STPD
Transcript of STPD
Segmentation, Targeting, Positioning & Differentiation –
Cornerstones of Marketing Management
Submitted by : Ankush Puri Amit Kumar
Steps in Market Segmentation, Targeting, and Positioning
1. Identifysegmentationvariables andsegment themarket
2. Develop profiles ofresultingsegments
MarketSegmentation
3. Evaluateattractivenessof eachsegment
4. Select thetargetsegment(s)
MarketTargeting
5. Identifypossible
positioningconcepts foreach target
segment
6. Select,develop, andcommunicate
the chosenpositioning
concept
MarketPositioning
Step 1. Market SegmentationLevels of Market Segmentation
Mass MarketingSame product to all consumers
(no segmentation)Segment Marketing
Different products to one or more segments(some segmentation)
MicromarketingProducts to suit the tastes of individuals and locations
(complete segmentation)
Niche MarketingDifferent products to subgroups within segments
(more segmentation)
Local MarketingTailoring brands/ promotions
to local customer groups
Individual MarketingTailoring products/ programs
to individual customers
Steps in the Market Segmentation Process
• Determine Market Boundaries• Decide Which Segmentation Variables to Use• Collect and Analyze Segmentation Data• Develop a Profile of Each Segment• Target Segments to be Served• Design a Marketing Plan
Bases for Segmenting Consumer Markets
Occasions, Benefits, Uses, or Attitudes
Behavioral
GeographicRegion, City or MetroSize, Density, Climate Demographic
Age, Gender, Family size and Fife cycle, Race, Occupation, or Income ...
Lifestyle or PersonalityPsychographic
Step 1. Market SegmentationBases for Segmenting Business Markets
Basesfor Segmenting
BusinessMarkets
DemographicsPersonalCharacteristics
SituationalFactors
OperatingCharacteristics
PurchasingApproaches
Measurable
Accessible
Substantial
Differential
• Segments must be large or profitable enough to serve.
• Segments can be effectively reached and served.
Actionable
• Size, purchasing power, profiles of segments can be measured.
• Segments must respond differently to
different marketing mix elements & actions.
• Must be able to attract and serve
the segments.
Effective Segmentation
Descriptive Bases
• Age• Gender• Income• Occupation• Education• Family Size or Family Life Cycle• Religion or Nationality
Geographic Bases
• Region
• Density
• Climate
• Population
Behavioral Bases
• User Status & Brand Loyalty
• Personality/Lifestyle• Social Class• Occasion• Readiness to Buy• Benefits Sought• Usage Rate
Single Versus Multiple Variable Segmentation
Step 2. Market TargetingEvaluating Market Segments
Segment Size and GrowthAnalyze sales, growth rates and expected profitability for various segments.
Segment Structural Attractiveness Consider effects of: Competitors, Availability of Substitute Products and, the Power of Buyers & Suppliers.
Company Objectives and ResourcesCompany skills & resources relative to the segment(s).Look for Competitive Advantages.
Five Patterns of Target Market Selection
Single-segmentconcentration
ProductspecializationM1 M2 M3
P1
P2
P3
Selectivespecialization
M1 M2 M3 P1
P2
P3
M1 M2 M3 Full marketcoverage
P1
P2
P3
Marketspecialization
M1 M2 M3 P1
P2
P3
P1
P2
P3
M1 M2 M3
P = ProductM = Market
Step 2. Market TargetingMarket Coverage Strategies
Segment 1
Segment 2
Segment 3
Segment 1
Segment 2
Segment 3
CompanyMarketing
Mix
CompanyMarketing
Mix
CompanyMarketing Mix 1
CompanyMarketing Mix 2
CompanyMarketing Mix 3
Market
A. Undifferentiated Marketing
B. Differentiated Marketing
C. Concentrated Marketing
Step 2. Market TargetingChoosing a Market-Coverage
StrategyCompany Resources
ProductVariability
Product’s Life-Cycle Stage
Market Variability
Competitors’Marketing Strategies
Positioning is the act of designing the company’s
offering and image to occupy a distinctive
place in the the target market’s mind. P 298
Product Differentiation
Form Fea-tures
Perfor-mance Quality
Conform-ance
Quality
Dura-bility
Relia-bility
Repair-ability Style Design
Delivery
Services Differentiation
OrderingEase
Maintenance& Repair
CustomerTraining
Installation CustomerConsulting
MiscellaneousServices
Media Atmosphere
Symbols
Events
Image Differentiation
Differences WorthDifferences WorthEstablishingEstablishing
Affordable Superior
Profitable
Preemptive
Distinctive
Important
• Important:-the difference delivers a highly valued benefit to a sufficient number of buyer.
• Distinctive:-the difference is delivered in a distinctive way.
• Superior:-the difference is superior to other ways of obtaining the benefit
• Preemptive:-the difference cannot be easily copied by competitors.
• Affordable:-the buyer can afford to pay for the difference.
• Profitable:- the company will find it profitable to introduce the difference.
Positioning Strategies
• Product Attributes• Benefits, Problem Solutions & Basic Needs• Price & Quality• Specific Use• Against Other Products• Product User• Against a Competitor
PRODUCT DIFFERENTIATION
(1)FORM:-the Size,Shape ,Physical structure
for eg.(Aspirin-dosage,size,shape,colour, coating or action time.)
(2) FEATURES :-Supplements its basic function calculate customer value VS. CO. cost for each potential features.
for eg. ;-Auto Cos.-several trim levels which lowers manufacturing cost and Inventory costs.
• (3) PERFORMANCE QUALITY :-Level at which primary characteristics operate.eg;-Shlitz driven in it dust when it lowered “Q”.
“Q’ becoming increasingly parameter for differentiation. Catalogues J crow raising prices of merchandise as its raise “Q” highly.
• (4) Conformance quality:- Every Porsche 944 designed to accelerate to 60 mph within 10 second. (C.Q.)
• (5) Durability :-long lasting-people think more for vehicles & kitchen appliances. (p/c’s video cameras must not be exposed to rapid obsolescence )
• Reliability:- means that a product will not malfunction. e.g.. -Maytag. (major home appliances.)
• Style:-100 k & feel e.g.:- car buyers pay high appl. Comp/Mont blanc/H.D.
• To be branded, products must be differentiated .Perdue chicken , Bayer aspirin , tata steel , P&G tide , cheer ,gain candy detergents, Otis making elevators smart.
Personnel diff.
• Company can gain a strong competitive advantage through having better trained people.eg;-Singapore airlines.
Channel diff.
• Company can achieve competitive advantage through the way they design their distribution channel coverage , expertise ,and performance.eg. (caterpillar)
Image diff.
• Buyers respond differently to company and brand image.eg.Marlboro-(machocowboy)
DIFFERENTIATION
• Process of adding a set of meaningful and valued differences to distinguish companies offerings from competitors offering. For eg.South west airlines .
Differentiations VariablesProduct Services Personnel Channel
Form Ordering ease Competence Coverage
Features Delivery courtesy Expertise
Performance Installation Credibility Performance
Conformance Customer Reliability
Durability Training Responsiveness
Reliability C. Consulting Communication
Reparability Maintenance Repair
Style Miscellaneous
Design
Differentiation Strategies
Parameter Example
Product Features Cielo car, IFB washing machine, Sony Trinitron TV
Performance Quality Dove beauty soap,100 pipers whisky.
Exclusivity Style Tanisque watches,Madura coats, Van Heusen,Louies Philippe.
Product Design VIP Elanza suitcases, Bentley ties.
Product range & variety Revlon cosmetics, Ray ban sunglasses.
Service Quality Citibank, Otis elevators, eureka Forbes vacuum cleaners
Packaging Sand piper beer
Positioning Strategy
Bases Used Example
Brand Name Antiquity Whisky, Monte Carlo Sweaters. orchids Cosmetics
Consumer aspiration Esteem,Cielo Cars, Raymond's Suitings
Brand Personality Escorts Yamaha Bikes,Raymondes Suitings
Selective Consumer Reach
Mercedes
Décor of distribution market
Arrow shirts, Allen Solly Trousers Tanisq Watches
Event Sponsorship Archers peacks Schnappes Malibu unlike never