Unit 5 Segmentation, Targeting and Positioning
Unit 5 Segmentation, Targeting and Positioning
Unit 5 Segmentation, Targeting and Positioning
Kathayat 1
Learning Objectives
The word “market” was derived from the Latin word “Mercatus” which
means to trade, merchandise or a place where business is transacted.
In narrow sense, a market is a physical place where customers and sellers
get together to buy and sell goods and services.
A market is a place where buyers and sellers can meet to facilitate the
exchange or transaction of goods and services [Investopedia].
A market is any structure that allows buyers and sellers to exchange any
type of goods, services and information [Wikipedia].
In broad sense, a market may be a region, which may be a district, state,
country, or even the whole world from which buyers and sellers exchange
goods, services and information with money.
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Cont……
The core concepts of market are as…………………
Place
Space Commodity
Core
Concept
of Market
Demand Exchange
Area
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Cont……
1) Place: Market is the particular place where sellers and buyers meet
together to exchange goods and services with money or monetary aspects.
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Cont……
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Cont……
Place
Buyers
Commodity
Exchange
Needs/Demands
Structure
Communication
Relationship
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2. Concept and Importance of Market Segmentation
The breaking down or building up of potential buyers into groups called
market segments.
The concept of market segment is based on the fact that the market of
commodities are not homogeneous but they are heterogeneous.
Markets can be segmented in several ways such as geographically,
demographically, or behaviorally.
Market segmentation seeks to identify targeted groups of consumers to
tailor products and branding in a way that is attractive to the group.
In marketing, market segmentation is the process of dividing a broad
consumer or business market, normally consisting of existing and potential
customers, into sub-groups of consumers based on some type of shared
characteristics (Wikipedia).
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Cont......
“Market segmentation is the act of identifying and profiling
distinct group of buyers who might require separate product or marketing
mixes.” – Philip Kotler
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Cont……
Importance of Market Segmentation
To get knowledge of attracting marketing opportunities
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3. Requirements for Effective Market Segmentation
Measurable
Beneficial
Divisible
Requirements
for Effective
Market
Appropriate Segmentation Accessible
Actionable Sustainable
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Cont……
1) Measurable: The size, needs, purchasing power, and characteristics of the
customers in the segment should be measurable.
2) Divisible: The segments should be differentiable. There must be the clear-cut
basis for dividing customers into meaningful homogeneous groups.
3) Accessible: The segment should be reachable and serviceable. It should be
accessible through existing marketing institutions, such as distribution channels,
advertising media, and sales force.
4) Substantial: The market a brand should want to penetrate should be a
substantial number. It needs to clearly define a consumer’s profiles by gathering
data on their age, gender, job, socio-economic status, and purchasing power.
5) Actionable: Market segments need to be actionable, meaning it have practical
value. A market segment should be able to respond to a certain marketing
strategy or program and have outcomes that are easily quantifiable.
6) Appropriate: The segments must be appropriate to the organization's objectives
and resources. With out this we can not imagine the batter outcomes form
segments.
7) Beneficial: The market segment should be large enough to give the organization
adequate profit and should be sustainable for the long-run.
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Cont……
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4. Levels/Types of Market Segmentation
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5. General Process of Market Segmentation
2. Construct 3. Evaluate
1. Define or
Market Segments Market
Analyze Market
Profiling Segments
4. Select
6. Implement 5. Develop Appropriate
Marketing Mix Marketing Mix Market
Segments
7. Review
Performance
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Cont……
1) Define or Analyze Market: In this step, marketing management needs to
define or analyze market for gathering relevant information about
customers wants, demand, needs, consuming pattern, perception on goods
and service, purchasing procedures, habits. Besides that, life style, social
norms, terms, customs, religion, education, age, gender and other aspects
related information needs to gather and analyze through the statistical
tools.
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Cont......
4) Select Appropriate Market Segments: After evaluating market segments, the
suitable market segments should be selected to enter there. Analysis of
market segments, market coverage, ethical considerations, inter-segment
relationship etc. also should be considered for the selection of suitable
market segments.
6) Implement Marketing Mix: The marketing mix refers to the set of actions, or
tactics, that a company uses to promote its brand or product in the market.
Besides that, marketers needs to control and optimal utilization of all the
available resources for getting greater profit from segmentation.
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7. Bases (Variables) for Business Market Segmentation
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8. Segment Evaluation, Analysis and Selection
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Cont……
Analysis and Selection of Market Segments……………………..
The analysis and selection of best markets segments can be identified into five
parts such as;
1) Single segment coverage: It is the way of analysis and selection of single market
segment where business firm offers specified product to specified customer like BMW
cars for rich people.
3) Product specialization: It is the way of analysis and selection of market segments where
business firm sells certain products to several customers like Honda Motorcycles.
4) Market specialization: It is the way of analysis and selection of market segment where
business firm choose particular market segment for supplying all relevant products such
as Hotel and Hospitality sectors.
5) Full market coverage: It is the way of analysis and selection of market segments where
business firm attempts to serve the entire market through particular products likewise
NTC/ Ncell internets.
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9. Concept of Market Targeting or Target Market
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Cont……
Target markets also known as certain clusters of consumers with similar or
the same needs that most businesses target their marketing efforts in order
to sell their products and services.
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Cont……
Undifferentiated
Market
Concentrated or
Niche Market
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Cont…...
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10. Concept and Types of Product Positioning
Primarily, positioning is about the place a brand occupies in the mind of its
target audience.
Positioning refers to the place that a brand occupies in the minds of the
customers and how it is distinguished from the products of the competitors
and different from the concept of brand awareness [Wikipedia].
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Cont……
Components of Positioning……………………………..
Attributes- products characteristics
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Cont……
Attribute Positioning
Benefit Positioning
User Positioning
Competitive Positioning
Price Positioning
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Cont……
1) Attribute Positioning: It is based on products quality, design, level, size,
durability, reliability and so on. For examples; Apple iPhone, Samsung Cell
Phones, Bajaj Motorcycle, Toyota Vehicles etc.
2) Benefit Positioning: It is based on the products benefits to the users like health
benefits, financial benefits, environmental benefits and so on. For example;
Horlicks, Chyavanprash, Pepsidents, Liril Soap, Sunslik Shampoo etc.
3) Usage Occasion Positioning: It is based on some special occasions where
marketers usages products positioning. For examples; Dashai, Tihar, Chhata,
New Year, Christmas day etc.
4) User Positioning: It is based on users income status, age groups and genders.
For examples; these groups may involves to fulfill their needs and wants by
using goods and services.
5) Competitive Positioning: It is based on differentiated or unique goods and
services from the competitors products. In this positioning, products
comparison must important for measuring quality.
6) Price Positioning: It is based on the determination of price of goods and services
in comparison to competitors pricing. For examples; price determination of
Bayerische Motoren Werke AG (BMW), Toyota Land Cruiser Prado, Nano Car
etc.
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11. General Process of Product Positioning
Selecting the
• Product Factors
• Product Differentiation Differentiation
• Pricing Factors
• Service Differentiation Factors
• Placing Factors
• Personnel Differentiation • Consistency with the • Promoting Factors
• Image Differentiation Organizational Image
• Competitor’s Positions
and their Strengths Communicating the
Identification of
• Cost of Creating and Positioning Factors
Differentiation Defending Positions
Factors
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Home Assignment 3 [Sample Questions]
Q1. What is market? Describe the key features and concepts of market.
Q2. What do you mean by market segmentation? Explain the core objectives
and importance of market segmentation.
Q3. What are the requirements for effective market segmentation?
Q4. How can you define the term segmentation? Describe the general process
of market segmentation.
Q5. Do you know consumer? Define the bases or variables for consumer market
segmentation.
Q6. Define business market segmentation. What are the bases or variables of
business market segmentation?
Q7. How can you define the term market targeting or target marketing?
Describe the types of target marketing.
Q8. Discuss about product positioning. What are the types of product
positioning.
Q9. What is positioning? Explain the general process of product positioning.
Q10. How can you differentiate between market segmentation and target
marketing? Explain with suitable examples.
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Text or Reference Books
o Thapa, G., Neupane, D., and Rai, B.: Fundamentals of Marketing, (new
ed.), Asmita Publication, KTM [Gopal Thapa, Dipendra Kumar
Neupane and Bharat Rai]
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Notes
After finalizing the chapter, your are requires to solve and submit CS PDF copy
of answer sheet within the prescribed time and date. It contains with 20
marks. The obtaining marks will fairly accumulates in internal evaluation. If
anyone fail to submit this assignment within the dateline, I throw out form the
evaluation. Thus, please do not miss or neglect this work.
Thank You!!!
B.B. Kathayat
Lecturer, Marketing
Email:[email protected]
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