MARKET SEGMENTATIONMARKET SEGMENTATIONTARGETING ANDTARGETING AND

PRODUCT MANAGEMENTPRODUCT MANAGEMENT

Presented by :Presented by :NILKANTH ATHALYENILKANTH ATHALYE

TARGET MARKETINGTARGET MARKETING

To compete more effectively, marketers To compete more effectively, marketers adopt three activities :adopt three activities :

1. Market Segmentation1. Market Segmentation 2. Market Targeting and2. Market Targeting and 3. Market Positioning3. Market Positioning Examples : Radio Mirchi, Hallmark CardsExamples : Radio Mirchi, Hallmark Cards

Market segmentsMarket segments

Preference segments ( homogeneous, Preference segments ( homogeneous, diffused, clustered preferences )diffused, clustered preferences )

NichesNiches Local marketing ( local need base )Local marketing ( local need base ) Customized marketingCustomized marketing

Demographic SegmentationDemographic Segmentation

Age and Life Cycle StageAge and Life Cycle Stage GenderGender IncomeIncome Generation / Education / SophisticationGeneration / Education / Sophistication Social class / Life StyleSocial class / Life Style

Psychographic SegmentationPsychographic Segmentation

HIGH RESOURCE HIGH RESOURCE GROUPGROUP

1.1. InnovatorsInnovators2.2. ThinkersThinkers3.3. AchieversAchievers4.4. experiencersexperiencers

LOW RESOURCE LOW RESOURCE GROUPGROUP

1.1. SurvivorsSurvivors2.2. BelieversBelievers3.3. StriversStrivers4.4. makersmakers

Effective Segmentation CriteriaEffective Segmentation Criteria

MeasurableMeasurable SubstantialSubstantial AccessibleAccessible DifferentiableDifferentiable Actionable Actionable

Segment SelectionSegment Selection

1.1. Single Segment ConcentrationSingle Segment Concentration2.2. Selective SpecializationSelective Specialization3.3. Product specializationProduct specialization4.4. Market SpecializationMarket Specialization5.5. Full Market Coverage Full Market Coverage

Managing Multiple SegmentsManaging Multiple Segments

Product differentiation CostsProduct differentiation Costs Manufacturing CostsManufacturing Costs Administrative CostsAdministrative Costs Inventory CostsInventory Costs Promotion CostsPromotion Costs Segment by segment Invasion CostsSegment by segment Invasion Costs

PRODUCT LIFE CYCLEPRODUCT LIFE CYCLE Products have limited lifeProducts have limited life Each product passes through 4 stages :Each product passes through 4 stages :1.1. IntroductionIntroduction2.2. GrowthGrowth3.3. Maturity andMaturity and4.4. DeclineDecline The problems, challenges and opportunities at each The problems, challenges and opportunities at each

stage are differentstage are different Profits rise and fall over the PLCProfits rise and fall over the PLC Products require different marketing, production, Products require different marketing, production,

financial, purchasing and HR strategies at each stagefinancial, purchasing and HR strategies at each stage Marketing Efforts can alter the PLCMarketing Efforts can alter the PLC

PRODUCT LIFE CYCLEPRODUCT LIFE CYCLE Products have limited lifeProducts have limited life Each product passes through 4 stages :Each product passes through 4 stages :1.1. IntroductionIntroduction2.2. GrowthGrowth3.3. Maturity andMaturity and4.4. DeclineDecline The problems, challenges and opportunities at each The problems, challenges and opportunities at each

stage are differentstage are different Profits rise and fall over the PLCProfits rise and fall over the PLC Products require different marketing, production, Products require different marketing, production,

financial, purchasing and HR strategies at each stagefinancial, purchasing and HR strategies at each stage Marketing Efforts can alter the PLCMarketing Efforts can alter the PLC