Professional Documents
Culture Documents
Segmentation and Positioning
Segmentation and Positioning
• In global marketing, market segmentation becomes especially critical because of wide divergence in
cross-border consumer needs and lifestyles.
• Most companies will identify and target the most attractive market segments that they can
effectively serve.
• Once the management has chosen its target segments, management needs to determine a competitive
positioning strategy for its products.
Marketing
Environmental Marketing
Environmental Management
Variables Management
Variables Variables
Variables
1. Measurability Degree to which size, purchasing power and profits of a market segment can be
measured.
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2. Accessibility Degree to which a market segment can be reached and served.
3. Substantiality Degree to which a market segment is sufficiently large or profitable.
4. Actionability Degree to which effective programmes can be designed for attracting and serving the
given market segment.
1. Country Screening
2. Global Market Research
3. Entry Decisions
4. Positioning Strategy
5. Resource Allocation
6. Marketing Mix Policy
7. Balance between standardization and customization
Market segmentation
Research based exercise that incorporates several stages:
1. Qualitative research Exploratory techniques to determine motivations and attitudes.
2. Quantitative research Structured questionnaire to gain information.
3. Analysis Factor and cluster analysis. Automatic Interaction Detection and conjoint analysis.
4 Validation Statistical validation.
5. Profiling Distinguishing attitudes and behaviours.
Mass marketing Assumes market is homogenous and uses the same product, promotion and distribution to
all consumers.
Segment marketing Adapting a company’s offerings so they more closely match the needs of one or more
segments.
Niche marketing Adapting a company’s offerings to match the needs of one or more sub-segments more
closely where there is little competition.
Micro marketing Marketing programmes tailored to narrowly defined geographic, demographic,
psychographic behavioural segments.
Micro marketing
1. Local Marketing Tailoring brands and promotions to the needs and wants of local customer groups.
2. Individual marketing Tailoring products and marketing programmes to the needs and preferences of
individual customers.
3. Mass customisation Preparing individually designed products and communication on a large scale.
Market segmentation
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• Different market segmentation variables to develop the most effective segmentation method.
• Major variables used are geographic, demographic, psychographic and behavioural.
Corporate Insight
PEARS(HLL Product)
Segmentation 1
Geographic segmentation
Dividing a market into different geographical units such as countries, states, regions, towns.
Demographic segmentation
• Age and life-cycle segmentation.
• Ethnic segmentation.
• Gender segmentation.
• Income segmentation.
•
Geo-demographics
Study of relationship between geographical location and demographics.
Segmentation (2)
Psychographic segmentation
Social class
Lifestyle
Young and Rubican’s Cross-Cultural Consumer characterisation:
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The constrained: limited by income, can be ‘resigned poor’ or ‘struggling poor’.
The middle majority: ‘aspirers’ and ‘succeeders’.
The innovators: ‘transitionals’ and ‘reformers’.
Behavioural segmentation Markets segmented based upon consumer knowledge, attitude, use or
response to a product.
• Occasion segmentation
• Benefit segmentation
• User status
• Usage rate
• Loyalty status
• Buyer readiness stage
• Attitude towards product
Corporate Insight
Corporate Insight
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Use of behavioral segmentation in the consumer market
TNS identified six need based segments in Indian
Automotive sector
1. Potency buyers
2. Utility buyers
3. Prestige buyers
4. Adventure buyers
5. Status buyers
6. Liberation buyers
Illustration no. 1
Recent study by Signode Corporation (industrial packaging division)revealed the following four types of
buyers:
1.Programmed buyers
View products as not very important to their business. Pay full price and accept little service. Highly
profitable.
2.Relationship buyers
View products as moderately important. Small discounts and good profitability. Modest amount of service.
3.Transaction buyers
View products as very important to their business. Large discounts for volume. Well informed on products
and competitor products.
4.Bargain hunters
Demand highest service and biggest discounts. Volume customers though not very profitable.
Corporate insight
HDFC BANK
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Product :- Corporate Credit Card for SME
Brand Name :- HBFC Bank Power Plus Business Card
Multivariate segmentation
International Targeting
POSITIONING
Product Positioning
Strengthen a brand’s current position in the mind of the consumers.
Search for a new unoccupied position that is valued by enough consumers and occupy that. De-position or
re-position the competition.
Corporate Insight
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HMSI (HONDA MOTORCYCLE AND SCOOTER INDIA)
Gender oriented Positioning :- For women
Brand Name :- Honda Activa and Dia
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Corporate Insight
1. Global consumer culture positioning (GCCP) Brand as a symbol of a given global consumer culture
2. Local consumer culture positioning (LCCP) Brand as an intrinsic part of the local culture.
3. Foreign consumer culture positioning (FCCP) Brand mystique built around a specific foreign culture
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4.Specialised industries An industry where there are many opportunities for firms to create competitive
advantages that are huge and give a high pay-off.
Differentiating markets Companies and their market offerings can be differentiated along the lines of
products, services, personnel or image.
Corporate Insight
Corporate Insight
4.Image differentiation Images that reflect the ‘soul’ or ethos of the company
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5.Value positioning A range of positioning alternatives based on the value an offering delivers and its
price.
More for more Premium product and premium price, supported by a premium image. E.g. Mont Blanc
pens
More for the same Brand offering comparable quality at a lower price. E.g. Lexus versus the Mercedes-
Benz.
The same for less Value proposition e.g. Amazon.com
Less for much less Trade off between luxury and necessity. E.g. Five star hotel versus a budget hotel.
Lower performance for much lower cost.
More for less No-name house brands versus the big brands.
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