1. Marketing Segmentation & Positioning

2. Marketing Segmentation
Dividing a market into smaller groups with distinct needs, characteristics or behaviors who might require separate products or marketing mixes.
Companies have moved from mass marketing to target marketing
Companies look for different ways in which to segment the market and develops profiles of the resulting market segments.

4. Market Targeting
The process of evaluating each market segments attractiveness and selecting one or more segments to enter
Differentiation
Actually differentiating the firm’s market offering to create superior customer value
Positioning
Arranging for a product to occupy a clear, distinctive and desirable place relevant to competing products in the minds of target consumers

5. Segmenting consumer markets

6. Geographic segmentation
Dividing markets into different geographical units such as, nation, states, region, counties, cities or neighborhoods .
Many companies localize their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities and even neighborhoods
eg: Coke developed four ready to drink canned coffees for Japanese.

7. Demographic segmentation
Dividing a market into groups based on variables such
as age, gender, family size, family life cycle, income,
occupation, education, religion, race, generation and
nationality.
Age and life-cycle segmentation: Dividing a market into different age and life-cycle groups eg: Anlene milk
Gender Segmentation: Dividing a market into a different groups based on gender . eg: Nivea for men
Income: Dividing a market into different groups based on social class, lifestyle, or personality characteristics. eg: Standard charted priority banking

8. Psychographic segmentation
Dividing a market into different groups based on social class, life style or personality characteristics.
eg: American Express “My life My Card” campaign provides a glimpse into the lifestyle of famous people

9. Behavioral Segmentation
Dividing a market into groups, based on consumer knowledge,
attitude, use or response to a product
Occasions : Dividing a market into groups according to occasions when buyers get the idea to buy, actually make their purchase or use the purchase item. eg : Ginger beer with food
Benefit sought: Dividing a market into groups according to the different benefits that consumers seek from the products. eg: Athletic wear segments based on functional benefits
User status: Segment into non user, ex user, potential users, first time user and regular user. eg: P&G invites newly weds to visit pamper.com
Usage rate: Segment based on usage, Light, Medium and Heavy users. eg: Sidhaleppa
Loyalty Users : Divide groups based on there degree of loyalty. eg: Arpico privilege users

10. Segmenting Business Markets

11. Segment Business Markets
Consumers and business use many of the same variables to segment their markets. Business buys can be segmented geographically, demographically (Industrial and company size), or by benefit sought, user status or loyalty status. Business markets use additional variables, such as customer operating characteristics, purchasing approaches, situational factors and personal characteristics. eg: For small business customers, American Express has created the OPEN: Small Business Network, “ the one place that’s all about small business”

12. Segmenting International Markets
Forming segment of consumers who have similar needs and buying behavior even though they are located in different countries. Teens show surprisingly similarity no matter where they live – these teens could be from almost anywhere. Thus, many companies target teens with worldwide marketing campaigns Eg: Mercedes Benz targets the worlds well-to-do, regardless of their country.

13. Requirements for Effective segmentation
Measurable: The size, purchasing power, and profiles of the segments can be measured.
Accessible: Market segment can be effectively reached and served.
Substantial: The market segments that are large or profitable enough to serve.
Differentiable: The segments are conceptually distinguishable and responses differently to different marketing mix elements and programs
Actionable: Effective programs can be designed for attracting and serving the segments

14. Selecting Target Market segments

15. Target Marketing
A set of buyers sharing common needs or characteristics that the company decides to serve
Undifferentiated (mass ) marketing
Differentiated (segmented ) marketing
Concentrated (niche) marketing
Micromarketing
(local or individual marketing

16. Undifferentiated Marketing
A market-coverage strategy in which a firm decides to ignore market segments differences and go after the whole market with one offer. It focuses on what us common in the needs of consumers rather than on what is different. eg: Araliya sugar

17. Differentiated Marketing
A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each. eg: Baby Cheramy
Baby chermy range for kids
Cheramy touch for adults

18. Concentrated Marketing
A market coverage strategy in which a firm goes after a large share of one or few segments or niche. Niche marketing can market more effectively and more efficiently. Eg: Apple computers

19. Micro Marketing
The practice of tailoring products and marketing programs to
the needs and wants of specific individuals and local customer
groups – includes local marketing and individual marketing
Local marketing – Tailoring brands and promotions to the
needs and wants of local customer groups-cities neighborhoods,
and even specific stores.eg: bread talk –seeni sambola bun to suit the
local pallet
Individual marketing- Tailoring products and marketing
programs to the needs and preferences of individual customers-
also labeled “markets-of-one marketing” “customized marketing” and
“one to one marketing”. eg: Dell creates customer configured computers

20. Differentiation and Positioning

21. Positioning Map

23. Competitive advantage
An advantage over competitors gained by offering Consumers greater value, either through lower prices or by providing more benefits that justify higher prices. Companies should differentiate at every customer contact point- product, services, channels people, or image

24. Choosing the right competitive advantage
How many differentiations to promote: companies could choose to differentiation on a unique selling proposition (USP) or more than one differentiation.
Unique selling proposition
More than one differentiation
Face wash & Cleanser
Carrot Face wash

25. Choosing the right competitive advantage
Which differentiations to promote: Not all differentiations are
meaningful. Key criteria's to follow in establishing a difference.
Important: The difference delivers a highly valued benefit to target buyers
Distinctive: Competitors don’t offer the difference or the companies can offer in a more distinctive way
Superior: The difference is superior to other ways that customers might obtain the same benefit
Communicable: The difference is communicable and visible to buyers.
Preemptive : Competitors cannot be copy
Affordable : Buyers can offered to pay for the difference
Profitable : Companies can introduce the difference profitably

26. Select an overall positioning strategy
A full positioning of the brand is called the brands
Value proposition
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Price
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Benefits
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