1. SEGMENTATION, TARGETING
AND POSITIONING
UNIT - IV

2. Segmentation: { definition }
The process of taking the total heterogeneous market for a
product & dividing it into several sub markets, each of
which tends to be homogeneous in all significant aspects.
– W.J. STANTON
CRITERIA FOR SUCCESSFUL SEGMENTATION:
 Substantiality
 Measurability
 Accessibility
 Represent ability
 Nature of demand
 Response rates

3. BENEFITS OF SEGMENTATION:
 Compare the market potentialities.
 Indicator to adjust the production.
 Changes can be implemented.
 Determines promotional devices.
 Introduction of new products.

4. BASIS OF SEGMENTATION:
 Undifferentiated marketing
 Differentiated marketing
 Concentrated marketing
 Local market
 Mass market
 Segmented market
 Global markets

5. BASES FOR MARKET SEGMENTATION
Basis for segmenting
consumer markets
I. Consumer characteristics
1. Geographic segmentation
2. Demographic segmentation
3. Psychographic segmentation
4. Behavioral segmentation
Bases for segmenting
industrial markets
II.Product characteristics
1.Occasions
2.Benefits
3.User status
4.Usage rate
5.Loyalty pattern
6.Readiness stage
7.Attitude towards products

6. GEOGRAPHIC SEGMENTATION:
We can divide based on local, urban, rural markets, regional or state
markets, national or international markets, climate, weather & other
atmospheric conditions.
DEMOGRAPHIC SEGMENTATION:
• Age – infant, teenage markets.
• Sex/ Gender – male / female
• Size of the family
• Family life cycle- single, young, emptiest I, fullest I,
emptiest II, fullest II.
• Income- higher higher, higher middle, higher lower
•Education – literates, illiterates
• Different literacy, Caste & religion
•Profession & occupation, nationality

7. PSYCHOGRAPHIC SEGMENTATION:
Social class, life style, personality, perception, motivation, values,
activities, buying motives.
BEHAVIOURIAL SEGMENTATION:
Consumer behavior is based on product categories:
• Occasions
• Benefits of the products
• User status- non users, ex users, potential users, first time
users, occasional users, regular users… e.g.: cigarettes,
alcohol.
• Usage rates – light users, medium users, heavy users.
• Loyalty pattern.
•Buyer readiness stage.
• Attitude towards projects.

8. BASED FOR INDUSTRIAL MARKET SEGMENTATION:
 Geographic bases:
It can be based on distance, location of industrial unit,
area & climate.
 Types of industry:
Auto industry, IT industry, FMCG, textile, iron & steel,
chemical, cement, engineering, agro – processing & service
industry, mining etc…
 Type of business operations:
Manufacturing unit, assembling units, processing units,
distributing, retaining, consultancies.

9. CONSUMPTION RATE/ SIZE:
Heavy, medium or light.
OWNERSHIP FACTORS:
Sole traders, partnership, public & private ltd., govt.
corporations, defense, corporative, religious machineries
[trust]
BUYING METHODS:
Tender / sealed bid pricing, leasing, direct purchasing
units / service contract customers.
ORDERING TIME /FREQUENCY:
Annual customers, regular customers, occasional
customers, frequent or infrequent customers.

10. PAYMENT MODES AND TIME:
Cash purchasing buyers & credit purchasing buyers, partial
credit, fully trusted/ partially trusted buyers, gradual/
installment paying customers, short term & long term credit
buyers.
LEGAL ASPECTS:
Restricted buyers, illegal buyers.
OTHER BASIS:
Occasions, user status, loyalty pattern, benefits expected,
attitudes etc….

11. TARGET MARKETING [STEPS]:
I.
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Evaluating the target markets:
Attractiveness of the market.
Objectives [company].
Resources of the company.
II.
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Selecting the market segments:
Single segment concentration.
Selective specialization.
Product specialization.
Market specialization.
Full market coverage.

12. III. Additional considerations:
• Ethical choice of market targets.
• Segment inter – relationships.
• Segment by segment invasion.
• Inter – segment corporation.

13. POSITIONING
Developing a positioning strategy:
Positioning is the act of designing the companies offer
and image. So, that it occupies a distinct and valued place in
the target customer’s mind. When we develop:
1. Best quality
2. Best service
3. Lowest price
Positioning strategies:
 Single benefit positioning.
 Double benefit positioning.

14. AVOID FOUR [4] MAJOR POSITIONING ERRORS:
1.
2.
3.
4.
Under positioning.
Over positioning.
Confused positioning.
Doubtful positioning.
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The following criteria is useful, when positioning
strategy is made:
The positioning should be important.
It should be distinctive.
It should be superior.
The strategy should be communicable.
Affordable.
Profitable.

15. SEVEN POSITIONING STRATEGIES:
1. Attribute positioning.
2. Benefit positioning. {e.g.: ENO, Toothpaste}
3. Use/ application positioning.
4. User positioning. {e.g.: Male, female, kids products}
5. Competitor’s positioning.
6. Product category positioning.
7. Quality / price positioning.