SEGMENTATION

TARGETING
POSITIONING

Where STP starts?

Identifying markets with unfulfilled needs

Determining market segmentation

Selecting a target market(s)

Positioning through marketing mix program

Segmentation
4 1+2 I N T E R V E N T I O N 4 1+2 Dividing up a market into distinct groups that have similar needs and will respond similarly to a marketing action. Market segmentation is a concept in economics and marketing. A market segment is a sub-set of a market made up of people or organizations sharing with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function. A true market segment meets all of the following criteria: 1. it is distinct from other segments (different segments have different needs). 2.it is homogeneous within the segment (exhibits common needs) 3. it responds similarly to a market stimulus/MARKETING MIX. 4. and it can be reached by a market intervention.

Bases (reason) for Segmentation

Psychographic
LIFE STYLE/VALS2

Demographic

AGE SEX LIFE CYCLE RACE EDUCATION

customer His Behaviour

Customer Characteristics

Geographic

REGION CLIMATE URBAN/RURAL

Usage Rate

Brand Loyalty

Behavioral Awareness Benefits

Bases for Segmentation

Geographic the division of a market into units based on nations, regions, states, cities, or neighborhoods. Demographic - the division of a market based on statistical data such as age, gender, income, occupation, education, race, or family life cycle. Psychographic the division of a market based on quantitative measures of lifestyle, personality, and values. (VALS-identifies eight segments based on two dimensions)

One mm for all :-coke 6.5 ounce bottle

Mass Marketing

Segment Marketing
One or more mm targeted to one or more segments:- A,B,C Segment cars

Levels of Market Segmentation

Niche Marketing
One or more mm targeted to one or more sub-segments:-Gay magazines

Micro Marketing (1-1)

One or more mm targeted to specific individuals or communities:-B1G2 NEW YORK-Black first

TARGETING
Targeting is the second stage of the SEGMENT "Target" POSITION (STP) process. After the market has been separated into its segments, the marketer will select a segment or series of segments and 'target' it/them.

Marketing mix

Resources and effort will be targeted at the segment.

Selecting a Target Market

Determining how many segments to enter Undifferentiated strategy- offer one product to entire market Multisegment strategy selecting multiple segments, developing separate marketing strategies for each Concentrated strategy selecting one segment, developing one marketing mix for that segment Determining which segments to target S S S S Size and Sales potential Growth opportunities Obviously whose size is big, growth high, cost and Cost competition manageable and compatible with Competition company resources Compatibility

Single segment single Product

The first is the single segment with a single product. In other word, the marketer targets a single product offering at a single segment in a market with many segments. For example, KING FISHER is a high value product aimed specifically at business people and tourists willing to pay more for LUXUARY AND SPEED

Single segment for all Product

Secondly the marketer could ignore the differences in the segments, and choose to aim a single product at all segments i.e. the whole market. This is typical in 'mass marketing' or where differentiation is less important than cost. An example of this is the approach taken by budget airlines such as Air Deccan

Multi Segment Approach

Finally there is a multi-segment approach. Here a marketer will target a variety of different segments with a series of differentiated products. This is typical in the motor industry. Here there are a variety of products such as LXI VXI / MID HIGH- LOW segment care

The third and final part of the SEGMENT - TARGET - POSITION (STP) process is 'positioning.' Positioning is undoubtedly one of the simplest and most useful tools to marketers. After segmenting a market and then targeting a consumer, you would proceed to position a product within that market.

Positioning

Select, organize interpret information

Positioning is all about 'perception'. As perception differs from person to person, so do the results of the positioning map e.g what you perceive as quality, value for money, etc, is different to my perception. However, there will be similarities. Products or services are 'mapped' together on a 'positioning map'. This allows them to be compared and contrasted in relation to each other. This is the main strength of this tool. Marketers decide upon a competitive position which enables them to distinguish their own products from the offerings of their competition (hence the term positioning strategy).

Perceptual Map

Trout and Ries suggest a six-step question framework for successful positioning:
1. What position do you currently own? 2. What position do you want to own? 3. Whom you have to defeat to own the position you want. 4. Do you have the resources to do it? 5. Can you persist until you get there? 6. Are your tactics supporting the positioning objective you set?

4 resources

5.persists What position ?

Retail positioning map

G R O S S g c

Retail mix

Options for implementation

Unique products (exclusive location in a retail district) Hard to find products (getting 110 Volt appliances in Dubai) Selectively distributed brands (exclusive distribution of brands or certain SKUs) Tailored or edited assortments (assortments exclusive to an outlet / chain) small bookshop Wide range breadth and depth category killer Borders Merchandise combinations (an electronic store that carries different brands one-stop-store for electronics) Jackys

Product differentiation

Service offerings

Location convenience Store ecology (convenience associated with parking, complementary stores, childrens play area, banks, etc.) In-store ambience and experience (ease and speed of transaction, ease of product evaluation, presentation convenience, comfortable fitting rooms, alteration, etc.) Time convenience (opening hours and queuing) Sales person (product knowledge, accessibility, and interaction) Ordering and delivery Product advice (staff, website, and in-store signage and material) Returns process and refunds After sales service

Lifestyle differentiation

Based upon perceptive insights into what customers would like to experience Customers co-create the experience in the store Positioning based upon lifestyle. (like Crate & Barrel, Williams Sonoma, Home Depot as a lifestyle DIY in the USA or Ikea) Achieved through complex interplay of all elements of retail-mix to enable customer experience the lifestyle in the store Price range of products to suit target customer Low feature low price ranges High feature top-of-line

Price differentiation

Retail positioning strategies examples

G R O S S g

CLASSIFICATION OF CAR SEGMENTS (according to size)

I) MINI : Maruti 800,Tata NANO II) COMPACT : Hyundai SANTRO / i-10 / GETZ III) MID SIZE : Hyundai ACCENT , Maruti ESTEEM IV) EXECUTIVE : Skoda OCTAVIA, Toyota COROLLA

Key Players in the Indian Auto Industry

Market Share in the Current Scenario

According to SIAM, the Society of Indian Automobile Manufacturers of India, the market share of major passenger vehicle manufacturers are:

Criteria for Market Segmentation

Psychographic Geographic
Social Class

Demographic
Age & Life Cycle Stage Family Size Income

Region
Lifestyle

Occupation

Rural/Urban

Personality

Literacy

Behavioural Segementation
Decision Roles Occasions

Benefits
Power

Technology Fuel Economy Low Operational Cost

Benefits
User Status Usage Rate

Space & Comfort

Safety Styling

Targeting
DEMOGRAPHIC : Income Group : > Rs 15,00,000 /-pa Age Group : > 30 yrs Older Married with / without children GEOGRAPHIC : Metros & Tier I Cities BEHAVIORAL : Primary Benefit : Quality Attitude towards product : Enthusiastic PSYCHOGRAPHIC : Inclination towards COMFORT, STYLE, POWER Urban A1 & A2 Westernized Lifestyle Ambitious Personality

Product Service People / Personnel Channel Image

Main focus on QUALITY & LUXURY

Highly CUSTOMIZED Engine Variants (cc, bhp) Engine Type (Petrol, Diesel, CNG) Interiors & Finish Colors & Exteriors Accessories & Gadgets Seating

Combination of COMFORT & STYLE

AT HOME SERVICE Home Pick-Up & Delivery After Service Service Stations in 15 cities (Metros & Tier I) Continued Customization Spare parts at a phone call !

Company Owned SHOWROOMS in 15 Targeted Cities. PROMOTIONAL CALLS to the targeted customers. DIAL FOR DETAILS ( Customer can call / email Ambassador to send a salesperson for Details & Customization Demo)

Qualities to be inculcated in Personnel at all levels: Courtesy Reliability Responsiveness Communication Competence Credibility

Planned Differentiation by
EXCLUSIVITY

QUALITY
LUXURY

AUTHORITY
AFFLUENCE

PRESTIGE EXCLUSIVE

COMFORT

CUSTOMISATION

QUALITY

AMBASSADOR CR AFFLUENCE LUXURY STYLE

AUTHORITY

1.Mercedes-Benz S-Class (81 Lacs) 2.Audi A-8 (73-87 Lacs) 3.BMW 6 & 7 Series (73-85 Lacs)

PRICE QUALITY
HIGH PRICE LOW QUALITY HIGH PRICE - HIGH QUALITY
MERCEDES BENZ S-CLASS AUDI A-8 BMW 6 & 7 SERIES AMBASSADOR CR LOW PRICE LOW QUALITY LOW PRICE - HIGH QUALITY

CUSTOMIZATION PRICE
HIGH CUSTOMISATION LOW PRICE HIGH CUSTOMISATION HIGH PRICE MERCEDES BENZ S-CLASS AUDI A-8 BMW 6 & 7 SERIES AMBASSADOR CR
LOW CUSTOMISATION - HIGH PRICE

LOW CUSTOMISATION LOW PRICE

 Product Scope : Long-Term Product attributes :Sophisticated, Customized to customer use, Stylish, High Price, Excellent after-sales service.

Quality : High
Uses : To make a statement / a status symbol, a comfortable, luxurious mode of transportation.

Users :Elite, Power Hungry, Status conscious segment

Country of origin :India

 Product Variety Customized Cars Quality Superior performance and conformance quality Features Gadgets like GPS device, night vision will be provided Brand Name Ambassador CR Services HM already have service centres across the country

 List Price Start from Rs 75 lacs. Payment Period

Custom made finance schemes & payment periods according to customer requirements.
Credit Terms Credit will be given to government authorities on bulk order.

 Sales Promotion Incentive to Sales executives. Advertising In auto shows and in auto magazines.

Direct Marketing
Public Relation- Sponsoring and organizing corporate events.

 Direct Marketing.
Inventory Made on order. Hence no inventory. Locations In India as well as exported.