Market Targeting
Download as PPTX, PDF44 likes47,080 views
The document discusses various concepts related to market segmentation, targeting, positioning, and differentiation. It begins by defining market segmentation as the process of dividing the heterogeneous market into homogeneous subgroups. It then discusses the benefits and implementation of market segmentation. The document also covers topics like mass marketing vs micro marketing, levels of segmentation, bases for segmenting consumer and business markets, and market segmentation in various industries. It discusses the concepts of targeting, positioning, differentiation strategies and their application to products and services.
Market Targeting
- 1. By- Abhijith R. MARKET TARGETING
- 2. Market Segmentation??? -It is the process of disaggregating the total market for a given product into a number of sub-markets. -The heterogeneous market is divided into a number of relatively homogeneous units.
- 3. Need? • The marketing concept calls for understanding customers and satisfying their needs better than the competitors . But different consumers have different trends, and it rarely is possible to satisfy all customer by treating them alike.
- 4. Mass Marketing Mass marketing refers to the treatment of the market as a homogeneous group and offering the same marketing mix to all customers. It allows economies of scale to be realized through mass Drawback- Customer needs and preferences production, mass differ and at the same distribution, and mass offering is likely to be communication. viewed as optimal by all customers.
- 5. Micro Marketing • Micro marketing recognizes the diversity of customers and does not try to please all of them with the same offering. • Objectives: -Understand the characteristics of the customers. -Identify the value & profitability of different segments. -Identify the size and characteristics of the market in which they operate.
- 6. Levels of Segmentation Mass Marketing Same product to all consumers (no segmentation) Segment Marketing Different products to one or more segments (some segmentation) Niche Marketing Different products to subgroups within segments ( more segmentation) Micromarketing Products to suit the tastes of individuals or locations (complete segmentation)
- 7. Steps in Segmentation Process Identify the target market. Identify expectations of target audience. Create Subgroups Identify suitable marketing mix for each groups. Find out which group to focus. Select those segment which offer high potential.
- 8. Stages of Identifying Market Segments • The researchers conduct explorative interviews to identify customer motivations, attitude and behaviour. Survey • Researches applies factor analysis to the data to remove highly correlated variables & then applies cluster analysis to Analysis create a specified number of maximally different segments. • Each cluster is profiled in terms of its distinguishing attitudes, behaviour, demographics ,psychographics, and Profiling media patterns.
- 9. Market Segmentation of: Consumer Market and Business Market
- 10. Bases for Segmenting Consumer Markets Two major Approaches to Segmentation are: Consumer responses Consumer characteristics (Behavioral segmentation) Demographic Geographic Psychographic Usage - Age - Region - Social Class User status - Sex - State Usage rate - Income Occasions Benefits - City types - Lifestyle Loyalty status Attitudes - Occupation - Density Buyer readiness - Family size stage - Personality - FLC
- 11. Segmenting for Business Markets Demographic Geographic Situational Factors
- 12. Benefits of Market Segmentation 1. One customer group is distinguished from another within a given market and this enables to decide which segment of the market should form as target market. 2. Facilitates in-depth study of the characteristics of the buyers. 3. Help the marketing man to develop the marketing programme on a predictable and reliable base. 4. More suitable ‘marketing offers’ for a particular segment is easily developed. 5. Suitable marketing mix is achieved. 6. Due to concentrated efforts most productive and profitable segments of markets are achieved. 7. Its helps to asses competitor’s stand in the market. 8. Customer and companies choose each other for mutual benefit and satisfaction.
- 13. Implementing Market Segmentation Establish a Identify the segmentation Prioritize Market Matrix
- 14. Market segmentation in various industries • SOAP INDUSTRY LAUNDRY SOAP. SPECIAL LAUNDRY SOAP. LOW GRADE TOILET SOAP. PREMIUM YOILET SOAP. TOILET SOAPS FOR STORES, OFFICES AND RESTAURANTS. INDUSTRIAL SOAP. • WATCH INDUSTRY GEOGRAPHIC LOCATION OF CUSTOMERS. LIFE STYLE PATTERN. BASED ON AGE. BASED ON GENDER. BASED ON INCOME.
- 15. • INDIAN CAR INDUSTRY ECONOMY SEGMENT MID-SIZED SEGMENT LUXURY SEGMENT SUPER LUXURY SEGMENT
- 16. DIFFERENT TYPES OF SEGMENTATION • PURCHASE OCCASION SEGMENTATION • DIVIDE CUSTOMERS ON THE BASIS OF THE REASON BEHIND THEIR PURCHASE. • USER STATUS SEGMENTATION DIVIDE CUSTOMER BASED ON THEIR USAGE OF A PRODUCT OR SERVICE AND THE PATTERN OF USAGE. USAGE RATE SEGMENTATION DIVIDE CUSTOMERS BASED ON THE FREQUENCY OF USAGE OF A PRODUCTOR SERVICE. IT DIVIDES THE USER MARKET INTO LIGHT, HEAVY,AND MEDIUM USER GROUPS
- 17. . • LOYALTY SEGMENTATION DIVIDES CUSTOMERS ON THE BASIS OF THEIR LOYALTY TOWARDS A CERTAIN PRODUCT OR SERVICE. • TECNOGRAPHIC SEGMENTATION IDENTIFICATION OF SEGMENTS BASED ON THE INTERACTION OF THREE VARIABLES. THESE ARE ATTITUDE TOWARDS TECHNOLOGY, APPLICATION OF TECHNOLOGY, AND THE FINANCIAL POSITION OF THE CONSUMERS.
- 18. POSITIONING • POSITIONING IS THE ART OF DESIGNING COMPANY’S OFFERING AND IMAGE TO OCCUPY A DISTINCTIVE PLACE IN THE TARGET MARKET’S MIND… • THE POSTION OF BRAND IS THE PERCEPTION IT BRINGS ABOUT IN THE MIND OF THE TARGET CUSTOMER. PRINCIPLES OF POSITIONING • IT IS BETTER TO BE FIRST THAN TO BE LATE. • IN CASE, IT IS NOT THE FIRST, THEN THE COMPANY SHOULD BE ABLE TO CREATE A NEW CATEGORY BY MAKING AT LEAST A SMALL CHANGE IN THE MARKETING MIX ELEMENTS. • IT IS IMPORTANT TO UNDERSTAND THE POSITION AND STRATEGIES OF THE COMPETITORS. • POSITIONING USING AN EASY NAME. EG:L G.
- 19. POSITIONING ERRORS • UNDER POSITIONING. • OVER POSITIONING. • CONFUSED POSITIONING. • DOUBTFUL POSITIONING POSITIONING STRATEGIES • ATTRIBUTE POSITIONING. • BENEFIT POSITIONING. • USE OR APPLICATION POSITIONING. • USER POSITIONING. • COMPETITOR POSITIONING. • PRODUCT CATEGORY POSITIONING. • QUALITY OR PRICE POSITIONING. • POSITIONING IN RTELATION TO A TARGET MARKET.
- 20. HOW TO POSITION THE BRAND Perceptual Mapping This technique involves studying the consumer’s perception of the product and competitor’s brands and based on it identifying the vacant slots. This involves 1. Studying the ideal product perception –studying both tangible and intangible attributes that a customer look while buying a product. 2. Get the customers to rank these attributes in the order of importance to them. 3. Customer’s knowledge of the competitors brands. 4. Based on these assessment of competitor brands on the ideal product map ,identify the vacant slots&build the position strategy to filling these up.
- 21. COMMON POSITIONING STRATEGIES IN THE CONSUMER DURABLE SECTOR • 1. Benefit or use positioning:-The positioning strategies adopted by consumer durable companies depend a lot on ‘usage’ , ‘economy’ and ‘corporate identity’ of which a well established brand surely projects the identity of the product in terms of which corporate house the product is form. • 2. Competitor related positioning:-This is the strategy of placing a firm’s brand next to the leader in the market and trying to uproot it on a specific tangible variable. • 3. Lifestyle positioning:-A firm could even position the brand as a lifestyle contemporary or futuristic. • 4. Positioning by corporate identity:-This type of positing is seen very much with consumer durables when a tried and trusted corporate identity . • 5. Surrogate positioning:- Here the product can’t be positioned differently on the basis of attributes but differentiated by positioning them on the surrogates for the attributes.
- 22. POSITIONING PARADIGMS Monopolistic competition prevails in the contemporary markets. Product differentiation and price differentiation are the main features of monopolistic competition. The marketer must reinterpret the product differentiation as a meaningful consumer benefit. Competitive Company Competitor Importance Affordability Competitors Recom- advantage standing standing of imprvg & speed ability to mended std imprv action standing Technology 8 8 L L M Hold Cost 6 8 H M M Monitor Quality 8 6 L L H Monitor Service 4 3 H H L Invest
- 23. Advantages 1.It helps to focus the product on a specific target customer. 2.It offers the product a new appeal in the market. 3.A distinctive place could be occupied in the target market. 4.Successful creation of the market. Disadvantages 1.It is not possible to offer a product wholly for a specific type of customer. 2.The wrong positioning affects a number of products.
- 24. POSITIONING OF SERVICES • Because of intangibility and other features associated with the services, consumers find that differentiation of services is more difficult and complex. • Positioning involves giving the target market segment the reason for buying the services and thus underpins the whole marketing strategy. Some specific strategies are:- 1. Attribute positioning:-A service provider positions itself based on an attribute or a feature. 2. Benefit positioning:-Most service providers resort to benefit positioning as the general psyche of the customer is to analyze the benefit that he derives by using a particular service.
- 25. Contd… 3.Use or application positioning:-The service is positioned as the best for a certain application. 4.User positioning:-The service is positioned for a specific target group of users. 5.Competitor positioning:-The service is positioned by the provider against a competitor’s service offering. 6.Catogory positioning:-The service provider positions itself as the category leader and becomes synonymous with the service. 7.Quality or price positioning:-A service is positioned in the market as possessing a certain quality standard at a particular price.
- 27. DIFFERENTIATION IS THE ACT OF DESIGNING A SET OF MEANINGFUL DIFFERENCE TO DISTINGUISH THE COMPANY’S OFFERING FROM COMPETITOR’S OFFERINGS….
- 28. DIFFERENTIATION VARIABLES FORM FEATURES PERFORMANCE QUALITY CONFORMANCE QUALITY DURABILITY RELIABILITY REPAIRABILITY STYLE DESIGN
- 29. CHARACTERSTICS OF DIFFERENTIATION STRATEGIES •GENERATE CUSTOMER VALUE •PROVIDE PERCEIVED VALUE •BE DIFFICULT TO COPY
- 30. DIFFERENTIATION IN SERVICES IT MEANS PROVIDING MEANINGFUL CHANGES IN SERVICE OFFER THAT ADD VALUE TO THE CUSTOMER AND ARE CAPABLE OF GENERATING QUALITY PERCEPTIONS THAT DISTINCT FROM COMPETITIVE OFFERS….
- 31. SERVICES DIFFERENTIATING VARIABLES…..
- 32. BASIC SERVICE PACKAGE(BSP) QUALITY AND COMPOSITION OF FACILITATING SERVICES .QUALITY AND COMPOSITION OF SUPPORTING SERVICES ACCESSIBILITY THE NUMBER OF CONTACT PERSONNEL OFFICEC HOURS TIME TAKEN TO PERFORM TASKS LOCATION OF THE OUTLETS EXTERIOR AND INTERIOR OF SERVICE OUTLETS TOOLS,EQUIPMENT AND DOCUMENTS CO-CUSTOMERS INTERACTION PHYSICAL AND TECHNICAL RESOUCES SYSTEMS EMPLOYEES OTHER CUSTOMERS
- 33. CUSTOMER PARTICIPATION CUSTOMER KNOWLEDGE ABILITY WILLINGNESS INFORMATION SUPPORT TANGIBLES INTERIOR EXTERIOR TOOLS EQUIPMENT FURNITURE SEVICE CHANNEL EXPERTISE PERFORMANCE CHOICE COVERAGE
- 34. SERVICE IMAGE CORPORATE IMAGE LOCAL IMAGE SERVICE RECOVERY TIME EMPATHY SERVICE PERSONNEL COMPETENCE COURTESY CREDIBILITY RELIABILITY RESPONSIVENESS COMMUNICATION EMPATHY