioning for competitive

advantage

Discuss choosing and implementing a positioning

strategy

Concept of differentiation

Levels of Market Segmentation

Segment Market: A market segment consists a group of

customers who share a similar set of needs and wants.

Niche Market: A niche is more narrowly defined

customer group seeking a distinctive mix of benefits.

Local Marketing:Focused to the needs and wants of local

customer groups in trading areas, neighborhoods,even

individual stores.

In-City courier

Bharat Matrimony

Individual Marketing: Segment of one

Market Segmentation

Geographic Segmentation

Demographic Segmentation

Psychographic Segmentation

Behavior Segmentation

Geographic Segmentation

Dividing the market into different geographic units

Nations

States

Regions

Counties

Cities

Neighborhoods

Demographic Segmentation

Dividing the market into groups based on demographic

variables

Age

Gender

Income

Occupation

Education

Color

Cast

Marital Status

Many More

Psychographic Segmentation

Dividing buyers into different groups based on social

class, lifestyle, and personality characteristics

Behavior Segmentation

Buyers are divided into groups based on their knowledge, attitude, and use or response to a product

The best starting point for building market segments

Types

Special occasion segmentation

Benefits sought

User status

Usage rate 80/20 rule

Loyalty status

Buyer readiness stage

Requirements for Effective Segmentation

Measurability

Accessibility

Substantiality

Actionability

• Size, purchasing power, profiles of segments can be measured.

• Segments can be effectivelyreached and served.

• Segments are large or profitable enough to serve.

• Effective programs can be designed to attract and serve

the segments.

Targeting

Once the firm has identified its market-segment

opportunities, it has to decide how many and

which ones to target

Decisions relating to segment targeting are taken

on the growth/ risk parameters

Market Targeting

Evaluating Market Segments

Selecting Market Segments

Choosing a Market-Coverage Strategy

Evaluating Market Segments

Segment Size and Growth

Segment Structural Attractiveness

Company Objectives and Resources


Undifferentiated Marketing

Bifurcated Marketing

Differentiate Marketing

Concentrated Marketing


Segment 1

Segment 2

Segment 3

Segment 1

Segment 2

Segment 3

CompanyMarketingMix

CompanyMarketingMix

CompanyMarketing Mix 1CompanyMarketing Mix 2CompanyMarketing Mix 3

Market

A. Undifferentiated Marketing

B. Differentiated Marketing

C. Concentrated Marketing

Choosing a Market – Coverage Strategy

Company resources

Degree of product homogeneity

Market homogeneity

Competitors’ strategies

Patterns of Target Market Selection



Product Positioning

Product Positioning

Positioning is how you provide your product or service

brand identification as you go to market. It is the next

step after you have determined how to differentiate your

product or service.

..\management videos\market Positioning.wmv.flv

POD

POP

Category POP

Competitive POP






Points-of-difference (POD)

The aspects of the product offering that are relatively distinct

to the offerings of like competitors.

Points-of-parity (POP)

The aspects of the product offering that are largely similar to

the offerings of like competitors

Positioning Strategies

Products can be positioned on specific attributes or

against another product class

Choosing and Implementing a

Positioning Strategy

1. Identifying a set of possible competitive advantages

upon which to build a position

2. Selecting the right competitive advantages

3. Effectively communicating and delivering the chosen

position to a carefully selected target market

What are the main ways to position a

product?

Brands/products can be positioned in many different ways in

the marketplace.

However, there are several major categories of positioning

approaches, which will help us understand the range of

positioning options available.

The major positioning categories

include:

positioning by product attribute (product feature and/or

benefit),

positioning by user,

positioning by product class,

positioning versus competition,

positioning by use/application, and

positioning by quality or value.

Selecting the Right Competitive

Advantages

Avoid:

Underpositioning

Overpositioning

Confused positioning

Selecting the Right Competitive

Advantages

Brand differences should meet the following criteria prior to

marketing:

Important

Distinctive

Superior

Communicable

Preemptive

Affordable

Profitable

Positioning statement

A statement that summarizes

company or brand positioning- It

takes form: to (target segment

and need) our (brand) is

(concept) that POD (point of

difference)

To busy mobile professional who need to always

be in the loop, Black Berry is a wireless

connectivity solution that gives you an easier

,more reliable way to stay connected to data

,people and resources while on the go.

Positioning Measurement

Perceptual mapping is a research tool used to measure

a brand’s position

Product Differentiation

Product differentiation is the incorporation of attributes,

such as quality or price, into a product to encourage the

intended customers to perceive it as different and

desirable.

For example, if your company sells seat belts to

automotive manufacturers, perhaps your unique value is

never-fail, on-time delivery with no rejected belts. If other

seat belt manufacturers are not meeting these desired

goals, you will have a unique advantage against your

competition, and will have differentiated your seat belts

from those of your competitors

Product Differentiation

Physical Attribute Differentiation

Service Differentiation

Personnel Differentiation

Location Differentiation

Image Differentiation

In-class Activity

Choose one of the companies/brands and…

Identify relevant direct competitors

Choose the two dimensions that are most important to

consumers

Develop a perceptual positioning map

Are there any opportunities in this category?

In-class Activity, Part

Choose a company and invent a segmentation scheme for that

company’s customers using the variables we discussed in class.

In-class Activity –

Developing a Segmentation Scheme Develop a PSYCHOGRAPHIC/USAGE segmentation scheme for each of

the following types of consumers.

Segment the market into three or more substantive groups.

Be sure to think of the key psychological/usage drivers of consumption.

Name your segments – the more creative, the better!

Consumers

Vacationers

Internet Users

Restaurant Patrons

Eco-friendly product consumers

Smartphone Users

Grocery Store Shoppers

In-class Activity

Describe how each of the following brands, companies, or

products is positioned:

Documents

Segment