Pillars of Marketing : Market segmentation, Target marketing Positioning & Differentiation

AMEERUL HASAN | CHAPTER NUMBER 05

Chapter Objectives

We focus on the following questions:

How can a company identify the segments that make up a market?

What criteria can a company use to choose the most

attractive target markets?

Target Marketing

Target marketing requires marketers to take three major steps:

Identify and profile distinct groups of buyers

who differ in their needs and preferences

(market segmentation).

Select one or more market segments to enter

(market targeting).

For each target segment, establish and communicate the key distinctive benefit(s) of the company’s market offering (market

positioning).

Levels and Patterns ofMarket Segmentation

Levels of Market Segmentation

Mass marketing

Micromarketing

Segment marketing Market segment

Sector

Flexible market offering

Niche Marketing

Local Marketing

Individual Customer Marketing

1. Mass-customization

2. Choiceboard

3. Customerization

Segments

Individuals

Patterns for Market Segmentation Preference segments

Homogeneous preferences

Diffused preferences

Clustered preferences

1. Natural market segments

2. Concentrated marketing

Market Segmentation Procedure Needs-based market segmentation approach

Market partitioning

1. Brand-dominant hierarchy

2. Nation-dominant hierarchy

Gogrej Ezee

Himalaya

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ICICI BANK

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Saugata Gupta, CEO (Marico -Consumer Products),

POSITIONING

It is the act of designing the company offering and image to occupy a distinctive place in the mind of target market

STP

All marketing strategies is built on STP- Sgmentation ,Targeting ,Positioning

Microsoft

Delivered hot and fresh in less than 30 Minutes or free

Targeting

Intel

Health Care – Positioning

POINT OF DIFFERENCE

POD are attributes or benefits consumers strongly asscoaites with a brand ,positively evaluate and belive they could not find to the same extent with a competitive brand

POINT OF PARITY

POPs on the other hand are associatetion the are not necessarily unique o the brand but may in fact be shared with other brands

PODs

Apple (design) Nike ( performance )

POPs

Repositioning

MOOV

Repositioned the brand from joint pain reliving balm to BACKACHE SPECIALIST ……that address to housewife

PARAS PAHARMACEUTICAL

Establishing Category Membership

Straddle Positioning Category membership Announcing category benefits

Comparing to exemplars

Relying on Product descriptor

Establishing Category Membership

Raymond lakme

BMW Amazon.com

Differentiation Strategies

Competative advantage is a company's ability to perform in one or more ways that competitors cannot or will not match

1. Personnel Differentiation

2. Channel Differentiation

3. Image Differentiation

Personnel DifferentiationsChannel Differentiations-Direct to Home

Image Differentiation

Personnnel Differentiation

Jet Air India KingFisher

Product Life Cycle -Marketing Strategy

1. Intoduction

2. Growth

3. Maturity

4. Decline

Intoduction Stage Pioneer Advantage

Coca -Cola Fair & Handsome

Wikipedia

Long Range Product Market Expansion Strategy

Marketing Strategies: Introduction Stage

The Pioneer Advantage

Inventor

Product pioneer

Market Pioneer

Marketing Strategy : MaturityStage

This stage normally last longer then the perivoius stages

Most Products are normally in maturity stages

The maturity stage is sub divided into 3 phases

1. Growth

2. Stable

3. Decaying

Strategy Market Modification

Product Modification

Marketing Program Modification

Product ModificationQuality Improvement Feature ImprovementStyle Improvement

Bajaj Scooter Bajaj Avenger Pulsar

Parle G Parle Products

Market Program Modification

Price

Distribustion

Advertising

Sales Promotions

Personal Selling

Services

Marketing Strategies Decline Stage

Identify Weak product

Lower Exit Barriers

Industry Relative attractiveness and Company competitive strength

Force India

CCD Barista