Segmenting, Targeting, Positioning
Management Science II
Dr. S.Bharadwaj
MODULE 1 Segmentation,Targeting and Positioning
• • • • Segmentation, Targeting and Positioning Definitions Segmentation Variables Evaluation of Segments Summary
What is segmentation, anyone?
• • What about targeting and positioning? Segmentation is the process of grouping people or organizations within a market according to similar needs, characteristics, or behaviors
Dividing the market into groups
• • • an entire market rarely has the same tastes and preferences it is difficult to handle all preferences too Mercedes Benz, for example (only high-end)
Targeting is the actual selection of the segment you want to serve the target market is the group of people or organizations whose needs a product is specifically designed to satisfy Positioning is the use of marketing to enable people to form a mental image of your product in their minds (relative to other products)
1
Indian Institute of Technology Madras
Management Science II
Dr. S.Bharadwaj
STP Marketing is the name of the game
• • • • • • The days of “one size fits all” are over No longer can one say “You can have any colour as long as it is black” Need to follow the “horses for courses” policy - no more mass marketing Moving towards mass customization in fact Levi’s Personal Pants National Bicycle Company
How to segment a market? • • On what basis/bases? What are some criteria/variables?
Segmentation - Variables
Demographic Segmentation
Age, Gender, Income Age • Bicycles • Disney’s Cartoons • Pension Plans, Retirement Funds e.g. • LIC Gender • • • • • Hasbro Toys Cindy for girls, GI Joe for boys Gillette Razors for men, women most cosmetics, perfumes etc
2
Indian Institute of Technology Madras
Management Science II
Dr. S.Bharadwaj
•
Revlon, Ralph Lauren
Income
• • • Toyota Lexus for high end Camry for the middle of the roaders Corolla for low end HLL soaps - Dove for high end, Hamam for low And so on • • Income is
Dr. S.Bharadwaj
MODULE 1 Segmentation,Targeting and Positioning
• • • • Segmentation, Targeting and Positioning Definitions Segmentation Variables Evaluation of Segments Summary
What is segmentation, anyone?
• • What about targeting and positioning? Segmentation is the process of grouping people or organizations within a market according to similar needs, characteristics, or behaviors
Dividing the market into groups
• • • an entire market rarely has the same tastes and preferences it is difficult to handle all preferences too Mercedes Benz, for example (only high-end)
Targeting is the actual selection of the segment you want to serve the target market is the group of people or organizations whose needs a product is specifically designed to satisfy Positioning is the use of marketing to enable people to form a mental image of your product in their minds (relative to other products)
1
Indian Institute of Technology Madras
Management Science II
Dr. S.Bharadwaj
STP Marketing is the name of the game
• • • • • • The days of “one size fits all” are over No longer can one say “You can have any colour as long as it is black” Need to follow the “horses for courses” policy - no more mass marketing Moving towards mass customization in fact Levi’s Personal Pants National Bicycle Company
How to segment a market? • • On what basis/bases? What are some criteria/variables?
Segmentation - Variables
Demographic Segmentation
Age, Gender, Income Age • Bicycles • Disney’s Cartoons • Pension Plans, Retirement Funds e.g. • LIC Gender • • • • • Hasbro Toys Cindy for girls, GI Joe for boys Gillette Razors for men, women most cosmetics, perfumes etc
2
Indian Institute of Technology Madras
Management Science II
Dr. S.Bharadwaj
•
Revlon, Ralph Lauren
Income
• • • Toyota Lexus for high end Camry for the middle of the roaders Corolla for low end HLL soaps - Dove for high end, Hamam for low And so on • • Income is