Unit 02

1

Program : MBA

Semester : I

Subject Code : MB0038

Subject Name : Management Process and Organization

Behavior

Unit number : 3

Unit Title : Learning and Ability

Lecture Number : 1

Lecture Title : Learning and Ability

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Program : MBA Semester : 3RD Subject Code : MK0011 Subject Name : Consumer Behaviour Unit Number : 2 Unit Title : Market Segmentation and Positioning

1

2

Program : MBA

Semester : I

Subject Code : MB0038

Subject Name : Management Process and Organization

Behavior

Unit number : 3

Unit Title : Learning and Ability

Lecture Number : 1

Lecture Title : Learning and Ability

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Objectives:

• To discuss the concept of segmentation • To explain the concept of positioning

Unit 2: Market Segmentation and Positioning

Market Segmentation and Positioning

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3

Program : MBA

Semester : I

Subject Code : MB0038

Subject Name : Management Process and Organization

Behavior

Unit number : 3

Unit Title : Learning and Ability

Lecture Number : 1

Lecture Title : Learning and Ability

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Lecture Outline

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• Introduction• Effective Segmentation• Bases for Segmentation• Bases for Segmentation: examples• Segmentation: Strategic Options• Product Positioning• Product Positioning Approaches• Repositioning and Positioning Errors• Activity

Unit 2: Market Segmentation and Positioning

4

Program : MBA

Semester : I

Subject Code : MB0038

Subject Name : Management Process and Organization

Behavior

Unit number : 3

Unit Title : Learning and Ability

Lecture Number : 1

Lecture Title : Learning and Ability

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Introduction

Segmentation is the process of dividing the heterogeneous market into relatively distinct homogeneous sub-groups of consumers who have similar characteristics.

A segmentation drive also involves targeting one or moreSegments with different marketing initiatives

Positioning, in simple words, is the battle for consumers’ mind share.

It refers to process by which the marketers try to create an identity, for their products and services, in target

consumers’ mind.

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source: velocityassociates.net

Unit 2: Market Segmentation and Positioning

5

Program : MBA

Semester : I

Subject Code : MB0038

Subject Name : Management Process and Organization

Behavior

Unit number : 3

Unit Title : Learning and Ability

Lecture Number : 1

Lecture Title : Learning and Ability

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Effective Segmentation

Marketers should remember these points while segmenting the market:

• There is no point segmenting a homogeneous market.

• The segments identified should have some common needs and characteristics

• The segments should be measurable

• The segments should be profitable

• Each segment should be within the reach of the company

Niche market is a small but profitable segment which includes people who are ready to pay a premium if their needs are satisfied. For example, Rolls Royce has a niche market; it caters to the premium needs of the super rich

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Unit 2: Market Segmentation and Positioning

6

Program : MBA

Semester : I

Subject Code : MB0038

Subject Name : Management Process and Organization

Behavior

Unit number : 3

Unit Title : Learning and Ability

Lecture Number : 1

Lecture Title : Learning and Ability

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Geographic Segmentation

Demographic Segmentation

Behavioristic Segmentation

Geographic Segmentation

Based on-•Nations•States•Rural-urban divide•Time zones…

Based on-•Age•Sex•Income•Lifecycle•Social Class…

Based on-•Use occasion•Benefits sought•User status•Usage rate•Loyalty status…

Based on-•Mix of demographic•and psychographic•Variables•Mix of geographic •and demographic•variables

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Bases for Segmentation

Unit 2: Market Segmentation and Positioning

7

Program : MBA

Semester : I

Subject Code : MB0038

Subject Name : Management Process and Organization

Behavior

Unit number : 3

Unit Title : Learning and Ability

Lecture Number : 1

Lecture Title : Learning and Ability

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Psychographic segmentation based on lifestyle of individuals.

Bases for Segmentation: Continued

Activities Interests Opinions Demographics

Work Family Themselves Age

Hobbies Home Social issues Education

Social events Job Politics Income

Vacation Community Business Occupation

Entertainment Recreation Economics Family size

Club membership

Fashion Education Dwelling

Community Food Products Geography

Shopping Media Future City size

Sports Achievements Culture Stage in life cycle

Lifestyle DimensionsVALS Framework

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Unit 2: Market Segmentation and Positioning

8

Program : MBA

Semester : I

Subject Code : MB0038

Subject Name : Management Process and Organization

Behavior

Unit number : 3

Unit Title : Learning and Ability

Lecture Number : 1

Lecture Title : Learning and Ability

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Benefit Segmentation is based on the specific benefits that consumers look for in a product or service

Here is an example of how toothpaste marketers have used benefit segmentation

Bases for Segmentation: Continued

Principal Benefit Sought

Psychographics Characteristics

Behavioural Characteristics

Demographic Characteristics

Brands Much Favoured

Brightness of teeth (cosmetic)

Outgoing, active fun-loving, high

sociability

Smokers Teenagers, youngsters

Close-Up, Promise,

Aquafresh

Decay prevention (medicinal)

Health conscious Heavy users Large families Pepsodent, Colgate Total,

Forhans

Taste

(good taste, flavour)

Self-indulgent,

hedonistic

Mint lovers Children Aquafresh,

Colgate

Low price (economy)

Price-conscious, independent

Heavy users, deal prone

Men, traditional

Neem, Babool, Vicco Vajrdanti

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Unit 2: Market Segmentation and Positioning

9

Program : MBA

Semester : I

Subject Code : MB0038

Subject Name : Management Process and Organization

Behavior

Unit number : 3

Unit Title : Learning and Ability

Lecture Number : 1

Lecture Title : Learning and Ability

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Geographic Segmentationsource: mcdonalds.com

Benefit SegmentationSource: google.com

Demographic SegmentationSource: adsoftheworld.com

Psychographic SegmentationSource: shoppersstop.com

Behavioural SegmentationSource: offersadda.co.cc

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Bases for Segmentation: Examples

Unit 2: Market Segmentation and Positioning

10

Program : MBA

Semester : I

Subject Code : MB0038

Subject Name : Management Process and Organization

Behavior

Unit number : 3

Unit Title : Learning and Ability

Lecture Number : 1

Lecture Title : Learning and Ability

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Undifferentiated Marketing

•No differences in market•Targets common consumer •needs•Provides economies of •Scale

Example:

Source : brandadda.com

Differentiated Marketing

•Several markets are •targeted•Offers various product •versions•Increases costs

Example

Source: soopertutorials.com

Concentrated Marketing

•Targets a small segment•Appeals more to small •or medium sized companies•Involves more risks

Example: Oshkosh Trucks

Source: i.n.com

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Segmentation: Strategic Options

Unit 2: Market Segmentation and Positioning

11

Program : MBA

Semester : I

Subject Code : MB0038

Subject Name : Management Process and Organization

Behavior

Unit number : 3

Unit Title : Learning and Ability

Lecture Number : 1

Lecture Title : Learning and Ability

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Product Positioning

Positioning is a marketing strategy that aims to make a brand occupy a distinct 'position,' relative to the competing brands, in the mind of the customer.

Examples- Maruti Suzuki Alto is positioned a car for middle class and nuclear familiesOn the other hand, Versa is positioned as a joint family car

Parle’s LMN has been positioned as the ‘ Emergency Lemon Refresher’Coca Cola’s Sprite is positioned simply as a thirst quencher

Six steps to successful positioning:

Identify competitorsAssess how consumers

See competitors productsAssess competitors’

positioning

Review the positionAnalyse consumers’

preferencesDecide your product’s

positioning

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Unit 2: Market Segmentation and Positioning

12

Program : MBA

Semester : I

Subject Code : MB0038

Subject Name : Management Process and Organization

Behavior

Unit number : 3

Unit Title : Learning and Ability

Lecture Number : 1

Lecture Title : Learning and Ability

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Features

Source: images04.olx.in

Unit 1: Market Segmentation and Positioning

Benefits

Source: giftmela.com

Comparison

Source: adsoftheworld

Price/Quality

Source: nytimes.com

Usage

Source: adsoftheworld

Endorsements

Source: typepad.com

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Product Positioning Approaches

13

Program : MBA

Semester : I

Subject Code : MB0038

Subject Name : Management Process and Organization

Behavior

Unit number : 3

Unit Title : Learning and Ability

Lecture Number : 1

Lecture Title : Learning and Ability

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Repositioning is a marketing strategy that changes aspects of a product or brand in order to change market position and alter consumer perceptions.

Example: Videocon repositioned its brand image from being the ‘Indian Multinational’ to a brand that cares for the environment.

Positioning Errors

Under-positioning- not creating a distinctive image

Over-positioning- gives a narrow image of the brand

Confused Positioning- too many different positioning bases used

Doubtful Positioning- consumers find that positioning is not consistent with product features

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Repositioning and Positioning Errors

Unit 2: Market Segmentation and Positioning

14

Program : MBA

Semester : I

Subject Code : MB0038

Subject Name : Management Process and Organization

Behavior

Unit number : 3

Unit Title : Learning and Ability

Lecture Number : 1

Lecture Title : Learning and Ability

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Activity 1

Collect as many print ads as possible of products and services firms that use demographic variables to segment the market.

Activity 2

Assess the positioning of different brands of Maruti Suzuki and Volkswagen in India.You can use the following links

http://www.marutisuzuki.com/http://www.volkswagen.co.in/in/en.html

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Activity

Unit 2: Market Segmentation and Positioning

15

Program : MBA

Semester : I

Subject Code : MB0038

Subject Name : Management Process and Organization

Behavior

Unit number : 3

Unit Title : Learning and Ability

Lecture Number : 1

Lecture Title : Learning and Ability

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THANK YOU

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Unit 2: Market Segmentation and Positioning