This presentation covers the following Aspects: • Market-types of market • Market segmentation • Market segmentation strategies • Target market strategies • Positioning and its strategies

1. COURSE:
MARKETING STRATEGY
Course Code:408MKT
Unit 2 Session 1

2. Market
•The group of consumers or organizations that is
interested in the product, has the resources to
purchase the product, and is permitted by law and
other regulations to acquire the product.

3. • Potential market
Those in the total population who have interest
in acquiring the product.
• Available market
Those in the potential market who have enough
money to buy the product.
• Qualified available market
Those in the available market who legally are
permitted to buy the product.
• Target market
The segment of the qualified available market
that the firm has decided to serve (the served
market).
• Penetrated market
Those in the target market who have purchased
the product.

4. Target Marketing
• Target marketing requires marketers to take three major steps:
• Market segmentation: Identifying and profiling distinct groups of
buyers who differ in their needs and preferences.
• Market targeting: Selecting one or more market segments to enter.
• Market positioning:
Establishing and communicating the key distinctive benefit(s) of the
company’s market offering to each target.

5. Market segmentation IPCI
luxury
Mid size Car
ECONOMY
Getz,Swift
Esteem
Accent
Chevrolet
Optra
Zen
Alto 800
Santro
Indigo
Ford Ikon
Hond Civic
Mercedes Bnz
BMW
AUDI

6. Titan Watches
THE RICH
THE MIDDLE
THE LOWER
Fashion accessory to add to style of their
dressed items
Gold Plated
Fine jewelry studded with precious gems and
coloured stones
Fashion & Design
Durable Product
Reasonable Price
Device Telling Time,Price

7. Segmentation
FOR GOLD LOVERS
AURUM & ROYALE
18 Carrot Gold
NEBULA
(Young Generation)
YOUTH/OUTDOOR
LOVERS
FAST TRACK YOUNG, Vibrant, COOL
DESIGNER SEGMENT EUROPEAN INSIGNIA
PROFFESIONAL SPORTS
INSTRUMENTS
FOR CHILDREN
DASH (G/B)
06-10 yrs, 11-14 Yrs
DASH(G/B)
06-10 yrs, 11-14 Yrs
DIGITAL SEGMENT
FOR YOUTH
DIGITAL FASTRACK
FUTURISTIC ANA
DIGITAL MODEL
MIS EXACTA
100 different designs
Rs 500-700

8. COURSE:
MARKETING STRATEGY
Course Code:408MKT
BASES OF SEGMENTATION

9. Target Marketing
• Target marketing requires marketers to take three major steps:
• Market segmentation: Identifying and profiling distinct groups of
buyers who differ in their needs and preferences.
• Market targeting: Selecting one or more market segments to enter.
• Market positioning:
Establishing and communicating the key distinctive benefit(s) of the
company’s market offering to each target.

10. MARKET SEGMENTATION

11. • Market segmentation is the identification of
portions of the market that are different from
one another.
Segmentation allows the firm to better satisfy
the needs of its potential customers

12. Segmenting Consumer Markets
Bases for Segmentation
• Geographic
• Demographic
• Psychographic
• Behavioral
• Nation or country
• State or region
• City or metro size
• Density
• Climate

13. • Differentiate target customers BASED ON WHERE THEY LIVE.
• Mcdonald’s is the world’s biggest restaurant chain, with over 37,000
restaurants in more than 120 markets.
• The fast-food chain divides its TARGET MARKETS INTO SEGMENTS
by country, region, and cities, then customizes the menu by local
preferences.
• Different preferences and McDonald's does an excellent job of localizing its
products.
• Instead of trying to sell a big mac (a beef burger) in india and affecting the
local sentiment, they introduced the maharaja mac: a variation of the big mac
but without pork or beef.
• Mcdonald’s adapts its product offering in line with the geographic and
cultural region. This not only shows respect toward local traditions and
beliefs, but also improves their company’s image and bottom line.

14. Segmenting Consumer Markets
Bases for Segmentation
• Geographic
• Demographic
• Psychographic
• Behavioral
• Age, race, gender
• Income, education
• Family size
• Family life cycle
• Occupation
• Religion, nationality
• Generation
• Social class

17. Segmenting Consumer Markets
Bases for Segmentation
• Geographic
• Demographic
• Psychographic
• Behavioral
• Lifestyle
• Activities
• Interests
• Opinions
• Personality
• Core values

19. Segmenting Consumer Markets
Bases for Segmentation
• Geographic
• Demographic
• Psychographic
• Behavioral

20. Segmenting Business Markets
• Rackman and Vincentis proposed a segmentation scheme that
classifies business buyers into three groups:
• Price-oriented customers: best served via transactional selling
• Solution-oriented customers: best served by means of consultative selling
• Strategic-value customers: best served by means of enterprise selling

21. COURSE:
MARKETING STRATEGY
Course Code:408MKT

22. Market Segmentation Strategies
• Traditional Approaches
1. Mass Marketing
2. Differentiated Marketing
3. Niche Marketing
• Emerging Approaches
1. One to one Marketing
2. Mass Customization
3. Permission Marketing

23. • Mass Marketing
- involves no segmentation whatsoever
- Aimed at whole market for a particular product
- Undifferentiated approach that all customers in the market have
same needs & wants that can be reasonably satisfied with a
single marketing mix
- Works best when the needs of the entire market is homogeneous
- Advantageous in terms of production efficiency and lower marketing cost
- Is inherently risky ,vulnerable to competitors, specialized products can be
launched
Traditional Approaches to Segmentation
Single Marketing Mix to All customers in the
market
Comm
odities
Like
oil,
Agricu
ltural
Produ
cts,

24. More than one marketing mix to more than one
market Segment
• Differentiated Marketing
- involves dividing the market into groups of
customers having relatively common or
homogeneous needs and attempting to
develop a marketing mix that appeals to one
or more of this groups
- involves two options: Multi segment approach
and market concentration approach
Traditional Approaches to Segmentation
Aviation
industry

25. Traditional Approaches to Segmentation
• Niche Marketing
- involving focusing marketing efforts on one small, well defined
market segment or niche that is unique ,specific, set of needs
- Requires that firm understands & meet the needs of target
customers so completely that, despite the small size of the niche, the
firms substantial share makes the segment highly profitable
Single marketing Mix focused on small
market segment

26. Emerging Approaches
- Have become viable DUE TO ADVANCES IN TECHNOLOGY, particularly
communication technology and the internet.
- Possible because organization can now track customers with high degree of
specificity.
- Allow firm to combine demographic data with pat and current purchasing
behavior so they can tweak their marketing mixes in ways that allow them to
precisely match customers needs, wants & Preference
- Important in future as focus on individual customers critical in long term
relationship
- Depends on Automated delivery of the marketing mix & personalization

27. Emerging Approaches to Market Segmentation
• One to One Marketing
- Involves creation of an entirely unique marketing mix for
each customers in target segment
- Common in Business Market where unique programs/systems
are designed for each customer
- Growing in Consumer market also- luxury and custom made
products as well as in service

28. Emerging Approaches to Market Segmentation
• Mass Customization
- Providing unique products and solutions to individual customers
on a mass scale
- Cost effective due to advances in supply chain management ,
including just in time inventory control system
- Used in business Market in electronic Procurement Systems

29. Emerging Approaches to Market Segmentation
• Permission Marketing
- Customer choose to become member of the firms target
market
- Commonly executed via the opt- in- e-mail list , where
customer permit a firm to send periodic e mail about goods and
services they have interest in purchasing
- Customers who opt in are already interested in goods and
services offered
- Eliminates wasted marketing efforts and expense

30. COURSE:
MARKETING STRATEGY
Course Code:408MKT

31. Session Outcome
Target Market Strategies
• Single Segment strategy
• Multiple Segment strategy
• Product Specialization
• Market Specialization
• Full market coverage

32. Target marketing
• Recognizes the diversity of customers and does not try to please all of
them with the same offering.
• The first step in target marketing is to identify different market
segments and their needs

33. Target Market Strategies
• Single-segment Strategy ( Concentrated Strategy)
• One market segment (not the entire market) is served with one
marketing mix
• True specialist in a particular category
• A single-segment approach often is the strategy of choice for smaller
companies with limited resources

34. Single Segment strategy
S1 S2 S3
P1
P2
P3
Rayban

35. Selective specialization
• This is a multiple-segment strategy (Differentiated strategy)
• Different marketing mixes are offered to different segments.
• The product itself may or may not be different - in many cases only
the promotional message or distribution channels vary

36. Multiple Segment strategy
S1 S2 S3
P1
P2
P3
HUL,P&G

37. Product specialization-
• The firm specializes in a particular product and tailors it to different
market segments
• Expertise in a product category is leveraged across many different
market segment

38. Product Specialization
S1 S2 S3
P1
P2
P3
Littmann Stethoscope-HPES-
Cardiologist,SDS-Peditrician,LWS-Simple
Physical assesment

39. Market specialization-
• The firm specializes in serving a particular market segment and offers
that segment an array of different products.

40. Market Specialization strategy
S1 S2 S3
P1
P2
P3
EDUCOM-
Schools,colleges,Universities

41. Full market coverage
• The firm attempts to serve the entire market.
• This coverage can be achieved by means of either a mass market
strategy in which a single undifferentiated marketing mix is offered to
the entire market, or by a differentiated strategy in which a separate
marketing mix is offered to each segment

42. Full Market Coverage strategy
S1 S2 S3
P1
P2
P3
Coca Cola –Many different Beverage
that fulfill many customers needs

43. COURSE:
MARKETING STRATEGY
Course Code:408MKT

44. POSITIONING

45. Defination
• AL RIES AND JACK TROUT
• Creating image or identity in the minds of target market for a particular
product, Brand or Organization
• Positioning refers to ‘how organisations want their consumers to see
their product’.
• What message about the product or service is the company trying to put
across?
• The pricing strategy must reflect the benefit offered and the promotion
strategy must communicate this benefit

49. Positioning Concept
• Positioning by Product Characteristics/Consumer Benefits
• Positioning by “Price-Quality
• Positioning by Use or Approach
• Positioning by Product User
• Positioning by Product Class
• Positioning by Culture Symbol
• Positioning by Competitor

50. Positioning by Product Characteristics/Consumer Benefits
a) This is commonly used strategy and consists in
associating an object with a product characteristic or
customer benefit.
“Colgate Total”
• Only toothpaste -12 Hr Protection-Cavities, Gingivitis,
Plaque- For whiter teeth and healthy Smile
“ ANCHOR WHITE”
100 percent Vegetarian Toothpaste
“CLOSE UPACTIVE GEL”
Vitamin Fluoride System- Fresh Breath and strong and whiter teeth

51. Positioning by Product Characteristics/Consumer Benefits
• Based on physical characteristics, pseudo-physical characteristics, or
benefits.
• Physical characteristics are objective and can be measured on some physical
scale: Temperature, colour, sweetness, saltiness, thickness, weight.
• Pseudo-physical characteristics- characteristics that cannot be easily
measured: Spiciness, greasiness, creaminess, shininess (Kiwi shoe polish)
• Benefits represents to advantages that promote the well being of the
consumer:
• Quenching thirst (Limca), not harmful to the skin, satisfying hunger,
convenience.

52. Positioning by “Price-Quality”
• Price and Quality Important considerations
• Ariel- Premium quality Product
Zenith Computers: “MNC quality. Indian price”

53. Positioning by Use or Approach
• Associating the product with a specific use
Vicks: “Use Vicks when cold attacks”
Dettol: “The liquid protection against
bacteria”
Clinic All Clear: “The dandruff-control
shampoo”

54. Positioning by Product User
• Associating the product with a particular type or class of user.
• Through celebrity endorsements.
• Lux-earlier their positioning was ‘Filmi Sitaroan Ka Saboon’,
• New advertise says that by using Lux you can also become a
star

55. Positioning by Product Class
• Associated with a Product Class
• Rolex Watches “ Best Expensive
SwissWatches”
• “Seven Up, the uncola

56. Positioning by Culture Symbol
• Identifying something that is very meaningful to people, and that
competitors are not using, and then associating the brand with that
symbol.
• Onida’s green eyed devil also set Onida apart from the
competition by positioning it as something that is envied and
talked about by neighbors .

57. Positioning by Competitor
• Making consumers think that your brand is better than, or as good as
the competitors
• Pears /Dove

58. • Advantages of Positioning