BY-SURYADIPTA DUTTA

What are the threebasic reasons

people buy things ?

To satisfy basic needs

To solve problems

To make themselves feel good

Steps in Market Segmentation, Targeting, and PositioningMarket

Segmentation1. Identify bases for segmenting the market2. Develop segment profilesMarket Targeting

3. Develop measure of segment attractiveness4. Select target segments

Market Positioning

5. Develop positioning for target segments6. Develop a marketing mix for each segment

Segmentation, Targeting & Positioning

What is a Target Market?

Target Market - A specific group of consumers at which a company aims its products and services

Why is determining a Target Market

Important ?

The better a company is at identifying their potential consumers; the more successful they will be in delivering

products and services that are in demand

Your target consumers are those who are most likely to buy from you

Focusing on a target market makes it easier to develop products

people want

Who is the Target Market ?

How do youdetermine who

your target market is?

Ask these questions …

Is your product international, national, or local in scope?

Are your target consumers male or female?

How old are they?

Are you target consumers single, married, or divorced ?

What level of education has your target consumers completed: high

school, college, or university?

Where do they live?

Is geography a limiting factor for any reason?

How much money do they make? This is most significant if you're

selling relatively expensive or luxury items.

What other aspects of their lives matter?

Targeting Strategies

Undifferentiated(mass)

marketing

Differentiated(segmented)

marketing

Concentrated(niche)

marketing

Micro-marketing(individual)Marketing

Targeting broadly Targeting narrowly

– Ignores segmentation opportunities

Undifferentiated (Mass) Marketing

Differentiated (Segmented) Marketing

– Targets several segments and designs separate offers for each.

– Coca-Cola (Coke, Sprite, Diet Coke, etc.)

– Procter & Gamble (Tide, Cheer, Gain, Dreft, etc.)

– Toyota (Camry, Corolla, Prius, Scion, etc.)

Niche Marketing

– Targets one or a couple small segments– Niches have very specialized interests

Choosing a market-coverage strategy

• Company resources • Degree of product homogeneity• Product Life Cycle• Competitors strategies

Does your productmeet your

consumers, needs?

No single product can meet everyone’s needs

More than 30 different varieties/flavors

Not all products and services are meant for all types of consumers

What is the Importance of determining a

Target Market?

The beauty of target marketing is that it makes the promotion,

pricing and distribution of your products and/or services easier

and more cost-effective

STP Strategies in Marketing Planning

The place a product occupies in consumers mind relative to competing products.

Positioning

Product’s Position - Gaining competitive advantage through differentiation is the

key to survival in today’s turbulent times.

Positioning for Competitive Advantage

Product Positioning Alternatives

A. By making altogether different claim.

B. Highlighting the new product features.

C. By entering in new market segment.

International Business Machines Corp. (IBM)

D. By introducing a new package design

• Step 1. Identifying Possible Competitive Advantages: Competitive Differentiation.

• Step 2. Selecting the Right Competitive Advantage: Unique Selling Proposition (USP).

• Step 3. Signalling the competitive advantage.

Steps to Choosing and Implementing a Positioning Strategy

Positioning for Competitive Advantage

Positioning: Differentiation on the basis of attributes that customers find meaningful, relevant, important, and superior.

Conveys the value that the brand provides and sets the brand apart.

Sets the tone for the marketing plan.

Should be reevaluated periodically.

Positioning Errors Positioning Error

There are various positioning errors

Under positioningOver positioningConfused positioning Doubtful Positioning

Under positioning

Failing to present a strong central benefit or reason to buy the product.

Occurs when customers cannot readily identify the brand or the brand´s features. The product must stand out in the mind of the consumer

Example: solar lamp

Over positioning

Marketers makes the product too special, so the potential customer group becomes too small.

It means that buyers believe that the product is meant for a very select audience because it is premium priced.

Example: Aqua Sure

Confused positioning

By claiming two are more benefits that contradict each other. Too many benefits or claims, or when the brand attempts to

position in too many segments.

Example: Milkmaid

Doubtful Positioning

Claiming a benefit that customers will doubt that the brand can actually deliver.

Example: Fair and Handsome

eBay’s positioning: No matter what “it” is, you can find “it” on eBay!

Positioning Example

Resources

http://www.entrepreneur.com/encyclopedia/term/82498.html

http://sbinfocanada.about.com/cs/marketing/a/targetmarket_2.htm

http://www.answers.com/topic/focus-group#ixzz1HQx89zFu

Information

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