MARKETING MANAGEMENT

TRIMESTER II
(MBA 231)
Dr Kerena Anand
Market Segmentation, Targeting &
Positioning
Unit 2
1. Zoya:
https://www.thehindu.com/life-and-style/luxury/zoya-the-exquisite-diamond-boutique-fr
om-the-house-of-tata-has-put-up-a-stunning-display-of-its-high-end-exclusive-jewellery
-collection-for-the-first-time-in-madurai/article22705197.ece
2. CCD: https://www.marketing91.com/marketing-strategy-cafe-coffee-day/

3. Augmented reality retail services:

https://multichannelmerchant.com/must-reads/augmented-reality-will-impact-cons
umers/
4. Vegan foods ://www.alliedmarketresearch.com/vegan-food-market

5. Cruelty free cosmetics:

https://www.peta.org/wp-content/uploads/2019/05/Companies-That-DONT-
Test-On-Animals-Post-v5.png
TABLE OF CONTENTS

01. 02.
Levels of Segmentation; Bases
Market Targeting, Developing and
for Segmenting
Communicating a Positioning Strategy.
‘One cannot be everything to
everyone’, but one can be
everything to select a few.

Market Segmentation:
It is the process of dividing
the total market into relatively distinct
homogeneous sub- groups of consumers with
similar needs or characteristics that lead them
to respond in similar ways to a particular
marketing programme.

Market Segment:
It is the portion of a larger
market in which the individuals, groups or
organizations share one or more
characteristics that cause them to have
relatively similar product needs.
What are the requirements for Effective Segmentation?

Determine whether the market is Develop some logical basis to

heterogeneous identify and divide the
population

Estimation of sales potential,

costs and profits of each
segment should be
possible

One or more segments It must be possible to

must have enough reach the target
profit potential segment effectively
Levels of Segmentation
 Benefits
of
Segmentation
Bases for segmentation
 1.Geographic Segmentation
● Dividing markets into different
geographic units, such as nations,
states, regions, country size, city
size, density, climate, nations, states,
urban, rural, neighbourhoods etc
Egs: Room Heaters, Kashmir electric blankets,
rural products.
2.Demographic Segmentation
(table 8.1)
The following factors are used to
segment the market
1. Age
2. Gender
3. Family size
4. Family Life cycle
5. Income
6. Occupation
7. Education
8. Religion
Life cycle stage
Young Young Empty Nest
Single couple I/II

Full Nest
I/II/III
Single
Parents
Older
Single
Blended
The “Young single Stage”
We have babies stage.
Expenditure on kids

Usually Spend Rs 500-1500 on children's’ toys.

(above 3.5 lac per annum)
Expenses on naming ceremonies, birthdays etc.
Medical expenses were at the max.
Brand consciousness???
Buying behavior influence.
Indian foods.
Schooling.
Couples with children staying with them.
Children moving out of the house.
 Loners Stage

Number of years in separation.

Source of income.

Changes in expenditure pattern.

Savings.

Brand Loyalty.
Changing structure of Family life cycle

1. Delayed marriage
2. Divorcees
3. Dual career families
4. Cohabitation
5. Hostel students
6. Dual family(blended)
7. Unmarried or Widowed
3.Psychographics Segmentation
Psychographics is the science of using
psychology to better understand consumers.
VALS framework
VALS
The four groups with higher resources
(VALS)
1. Innovators:
● Are always taking in information
● Are confident enough to experiment
● Make the highest number of financial transactions
● Are skeptical about advertising
● Have international exposure
● Are future oriented
● Are self-directed consumers
● Believe science and R&D are credible
● Are most receptive to new ideas and technologies
● Enjoy the challenge of problem solving
● Have the widest variety of interests and activities.
2. Thinkers:
● Have "ought" and "should" benchmarks for social conduct
● Have a tendency toward analysis paralysis
● Plan, research, and consider before they act
● Enjoy a historical perspective
● Are financially established
● Are not influenced by what's hot
● Use technology in functional ways
● Prefer traditional intellectual pursuits
● Buy proven products.
3. Achievers:
● Have a "me first, my family first" attitude
● Believe money is the source of authority
● Are committed to family and job
● Are fully scheduled
● Are goal oriented
● Are hardworking
● Are moderate
● Act as anchors of the status quo
● Are peer conscious
● Are private
● Are professional
● Value technology that provides a productivity boost.
4. Experiencers:
● Want everything
● Are first in and first out of trend adoption
● Go against the current mainstream
● Are up on the latest fashions
● Love physical activity
● See themselves as very sociable
● Believe that friends are extremely important
● Are spontaneous
● Have a heightened sense of visual stimulation.
The four groups with lower resources
(VALS)
1. Believers:
● Believe in basic rights and wrongs to lead a good life
● Rely on spirituality and faith to provide inspiration
● Want friendly communities
● Watch TV and read romance novels to find an escape
● Want to know where things stand; have no tolerance for
ambiguity
● Are not looking to change society
● Find advertising a legitimate source of information
● Value constancy and stability (can appear to be loyal)
● Have strong me-too fashion attitudes.
2. Strivers:
● Have revolving employment; high temporary unemployment
● Use video and video games as a form of fantasy
● Are fun loving
● Are imitative
● Rely heavily on public transportation
● Are the center of low-status street culture
● Desire to better their lives but have difficulty in realizing their
desire
● Wear their wealth.
3. Makers
● Are distrustful of government
● Have a strong interest in all things automotive
● Have strong outdoor interests (hunting and fishing)
● Believe in sharp gender roles
● Want to protect what they perceive to be theirs
● See themselves as straightforward; appear to others as
anti-intellectual
● Want to own land.
4. Survivors
● Are cautious and risk averse
● Are the oldest consumers
● Are thrifty
● Are not concerned about appearing traditional or trendy
● Take comfort in routine, familiar people, and places
● Are heavy TV viewers
● Are loyal to brands and products
● Spend most of their time alone
● Are the least likely use the internet
● Are the most likely to have a landline-only household.
4. Behavioral segmentation
• Purchase • Usage rate
occasion
• Loyalty
• User Status Status:
Hard core loyals
Split loyals
Shifting loyals
Switchers
Bases for segmenting Business
markets (Ref Fig 8.2, Page 227)
● Demographic
○ Industry, company size and location
● Operating variables
○ Technology, customer capabilities
● Purchasing approaches
○ Purchasing policies and purchasing criteria
● Situational factors
○ JIT,
○ Size or order
● Personal characteristics
○ Attitude and loyalty
 Targeting: Meaning
Once the firm has identified its market segment opportunities,
it must decide how many and which ones to target.
Choose Target segments and Allocate resources-
Target market strategies

● Undifferentiated mass Marketing-ignores any differences

● Differentiated Multiple segment Marketing- marketer decides to

enter several market segments and develops separate offers for
each.
Eg. CocaCola, Maruti, FMCG

● Single segment specialization or Niche marketing- specialized

product aimed at a very focused market or a Niche.
Eg. Shahnaz Hussain Herbal Beauty products, Mercedez Benz

● Individual Marketing: 1:1

Nike
● Nike, Inc. is an American multinational corporation that is
engaged in the design, development, manufacturing, and worldwide
marketing and sales of footwear, apparel, equipment, accessories,
and services. Nike has become one of the world’s highest profile
athletic brands. So then, riddle us this: if explicit product descriptions
are not essential to helping a brand to rise, what is? Nike's focus is to
continually seek to innovate, design and develop products to
improve athletic performance. Its overriding desire is to design
products with true performance innovation and technology benefits
which help the athlete perform better……NPD(conceptual
development). especially at a moment when Kaepernick and his
story has taken center stage, is the campaign’s greatest legacy, she
said.
● “It wasn’t about a company telling you what to do,” Dolan said of
“Just Do It.” “It was a company telling you that you know what the
right thing is to do. It’s something like what Colin Kaepernick has
done.”
 Dove
The brand’s real-life stories approach creates a strong appeal not only to
women, but to anyone, who has ever questioned his or her beauty. (Complexion
and for figure conscious people) It is convincing, because it is not focused on
the product, but rather on a cause. In fact, consumers themselves are 80% more
likely to support brands that exert corporate responsibility and put
cause-related marketing into practice. The ad won the Titanium Grand Prix at
the Cannes Lions international festival of creativity, best advertisement
award by AdWeek, and was uploaded in 25 languages across 46 Dove
YouTube channels. Moreover, after the video went viral it generated 4.3 million
clicks on Dove’s website, while the brand’s search volumes online increased up
to 5 times across markets.
(their ad features normal…ordinary women) or that a small change
in perspective can alter the way women see themselves, Dove’s focus and take
on real beauty is storytelling at its best.
Space Tourism-Positioning: Virgin Galactic
Product Positioning
It is a decision reached by a marketer to try to achieve a defined
brand image relative to competition within a market segment.
Positioning errors
● Under Positioning (do not have a clear understanding of the
product) m I?
oa
Wh t am I? m I?
a a
Wh whom
● Over Positioning (too narrow claims) F o r
ym
e ?
Wh

● Confused Positioning (too many associations )

● Doubtful Positioning (buyer finds it extremely difficult to

believe the claims )
Positioning it Right
● https://www.business-standard.com/article/management/po
sitioning-it-right-103121601123_1.html
 Product Differentiation strategies

● Features-Automobiles
● Benefits-Toothpastes, baby products
● Usage
● Manufacturing Process-Coca Cola, Nescafe, Parle G
● Ingredients-Health drinks
● Endorsements
● Comparison-Newspapers, Toothpastes
● Price/quality
● Country or Geographic area- Benaras saris, Kashmir Shawls, Darjeeling Tea
How many differences to promote?
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IDENTIFY………????

● COMPETITIVE FRAME OF REFERENCE (category membership and

identifying competitors)

Which other brands a brand competes with and

therefore which brand should be the focus of
competitive analysis
IDENTIFY………????

● PODs
● POPs
Companies must follow
straddle positioning (dual
image)and convert into brand
mantra
● https://research-methodology.net/mcdonalds-segmentation-
targeting-and-positioning/
Wrap-up
● Emotional branding
● Brand Journalism (blogs, online articles, websites, emails and
social media)
● Brand narratives and story telling
○ We don’t sell shoes, we’re trying to create positive change in our world.