Principles of Marketing

1. MARKET SEGMENTATION,
TARGETING, AND
POSITIONING
Principles of Marketing – Outcome 2

2. Objectives
 What is marketing segmentation?
 What is a market segment?
 Benefits and importance of market segmentation
 Bases of segmentation
 What is targeting?
 Selecting a targeting strategy
 What is positioning?
 Product positioning
 Steps in positioning strategy

3. What is Market Segment?
 A market segment is a sub-set of a market
made up of people or organizations with one or
more characteristics that cause them to
demand similar product and/or services based
on qualities of those products such as price or
function.

4. Market Segment
 What is a market segment? Market segment
refers to a large identifiable group within a
market with similar wants, purchasing power,
geographical location, buying attributes, or
buying habits.

5. What is Market Segmentation?
 Market segmentation is
 the analysis of total demand in a market into
its constituent (basic) parts,
 so that sets of consumers, with distinctive
needs and behaviors patterns, can be
identified.

6. Benefits and Importance of Market
Segmentation
 Market segmentation facilitates the
matching of products with consumer
needs.
 This gives satisfaction to consumers and
 higher sales and profit to the marketing firm.

7. Benefits and Importance of Market
Segmentation
 A firm can concentrate its efforts on most
productive/ profitable segments of the total
market due to segmentation technique.
 Thus market segmentation facilitates the
selection of the most suitable market.

8. Benefits and Importance of Market
Segmentation
 It also enables the marketer to utilize the
available marketing resources effectively
as the exact target group is identified at the
initial stage only.

9. Benefits and Importance of Market
Segmentation
 A firm can avoid the markets which are
unprofitable and irrelevant for its marketing
purpose and concentrate on certain
promising segments only.

10. Benefits and Importance of Market
Segmentation
 Advertising media can be more effectively
used because only the media that reach the
segments can be employed.

11. Benefits and Importance of Market
Segmentation
 Market segmentation offers special benefits to
small firms.
 The resources available with them are limited
as they are comparatively new in the market.

12. Bases of Segmenting the
Market
 The common methods of segmentation are:
1. Geographic Segmentation
2. Demographic Segmentation
3. Psychographic Segmentation
4. Behavioral Segmentation

13. Geographic Segmentation
 It calls for dividing market size into
different geographical units such as:
 Region
 City
 Density
 Climate: Marketers take advantage of location by
selling suntan lotion in Hawaii, fur coats in Alaska,
etc.

14. Demographic Segmentation
 It is dividing the market size into groups on
the basis of variable such as:
 Age
 Education
 Family Size
 Religion
 Gender
 Nationality
 Income
 Occupation

15. Psychographic Segmentation
 Buyers are divided into
different groups
Lifestyle
Personality Characteristics
Social Status

16. Behavioral Segmentation
 Buyers are divided into groups on the basis of
their knowledge of, attitude toward use of or
response to a produce.
 Occasions - Regular, Special
 Benefits - Quality , Economy
 User Status - Non-user, Ex-user, Potential user, First
time user, Regular user
 Usage Rate - Light user, Medium user, Heavy user
 Loyalty Status - None, Medium, Strong,
 Readiness Stage - Unaware, Aware, Informed,
Interested,
& Intending to buy
 Attitude towards Product - Enthusiastic(eager),
Positive,
Indifferent, Negative,

17. What is Targeting?
 It involves selecting which segment to serve.
 Target Market involves breaking a market into
segments and then concentrating your
marketing efforts on one or a few key
segments.
 Target Market: A set of buyers sharing
common needs or characteristics those the
company decides to serve.

18. Selecting a Target Strategy
1. Undifferentiated Marketing
2. Differentiated Marketing
3. Concentrated Marketing

20. Undifferentiated Marketing
 Undifferentiated Marketing (Mass Marketing) –
a market coverage strategy in which a firm
decides to ignore market segment
differences and go after the whole market
with one offer.

21. Undifferentiated Marketing
 Undifferentiated products are products that
are so similar to one another that the
majority of consumers do not differentiate
between them. Examples would be milk,
paper, and gas. Companies selling these
products typically use price and availability to
compete with one another.

22. Differentiated Marketing
 Differentiated Marketing – a market coverage
strategy in which a firm decides to target
several market segments and designs
separate offer for each.

24. Procter and Gamble practicing Differentiated Marketing

25. Concentrated Marketing
“Niche Marketing”.
 Concentrated Marketing – a market coverage
strategy in which a firm goes after a large
share of one or a few submarkets.

26. Positioning
 Positioning: The process by which marketers
try to create an image or identity in the minds
of their target market for its product, brand, or
organization.

27. Product Positioning
 Product Positioning: refers to the way in which the
product or service is presented to the market.
 The factors in positioning the products could be:
performance, quality, packaging, price, characteristics,
and more.
 Example: Toyota is positioned on economy.
Mercedes and Cadillac on luxury.
Porsche and BMW on performance.
Volvo positioned on safety.
 In all the above four stated examples, the product is car.
But each company is positioning their product in a
different way.

29. Product Positioning
 Some other products and how they are
positioned in the market:-
 Dettol Soap: - Antiseptic soap,
 Maggie noodles: - Instant food,
 Dove: - Beauty soap,
 Pepsi: - soft drink for fun,
 Diet Pepsi: - less sugar
 Hummer 4WD:- Power and rough terrain,
 Air India Express: - low price

30. Review
 What is marketing segmentation?
 What is a market segment?
 Benefits and importance of market segmentation
 Bases of segmentation
 What is targeting?
 Selecting a targeting strategy
 What is positioning?
 Product positioning
 Steps in positioning strategy

31.  https://www.youtube.com/watch?v=_0yFXLA6
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 https://www.youtube.com/watch?v=g3UarOHx
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