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Market segmentation & positioning

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Market positioning
Market positioning
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Market segmentation & positioning

  1. 1. A process of dividing the total market for a good or service into several smaller groups, such that the members of each group are similar with respect to the factors that influence demand.
  2. 2. Objective of Market segmentation • Knowledge of attractive marketing opportunities • Facilitates selection of target market • Facilitates determination of product mix • Selection of suitable channels • Assessment of strengths and weakness • Helps in effective marketing program
  3. 3. 1. Identification of market segments 2. Development of profiles for each segment 3. Evaluation of market segments 4. Selection of target market 5. Development of positioning strategy 6. Establishment of a marketing plan and program
  4. 4. Levels of market segmentation 1.MassMarketing
  5. 5. 2.ProductvarietyMarketing
  6. 6. 3.Target Marketing
  7. 7. 4.Niche Marketing
  8. 8. 5.Customized Marketing
  9. 9. Segmentation Variable for Consumer Market
  10. 10. Operational Orgn Purchase Decision Geographic Demographi c Segmentation Variable for Industrial Market Location Climatic Condition Type of business orgn Size of business Technology Usage rate Service requirement Purchase orgn Documentation Time
  11. 11. Targeted marketing is the process of identifying customers and promoting products and services via mediums that are likely to reach those potential customers. Target Marketing involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments.
  12. 12. Selection of Target Market (Types of Target Market) • Single-coverage market - covers only one segment to cover on. • Limited-coverage market – focuses only on some segements • Full-coverage market - company tries to serve all the customer group
  13. 13. Market Segmentation Strategies • Market aggregation strategy • Market segregation strategy • Concentrated marketing or market concentration strategy • Multiple segment strategy
  14. 14. 1. Segment size and growth 2. Segment structural attractiveness The five threat analysis for evaluation of the market segments’ are: a. Threat of intense segment rivalry b. Threat of new entrants c. Threat of substitute products d. Threat of buying power of customers e. Threat of bargaining power of suppliers 3. Organizational objectives and resources
  15. 15. It involves careful and through analysis of the market segments that look attractive from the point of view of size, growth and long-run profit potentials. It involves analysis of following aspects:  Estimate of total demand for the product in the segment  The market share of competitors  The relative strength of the competitors in relation to product-service offers, quality, price, customer loyalty, distribution network, etc.  The organization’s resources to meet the challenges in the market segment.  Possible marketing mix alternatives to be implemented in the segment
  16. 16. 1. Single segment coverage 2. Multi-segment coverage 3. Product specialization 4. Market specialization 5. Full market coverage 6. Niche marketing
  17. 17. “An act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s mind” –Philip Kothler Positioning refers to the strategic decisions and actions intended to create and maintain the firm’s product or service concept in customer’s mind.
  18. 18. Competitive positioning : Presents the firm image better or superior to competitors brand. Product class positioning : Presents the product as against a product class such as margarine against the butter.
  19. 19. 1. Identification of the actual competition 2. Determination of how the competitors are perceived and evaluated 3. Determination of the competitors’ position in the market 4. Analysis of the customers’ objective preferences, tastes, problems, needs, etc. 5. Selection of the best position 6. Monitoring the position

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