Segmentation, Targeting &

Positioning
Dr.Mukul Mishra
 Key Topics
Segmentation & Segmentation Variables

Targeting Strategy

Positioning Strategy
 Segmentation
Dividing a market into distinct groups with
distinct needs, characteristics, or behavior
who might require separate products or
marketing mixes

A market segment consists of a group of

customers who share a similar set of needs
and wants.
Steps in Segmentation, Targeting &
Positioning
Segmenting Consumer Markets
 Segmenting Variables-Geographic
Segmentation
Geographic segmentation divides the market
into geographical units such as nations, states,
regions,counties, cities, or neighbourhoods.
 Demographic Segmentation
Demographic segmentation divides the
market based on a number of demographical
factors.
Age and life cycle
Life stage
Gender
Income
Generation
Social class
Race and Culture
 Psychographic Segmentation
Psychographic segmentation divides the
market based on psychological factors such as
Personality, Lifestyle or Values & people with
in the same demographic group can exhibit
different psychographic profiles.
 Behavioral Segmentation
In behavioral segmentation, marketers divide
buyers into groups on the basis of their
knowledge of, attitude toward,use of, or
response to a product. Following three aspects
are used in assessing behavioral
segmentation.
Needs and Benefits
Decision Roles Initiator / Influencer / Decider /
Buyer / User
User and Usage Occasions / user status / User
rate / User readiness
 Loyalty Status
Hard-core loyals

Split loyals

Shifting loyals

Switchers
Behavioral Segmentation Breakdown
Segmentation of Business Markets
Demographic (Industry / Company size / Location)

Operating variable (Technology / Capacity)

Purchasing approaches (Purchasing Policies /

Criteria)

Situational factors (Urgency / Size of order)

Personal characteristics (Risk Appetite / Loyalty)

 Steps in Segmentation Process
Need-based segmentation
Segment identification
Segment attractiveness
Segment profitability
Segment positioning
Segment acid test
Market mix strategy
 Effective Segmentation Criteria
Measurable
Substantial
Accessible
Differentiable
Actionable
 Targeting
Targeting includes following;
Ranking the market segments according to the market
potential
Selecting the target segments accordingly

Targeting decision will be basically taken after considering the

following two dimensions.
Market attractiveness profitability, market growth rate,
entry costs, economies of scale, price competition etc.
Business strength relative market share, company image,
learning curve effect, product quality, R&D, financial
strength,patent rights etc.
 Targeting Strategies
Undifferentiated Targeting (One product to the
Entire market)

Concentrated Targeting(One product to One

segment)

Differentiated Targeting(Different products to

Different segments)
 Undifferentiated Marketing
Single product addressing all segments with a
single marketing program.
Mass production is possible giving scale
economies
Pushes price downwards enabling to attract
price sensitive segments
 Differentiated Marketing
A separate market offering for every segment
Marketing programs for every segment could
be different
Pushes up costs at various levels, necessitating
sufficient volumes for viability
Generates inter-segment rivalry
 Positioning
Positioning is the act of designing the companys
offering and image to occupy a distinctive place in
the mind of the target market.

Products can be positioned on specific attributes or

against another product class

Identifying Competitors
Analyzing Competitors
Defining POD & POP
 Positioning Strategy
1. Identifying a set of possible competitive
advantages upon which to build a position

2. Selecting the right competitive advantages

3. Effectively communicating and delivering the

chosen position to a carefully selected target
market
 Product Differentiation
Physical Attribute Differentiation

Service Differentiation

Personnel Differentiation

Location Differentiation

Image Differentiation
Analyzing Competitors
 Defining Associations
Points-of-difference Points-of-parity
Attributes or benefits Associations that are
consumers strongly not necessarily unique
associate with a brand, to the brand but may be
positively evaluate, and shared with other
believe they could not brands
find to the same extent
with a competitive
brand
Dominos
Value Propositions
A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price
 Positioning Measurement
Perceptual mapping is a research tool used to
measure a brands position
Perceptual Positioning Maps
Thank You !!