MARKETING MANAGEMENT Segmentation, Targeting, and Positioning Submitted By:- Anand Rathi

MARKETING MANAGEMANT (Segmentation, Targeting, and Positioning) PART 1 Segmentation, Targeting, and Positioning: 1) Segmentation: Segmentation, targeti ng, and positioning together comprise a three stage process. We first, (1) Deter mine which kinds of customers exist, then (2) Select which ones we are best off trying to serve and, finally, (3) Implement our segmentation by optimizing our p roducts/services for that segment and communicating that we have made the choice to distinguish ourselves that way. Segmentation involves finding out what kinds of consumers with different needs e xist. In the auto market, for example, some consumers demand speed and performan ce, while others are much more concerned about roominess and safety.

MARKETING MANAGEMANT (Segmentation, Targeting, and Positioning) Types of Segmentation: 1) Geographic variables:a) Region of the world or country: East, West, South, No rth, Central, coastal, hilly, etc. b) Country size/country size: Metropolitan Ci ties, small cities, towns. c) Density of area: Urban, Semi-urban and Rural. d) C limate: Hot, Cold, Humid, Rainy. 2) Demographic variables:a) b) c) d) e) f) g) h) i) j) k) Age Gender Family size Education Income Occupation Education Socioeconomic status Religion Nationality Language 3) Psychographic variables a) b) c) d) Personality Life style Value Attitude

MARKETING MANAGEMANT (Segmentation, Targeting, and Positioning) 4) Behavioral variables a) b) c) d) e) f) g) h) Benefit Sought. Product Usage Ra te. Brand Loyalty. Product end Use. Readiness-to-buy Stage. Decision Making Unit . Profitability. Income Status. In general, it holds true that You cant be all things to all people, and experience has demonstrated that firms that specialize in meeting the needs of one group o f consumers over another tend to be more profitable. Levels of Market Segmentati on:Mass Marketing Same product to all consumers (No segmentation) Segment Marketing Different products to one or more segments (some segmentation) Niche Marketing Different products to subgroups within segments (more segmentati on) Micromarketing Products to suit the tastes of individuals or locations (complete segmentation) Generically, there are three approaches to marketing. In the undifferentiated st rategy, all consumers are treated as the same, with firms not making any specifi c efforts to satisfy particular groups. This may work when the product is a stan dard one where one

MARKETING MANAGEMANT (Segmentation, Targeting, and Positioning) Competitor really cant offer much that another one cant. Usually, this is the case only for commodities. In the concentrated strategy, one firm chooses to focus o n one of several segments that exist while leaving other segments to competitors . For example, Southwest Airlines focuses on price sensitive consumers who will forego meals and assigned seating for low prices. In contrast, most airlines fol low the differentiated strategy: They offer high priced tickets to those who are inflexible in that they cannot tell in advance when they need to fly and find i t impractical to stay over a Saturday. These travelersusually business travelerspa y high fares but can only fill the planes up partially. The same airlines then s ell some of the remaining seats to more price sensitive customers who can buy tw o weeks in advance and stay over. Note that segmentation calls for some tough ch oices. There may be a large number of variables that can be used to differentiat e consumers of a given product category; yet, in practice, it becomes impossibly cumbersome to work with more than a few at a time. Thus, we need to determine w hich variables will be most useful in distinguishing different groups of consume rs. 2) Targeting:A target market or target audience is a group of customers that the business has decided to aim its marketing efforts and ultimately its mercha ndise.[1] A well-defined target market is the first element to a marketing strat egy. The target market and the marketing mix variables of product, place(distrib ution), promotion and price are the two elements of a marketing mix strategy tha t determine the success of a product in the marketplace. A principal concept in target marketing is that those who are targeted show a strong affinity or brand loyalty to that particular brand. Research has shown that racial similarity, rol e congruence, labeling intensity of ethnic identification, shared knowledge and ethnic salience all promote positive effects on the target market. Research has generally shown that target marketing strategies are constructed from consumer i nferences of similarities between some aspects of the advertisement (e.g., sourc e pictured, language used, lifestyle represented) and characteristics of the con sumer (e.g. reality or desire of having the represented style. Consumers are per suaded by the characteristics in the advertisement and those of the consumer.

MARKETING MANAGEMANT (Segmentation, Targeting, and Positioning) 3) Positioning:In marketing, positioning has come to mean the process by which m arketers try to create an image or identity in the minds of their target market for its product, brand, or organization. Although there are different definition s of Positioning, probably the most common is: identifying a market niche for a brand, product or service utilizing traditional marketing placement strategies ( i.e. price, promotion, distribution, packaging, and competition). Product positi oning process Generally, the product positioning process involves: 1) Defining t he market in which the product or brand will compete (who the relevant buyers ar e) 2) Identifying the attributes (also called dimensions) that define the produc t 'space' 3) Collecting information from a sample of customers about their perce ptions of each product on the relevant attributes 4) Determine each product's sh are of mind 5) Determine each product's current location in the product space 6) Determine the target market's preferred combination of attributes (referred to as an ideal vector) 7) Examine the fit between: 8) The position of your product 9) The position of the ideal vector 10) Position.

MARKETING MANAGEMANT (Segmentation, Targeting, and Positioning) PART 2

MARKETING MANAGEMANT (Segmentation, Targeting, and Positioning) SEGMENTATION OF AIRTEL Segmentation is very important because of the better pred ictability of the target consumer group and to design the proper marketing mix s trategy. On the basis of Geographic variables: Region wise: East Region (West Ben gal, Assam, Arunachal Pradesh etc) West Region (Gujarat, Rajasthan, Maharashtra etc) South Region (Andhra Pradesh, Karnataka, Kerala etc) North Region (Punjab, Haryana, Himachal Pradesh etc) Central Region (Madhya Pradesh, Chhattisgarh, Jha rkhand etc) Density of area: Urban (Cities Such As Mumbai, Delhi, Pune, Jaipur e tc) Semi-urban (Nasik, Aurangabad, Ahemadnagar etc) Rural (Baramati, Khed, Saswa d etc) On the basis Demographic variables: Age : 1) From age group 18 to 35: As m ost of the people start using a mobile from the age of 18 so we may make a segme nt of a age group 18 to 35 as most of the will be students and remaining will be freshers working in the industry. So they need SMS plans for chatting and they also need cheap calling rates. We may provide the FRINDZ card to them.

MARKETING MANAGEMANT (Segmentation, Targeting, and Positioning) 2) 35 and above: As most of these group will be working and dont use mobile for S MS and chatting. So this group needs only the calling facility at a reasonable r ate. This Group may continue using the general plan. Income PREPAID & POSTPAID : Generally the mobile service providers plan their ma rketing strategies according to the prepaid market and postpaid market. So it is basically depends upon the income of the consumer that whether he selects the p repaid or postpaid. Generally the consumers with low income choose prepaid and c onsumers with high income choose postpaid. On the basis of Behavioral variables Brand Loyalty: We can also segment it on the basis of the loyal customers and no n loyal customers of the brand. We can provide various schemes and offers to the loyal customers to retain him with our product.

MARKETING MANAGEMANT (Segmentation, Targeting, and Positioning) Targeting of Airtel Airtel has targeted the premium and upper middle class. The motto behind this this only those segments should be targeted who value time and have the paying capacity. During the introduction stage there was a huge pressu re to get consumers across to hook up with their brand, because getting them to Airtel by their earlier brand and switching their brand loyalty was too tough. A irtel marketers have been concentrating totally on the business executive class but now that the basic viable volumes has been built up and prices have declined to a certain extent they are planning to venture further field. TARGETING AREAS : Professionals by giving free calls in postpaid connections. Entrepreneur by gi ving various plan in which they may get internal calling free. Youth with the FRI ENDZ Scheme. Targeting Students by introducing postpaid connection only for stude nts and with zero rentals. Positioning: The product is supposed to be a business efficiency tool. A lifesty le revolution and a status symbol The emphasis is to remove misconception that t he cell phone is an expensive means of communication Its a day to day use commodi ty and is no more a symbol of status.