PowerPoint Presentation by Sixit Bhatta Segmentation, Targeting, Positioning Session-4

Mass Market

Whom do you sell these products

Effective Targeting Requires  Identify and profile distinct groups of buyers who differ in their needs and preferences.  Select one or more market segments to enter.  Establish and communicate the distinctive benefits of the market offering.

Steps in Market Segmentation, Targeting and Positioning Market Segmentation 1. Identify bases for segmenting the market 2. Develop segment profiles Market Targeting 3. Develop measure of segment attractiveness 4. Select target segments Market positioning 5. Develop positioning for target segments 6. Develop a marketing mix for each segment

Four Levels of Micromarketing  Segments  Niches  Local Areas  Individuals

Segment Marketing  Targeting a group of customers who share a similar set of needs and wants.

Niche Marketing  Narrowly defined customer groups seeking distinctive mix of benefits.  Ready to pay premium.  Ignored by other marketers.

Local  Marketing programs tailored to the need of local customer groups.  HSBC worlds local bank  Mc Donald: Maharaja Mac, Veg. Burgers.

Individual Marketing  Segment of ‘one’  Customization

Segmenting Consumer Market  Geographic –Nations, States, Zones, States, Countries.  Demographic –Age, Life Stage, Gender, Income, Generation, Social Class  Psychographic –Values, Attitudes, Beliefs, Lifestyle  Behavioral –Occasions, Benefits, User Status, Loyalty Status, User Rage

Segmentation Criteria Size, purchasing power, profiles of segments can be measured. Segments can be effectively reached and served. Segments are large or profitable enough to serve. Measurable Accessible Substantial Differential Actionable Segments must respond differently to different marketing mix elements & programs. Effective programs can be designed to attract and serve the segments.

Targeting- Evaluating Target Market  Segment Size and Growth  Analyze current sales, growth rates and expected profitability for various segments.  Segment Structural Attractiveness  Consider effects of: competitors, availability of substitute products and, the power of buyers & suppliers.  Company Objectives and Resources  Company skills & resources needed to succeed in that segment(s).  Look for Competitive Advantages.

Target Market Patterns

Market Coverage Strategies. Segment 1 Segment 2 Segment 3 Segment 1 Segment 2 Segment 3 CompanyMarketingMix CompanyMarketingMix CompanyMarketingMix CompanyMarketingMix CompanyMarketing Mix 1 CompanyMarketing Mix 1 CompanyMarketing Mix 2 CompanyMarketing Mix 2 CompanyMarketing Mix 3 CompanyMarketing Mix 3 Market A. Undifferentiated Marketing B. Differentiated Marketing C. Concentrated Marketing

Trivia  Who Flew Solo across the Atlantic for the first time?  Who was the first to Land on the Moon?  Who was the first to scale Mt. Everest?  Which was the first small car produced in India?

Answers  Charles Lindberg.  Neil Armstrong.  Hillary/ Tenzing.  Maruti. Name the Second???

First in Mind  IBM- Computers.  Coke- Cola.  KFC- Chicken  Bhatbhateni- Product breadth.  Lobsters- Sea Food

Brand Positioning  What comes to your mind

Positioning Act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.

Brand Positioning  Pepsi Youngistan Ad  What position it created

Mind Games

How to Choose Brand Positioning Strategy 1. Identify Possible Competitive Advantage. 2. Select the right competitive advantage 3. Communicate and Deliver the chosen Competitive advantage.

Positioning Examples Low-price vs. High quality Taste vs. Low calories Nutritious vs. Good tasting. Low Cost Vs. Service Powerful vs. Safe Strong vs. Refined Ubiquitous vs. Exclusive

Differentiation Strategies Product Features. Quality. Durability Style Design Personnel Competence Courtesy Credibility Reliability Responsiveness Communication Services Ordering Ease Delivery Installation Customer Training Customer Consulting Maintenance & repair Channel Coverage Expertise Image : The way the public perceives the company or its products

Positioning Errors  Under positioning- This is a scenario in which the customer’s have a blurred and unclear idea of the brand. –UTL  Over positioning- This is a scenario in which the customers have too limited a awareness of the brand –Lobsters.  Confused positioning- This is a scenario in which the customers have a confused opinion of the brand. –UML  Double Positioning- This is a scenario in which customers do not accept the claims of a brand. –Maoists