Stp

STPSTPSegmentationSegmentation

TargetingTargeting Positioning Positioning

SEGMENTATION SEGMENTATION Process of subdividing a total market Process of subdividing a total market

into different subsets or groups.into different subsets or groups. Where the marketer may select one Where the marketer may select one

or more segments.or more segments. To be reached with an appropriate To be reached with an appropriate

marketing mix.marketing mix.

Basis for market segmentation

On the basis of consumer’s personal characteristics (non-behavioral

correlates)

On the basis of consumer responses (behavioral correlates)

Geographic

Demographic

Psychographic

Socio-economicLoyal status

Usage based

Benefits

Geographic SegmentationGeographic SegmentationSubdividing the whole market into Subdividing the whole market into different geographical units which can different geographical units which can be further sub-divided into smaller be further sub-divided into smaller units.units.A national marketer may take whole A national marketer may take whole nation as his market. For example-in nation as his market. For example-in the detergent market Hindustan Levers the detergent market Hindustan Levers and Procter and Gamble are all and Procter and Gamble are all national marketers in India.national marketers in India.A multinational company may divide A multinational company may divide the global market on the basis of the global market on the basis of continents. Like Pepsi and Coca-cola.continents. Like Pepsi and Coca-cola.

11 Geographical area.Geographical area. 3,287,263 sq km.3,287,263 sq km.

22 Ranking in terms of Ranking in terms of geographical area geographical area in the world.in the world.

77thth largest country largest country

33 Physical featuresPhysical features

Climate Climate

Four major regions :Four major regions :

A.A. The Great mountain zone.The Great mountain zone.

B.B. The Plains of the Ganga and the Indus The Plains of the Ganga and the Indus region.region.

C.C. The Desert region.The Desert region.

D.D. The Peninsular IndiaThe Peninsular India

Tropical Monsoon types have four seasonsTropical Monsoon types have four seasons

A.A. Winter – January to FebruaryWinter – January to February

B.B. Hot weather – March to MayHot weather – March to May

C.C. Rainy (south western monsoon) – June to Rainy (south western monsoon) – June to September September

D.D. Rainy (north eastern monsoon) – October to Rainy (north eastern monsoon) – October to DecemberDecember

Source: India 2000, Publication Division, Government of India

Geographical features of India

Demographic SegmentationDemographic Segmentation

Subdividing the market in terms of Subdividing the market in terms of demographic features of a country or a demographic features of a country or a region.region.

Variables that may be considered are age, Variables that may be considered are age, gender, marital status, family size, etc.gender, marital status, family size, etc.

Demographic data is essential for Demographic data is essential for estimating the size of the target market.estimating the size of the target market.

Demographic features of Demographic features of IndiaIndia

11 Population Population sizesize

846.30 million as per 1991 census846.30 million as per 1991 census

Crossed 1000 million as per 2001 censusCrossed 1000 million as per 2001 census

22 Sex ratioSex ratio Females per 1000 males: 933/1000. 2001 censusFemales per 1000 males: 933/1000. 2001 census

In Kerela State: 1036/1000 – 1991 censusIn Kerela State: 1036/1000 – 1991 census

33 Metro CitiesMetro Cities 1991 census1991 census

Mumbai : 12.60 millionMumbai : 12.60 million

Kolkata : 11.02 millionKolkata : 11.02 million

Delhi : 08.42 millionDelhi : 08.42 million

Chennai : 05.42 millionChennai : 05.42 million

44 Heavily Heavily populated populated districtsdistricts

Kolkata, Chennai, Greater Mumbai, Hyderabad, Kolkata, Chennai, Greater Mumbai, Hyderabad, Delhi, Chandigarh, Mahe, Howrah, Kanpur, BangloreDelhi, Chandigarh, Mahe, Howrah, Kanpur, Banglore

(All of them have a density of above 2000 persons (All of them have a density of above 2000 persons per square km. 5.01% population lives in these 10 per square km. 5.01% population lives in these 10 cities. Avg. density of these districts is 6885 cities. Avg. density of these districts is 6885 persons)persons)

Source: Census of India,1991 and 2001

Socio-economic Socio-economic segmentationsegmentation

Variables that may considered for market Variables that may considered for market segmentation are Income, occupation, segmentation are Income, occupation, education, religion, social classes, etc.education, religion, social classes, etc.

This segmentation is used for durable This segmentation is used for durable products such as automobiles, PCs, etc.products such as automobiles, PCs, etc.

Psychographic segmentation Sub division of different groups on the basis of personality, life style and values.

Marketers of cosmetics, textiles, fast food providers etc. must understand the life style of the target market.

Automobile manufacturers must consider different personality traits in dividing the market.

Benefit segmentationBenefit segmentationSegmented on the basis of benefits sought by consumersSegmented on the basis of benefits sought by consumers

Toothpaste

General benefits that consumers seek are cleanliness and hygiene in all segments.

Other key benefits are:-

Cosmetic Fluoride Herbal

Protection against foul smell, modernity and

cosmic value. Eg-Colgate, Prudent

Family health, extra protection for children. Eg-Colgate Fluoride, Cibaca Fluoride.

Family health and welfare.

Traditionally good for health.

Eg-Neem, Dabur.

Motorcycle Motorcycle brandsbrands

Perceived benefitsPerceived benefits

EnfieldEnfield sturdy, good for long rides and high sturdy, good for long rides and high resale value.resale value.

Hero-HondaHero-Honda Fuel efficient, high pick up and stylishFuel efficient, high pick up and stylish

Kawasaki bajajKawasaki bajaj High pickup, sleek modelHigh pickup, sleek model

Scooter brandsScooter brandsBajaj chetak cubBajaj chetak cub Fuel efficient, lifelong, high resale Fuel efficient, lifelong, high resale

valuevalue

Kinetic HondaKinetic Honda Electronic ignition, easy to ride, Electronic ignition, easy to ride, trouble free.trouble free.

Consumers’ perceived benefits of Two-wheelers

Usage based segmentationUsage based segmentationMarket segmented into Market segmented into High buyersHigh buyers Medium buyersMedium buyers light buyerslight buyers

Loyal buyers

Relationship seekers: buyers who want to develop long term relationships with their suppliers or retailers.

Loyal buyers of particular brand: buyers who seek a particular brand among competing brands.

Evaluation of segmentationEvaluation of segmentation MeasurableMeasurable SubstantialSubstantial Accessible Accessible DifferentiableDifferentiable Actionable Actionable

Targeting Targeting

Once the firm has segmented the total Once the firm has segmented the total market ,it should select the target market market ,it should select the target market segment or segments for marketing.segment or segments for marketing.

Investing in a particular segment should Investing in a particular segment should be sensible in terms of company’s be sensible in terms of company’s mission, objectives, skills and resources.mission, objectives, skills and resources.

Targeting StrategiesTargeting Strategies

Single segment concentration

strategy

Multi segment strategy or

differentiated marketing strategy

Undifferentiated marketing strategy

Single segment concentration Single segment concentration strategystrategy

The firm selects a single segment or market and The firm selects a single segment or market and fully concentrate its marketing efforts to try and fully concentrate its marketing efforts to try and seek maximum advantage.seek maximum advantage.

Car makerSingle marketing mix

Semi-luxury segment

(Expensive)

Small car segment (affordable,less expensive)

Luxury car segment

(very expensive)

Multi-segments strategyMulti-segments strategy Here the firm may select two or more then two or Here the firm may select two or more then two or

may be all the segments and approach each segment may be all the segments and approach each segment with an appropriate marketing mix programme.with an appropriate marketing mix programme.

Car maker

Small car segmentSemi-luxury

segmentLuxury segment

Marketing MixMarketing Mix Marketing Mix

Undifferentiated Marketing Undifferentiated Marketing StrategyStrategy

The firm ignores the market segment differences and The firm ignores the market segment differences and goes ahead with 1 single product offer for all goes ahead with 1 single product offer for all segments.segments.

Essential commodity manufacturer.

Single

marketing mix

Market PositioningMarket Positioning

Positioning of a product or service is Positioning of a product or service is creating an “image” in the creating an “image” in the consumers’ mind.consumers’ mind.

Consumers generally buy “images” Consumers generally buy “images” rather than actual product.rather than actual product.

Marketers mostly use advertising as Marketers mostly use advertising as a tool to build up brand or corporate a tool to build up brand or corporate “image”.“image”.

Positioning strategies Positioning strategies

Sl. Sl. no.no.

Positioning Positioning strategiesstrategies

Definition Definition Advertising Advertising claimsclaims

1.1. Customer Customer benefitsbenefits

Associate a brand or product Associate a brand or product with customer benefitswith customer benefits

Benefit(s)Benefit(s)

2.2. Price and Price and qualityquality

A product is highlighted in A product is highlighted in terms of service features or terms of service features or performance. Manufacturer performance. Manufacturer charges high pricecharges high price

Value for Value for moneymoney

3.3. Application Application Associating a product or Associating a product or service with a use or service with a use or applicationapplication

Use or Use or application of a application of a product or product or services.services.

4.4. Product userProduct user Associating a product or Associating a product or service with a user or class service with a user or class of users.of users.

Cine stars or Cine stars or sports heroes sports heroes using the using the productproduct

Positioning strategies

Sl. Sl. nono..

Positioning Positioning strategystrategy

DefinitionDefinition Advertising claimsAdvertising claims

55 Product classProduct class Associating a product Associating a product or service in a or service in a particular product classparticular product class

World class productsWorld class products

66 Cultural Cultural symbolssymbols

Associating cultural Associating cultural symbols with a product symbols with a product or service to or service to differentiate from differentiate from competitors productcompetitors product

Royal Royal

77 Competitors Competitors Associating with Associating with competitor’s product or competitor’s product or service by comparisonservice by comparison

Compares with Compares with competitors brandcompetitors brand

Competing brands in the health drinks market

Advertising claims Health drink market

Complan

Horlicks

Bournvita

Boost

Viva

“complete planned food” for growing children. Contains 23 vital nutrition

“The great nourisher-with extra calcium”

“Health strength and energy”.contains protiens,vitamins, menerals and carbohydrates.

“Energy Ah! Energy”

“Double action drink”

Health

Drink

Market

Determining a competitive positioning Determining a competitive positioning strategystrategy

Identification and selection of good positioning strategy Identification and selection of good positioning strategy With the help of marketing researchWith the help of marketing research

Steps in determining a competitive positioning strategy

Identify the strategy group

Understand the consumers’ perception of competitive brands of strategy group

Determine consumers’ needs and aspirations

Select the best one for advertising campaign

Identify the strategic groupIdentify the strategic groupStrategic Groups Marketing Mix Target

Consumer Groups

I

Hero Honda CD 100

Kawasaki Bajaj

Yamaha & Bullet

II

Hero Honda

TVS Suzuki

III

TVS EXL Champ

Hero Puch

High Tech High styling High power High price

High style High economy Medium price

Low styling High economy Low price Low Tech

Upper middle and middle

income classes

Middle and lower middle

income classes

Lower income classes

Determine consumers need and Determine consumers need and aspirationsaspirations Price Price

Fuel efficiencyFuel efficiency After-sales serviceAfter-sales service WarrantyWarranty Stylish looksStylish looks Easy to rideEasy to ride High pick up and trouble freeHigh pick up and trouble free

Select the best one for advertising campaign

A sample of respondents can be asked to select the best among the alternatives and the same can be used for the advertising campaign

Thank you