Market Segmentation Targeting & Positioning- By Subha Rudra

MARKET SEGMENTATION 

Definition

Dividing a market into distinct groups with distinct needs, characteristics, or behaviour who might require separate products or marketing mixes. Dividing a big heterogeneous market into small homogenous unit.

 FEATURES OF MARKET SEGMENTATION

1. 2. 3. 4. 5. 6.

It must be identifiable. It must be accessible. It must be optimum in size. It must be profitable. It must be durable. It must be compatible.

STEPS IN MARKET SEGMENTATION Steps involved in Market Segmentation are:Identify the current and the potential needs of the customer existing already in the market to be segmented. Identify the unique and distinguishable features that may divide the market into segments. Select those segments which offer higher potential and which will also be amenable to the offering of the firm.

 BASES FOR SEGMENTATION Market Segmentation Consumer Market

Industrial Market Region, Population size, Climatic condition, Population density

Location

Age, Income, Purchasing power, Gender, Education, Religion, Nationality ,Family Size

Company Type:- Size, Type of Industry, Decision Unit

Psychographical

Activities, Interest, Opinion, Attitudes, Values

Behavioural:- Usage rate, Buying status, Purchase procedure

Behavioural

Benefit sought, Usage rate, User status, Brand Loyalty, Readiness to buy

Geographical

Demographical

TARGET MARKETING 

Definition Target Marketing involves breaking a market into segments and then concentrating the marketing efforts on one or a few key segments. Target marketing can be the key to a business’s success. Segmentation is actually the prelude to target market selection.

FACTORS TO BE CONSIDERED WHILE TARGET MARKET SELECTION 

Attractiveness of a Market Segment

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Size of the segment (number of customers and/or number of units). Growth rate of the segment. Competition in the segment. Brand loyalty of existing customers in the segment. Sales potential for the firm in the segment. Expected profit margins in the segment.

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Suitability of Market Segments to the Firm

12.

Whether the firm can offer superior value to the customers in the segment. The impact of serving the segment on the firm's image. Access to distribution channels required to serve the segment. The firm's resources vs. capital investment required to serve the segment.

4. 5. 6. 7.

13. 14. 15.

TARGET MARKET STRATEGIES

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Single-segment strategy- Also known as a concentrated strategy. One market segment (not the entire market) is served with one marketing mix. Selective specialization- This is a multiple-segment strategy, also known as a differentiated strategy. Different marketing mixes are offered to different segments. Product specialization- The firm specializes in a particular product and tailors it to different market segments. Market specialization- The firm specializes in serving a particular market segment and offers that segment an array of different products. Full market coverage - The firm attempts to serve the entire market.

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POSITIONING 

Definition It is all about placing a product / brand in the minds of the customer to occupy a stable, distinct and permanent place in their rational and conscious mind set. According to Al Ries and Jack Trout, “Positioning is not what you do to your product, but what you do to the mind of your prospective customer”. Thus it is all about winning a distinct place in the minds of the customer.

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DIFFERENT POSITIONING PLANKS / BASES      

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Economy. Benefit. Gender . Luxury and exclusiveness. Fashion for elite class. Technology and value added features.

CRITERIA OF SUCCESSFUL POSITIONING    

Clarity . Consistency . Credibility. Competitiveness.

 REPOSITIONING

Definition Repositioning involves changing target market or distinct positioning claim/differences advantages or both to bring the saturated attention of the existing customers back into the limelight once again to survive safely and happily in the market. In some cases, the products that are faring well are repositioned. Example- Maruti Omni repositioning.

 Conclusion Thus we can say that the total process of market segmentation, targeting and positioning is a very important attribute of marketing mix. All these three process is very closely interrelated with each other. To make this three marketing process effective a thorough SWOT analysis of the firm is very important. Keeping in mind the strength, weakness, opportunity and threat the firm can formulate and implement its total marketing mix.