2. Market Segmentation???
-It is the process of disaggregating
the total market for a given product
into a number of sub-markets.
-The heterogeneous market is
divided into a number of relatively
• The marketing concept calls for understanding
customers and satisfying their needs better
than the competitors . But different
consumers have different trends, and it rarely
is possible to satisfy all customer by treating
4. Mass Marketing
Mass marketing refers to the
treatment of the market as a
homogeneous group and offering
the same marketing mix to all
customers. It allows economies of
scale to be realized through mass Drawback- Customer
needs and preferences
differ and at the same
distribution, and mass offering is likely to be
communication. viewed as optimal by
5. Micro Marketing
• Micro marketing recognizes the diversity of
customers and does not try to please all of them
with the same offering.
-Understand the characteristics of the customers.
-Identify the value & profitability of different
-Identify the size and characteristics of the market in
which they operate.
6. Levels of Segmentation
Same product to all consumers
Different products to one or more segments
Different products to subgroups within segments
( more segmentation)
Products to suit the tastes of individuals or locations
7. Steps in Segmentation Process
Identify the target market.
Identify expectations of target audience.
Identify suitable marketing mix for each groups.
Find out which group to focus.
Select those segment which offer high potential.
8. Stages of Identifying Market Segments
• The researchers conduct explorative interviews to identify
customer motivations, attitude and behaviour.
• Researches applies factor analysis to the data to remove
highly correlated variables & then applies cluster analysis to
Analysis create a specified number of maximally different segments.
• Each cluster is profiled in terms of its distinguishing
attitudes, behaviour, demographics ,psychographics, and
Profiling media patterns.
10. Bases for Segmenting Consumer
Two major Approaches to Segmentation are:
Geographic Psychographic Usage
- Region - Social Class User status
- State Usage rate
- Income Occasions Benefits
- City types - Lifestyle Loyalty status Attitudes
- Density Buyer readiness
- Family size stage
12. Benefits of Market Segmentation
1. One customer group is distinguished from another within a
given market and this enables to decide which segment of
the market should form as target market.
2. Facilitates in-depth study of the characteristics of the buyers.
3. Help the marketing man to develop the marketing programme on
a predictable and reliable base.
4. More suitable ‘marketing offers’ for a particular segment is easily
5. Suitable marketing mix is achieved.
6. Due to concentrated efforts most productive and profitable
segments of markets are achieved.
7. Its helps to asses competitor’s stand in the market.
8. Customer and companies choose each other for mutual benefit
14. Market segmentation in
• SOAP INDUSTRY
SPECIAL LAUNDRY SOAP.
LOW GRADE TOILET SOAP.
PREMIUM YOILET SOAP.
TOILET SOAPS FOR STORES, OFFICES AND RESTAURANTS.
• WATCH INDUSTRY
GEOGRAPHIC LOCATION OF CUSTOMERS.
LIFE STYLE PATTERN.
BASED ON AGE.
BASED ON GENDER.
BASED ON INCOME.
15. • INDIAN CAR INDUSTRY
SUPER LUXURY SEGMENT
16. DIFFERENT TYPES OF
• PURCHASE OCCASION SEGMENTATION
• DIVIDE CUSTOMERS ON THE BASIS OF THE REASON BEHIND THEIR PURCHASE.
• USER STATUS SEGMENTATION
DIVIDE CUSTOMER BASED ON THEIR USAGE OF A PRODUCT OR SERVICE AND THE
PATTERN OF USAGE.
USAGE RATE SEGMENTATION
DIVIDE CUSTOMERS BASED ON THE FREQUENCY OF USAGE OF A PRODUCTOR SERVICE.
IT DIVIDES THE USER MARKET INTO LIGHT, HEAVY,AND MEDIUM USER GROUPS
• LOYALTY SEGMENTATION
DIVIDES CUSTOMERS ON THE BASIS OF THEIR LOYALTY
TOWARDS A CERTAIN PRODUCT OR SERVICE.
• TECNOGRAPHIC SEGMENTATION
IDENTIFICATION OF SEGMENTS BASED ON THE INTERACTION
OF THREE VARIABLES.
THESE ARE ATTITUDE TOWARDS TECHNOLOGY, APPLICATION
OF TECHNOLOGY, AND THE FINANCIAL POSITION OF THE
• POSITIONING IS THE ART OF DESIGNING COMPANY’S OFFERING
AND IMAGE TO OCCUPY A DISTINCTIVE PLACE IN THE TARGET
• THE POSTION OF BRAND IS THE PERCEPTION IT BRINGS ABOUT
IN THE MIND OF THE TARGET CUSTOMER.
PRINCIPLES OF POSITIONING
• IT IS BETTER TO BE FIRST THAN TO BE LATE.
• IN CASE, IT IS NOT THE FIRST, THEN THE COMPANY SHOULD BE
ABLE TO CREATE A NEW CATEGORY BY MAKING AT LEAST A
SMALL CHANGE IN THE MARKETING MIX ELEMENTS.
• IT IS IMPORTANT TO UNDERSTAND THE POSITION AND
STRATEGIES OF THE COMPETITORS.
• POSITIONING USING AN EASY NAME. EG:L G.
19. POSITIONING ERRORS
• UNDER POSITIONING.
• OVER POSITIONING.
• CONFUSED POSITIONING.
• DOUBTFUL POSITIONING
• ATTRIBUTE POSITIONING.
• BENEFIT POSITIONING.
• USE OR APPLICATION POSITIONING.
• USER POSITIONING.
• COMPETITOR POSITIONING.
• PRODUCT CATEGORY POSITIONING.
• QUALITY OR PRICE POSITIONING.
• POSITIONING IN RTELATION TO A TARGET MARKET.
20. HOW TO POSITION THE BRAND
This technique involves studying the consumer’s perception of the product
and competitor’s brands and based on it identifying the vacant slots.
1. Studying the ideal product perception –studying both tangible and
intangible attributes that a customer look while buying a product.
2. Get the customers to rank these attributes in the order of importance to
3. Customer’s knowledge of the competitors brands.
4. Based on these assessment of competitor brands on the ideal product
map ,identify the vacant slots&build the position strategy to filling these
21. COMMON POSITIONING STRATEGIES
IN THE CONSUMER DURABLE SECTOR
• 1. Benefit or use positioning:-The positioning strategies adopted by
consumer durable companies depend a lot on ‘usage’ , ‘economy’ and
‘corporate identity’ of which a well established brand surely projects
the identity of the product in terms of which corporate house the
product is form.
• 2. Competitor related positioning:-This is the strategy of placing a
firm’s brand next to the leader in the market and trying to uproot it on a
specific tangible variable.
• 3. Lifestyle positioning:-A firm could even position the brand as a
lifestyle contemporary or futuristic.
• 4. Positioning by corporate identity:-This type of positing is seen very
much with consumer durables when a tried and trusted corporate
• 5. Surrogate positioning:- Here the product can’t be positioned
differently on the basis of attributes but differentiated by positioning
them on the surrogates for the attributes.
22. POSITIONING PARADIGMS
Monopolistic competition prevails in the contemporary markets. Product
differentiation and price differentiation are the main features of
monopolistic competition. The marketer must reinterpret the product
differentiation as a meaningful consumer benefit.
Competitive Company Competitor Importance Affordability Competitors Recom-
advantage standing standing of imprvg & speed ability to mended
std imprv action
Technology 8 8 L L M Hold
Cost 6 8 H M M Monitor
Quality 8 6 L L H Monitor
Service 4 3 H H L Invest
1.It helps to focus the product on a specific target customer.
2.It offers the product a new appeal in the market.
3.A distinctive place could be occupied in the target market.
4.Successful creation of the market.
1.It is not possible to offer a product wholly for a specific type of customer.
2.The wrong positioning affects a number of products.
24. POSITIONING OF SERVICES
• Because of intangibility and other features associated with the
services, consumers find that differentiation of services is more difficult and
• Positioning involves giving the target market segment the reason for buying
the services and thus underpins the whole marketing strategy.
Some specific strategies are:-
1. Attribute positioning:-A service provider positions itself based on an attribute or a feature.
2. Benefit positioning:-Most service providers resort to benefit positioning as the general
psyche of the customer is to analyze the benefit that he derives by using a particular
3.Use or application positioning:-The service is positioned as the best
for a certain application.
4.User positioning:-The service is positioned for a specific target group
5.Competitor positioning:-The service is positioned by the provider
against a competitor’s service offering.
6.Catogory positioning:-The service provider positions itself as the
category leader and becomes synonymous with the service.
7.Quality or price positioning:-A service is positioned in the market as
possessing a certain quality standard at a particular price.
27. DIFFERENTIATION IS
THE ACT OF DESIGNING
A SET OF MEANINGFUL
28. DIFFERENTIATION VARIABLES
30. DIFFERENTIATION IN SERVICES
IT MEANS PROVIDING
MEANINGFUL CHANGES IN
SERVICE OFFER THAT ADD
VALUE TO THE CUSTOMER AND
ARE CAPABLE OF GENERATING
QUALITY PERCEPTIONS THAT
DISTINCT FROM COMPETITIVE
32. BASIC SERVICE PACKAGE(BSP)
QUALITY AND COMPOSITION OF FACILITATING SERVICES
.QUALITY AND COMPOSITION OF SUPPORTING SERVICES
THE NUMBER OF CONTACT PERSONNEL
TIME TAKEN TO PERFORM TASKS
LOCATION OF THE OUTLETS
EXTERIOR AND INTERIOR OF SERVICE OUTLETS
TOOLS,EQUIPMENT AND DOCUMENTS
PHYSICAL AND TECHNICAL RESOUCES