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Session Eight

Segmentation

Segmentation means to divide the marketplace

into parts, or segments, which are definable,

accessible, actionable, and profitable and have a

growth potential
Segmentation

Segmentation means to divide the total market

into smaller groups of people who share similar

needs, wants and characteristics


Why Segmentation?

A company would find it impossible to target the entire market,

because of time, cost and effort restrictions. It needs to have a

'definable' segment - a mass of people who can be identified and

targeted with reasonable effort, cost and time.


Factors for Segmentation
• Identifiability refers to the extent to which managers can identify or
recognize distinct groups within the marketplace

• Substantiality refers to the extent to which a segment or group of


customers represents a sufficient size to be profitable. This could
mean sufficiently large in number of people or in purchasing power

• Accessibility refers to the extent to which marketers can reach the


targeted segments with promotional or distribution efforts
Factors for Segmentation

• Responsiveness refers to the extent to which consumers in a defined


segment will respond to marketing offers targeted at them

• Actionable – segments are said to be actionable when they provide


guidance for marketing decisions
Segmentation amongst Consumers
Brief explanation of base (and
Segmentation base
example)

Quantifiable population characteristics.


Demographic (e.g. age, gender, income, education, socio-
economic status, family size or situation).

Physical location or region (e.g. country,


Geographic state, region, city, suburb, postcode).

Combination of geographic & demographic


Geo-demographic or geoclusters variables.

Lifestyle, social or personality


Psychographics characteristics. (typically includes basic
demographic descriptors)

Purchasing, consumption or usage


behavior. (e.g. Needs-based, benefit-
Behavioral sought, usage occasion, purchase
frequency, customer loyalty, buyer
readiness).
Segmentation amongst Customers
Factors for Bases of Segmentation in Pharma

• Specialty – dependent on indication

• Potential – prescription power or business potential, patients, KOL

(Advocacy)

• Geographic- North and South, Institutional and Private practice

• Dosage Form – Syp in Pediatrics, Inj in Emergency/Surgery


Targeting

Target Marketing involves breaking a market into segments

and then concentrating your marketing efforts on one or a few

key segments consisting of the customers whose needs and

desires most closely match your product or service offerings.


Targeting
A target market is a group of customers within
a business's serviceable available market that the business has
decided to aim its marketing efforts towards. Target markets
consist of consumers who exhibit similar characteristics (such as
age, location, income, and lifestyle) and are considered most
likely to buy a business's product or service
Target Market Vs. Target Audience
A target market is a specific, well-defined segment of consumers that a
company plans to target with its products, services and marketing
activities.

The term "target audience" is a bit narrower; it refers specifically to the


group of consumers targeted by advertisements.
Positioning

Positioning refers to the place that a brand occupies in the mind of the

customer and how it is distinguished from products from competitors


Approaches
Approaches

Positioning against a competitor

Positioning within a category

Positioning according to product benefit


Positioning according to product attribute

Positioning for Usage Occasion

Positioning along price lines

Positioning for a User

Positioning by cultural symbols


Perceptual Mapping

Perceptual maps are a diagrammatic representation of consumers' mental


representations of the relative place various brands occupy within a category.

Traditionally perceptual mapping selects two variables that are relevant to


consumers (often, but not necessarily, price and quality) and then asks a sample
of the market to explain where they would place various brands in terms of the
two variables.
Perceptual / Brand Map
Which brands are similar and compete against each other?

How every brand is perceived on each attribute?

How well a characteristic differentiates between the brands?

Where are your current market opportunities?

What segmentation strategies will work in your market?

A small angle between lines indicates that these attributes are


highly related, and vice versa.

Brands located near the origin have no real distinguishing


characteristics.
Repositioning
Literal Definition

“Place in a different position; adjust or alter the position of”

Marketing Definition

The process of changing the way that people think about a product,
service, or company
7 Reasons why you Reposition
1. Poor, tarnished, outdated or inconsistent image

2. Fuzzy or blurred image

3. Change in the target audience or in their needs and wants

4. Change in strategic direction

5. New or revitalized corporate personality/identity

6. Momentous Event

7. Rediscovery of Lost Values