SEGMENTATION,

TARGETTING, AND
POSITIONING
 What is a Market ?
A market is a place which allows the purchaser and
the seller to invent and gather information’s and lets
them carry out exchange of various products and
services. In other words the Meaning of Market refers
to a place where the trading of goods takes place
 What is Market
Segmentation ?
• Markets are Heterogeneous; Segmentation divides them into
Homogeneous Sub-Units
• The market for a product is nothing but the aggregate of the
consumer of that product
• Markets break up the heterogeneous market for product into
several sub units, or sub markets, each relatively more
homogeneous within itself, compared to market into a number
of sub markets/ distinct sub units of buyer, each with relatively
more homogeneous characteristics, is known as market
segmentation.
What is market
segmentation?
 What is market
segmentation?
It is the Consumer who are Segmented, Not Product, nor Price
• It would be useful to provide one important clarification right at the
beginning.
• Markets, sometime, speaks of product segments and price segments
and use these expressions as synonymous with market segments.
• This can leads to a wrong understanding of what market segments, or
for that matter, the process of market segmentation as a whole, actually
connote
• We have to be clear that in market segmentation, it is the consumers
who are segmented, not the product, nor price. Market is about people
who consume the product, not about the product that’s gets consumed
 Example of market
segmentation?
For Designer
For the Gold lovers: Segment
For Children Segment
 Why segment the market?

Facilitates Right Choice of Target Market

Facilitates Effective Tapping of the Chosen Market
Makes the Marketing Effort More Efficient and
Economic
Helps Identify Less Satisfied Segments and
Concentrate on Them
 Bases for Segmentation
A market/ consumer population for a product can be
segmented using several relevant bases. The major
ones include:
• Geographic
• Demographic
• Psychographic
• Buying Behavior
 Bases for Segmentation

Geographical Segmentation
• Segmentation of consumer based on factors like climate zone, continents/ country, region, state,
district, and urban/rural area, constitutes geographic segmentation

• Marketer, who operate globally, often segment the market segments the market by
continents/country/region in the first instance, and then go for segmentation on other bases.

• National markets within a country like India, often segment the market by region, state, district
and urban/rural area, in the first instance, and then go for segmentation on other bases.
Demographical Segmentation
• Segmentation of consumer based on variables such as race, religion,
community, language, age, stage in family cycle, gender, marital status,
family size, occupation, economic position/income/purchasing capacity
level, and social status ,of the consumer demographic segmentation
• Age: Based on age on can have the 1) Infants 2) Child Market Teen
Market 3) Youth Market 4) Middle Aged Market 5)Elders Market
• Genders: On the basis of gender, the consumer market may be classified
into male market female market.
• Social Class: Companion design their products and services for particular
social classes. There are three social classes: 1 Upper classes 2. Middle
classes 3. Lower class
 Psychographic Segmentation
• Psychographic Segmentation groups customers according to their life-style and
buying psychology.
• Many businesses offer products based on the attitudes, beliefs and emotions of
their target market
• The desire for status, enhanced appearance and more money are examples of
psychographic variables.
• They are the factors that influence your customers' purchasing decision.
• In psychographic segmentation, elements like life style, attitude, self-concept
and value system, form the base.
• A person’s pattern of interests, opinions, and activities combine to represent his
or her lifestyle.
Psychographic Segmentation
• Knowledge of lifestyle can provide a very rich and
meaningful picture of a person.
• It can indicate whether the person is interested in outdoor
sports, shopping, culture, or reading.
• It can include information concerning attitudes and
personality traits.
• Lifestyle also can be used to define a segment empirically;
this is often called psychographic (as opposed to
demographic) segmentation..
 Behavioral Segmentation
The customer can also be divided into certain segments on the basis of their knowledge,
attitude, use, or response to a product. Such behavioural variables are discussed below
Occasions : (Marraiges, festival occasasions)
Benefits sought : (Colgate- White teeth stops bad breath, Cibaca Provides Therapeutic
benefits, Vicco vajradanthi and neem gives ayurvedic benefit)
User Status: (Ex-users, first users, regular users, Potential users)
Usage rate: (Light, Medium, and heavyu user segments)
Loyality status: (Hard core loyals, Split Loyals(Two r Three brans), Shifting Loyals (Shift
from one brand to another), Switchers (No loyalty to any brand))
Attitude: Customers are divided into five groups(Enthusiastic, Positive, Indifferent,
Negtive and Hostile)
Behavioral Segmentation
 Advantages of Market
Segmentation
Various advantages of market segmentation are:-
• Helps distinguish one customer group from another within a given market
• Facilitates proper choice of target market.
• Facilitates effective tapping of the market.
• Helps divide the markets and conquer them.
• Helps crystallize the needs of the target buyers
• Makes the marketing effort more efficient and economic
• Helps spot the less satisfied segments and succeed by satisfying such segments.
• Makes the marketing effort more efficient and economic
• Helps spot the less satisfied segments and succeed by satisfying such segments
• Brings benefits not only to the marketer but also to the customer as well.
Market Targeting
 Market Targeting
• Market targeting refers to picking a specific group or small set of groups to
which a business will advertise.
• It is based on the idea that, because it's not really possible to make or do
something that will please everyone, a business has to specialize.
• Companies select an advertising group to strengthen their brands, as well
as to get an idea of potential sales for production or financing purposes.
• They can use three main approaches for this: universal, selective or
concentrated.
• It is common for an organization to reevaluate its target groups and related
campaigns over time because markets are always somewhat flexible
 Target Market Strategies

 Undifferentiated marketing (Mass Marketing)

 Differentiated marketing (Segmented Marketing)

 Concentrated/Focused marketing (Niche Marketing)

 Customized marketing (Micro Marketing)

 Target Market Strategies
Undifferentiated
Marketing

Marketing mix Whole market

Differentiated
Marketing
Marketing Mix 1 Segment 1

Segment 2
Marketing Mix 2

Segment 3
Marketing Mix 3
 Positioning

“Positioning is the act of designing the company’s offering

and image to occupy a distinct place in the target’s mind.”

-Philip Kotler
 Why Positioning
1)To create a distinct place of product& service or corporate
in the minds of customers.

(2) To provide a competitive edge to a product or an attempt

to convey attractiveness of the product to the target
market.

(3) To give the target market reason of buying our

product/service and then formulation of all strategies
according to the customer perception.
 Errors in Positioning
There are some common errors of positioning which is
committed by firms due to in effective marketing programs.
These errors are as follows:

(1) Under Positioning: This errors occurs when marketers take little
steps for promotion of product due to which buyers are very less aware
about the brand and its product’s performance & popularity. This error is
done by those company’s either do not have capacity to promote their
product or do not have marketing caliber of performing such roles.
(2) Over Positioning: It refers to the error when firm
position itself for some specific group but due to over
positioning that particular groups believe that it is not for
their class, it is for some higher class customer group.
(3) Confused Positioning: Some time buyers may have
confused image of the brand.
This may occur as a result of frequent changes in the
positioning statement.
(4) Doubtful Positioning: This error occurs when doubt
arises in the minds of buyer regarding the company’s claims
of benefits through the product. Customer have doubt
whether firm can fulfill their promises or not.
 Positioning Strategies
(1) Attribute Positioning: A company position itself on the basis of an attribute
which creates their separate identity such as size, no. of years of existence etc.

(2) Benefit Positioning: Corporate may position itself as a leader in a certain

benefit which they provides to their customers.

(3) Use or Application Positioning: Positioning can be done on the basis of use
or application of the product. Corporate position their product as best for some
use like café coffee day position itself for discussion & meeting point.
(4) User Positioning: When firm position itself and its products as best
suited for a particular user class is called user positioning

(5) Competitor Positioning: In this category firm claims to be better in

some product or service than a well-known competitor.

(6)Value Positioning: This strategy focuses on company’s positioning as

offering the best product at lower price or we can say best valued product.
 Attribute
Positioning
Benefit
Positioni
Value
ng
Positionin
g

Positioning
Strategies
Competitor Use or
Positioning Application
Positioning
User
Positionin
g