Market segmentation Targeting And positioning

Introduction to Marketing

What is Marketing
Process of communicating the value of a product or service to customers. o Art of selling, but selling is only a fraction of marketing. o From social point of view marketing is the link between a societys material requirements and its economic patterns of response. o Marketing is the science of choosing target markets through market analysis and market segmentation
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What is Marketed
o o o o o o o o o o

Goods Services Events Experiences Persons Places Properties Organizations Information Ideas

Implications of marketing
o

o
o o o o o

Who are our existing/potential customers. What are their current /future needs How can we satisfy these needs. Can we offer a product/service that the customer would value ? Can we communicate with our customers? Can we deliver a competitive product or services. Why should customers buy from us ?

Market segmentation

Needs of market segmentation

Buyers are too numerous, too widely scattered and too varied in their needs and buying practices. A company must identify the parts of the market that it can serve best and most profitably. Must design customer-driven marketing strategies that build the right relationship with the right customer.

The role of market segmentation

Market Segmentation: division of the total market into smaller, relatively homogeneous groups No single marketing mix can satisfy everyone. Therefore, separate marketing mixes should be used for different market segments

market segmentation

Geographic Segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation

Segmenting consumer markets

Geographic Segmentation Dividing an overall market into homogeneous groups on the basis of their locations

Does not ensure that all consumers in a

location will make the same buying decision. Help in identifying some general patterns.

Segmenting consumer markets

Demographic segmentation dividing consumer groups according to characteristics such as sex, age, income, occupation, education, household size, and stage in the family life cycle

Segmenting consumer markets

Demographic

segmentation

Segmentation by age. Segmentation by gender. Income segmentation.

Segmenting by age

Consumers need and wants change with age.

Some products are marketed to specific age groups

Companies offering different products for different age.

Segmenting by age
For example: the Dove pro-Age products range aimed at women in their fifties.

Segmenting by gender
Marketers must ensure that traditional

assumptions are not false Other firms start by targeting one gender and then switch to both To some companies market successfully to both genders

Income segmentation
Some

products are marketed to consumers with different income levels

Income segmentation has long been used by the marketers of product and services such as automobiles , cosmetics , financial services.

Income segmentation

Psychographic Segmentation
Divides a population into groups

that have similar psychological characteristics, values, and lifestyles Lifestyle: peoples decisions about how to live their daily lives, including family, job, social, and consumer activities

Segmenting consumer markets

Behavioral

segmentation

Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product

Behavioral segmentation
USAGE RATE: o Markets can also be segmented into light, medium, and heavy product users. Heavy users are often a small percentage of the market but account for a high percentage of total consumption.

Behavioral segmentation
LOYALTY STATUS: A market can also be segmented by consumer loyalty. Consumers can be loyal to brands ,stores ,and companies Buyers can be divided into groups according to their degree of loyalty. Some consumers are completely loyalthey buy one brand all time .

Apple has a small but almost cultlike following of loyal users.

Market Targeting

Market Targeting

Market targeting (or targeting) consists of evaluating each market segments attractiveness and select one or more market segments to enter

market targeting

Undifferentiated marketing Differentiated marketing Concentrated marketing Micromarketing

Undifferentiated marketing

when a firm produces only one product or product line and promotes it to all customers with a single marketing mix.

Sometimes called mass marketing Much more common in the past

Differentiated marketing

: when a firm produces numerous products and promotes them with a different marketing mix designed to satisfy smaller segments

Tends to raise costs

Concentrated Marketing

when a firm commits all of its marketing resources to serve a single market segment

Attractive to small firms with limited resources and to firms offering highly specialized goods and services

Micromarketing

involves targeting potential customers at a very basic level, such as by specific occupation, lifestyle, or individual household
The Internet may allow marketers to make micromarketing even more effective

positioning

A products position is the way the product is defined by consumers on important attributes. products are created in the factory, but brands are created in the mind

ROLLS ROYCE is positions on

luxury .

Thank u ..