Marketing of Financial Products & Services - Market Segmentation, Targeting & Positioning

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Lecture - 3 Parveen Sharma

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MoFP for

TKW’s

Marketing of

Financial

Products

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Contents

Market Segmentation

The Concept

Significance of Market Segmentation

Segmentation Strategy

Criteria for Segmentation

Requirements For Effective Segmentation

Limitation to Segmentation

Targeting & Positioning

STP Steps

MoFP for

TKW’s

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All customers have their likes & dislikes but they possess some

element of uniqueness

FI’s need to satisfy different customer of rural – urban, small sized –

large sized, low income high income etc.

Satisfaction of customer needs and wants has prime focus in

marketing but it is not easy task as we cannot use same marketing

strategy for all.

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Market Segmentation – The concept

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TKW’s

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‘Market segmentation is the sub-division of a market into homogenous

subsets of customers where any subset may be selected on a market

target to be reached with a distinct marketing mix’.(Philip Kotler)

Segmentation is a device to…

…formulating a sound marketing mix

…identify level of expectations of segments

…to be proactive and increase profitability

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Market Segmentation – The concept

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TKW’s

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Small is beautiful

Small is identifiable

Divide and rule

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Market Segmentation – The concept

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Significance of Market Segmentation

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Design product-line parallel to demands of market

To catch first sign of major trend

To design companies advertising appeal

To understand market and customers

To formulate sound marketing strategy

To achieve organizational goals faster and to utilize resources optimally.

Differentiating from competition

Becoming less sensitive to the price competition

Direct appropriate amount of attention to respective segments

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TKW’s

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Basic Approach of Segmentation

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One(Products) to One(Segments)

One(Products) to Many(Segments)

Many(Products) to Many(Segments)

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Segmentation Strategy

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Mass Marketing or Undifferentiated Strategy

(Generally most competitive and least profitable)

Selective Marketing or Differentiated Strategy (More focused, expensive and increased profitability)

Concentrated or Niche Marketing (Small segment but most profitable)

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TKW’s

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Criteria for Segmentation

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Segmenting Consumer Markets

Segmenting Business Markets

Segmenting International Markets

• Geographic segments (Distance, Region, Terrain, Density etc)

– Marketing mixes customized

geographically

• Demographic segmentation (Age, Gender, Family Life Cycle, Income,

Occupation, Education etc) – Most popular type – Demographics are closely related to

needs and wants

• Psychographic segmentation (Lifestyle, Values and personality-based

segmentation) – Birds of same feather flock together

• Behavioral segmentation (Benefits, Loyalty, Usage Rate, Buyers

Readiness)

Key Topics

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Criteria for Segmentation

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Criteria for Segmentation

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Segmenting Consumer Markets

Segmenting Business Markets

Segmenting International Markets

• Demographic segmentation – Industry, company size, location

• Operating variables – Technology, usage status,

customer capabilities

• Purchasing approaches

• Situational factors – Urgency, specific application, size

of order

• Personal characteristics – Buyer-seller similarity, attitudes

toward risk, loyalty

Key Topics

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Segmentation Variables for Business Markets

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Criteria for Segmentation

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Criteria for Segmentation

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Segmenting Consumer Markets

Segmenting Business Markets

Segmenting International Markets

• Geographic segmentation – Location or region

• Economic factors – Population income or level of

economic development

• Political and legal factors – Type / stability of government,

monetary regulations, amount of

bureaucracy, etc

• Cultural factors – Language, religion, values,

attitudes, customs, behavioral

patterns

Key Topics

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Criteria for Segmentation

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Requirements For Effective Segmentation

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Measurable

– Size, purchasing power, and profile of segment

Accessible

– Can be reached

Substantial

– Large and profitable enough to serve

Differentiable

– Respond differently

Actionable

– Effective programs can be developed

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Limitations of segmentation

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Lack of information and data

Difficulty in measuring and predicting consumer behavior

Hard to reach customer segments once identified

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Targeting & Positioning

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Targeting

Market targeting is a process of evaluating each market segment’s

attractiveness and selecting one or more segments to enter

Positioning Creating an identity in the minds of target market

Structural

Attractiveness

Size & Growth

Company

Resources &

Objective

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STP: Steps

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Identify basis of segmenting the market

Develop profile of resulting segments

Develop measures of segments attractiveness

Select the target segments

Develop positioning for each target segment

Develop marketing mix for each target segment

Segmentation

Targeting

Positioning

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? ueries Q

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Contact me @ +91-9050050288

or

Email to parveen_72@yahoo.in

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Term for the Lecture

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Biogenic & Psychogenic needs

Cognition & Perception

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Thank

You MoFP for

TKW’s

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