MARKETING MANAGEMENT

•MARKETING SEGMENTATION,
TARGETING AND POSITIONING

MRS. JASPREET KAUR

ASSISTANT PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION

GCG, LUDHIANA
 INTRODUCTION
MARKET COMPRISES DIVERSE CATEGORIES OF CUSTOMERS WHO CAN BE OFFERED
VARIED PRODUCTS AND SERVICES. IT IS NOT POSSIBLE FOR ANY COMPANY TO SATISFY
ALL CUSTOMERS IN LARGE AND DIVERSE MARKET. IN ORDER TO COMPETE, IT HAS
BECOME ESSENTIAL FOR ALL THE COMPANIES TO EMBRACE TARGET MARKETING. A
TARGET MARKET REFERS TO A GROUP OF BUYERS WHO DIFFER IN THEIR NEEDS THAT
CAN BE IDENTIFIED THROUGH EXTENSIVE MARKETING RESEARCH.
EFFECTIVE TARGET MARKETING REQUIRES BASIC THREE STEPS-
• MARKET SEGMENTATION
• MARKET TARGETING
• MARKET POSITIONING
 MARKET SEGMENTATION
MARKET SEGMENTATION IMPLIES IDENTIFYING AND
UNDERSTANDING GROUP OF CUSTOMERS WHO DIFFER IN
THEIR DESIRES AND NEEDS FOR THE PRODUCTS. EVOLUTION
For example –The introduction of big,
IS INHERENT FEATURE OF ALL MARKETS; THEREFORE, small, family, luxury, sports, without
MANAGERS NEED TO BE DILIGENT AND SMART TO IDENTIFY gear, petrol, diesel some of the
GROUPS OF CUSTOMERS WITH SIMILAR NEEDS THAT ARE different models of cars with a
variety of different features to satisfy
UNIQUE AND DIFFERENT. MARKETING SUCCESS LIES IN THE different groups of customers
ABILITY OF THE COMPANY IN FOCUSING ON THE RIGHT sharing unique needs, tastes and
MARKET SEGMENTS WHERE IT HAS GREATEST CHANCE OF preferences.
SATISFYING BETTER THAN THE COMPETITION.
 Key to decide target markets

Importance of
market
segmentation

Expansion with differentiation

To counter the challenges of market

dynamics
 DESIGNING MARKETING MIX
KEY TO DECIDE TARGET MARKETS
A UNIQUE MARKETING MIX, THUS, CAN BE DESIGNED TO SERVE THE
MARKET SEGMENTATION HELPS THE MARKETERS TO IDENTIFY AND
NEEDS OF CUSTOMERS OF A PARTICULAR SEGMENT. A MARKETER HAS TO
SELECT ONE OR MORE MARKET SEGMENTS TO TARGET. A TARGET MARKET,
ASSESS THE POSSIBILITY TO CLUB THE BUYERS WITH SIMILAR SET OF
IS A GROUP OF CUSTOMERS THAT A MARKETER HAS CHOSEN TO SERVE
NEEDS BEFORE DESIGNING BEST MARKETING MIX. SEGMENTATION HELPS
THROUGH ITS BEST MARKETING PLAN. SELECTING THE RIGHT MARKET
IN SERVING THE TARGET MARKETS THROUGH DISTINCTIVE MARKETING
SEGMENT IS THE ULTIMATE KEY TO SUCCESSFUL MARKETING.
MIX, THAT TOO AT A REASONABLE COST TO THE COMPANY.

EXPANSION WITH DIFFERENTIATION

TO COUNTER THE CHALLENGES OF MARKET DYNAMICS
THE DIFFERENTIATED MARKETING STRATEGY ALLOWS A COMPANY TO
THE ECONOMIC CONDITIONS OF EVERY STATE KEEP ON CHANGING AND
CONNECT ITSELF WITH THE CUSTOMERS IN AN EFFICIENT AND EFFECTIVE
HENCE THE INCOME OF CUSTOMERS. THIS LEADS TO CHANGES IN THE
MANNER IN COMPARISON WITH OTHER COMPETITORS. THEREFORE,
NEEDS AND ASPIRATIONS OF THE BUYERS. SEGMENTATION ALLOWS FOR
SEGMENTATION ENABLES A COMPANY TO EXPAND THE MARKET WITH
UNDERSTANDING EMERGING NEEDS OF BUYERS, THEREBY, IDENTIFYING
DIFFERENTIATED PRODUCT THROUGH MARKETING MIX THAT SERVES THE
DIFFERENTIATED CUSTOMER PROFILE. THE SUCCESS OF MARKETERS LIES
NEEDS OF ITS TARGET MARKET.
IN SENSING EMERGING NEEDS AND DESIGNING NEW MARKETING MIX TO
EXPLOIT SUCH OPPORTUNITIES.
PRODUCT DIFFERENTIATION VS MARKET SEGMENTATION
Product differentiation Market segmentation
PRODUCT DIFFERENTIATION REFERS TO MARKET SEGMENTATION IMPLIES IDENTIFYING AND
DESIGNING PRODUCT-RELATED QUALITIES THAT UNDERSTANDING GROUP OF CUSTOMERS WHO DIFFER
CREATE ITS UNIQUENESS IN THE MINDS OF THE IN THEIR DESIRES AND NEEDS FOR THE PRODUCTS.
MARKET SEGMENTATION ALLOWS BUSINESSES TO TAKE
BUYERS AND HELP IN DISTINGUISHING THE A SEGMENT OF CONSUMERS AND GROUP THEM BASED
BRAND FROM THE COMPETITORS. ON SIMILARITIES TO OFFER VALUE PROPOSITION THAT IS
REQUIRED BY SPECIFIC GROUP OF INDIVIDUALS.
PRODUCT DIFFERENTIATION HIGHLIGHTS A MARKET SEGMENTATION ALLOWS BUSINESS TO
PRODUCTS UNIQUE FEATURES BASED ON TAKE A SEGMENT OF CONSUMERS AND GROUPS
INNOVATION, MARKETING, CUSTOMIZED DESIGNS OF CONSUMERS BASED ON AGE, GENDER,
AND USE OF ECO FRIENDLY OR ORGANIC INCOME, EDUCATION, REGION, HOBBIES AND
MATERIALS THAT DISTINGUISHES THEIR INTEREST OF THE CUSTOMERS.
PRODUCT FROM COMPETITORS.
 Example of Product differentiation :
Savlon was introduced with its unique
quality feature- ‘ it doesn’t sting’ this
feature has made them strong while
competing with another brand like
Dettol

Example Of market segmentation:

Horlicks was introduced on the basis of
age groups or gender like horlicks lite
for elder people, junior horlicks for
children, women horlicks etc. and
different flavours like elaichi, chocolate,
Vanilla on the basis of taste.
 Approaches for the segmentation of
consumer Market
A company can use different criteria comprising any number of variables in order to segment amarket. The
purpose of market segmentation is to divide a market into well-defined categories. Eachcategory thus consists
of a group of customers who share a similar set of needs and wants.

The underlying truth of segmentation of markets can be highlighted as:

. There is always scope for the segmentation of each market.

. The criteria to divide a market into various segments are based upon certain identifiable variables.

. The criteria formulated for segmentation should predict differences in consumer behaviour effectively and
efficiently.
1. Geographic segmentation
It organizes your audience into groups based on their physical location, such as country or postal code.
This type of segmentation can provide valuable insights into the buying trends and preferences of different
regions, allowing for more targeted and effective marketing efforts.

2. Demographic segmentation
It is a precise form of audience identification based on data points like age, gender, marital status, family size,
income, education, race, occupation, nationality, and/or region.
Psychographic segmentation
It is how marketers learn to position their products so that compatible customers can “discover” them.
It's how brands find the right customer match based on customer attitudes and lifestyles. You may not
realise it, but psychographic segmentation is the primary driving factor in your life.

Behavioral segmentation
It is the process of sorting and grouping customers
based on the behaviors they exhibit.
These behaviors include the types of products and content
they consume,
and the cadence of their interactions with an app, website, or business.
APPROACHES FOR THE SEGMENTATION OF BUSINESS MARKETS
• THE MARKETERS CAN GROUP CONSUMERS ON THE BASIS OF PURCHASE CRITERIA LIKE
GOVERNMENT ORGANIZATIONS, CONTRACTORS, INDUSTRIAL LABS ETC. THE SEQUENTIAL
PROCESS FOLLOWED BY A COMPANY STARTING WITH MACRO SEGMENTATION (ORGANIZATIONAL
SIZE, INDUSTRY) GOING TO THE SECOND STAGE OF MICRO SEGMENTATION (DISTINGUISHING
CUSTOMERS GROUPS ON THE BASIS OF PRICE, SERVICE, QUALITY) CAN HELP MARKETERS
IDENTIFY SEGMENTS. DIFFERENT BUSINESS BUYERS CAN BE SEGMENTED ON THE BASIS OF
USAGE .FOR EXAMPLE, A LAPTOP COMPANY MAY OFFER SAME MODEL WITH DIFFERENT
CONFIGURATIONS OR WITH OPTIONS OF DIFFERENT FEATURES TO MEET THE DEMANDS OF SAME
SEGMENT MEMBERS.
 B. MARKET TARGETING
• THERE ARE VARIOUS APPROACHES FOR DEVELOPING MARKET SEGMENTS. SEGMENTATION
PROVIDES THE KEY TO TARGET MARKETING. ONCE AN ORGANIZATION SUCCESSFULLY IDENTIFIES
ITS MARKET - SEGMENT OPPORTUNITIES, IT HAS TO SELECT HOW MANY AND WHICH
PARTICULAR ONES CAN BE EFFECTIVELY TARGETED.

• THE COMMON APPROACH FOLLOWED BY MARKETERS TO EVALUATE IDENTIFIED MARKET

SEGMENTS INVOLVES THE DETAILED EXAMINATION OF TWO BROAD ISSUES:

• 1. COMPARATIVE STUDY AS TO THE ATTRACTIVENESS OF THE IDENTIFIED MARKET SEGMENTS.

• 2. ORGANISATION'S POSITION AND ABILITY TO COMPETE IN SUCH MARKET SEGMENTS.
AS ALL SEGMENTATION SCHEMES MAY NOT PROVE USEFUL, IT IS VERY
IMPORTANT TO RATE THE EFFECTIVENESS OF EVERY SEGMENT. THE CRITERIA
USUALLY FOLLOWED FOR THIS INVOLVES A CAREFUL EXAMINATION OF THE
ISSUES DISCUSSED BELOW:
1. ATTRACTIVENESS OF THE MARKET SEGMENT
IT IS VERY PERTINENT TO ASSESS THE PROFITABILITY OF ANY MARKET SEGMENT. THE PROSPECTIVE TARGET MARKET NEEDS TO BE EVALUATED IN TERMS OF
PROFITS AS HUGE INVESTMENT IS REQUIRED TO DEVELOP A MARKETING MIX TO ACHIEVE THE DESIRED RESULTS. IMPORTANT FACTORS THAT CONTRIBUTE
TOWARDS AN EFFECTIVE CRITERION TO DETERMINE THE ATTRACTIVENESS OF A MARKET SEGMENT CAN BE STUDIED UNDER THREE BROAD CATEGORIES:

(I) GENERAL MARKET FACTORS

(II) INTENSITY OF COMPETITIVE FACTORS

III) OTHER ENVIRONMENTAL FACTORS

• GENERAL MARKET FACTOR

AN EXAMINATION OF THE FOLLOWING FACTORS IS GENERALLY MADE IN THIS REGARD:

a) SIZE OF THE SEGMENT: THE SELECTION OF ANY SEGMENT DEPENDS LARGELY UPON ITS POSSIBILITY TO MEASURE THE SIZE, ASSESS THE PURCHASING
POWER AND OTHER CHARACTERISTICS. USUALLY COMPANIES PREFER LARGE SEGMENTS. AT THE SAME TIME, IT IS EQUALLY IMPORTANT TO ASSESS THE
CAPABILITY OF THE ORGANIZATION TO FIGHT COMPETITION AS LARGE SEGMENTS ARE LIKELY TO HAVE THREAT FROM OTHER MAJOR PLAYERS.SMALL
ORGANIZATIONS SHOULD TARGET SMALLER SEGMENTS AS USUALLY BIG PLAYERS DO NOT ENTER SUCH MARKETS.

b) SUBSTANTIAL GROWTH RATE: THE LARGE SEGMENTS WITH SCOPE FOR ENOUGH PROFITS AND GOOD GROWTH RATE WOULD ATTRACT ALL
COMPANIES SEEKING EXPANSIONS. HIGH RISK PROFILE COMPANIES LAY EMPHASIS ON GROWTH RATE THAN SIZE; WHICH IS THE PREFERRED CHOICE OF
LOW RISK PROFILE COMPANIES.
• (C) PRICE ELASTICITY: THE MARKET SEGMENTS COMPRISING PRICE SENSITIVE CONSUMERS ARE GENERALLY THE ONES
WHERE MARKETERS CAN NOT SUBSTANTIALLY DIFFERENTIATE THEIR OFFERING. THUS, IN ORDER TO CAPTURE BETTER
MARKET SHARE PRICE CUTTING IS THE ONLY WAY OUT. THE SMALL PLAYERS ARE FORCED TO EXIT AS THEY CAN NOT
COMPETE WITH BIG PLAYERS. THE SURVIVAL DEPENDS UPON CAPABILITY OF AN ORGANIZATION TO OFFER ITS
PRODUCT WITH A COMBINATION OF BENEFITS AND PRICE.

• (D)BARGAINING POWER OF BUYERS: THREATS FROM THE BARGAINING POWER OF END USERS OR INTERMEDIARIES CAN
AFFECT THE PROFITS OF MARKETERS AS THEY ARE FORCED TO GIVE HEAVY DISCOUNTS, ELSE THE BUYERS WOULD
SWITCH-OVER TO OTHER SUPPLIERS. THE SENSITIVITY OF THIS FACTOR IS DIRECTLY INFLUENCED IF THERE ARE SMALL
NUMBERS OF BUYERS WITH LARGE BUYING CAPACITY

• .(E) BARGAINING POWER OF SUPPLIERS: A MARKET SEGMENT ALREADY CAPTURED BY A FEW SUPPLIERS IS REALLY
HARD TO HIT. THE EXISTING SUPPLIERS WILL ALWAYS HAVE AN EDGE DUE TO THEIR ESTABLISHED STRONG
RELATIONSHIPS WITH MAIN BUYERS OF LARGE SCALE.

• (F) ACCESSIBILITY: THE SEGMENTS THAT CAN BE EFFECTIVELY APPROACHED AND EASILY SERVED BECOME THE
PREFERRED CHOICE. MAJOR FACTORS THAT MAY RESULT IN BARRIERS TO ENTRY INCLUDE HUGE CAPITAL INVESTMENT
TO BUILD MARKETING INFRASTRUCTURE.
• (II) INTENSITY OF COMPETITIVE FACTORS
• A DETAILED EXAMINATION OF THE FOLLOWING FACTORS BECOMES ESSENTIAL TO TARGET ANY MARKET SEGMENT :-
• (A) NATURE AND INTENSITY OF COMPETITION: ANY SEGMENT THAT ALREADY HASMANY ESTABLISHED COMPETITORS
SHALL BE LEAST ATTRACTIVE AS HAVING STRONG BARRIERS TO ENTRY DUE TO FORTIFICATION BYTHE AGGRESSIVE
COMPETITORS. FIRMS WITH STRONG CULTURE OF INNOVATION TO SERVE THEIR CUSTOME BETTER, WILL TOO HAVE
INTENSE COMPETITION . HOWEVER, INNOVATION AND DIFFERENTIATED OFFERINGS WITH MORE VALUE CAN BE THE KEY
TO ENTER OR SURVIVAL IN SUCH SEGMENTS. MOBILE PHONE MARKET IS A GOOD EXAMPLE IN THIS REGARD.
• (B) THREAT OF NEW ENTRANTS: SMART COMPANIES ALWAYS LOOK FOR SEGMENTS THAT HAVE STRONGBARRIERS TO
ENTRY AND AT THE SAME TIME HAVE LOW EXIT BARRIERS. GENERALLY, THE MARKETS SERVED BY TECHNOLOGIES ARE
MORE PRONE TO RISK AS COMPETITORS OR NEW ENTRANTS, CAN POSE THREAT WITH SUPERIOR TECHNOLOGIES.
• C) COMPETITION OF SUBSTITUTE PRODUCTS: A SEGMENT THAT ALREADY HAS LARGE NUMBER OF PLAYERS WITH CLOSE
SUBSTITUTES OF THE PRODUCT IS GENERALLY LESS ATTRACTIVE TO TARGET. PRICE AND PROFITS IN THIS SITUATION
BECOME VERY CHALLENGING. HOWEVER, SERVING THE INTERESTS OF THE TARGET CONSUMERS WITH DIFFERENTIATED
OFFERING CAN ONLY MAKE THE SEGMENT ATTRACTIVE.
 (III) OTHER ENVIRONMENTAL FACTORS
• MANY EXTERNAL ENVIRONMENT FACTORS INCLUDING REGULATORY FRAMEWORK, SOCIAL, POLITICAL MAY HAVESTRONG
IMPLICATIONS ON THE ATTRACTIVENESS OF MARKET SEGMENTS AS DISCUSSED BELOW:
• (A) POLITICAL FACTORS: THE POLICIES OF THE GOVERNMENT TO ALLOW OR RESTRICT HAVE DIRECT INFLUENCE ON THE
SELECTION OF MARKET SEGMENTS.
• (B) SOCIAL FACTORS: THE BUYING BEHAVIOUR KEEPS ON CHANGING WITH THE EVOLUTION OF THE SOCIETIESOVERTIME.
SMART MARKETERS IDENTIFY SUCH CHANGES EARLY AND TARGET MARKETS WITH NEW OFFERINGS. THE TREND OF
WORKING WOMEN, FOR EXAMPLE, HAS OPENED UP MANY NEW SEGMENTS THAT CAN BE TARGETED. THE CHANGING LIFE
STYLES DUE TO CONSUMER GROUPS WITH DUAL-INCOMEFAMILIES PROVIDE AMPLE NEW OPPORTUNITIES WITH NEW
MARKET SEGMENTS
• .(C) GENERAL ENVIRONMENTAL FACTORS: THE ETHICAL ISSUES AND AWARENESS TOWARDS PROTECTING AND PRESERVING
ENVIRONMENT HAS EVOLVED TRENDS TOWARDS GREEN PRODUCTS OR ENVIRONMENT-FRIENDLY PRODUCTS, ENTRY INTO
ANY SUCH SEGMENT MAY REQUIRE SPECIAL INFRASTRUCTURE INCLUDINGTECHNOLOGY INVOLVING HUGE CAPITAL
INVESTMENT.
 2. COMPETENCY OF THE COMPANY
• THE IMPORTANT ISSUES IN DETERMINING THE CAPABILITIES OF A COMPANY TO ENTER ANY MARKET SEGMENTINCLUDE
THE FOLLOWING
• (1) OBJECTIVES AND MANAGERIAL COMPETENCIES: AN ORGANIZATION HAVING A TEAM OF SMART MANAGERS WITH
COMPETENCY TO UNDERSTAND THE CUSTOMERS PROFILE AND DESIGN OFFERINGS TO SERVE NEEDS WITH IMPROVED
METHODS CAN EASILY TARGET NEW SEGMENTS.
• (2) COST EDGE: BIG MARKET PLAYERS WITH ESTABLISHED INFRASTRUCTURE USUALLY ENJOY COST EDGE AS THEY CAN
ALWAYS EXPLOIT ECONOMIES OF LARGE SCALE. HOWEVER, TECHNOLOGY IS VITAL TO COST REDUCTION THAT HELPS ANY
COMPANY TO TARGET SEGMENTS THAT COMPETE ON PRICE OR HAVE LARGE CHOICE OF SUBSTITUTES.
• (3) ADVANCEMENT OF TECHNOLOGY: DIFFERENTIATED OFFERINGS IN TERMS OF SUPERIOR TECHNOLOGY CAN PROVIDE
GOOD OPPORTUNITIES TO ANY COMPANY TO SERVE THE CONSUMER GROUPS WILLING TO PAY PREMIUMS FOR SUCH
PRODUCTS
• (4) MARKETING INFRASTRUCTURE: THIS REFERS TO THE AVAILABILITY OF TRANSPORTATION BY LAND, RAIL, WATERWAYS,
OR AIR ESSENTIAL FOR DISTRIBUTION. FURTHER, COMMUNICATION SYSTEMS FOR MARKETING INCLUDE TELEPHONES,
COMPUTERS, BROADCAST MEDIA, PRINT MEDIA, INTERNET AND WIRELESS TECHNOLOGY.
SINGLE SEGMENT TARGETING
• ORGANISATIONS PREFERING SINGLE SEGMENT TARGETING ARE GENERALLY OF THE VIEW THAT THERE IS
NO DIFFERENCE IN CONSUMER CHARACTERISTICS CONCERNING THEIR PRODUCTS OR SERVICES. THIS IS
ALSO KNOWN AS UNDIFFERENTIATED TARGETING STRATEGY.
• FOR EXAMPLE: A COMPANY THAT HAS ESTABLISHED STRONG MARKET PRESENCE ON THE SMALL CAR
MARKET LIKE MARUTI SUZUKI MAY NOT BE CAPABLE TO FORRAY INTO THE LARGE CAR MARKET WITH
SIMILAR SUCCESS.
 MULTI SEGMENT TARGETING
• WHEN A COMPANY CHOOSES TO MORE THAN ONE SEGMENT IT NEEDS TO DESIGN ITS MARKETING MIX .
• THE COMAPNY NEEDS TO HAVE THROUGH UNDERSTANDING OF THE CONSUMER PROFILE TO HAVE SEPARATE
BRANDS THAT CAN BE DEVELOPED TO SERVE EACH OF SEGMENTS.
• MULTISEGMENT STRATEGIES ARE ALWAYS PREFFERED AS THEY RESULT IN HIGHER SALES VOLUME , MARKET
SHARE AND PROFITS.
• FOR EXAMPLE: FACE CREAMS WITH DIFFERENT BRANDS FOR OILY, DRY, ROUGH ,PIMPLE CARE ETC. CAN BE
COVERED UNDER ONE MARKETING MIX TO SERVE
THE DIFFERENT CONSUMER SEGMENT.
CUSTOMIZED MARKETING
• CUSTOMIZED OR INDIVIDUAL MARKETING IS ALSO KNOWN AS ONE TO ONE MARKETING . EVERY COMPANY
CAN NOT IMPLEMENT CUSTOMIZED MARKETING . THE APPROACH CAN BE FOLLOWED ONLY IF THE
CCOMPANY IS CAPABLE OF RESPONDING TO THE INDIVIDUAL NEEDS OF THE CUSTOMERS FOR ITS
PRODUCT, SERVICES. CORPORATE FOLLOWING SUCH MARKETING STRATEGIES ARE NOT REQUIRED FOR
MARKETING PURPOSE REGARDING POTENTIAL CONSUMERS .FOR EXAMPLE:DELL CAME UP WITH THE IDEA
OF DESIGNING LAPTOPS AS PER THE DEMAND OF THE CUSTOMERS TO SERVE THE INDIVIDUAL NEEDS.
RAYMONDS ALSO CAME UP WITH MADE TO MEASURE SERVICE.
 CONCENTRATED TARGETING
• A FOCUSED MARKETING APPROACH MAY BE TO SERVE ONLY ONE MARKET SEGMENT WITH SINGLE
MARKETING MIX. UNDERLYING PHILOSOPHY OF FOCUSED TARGETING IS RO SERVE WELL THE NEEDS OF
NARROWLY DEFINED MARKET SEGMENT INSTEAD OF DIVIDING RESOURCES OVER SEVERAL DIFFERENT
SEGMENTS . SOMETIMES COMPANIES OWN LIMITATIONS OF BUSINESS STRENGTHS MAY FORCE IT TO
REJECT THE IDEA OF ENTERING SEVERAL SEGMENTS. THE BRAND IMAGE OF THE COMPANY GET STRONGLY
LINKED WITH ITS PRODUCT RESTRICTING CUSTOMER’S IMAGINATION ABOUT THE COMPANY DOING
SOMETHING ELSE.
• FOR EXAMPLE: LAMBORGHINI CARS ARE THE PREMIUM CARS TARGETED TO SERVE THE INTEREST OF
UPPER SEGMENT OF THE MARKET ONLY.
 MARKET POSITIONING
• THE TERM POSITIONING IMPLIES DEVELOPING A COMPANYS OFFERINGS WITH UNIQUE CHARACTERISTICS AND
DISTINCTIVE ORIENTATION AS TU CUSTOMER BELIEF IN THE PRODUCT OF THE COMPANY .THESE MAY JNCLUDE
STYLE ,HIGH QUALITY,HOW PRICE,DURABILITY ETC.THW OBJECTIVE IS TO CREATE DISTINCTIVE IMAGE AND
OCCUPY A SPECIFIC PLACE JN THE MINDS OF THE TARGET CONSUMER GROUPS. THE POSITIVE PRECEPTOON THUS
CREATED, DIRECTLY INFLUNCES CUSTOMERS ATTITUDE AND RESPONCE TOWARDS THE COMPANYS PRODUCTS.
• SMART MARKETERS IDENTIFY THE NEEDS OF CONSUMER GROUPS UNDERSTAND AND PROFILE THEIR NEEDS,AND
TARGET THOSE THAT CAN BE SATISFIED IN A SUPERIOR WAY .IT IS VERY IMPORTANT TO DEVELOP IMAGES
CONCERNING THE COMPANY OFFERINGS AND CREATE DESIRED POSITIVE PERCEPTIONS IN THE MINDS OF THE
TARGET CONSUMERS.
CHARACTERISTICS OF POSITIONING
•Target market segment:
the process of market segmentation may provide a company with one or more choices of differentiated
consumers groups . However a careful selection of target market needs to be assesed in terms of company’s
competencies or business strenghts too.

•Differentiated values or advantages

it is very esential that the company should come up with some superior value or differential advantage to win
the attraction of the target customers . The clarity of the unique values to serve the interests of the
consumers.
COMMUNICATION OF THE DIFFERENTIATED VALUE TO THE CUSTOMERS:

IT IS VERY IMPORTANT TO FACILITATE ORIENTATION OF THE TARGET CONSUMERS WITH THE

DIFFERENTIATED VALUES OF THE COMPANY'SOFFERINGS ADVERTISING IS THE MOST POPULAR TOOL TO
CONNECT WITH CUSTOMERS. THE CUSTOMERS SHOULD KNOW WELL ABOUT THE DISTINCTIVE
ADVANTAGES AND THE MESSAGE SHOULD BE CONVERSED UNAMBIGUOUSLY.
 POSITIONING AND UNIQUE MARKETING MIX
A DIFFERENTIATED MARKETING MIX MAY HAVE ANY OF THE COMBINATIONS OF THE FOLLOWING:

• (A) PRODUCT DIFFERENTIATION

PRODUCT DIFFERENTIATION AIMS AT ADDING SOME UNIQUE FEATURES THAT CANNOT BE MATCHED BYCOMPETITORS. 'AASHIRWAD ATTA' WITH MULTIGRAIN IS A GOOD EXAMPLE
OFPRODUCT DIFFERENTIATION.

• (B) PROMOTIONAL DIFFERENTIATION

GENERALLY, ADVERTISING WITH UNIQUE MESSAGE COMPRISING EMOTIONS, ENTERTAINMENT ORHUMOUR, CELEBRITIES MAY PROVE BENEFICIAL CONNECTING WITH THE TARGET
CUSTOMERS. CUSTOMER RELATIONS, AND SALES PRESENTATIONS FORM AN IMPORTANT PART OF PROMOTIONAL PROGRAMME.

• (C) DISTRIBUTION DIFFERENTIATION

ADVANCEMENT OF TECHNOLOGY AND TIME COMPRESSED CUSTOMERS HAVE LED TO THE NEW DISTRIBUTION METHODS LIKE INTERNETMARKETING, TELEMARKETING, DEPARTMENTAL
MARKET PLACES ETC. AN APPROPRIATE STRATEGY REQUIRESUNDERSTANDING THE NEEDS OF THE TARGET CONSUMERS AND EVOLVE MOST SUITABLE DISTRIBUTION CHANNEL TOSERVE
BEST THE INDIVIDUAL NEEDS OF TARGET MARKETS.

• (D) PRICE DIFFERENTIATION

THE TARGET MARKETS NEED TO BE ASSESSED IN TERMS OF PRICE FACTOR FOR THE OFFERINGS OF ANY COMPANY. 'HIGHLY PRICE SENSITIVE TARGETMARKETS' ALWAYS LOOK FOR THE
BETTER PRODUCTS BUT SELDOM READY TO PAY HIGHER PRICES. 'MODERATE PRICESENSITIVE SEGMENT' IS READY TO PAY HIGHER PRICE FOR ADDITIONAL FEATURES OR ENLARGED
BENEFITS LIKE IN CASEOF CELLULAR PHONES OR LAPTOPS.
POSITIONING WITH POINTS OF PARITY AND
POINTS OF DIFFERENCES :-
• THE WHOLE PROCESS OF MARKET SEGMENTATION AIMS AT IDENTIFYING THE UNFULFILLED DEMANDS ORCONSUMER GROUPS DESIROUS OF
SPECIFIC VALUES. ANY BRAND POSITIONING WHILE TARGETING SUCH MARKETSREQUIRES INTELLIGENT AND EFFECTIVE COMMUNICATION TO THE
TARGET CONSUMERS AS TO THE POINTS OF PARITYAND POINTS OF DIFFERENCES.

• IT IS VERY IMPORTANT TO DIFFERENTIATE A BRAND FROM THE COMPETITORS. THE FOCUSSHOULD BE ON SPECIFIC BENEFITS OR FEATURES
PROVIDED BY THE BRAND AND AT THE SAME TIME WITH EFFECTIVEMESSAGE THAT NO OTHER COMPETITOR CAN PROVIDE THE SAME. THE POINTS OF
DIFFERENCES ARE EASY TO CAPTURETHE ATTENTION OF TARGET CONSUMERS WHO GENERALLY REMEMBER THE BRAND FOR ITS DIFFERENTIATED
FEATURES OFTHE PRODUCT.

• IT IS EQUALLY IMPORTANT FOR THE ESTABLISHED BRANDS TO MONITOR POINTS OF PARITY ON CONTINUOUS BASISAS THE NEW ENTRANTS WOULD
ALWAYS LOOK ON FOR THE POINTS OF DIFFERENCES FROM SUCH BRANDS.
FOR EXAMPLE:
SUBWAY IN FAST FOODS CATEGORY HAS CREATED BRAND IN TERMS OF 'TASTE' AND 'HEALTHY FOOD'. IT HAS POINTS
OF PARITY FOR TASTE .
WHILE COMPETING WITH MCDONALD'S AND AT THE SAME TIME HAVING POINT OF DIFFERENCE AS TO HEALTHY
FOOD.
 ESSENTIAL ELEMENTS OF SUCCESSFUL
POSITIONING
• SUCCESSFUL POSITIONING CAN BE ASSESSED IN TERMS OF ESTABLISHING CONNECTIVITY WITH THE TARGETCUSTOMERS.
• FOR EXAMPLE: LIFE STYLE APPAREL HAS POSITIONED WITH UNIQUE TRENDY FASHION ALONG WITH COMFORT AS STRONG DIFFERENTIATED
FEATURES TOCONNECT WITH TARGET CONSUMERS. A SUCCESSFUL POSITIONING INCLUDES THE FOLLOWING ELEMENTS:

• (I) CLARITY
SMART MARKETERS MUST INTELLIGENTLY TARGET THE MARKETS THAT ARE CLEARLY UNDERSTOOD IN TERMS OFCUSTOMER PROFILE WITH CLEAR-CUT
DEMARCATION OF THE DIFFERENTIATED VALUE PROPOSITION.

• (II) CONSISTENCY
FREQUENT SWITCHOVERS IN THE POSITIONING OF A BRAND MAY CREATE CONFUSIONS IN THE MINDS OF THECUSTOMERS. A COMPANY WITH STRONG
POSITIONING OF STATUS AND LUXURY SWITCHING OVER TO PRODUCTPERFORMANCE MAY FAIL TO ALIGN ITSELF WITH THE NEW POSITIONING. THE
INITIAL POSITIONING OF A COMPANY MAY CHANGE TOSERVE THE CUSTOMER DEMAND WITH DIFFERENTIATED VALUE PROPOSITION.
• (III) HONESTY AND CREDIBILITY
THE ULTIMATE SUCCESS OF POSITIONING LIES WITH CLEARING THE TEST TO WIN THE TRUST OF THE
TARGETCONSUMERS FOR THE CLAIMED DIFFERENTIATED VALUES. THE TRUSTWORTHINESS OF THE PROMISES
MADE IN POSITIONING CAN BE BUILT THROUGH PERSONAL USE OF THE PRODUCT. ADVERTISING AND PUBLIC
RELATIONS PLAY AN IMPORTANT ROLE BUT SUCCESSFUL POSITIONING DEPENDS UPON HONESTY WITH WHICH A
COMPANY DELIVERS WHAT IT PROMISES.

• (IV) COMPETENCY
POSITIONING IS AIMED AT OFFERINGS WITH SOMETHING OF UNIQUE VALUE TO SERVE THE INTEREST OF
THECUSTOMERS THAT NO OTHER COMPETITOR IS PROVIDING.A COMPANY MUST POSSESS ALL THE RESOURCES
THAT ARE ESSENTIAL TO CREATE AND PROCESS ITS OFFERINGS THAT NO OTHER COMPETITOR CAN DELIVER.
• (V) BRIEF AND CATCHY
• THE POSITIONING OF A BRAND ESSENTIALLY DEPENDS ON ITS CLARITY AND PRECISENESS. THE APPEAL AND
MESSAGE TO THE CUSTOMERS SHOULD BE BRIEF AND CATCHY. IT SHOULD CREATE CLEAR IMAGE IN THE MINDS OF
THECUSTOMERS WITH STRONG REASONS WHY THE COMPANY'S OFFERING IS THE BEST TO SERVE THEIR
INTERESTS.