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S T P IN

MARKETING

Objective 3

Identify Total MarketIdentify Total Market

Effective SegmentationEffective Segmentation

Bases for SegmentationBases for Segmentation

Select Target SegmentSelect Target Segment

Positioning StrategyPositioning Strategy

Marketing MixMarketing Mix

Monitor, Evaluate and Monitor, Evaluate and ControlControl

STEPS IN MARKET SEGMENTATION, TARGETING, AND POSITIONING

1. Identifysegmentationvariables andsegment themarket

2. Develop profiles ofresultingsegments

MarketSegmentation

3. Evaluateattractivenessof eachsegment

4. Select thetargetsegment(s)

MarketTargeting

5. Identifypossible

positioningconcepts foreach target

segment

6. Select,develop, andcommunicate

the chosenpositioning

concept

MarketPositioning

MASS MARKETING

MASS MARKETING

SEGMENT MARKETINGSEGMENT MARKETING

NICHE MARKETINGNICHE MARKETING

LOCAL MARKETINGLOCAL MARKETING

INDIVIDUAL MARKETINGINDIVIDUAL MARKETING

L

E

V

E

L

S

LEVELS OF MARKET SEGMENTATION

LEVELS

PATTERNS OF MARKET SEGMENTATION

BASIC MARKET-PREFERENCE PATTERNS

(a) Homogeneous(a) Homogeneouspreferencespreferences

SweetnessSweetness

Cre

amin

ess

Cre

amin

ess

(c) Clustered(c) Clusteredpreferencespreferences

Cre

amin

ess

Cre

amin

ess

SweetnessSweetness

(b) Diffused(b) Diffusedpreferencespreferences

Cre

amin

ess

Cre

amin

ess

SweetnessSweetness

Measurable Measurable

AccessibleAccessible

SubstantialSubstantial

DifferentialDifferential

• Segments must be large or profitable enough to serve.

• Segments can be effectively reached and served.

ActionableActionable

• Size, purchasing power, profiles of segments can be measured.

• Segments must respond differently to

different marketing mix elements & actions.

• Must be able to attract and serve

the segments.

EFFECTIVE SEGMENTATION

STEPS IN THE MARKET SEGMENTATION PROCESS

• Determine Market Boundaries

• Decide Which Segmentation Variables to Use• Collect and Analyze Segmentation Data• Develop a Profile of Each Segment• Target Segments to be Served• Design a Marketing Plan

BASES FOR SEGMENTING CONSUMER MARKETS

Occasions, Benefits, Uses, or Attitudes

Behavioral

Geographic

Region, City or MetroSize, Density, Climate Demographic

Age, Gender, Family size and Fife cycle, Race, Occupation, or Income ...

Lifestyle or Personality

Psychographic

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GENERATION

SOCIAL CLASS

LIFESTYLE

PERSONALITY

VALUES

OCASIONS – COCA COLA, RASNA

BENEFITS – TOOTH PASTE

USER STAUS – MARUTI TARGETING NON USERS

Heavy and Light Users of Common Consumer Products

HEAVY HALF LIGHT HALFPRODUCT (% USERS)

75%

71%

Soups anddetergents (94%) 25%

29%

79% 21%

Toilet tissue (95%)

Shampoo (94%)

75% 25%

17%

17%

Paper towels (90%)

Cake mix (74%)

Cola (67%)

83%

83%

13%

5%

87%

19%

Beer (41%)

Dog food (30%)

Bourbon (20%)

81%

95%

BUYER READINESS STAGE – BAJAJ ALLIANZE

ATTITUDE - CHOCOLATES

MULTI ATTRIBUTE SEGMENTATION

GEOCLUSTERING

MULTIPLE SEGMENTS

“CROSS SHOPPERS”

SEGMENTING BUSINESS MARKETS

PREDOMINANT BUSINESS SEGMENTS