1. Segmenting, Targetting, And Positioning

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SEGMENTING, TARGETTING, AND POSITIONING 1.  SEGMENTATION: Segmenting means dividing total mar k et into diferent arts or Groups.  !omanies are grouping the Rural Customers in diferent segments.  Segmentation is done "or Similar customers.  !omanies #ave se$iali%ed rod&$ts ' Servi$es "or ea $# gro&.

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Transcript of 1. Segmenting, Targetting, And Positioning

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SEGMENTING, TARGETTING, ANDPOSITIONING

• 1.  SEGMENTATION:  Segmentingmeans dividing total market intodiferent arts or Groups.

•   !omanies are grouping theRural Customers in diferentsegments.

  Segmentation is done "or Similarcustomers.

•   !omanies #ave se$iali%edrod&$ts ' Servi$es "or ea$# gro&.

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• ( !omanies $on$entrated in )r*anMarket as t#eir segment +#i$#$omrises o" - o&lation *&t

$ontri*&ting /- o" t#e reven&e.•  ( No+ t#ere is saturation in urban

market in re$ent 0ears.

 ( T#ere is a groing !eman! inRural Markets.

•  ( Rural market is increasing "ast.

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•  ( T#&s, t#e R&ral Market is imortantsegment "or !omanies or Marketers.

• Eamle2 #$% &'s Nirma

•  ( 3)4 la&n$#ed detergents S$R( and +as market leader till 1567.

•  ( In 1567, a small 8rmNIRMA

 !#emi$als

• 4a&n$#ed !etergent po!er "orMiddle and lo+er(in$ome $&stomers.

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• )NIRMA* +ashing ,o!er*NIRMA-, +as t#e lo+est ri$ed*randed +as#ing o+der availa*le in

ever0 gro$er0 ' !ooerative Stores.•  It +as liked *0 middle($lass

#o&se+ives and +ere happ ith

results o" NIRMA. •  Nirma $at&red good market +it#in

s#ort eriod against S)R9. Nirma #adan ima$t on #ig#er(in$ome "amilies

also.

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•  T#en, in 156: 3)4 $ond&$ted MarketResear$# a$ross t#e $o&ntr0.

• Resear$# revealed t#at !i/erent income*

groups o" customers ha! &aringe0pectations "rom detergents ' ;as#ingo+ders.

• 3)4 la&n$#ed T#ree <arieties2

•  1. Sunlight 2ello in colour34

•   5. +heel 2Green in colour34an!

•   6. Rin 27lue in colour3.

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•   9or diferent market segments=regions> t#ese rod&$ts +erela&n$#ed. ,art o" lost market as

re*capture! b #$%.•   ;#en e$onom0 develos,

!ons&mer $#oi$e and t#eir

re?&irements also in$reases.•   In t#is sit&ation, t#e Segmenting,

t#e Targetting and t#e ,ositioning s#o&ld *e done *0 t#e

Marketers@!omanies.

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•   R&ral Markets in India started gro+ingraidl0 "rom 1557s =a"ter 4PG>.

•   9or enetrating R&ral Markets t#e

Marketers@!omanies need to develodiferent strategies "or diferent $&stomers.

• CONCE,T O( SEGMENTATION2

•   9or attra$ting $&stomers, t#ree ke0

de$isions are involved 2(•   1. Segmenting t#e !&stomers, =dividing

$lass o" $&stomers>.

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•   . Targetting t#e !&stomers, =meansaiming at arti$&lar gro&@$lass o"$&stomers, and

  . Positioning t#e !&stomers =meansproper place to keep the pro!uct "orcustomers.

• SEGMENTING T#E C$STOMERS:

  R&ral area #ave vario&s *asis "orsegmenting eole living in R&ral area.

• ( I*Categor:  Farmers Segment 2

•   =i> Big 9armers =ii> Medi&m 9armers

•  =iii> Small 9armers =iv> Marginal 9armers

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•   =v> Agri$&lt&re 4a*o&rers.

•  T#eir in$ome level, li"e st0les andBe#avio&r are diferent "rom ea$# ot#er.

•  II 8Categor: NON-FARMERS2 =- o"R&ral Po&lation>2(

•   =i> Peole doing Non(9arm A$tivities.

  =ii> Sel"(Emlo0ed 9armers•   =iii> Salaried Emlo0ees

•  =iv> Mi$ro Entrerene&rs =v> Traders.

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• III* Categor2 Rural families livingin Urban area.  T#e0 #ave diferentli"e(st0le, *e#avio&r and *&0ing

de$isions.•   T#&s, diferent $ategor0 o" "armers

and t#e segment o" R&ral Market

#ave diferent Be#avio&r, In$omelevel and B&0ing de$ision. T#eMarketers #ave to st&d0 t#ese$&stomers t#oro&g#l0 *e"ore

la&n$#ing an0 rod&$t in R&ral

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3ETEROGENEITC IN R)RA4MARET2

• ( R&ral Market is 3eterogeneo&s inNat&re =diferent t0e not similar>.

• ( 3eterogeneo&s means !i&erse in

Character i.e. $omosed o" diverseelements.

• ( Thus4 Rural Market is o" man

tpe or !i/erent kin!.•  ( Diferent Region +it# diferent

So$io($&lt&re =diferent $aste(*asedo&lation>.

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• ( Diferent si%e o" Po&lation ' diferentdensit0 o" o&lation.

• ( 9i/erent in"rastructural

9e&elopments:(•   There are 7IMAR$ States &'s. others

• ( Diferent Media eos&re levels 2

  =a> Media Dark regions•   =*> Media Gre0 regions

•   =$> Media(Green regions

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• ( T#ere is &ariation in %iterac levels•   =Bi#ar v@s erala>• ( 9i/erence in income*le&els and

atterns o" In$ome Fo+ ="armer v@s. Dail0+age earners or Salar0 Earner>• ( (amil Structure =4arge oint "amil0 v@s

Small n&$lear "amilies>.• ( ariation in climate =3ot ' !old

$limate>•   3ot($limate in So&t# India( Tal$&m

o+der ' Deo market, and Chanprashin inter in col! climate

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• ( Diferen$e in 9ood(#a*its2

•   South In!ia  Ri$e' !ofee areliked

•   Eastern In!ia 4o+ milkavaila*ilit02

•   Po+der Milk $an *e marketed t#ere.

• ( 4ess S&l0 o" Ele$tri$it0 2( =EastIndia>

•  Sale o" (lashlights4 7atteries4Torch*cell is ossible.

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Pre(re?&isites "or Efe$tiveSegmentation

• 1. Measurable:

•   ( Si%e o" R&ral Market s#o&ld *e kno+n

•   ( P&r$#asing Po+er o" R&ral Market

s#o&ld•   *e kno+n

•   ( Pro8les o" R&ral !ons&mers s#o&ld *e

kno+n• Mont#l0 in$ome $an *e meas&red in )r*an

area *&t in r&ral areas it $annot *emeas&red dire$tl0 d&e to a non(&ni"orm

in$ome attern and m&ltile so&r$es o"

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• . Accessible:2 Connecti&it3

•  ( Rea$#ing R&ral !ons&mer isimortant.

• ( No+ develoment o" Roads ' Tele$omm&ni$ation is taking la$e,#en$e rea$# to r&ral area is ossi*le.

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• . 9i/erentiable2( =R&ral v@s)r*an>

•  ( Resonse o" &r*an market andr&ral market are diferent, "or somerod&$ts.

• 9or Eamle "or *&0ing Motor

Ccle* Rural Consumers giveimportance to(

• =i> St&rdiness,

• =ii> Mileage, and

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• ;#ereas , urban consumer look for  2(

•   =i> St0le, S#ae

  =ii> Po+er, and Mileage•  =iii> Bea&t0@4ook@are$iation *0

ot#ers.

:. Substantial:* 2&alue ;e0istence3

•   T#e segment o" market s#o&ld *e3omogeneo&s and 4arge so as toive ro8t to t#e Marketin !om an .

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Pre re?&isites "or efe$tivesegmentation

1. Market s#o&ld *e Meas&ra*le

. Market s#o&ld *e A$$essi*le

. Market s#o&ld *e Diferentia*le:. Market s#o&ld *e S&*stantial

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1. Meas&ra*le Segment

• Si<e o" rural market s#o&ld *ekno+n

• ,urchasing poer o" r&ralo&lation s#o&ld *e kno+n =in$omelevel>

• ,ro=les o" rural consumers s#o&ld

*e kno+n. =Details o" "amilies>

 T#en on t#e *asis o" t#ese oints ar&ral market $an *e divided or

segmented "or la&n$#ing a rod&$t.

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. A$$essi*le Segment

• Reaching rural consumer is imortant

• ;it# Develoment o" roads andtele$omm&ni$ations rea$# is ossi*le

Earlier Mo*ile(vans +ere &sed.• 9istributors an! retailers can be

reache! easil0

 3en$e, no+ r&ral market is a$$essi*le.

  Big <illage, To+ns, Big To+ns, Distri$tlevel market are +ell $onne$ted *0 Roads.

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•  T#e efe$tive means o" rea$#ing r&ral"olk is ossi*le *0 arti$iation in3AATS

organi%ed +eekl0 almost in all areas.

  Se&eral Companies areatten!ing #AATS to !ispla their

pro!uct in Rural Areas.

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. Diferentia*le

• Resonse o" r&ral and &r*an marketsare diferent, "or some rod&$ts.

• 9or eamle 2

• )r*an market is *rand oriented

• R&ral market is &tilit0 and needoriented.

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• Anot#er Eamle $an *e regarding7uing +rist atches.  T#e R&ral$ons&mers difer +it# &r*ans. R&ral

*&0ers are more +orried a*o&t t#ealue "or mone and +eig# t#e+at$# in #and to kno+ #o+ #eav0 it

is.•   On t#e $ontrar0, urban

consumers pre"er light ones ith

latest technolog.

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:. S&*stantial =ro8ta*le>2

•  T#e segment o" market s#o&ld *e#omogeno&s and large so as to givero8t to t#e marketing $oman0.

•  T#e attit&de , vie+s ,ed&$ation,lang&age and re"eren$es o"$ons&mers, t#inking s#o&ld *e

similar. It is availa*le in &r*anmarket *&t it is not similar in R&ralMarket.