marketing management

1. MARKET SEGMENTATION
Definition:
“It’s a process of dividing a market into
distinct subgroups of consumers with
distinct needs, characteristics or behavior,
who might require separate products or
marketing mixes”

2. MARKET SEGMENTATION & TARGETING
Dividing the market by grouping the customers
with similar tastes & preferences into one
segment.
Different product ranges targets different
customers
Helps to increase customer loyalty
To remain competitive co.s need to develop &
refine their products & services.

3. NEED FOR SEGMENTATION
 Companies cannot depend on mass market
 Increasing consumer awareness & more demanding.
Ex: Hyundai
 Firms lack ability & competitiveness to cater to the mass
market.
 Different products under product line.
HUL, Maruti Suzuki etc..

4. CRITERIA FOR SEGMENTATION
 Substantiality: Presence of potential customers-Home
Banking
 Identifiability and measurability: Population, age,
geographic characteristics
 Accessibility: To customize marketing mixes
 Responsiveness: Criteria to be logical

5. MARKET SEGMENTATION LEVELS
1. Segment Marketing
Ex: Tanishq
2. Individual Marketing (one-to-one or customized
marketing)
3. Niche Marketing (Concentrated marketing): Sub-
segments
4. Local Marketing: Think Global Act Local.
Ex: McDonald’s

6. BASES OF SEGMENTATION
 Geographic Segmentation: Times of India
 Demographic Segmentation
 Age & life cycle: Cadbury’s, Titan’s Fastrack
 Gender: Raymonds, Lifestyle, Natalia, Adidas-Eva Mall, Hero-
Just4her
 Income: Apparels, Automobiles, Travels
 Generation: Movies, Politics, Music.
 Social Class: Automobiles, Clothing preference

7. CONTD.,
 Psychographic segmentation
 Life Style: Titan, New Gen Coffee Cafes.
 Personality: Aggression, Masculanity, Extroversion
Ex: Sprite, Close up, Cadbury.
 Values: The impact will be for longer period.

8. CONTD.,
 Behavioral Segmentation: On the basis of behaviour that
the customer shows towards the usage of the products.
 Occasions: Archies, Keloggs
 Benefits: Clinic plus & head n shoulder
 Usage Rate: Heavy, medium & Light
 Loyalty Status: Hard Core, Split Loyals, Shifting loyals,
Switchers.
 Buyers Readiness Stage
 Attitude: Enthusiastic, positive, indifferent, negative, hostile.

9. REQUIREMENTS FOR EFFECTIVE SEGMENTATION
 Measurable-the size, purchasing power, and profile of the
segment
 Accessible-the market segments can be effectively reached and
served
 Substantial-the market segments are large or profitable enough
to serve
 Differentiable-the segments are conceptually distinguishable
 Actionable-effective programs can be designed for attracting
and serving the segments

10. TARGET MARKETING
 Firm should evaluate the various segments and
decide how many and which segments it can serve
the best
 After evaluating various segments company should
decide which and how many segments it will target
 Target market-a set of buyers sharing common needs
or characteristics that the company decides to serve

11. TARGET MARKET STRATEGIES
 Undifferentiated (Mass) marketing : a market
coverage strategy in which a firm decides to ignore
market segment differences and go after the whole
market with one offer
 Focuses on the common needs of the consumers
 Difficulty arises in developing a product and a
marketing program that will appeal to the largest no of
buyers

12.  Differentiated (Segmented) Marketing: A market-
coverage strategy in which a firm decides to target several
market segments and designs separate offers for each
E.g.: Different variety of credit cards like silver, gold,
and platinum
 Concentrated (Niche) marketing:
 A market coverage strategy in which a firm goes after a large
share of one or a few segments or niches
 Applicable when company resources are limited
 Since the mnfr has better knowledge about the market products
or services can be marketed effectively and efficiently
E.g.: Pepsi introduced Diet Pepsi, Apple.

13. FACTORS AFFECTING IN CHOOSING TARGET MARKETING STRATEGIES
 Company resources: Vast or limited
 Degree of product variability: undifferentiated suited for
uniform products like steel. For cameras n automobiles
 The Product’s life-cycle: Introduction or Maturity stage
 Market Variability
 Competitors Marketing strategies

14. POSITIONING
 The way the product is defined by consumers on
important attributes
 The place the product occupies in consumer’s minds relative to
competing products
 Positioning involves implanting the brand’s unique
benefits and differentiation in customer’s needs
 Surf Excel is positioned as a powerful washing powder which
retains the colour of the cloth by cleaning all kinds of dirt
 Toyota: high tech solution to energy shortage
“How far will you go to save the planet?

15. CHOOSING A DIFFERENTIATION N POSITIONING STRATEGY
 Identifying possible value differences & competitive advantage
 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

16.  Competitive advantage is gained through:
• Product differentiation: Chicken, Automobiles, Clothing,
Furniture: consistency, durability, reliability or reparability
• Services differentiation
• Channel differentiation- Channel coverage. Amazon.com, Dell
• People differentiation-Hiring and training better people than
their competitors do. Disney, Singapore airlines

17. POSITIONING BASES
 Attribute: Eno-Smithkline
 Price and Quality: Air Asia- Premium
 Use of Application: Odomos, Vicks Vaporub
 Product User: Madura Garments-Louis Philippe
 Product class: Liquid Dishwash
 Competitor: Clinic All clear and Head n shoulder
 Emotion : TATA Tea- Jago re

18. CHOOSING THE RIGHT COMPETITIVE ADVANTAGE
 How many differences to Promote: USP- Walmart (EDLP)
 Which differences to promote- A difference is worth
establishing to the extent it satisfies:
 Important
 Distinctive: Westin Stamford hotel in singapore
 Superior
 Communicable
 Preemptive: cannot b copied easily
 Affordable
 Profitable

19. SELECTING AN OVERALL POSITIONING STRATEGY
 More for more: Ritz-Carlton hotels, Mercedez.
 More for the same: Toyota-Lexus. Mercedez v/s BMW
 The same for less: DELL. Walmart
 Less for much less: Hotel chains
 More for less: Jio

20. DEVELOPING A POSITIONING STATEMENT
 A statement that summarizes company or brand
positioning
 It takes the form :To (target segment and need) our
(brand) is (concept) that ( point-of-difference)
 E.g.: to busy professionals who need to stay organized,
palm is an electronic organizer that allows you to
backup files on your pc more easily and reliably than
competitive products

21. VALUE PROPOSITION
 Value Proposition refers to a
set of benefits offered to
customers to satisfy their
needs.
 It states the target market for
the offering and the
differentiating value the
offering provides to its
customers
 In other words The unique
value a business offers to its
customers.
 It's why your customers will
want to do business with you.

22. COMMUNICATING AND DELIVERING THE CHOSEN POSITION
 All the company’s marketing mix efforts must support the
positioning strategy
 Company should adopt strong steps to deliver and communicate
the desired position to target consumers

23. ERRORS IN POSITIONING
 Positioning on obvious aspects. Coca-cola- ‘Real thing’-
‘Always coca-cola’
 Under Positioning: Simple idea. ‘Think small’-Beetle-
Volkswagon. Diluting the positioning strategy to make it more
attractive: communicate ideas as they are.
 Over positioning: buyers will have very narrow image. Tanishq
jewellary.
 Confused positioning: meddling too much. Clear pepsi as crystal
pepsi-as it was not brown, failed in market
 Doubtful positioning: will lead to bad positioning-create
awareness before positioning brand in the market. leads negative
attitudes towards the brand.