CLASS XI// MARKETING
TOPIC: SEGMENTATION, TARGETING AND POSITIONING
All customers in a broadly defined
market don’t have the same
needs. But successful marketers
decide about the products to offer
and the markets to be serviced. One
size doesn’t fit everyone very well.
“One cannot be everything to
everyone, but can be everything
to a selected few” and that no two
individuals can be the same. These
are the foundations for segmentation. For this purpose market
segmentation is core to marketing. To create differentiation, marketers use
segmentation, targeting, and positioning, or STP.
MEANING OF SEGMENTATION
Segmentation process consists of three
stages: Segmenting, targeting, and
positioning. The three are popularly
known as STP in marketing. .
Market segmentation is the process of
dividing a heterogeneous market
(aggregated) into homogeneous sub
unit (segregated). Market
segmentation is the identification of portions of the market that are
different from one another or share a similar set of needs.
IMPORTANCE OF SEGMENTATION
, IMPORTANCE OF SEGMENTATION
No market is totally homogeneous and to create meaningful segments,
marketers must understand different purchase combinations that satisfy
the need. For example: Mercedes produces worldwide the same cars, but it
advertises the cars as “quality” cars in Germany, but as “prestige” cars in
India
1.Improved Customer Relations: Segmentation will enable the buyer
to find the products most fitting to their physical or/and psychological
needs. Customers finding products more tailored to their needs, would be
more loyal to the firm (s). Since segmentation helps to meet the customer
needs, expectations, aspirations and share of wallet, market segmentation is
customer-oriented.
2.Perfect-like Marketing Mix: Since market segmentation assists in
defining shopping habits (when, how much and how many times), price
sensitivity and the benefits required. This helps in making marketing mix
more accurate.
3.Better Resource Allocation: Since Segmentation’s objective is to serve
customers better and earn more profits, the firm would like to
allocate resources more efficiently. Segmentation reveals who not to target
and which customer groups will be best recipients of resources. Thus,
market segmentation will lead to better marketing.
4.Competitor Analysis: To compete better in the market one must have
complete knowledge of the competitors, the segments being served by
them, and their working practices. Especially, the medium-sized firms can
grow rapidly through strong positions in specialised market segments.
Thus, segmentation is a source of competitive advantage and enhances
awareness of external market trends and competition.
5.Taking care of Dynamic Environment: Customer segments, which are
likely to frequent changes due to changing environment, can be taken
care of in strategic marketing planning. In fact, large companies with
resources at command are leaving mass marketing.
6.Focus Marketing Communication: Segmentation establishes
commitment and single-mindedness with the organisation: one vision,
one voice, harmonised messages. Segmentation allows an organisation to
identify media channels competent to reach the target group. Young women
interested in fashion are more likely to read ‘Femina’. Thus marketer can
select this medium instead of going in for mass media.
TOPIC: SEGMENTATION, TARGETING AND POSITIONING
All customers in a broadly defined
market don’t have the same
needs. But successful marketers
decide about the products to offer
and the markets to be serviced. One
size doesn’t fit everyone very well.
“One cannot be everything to
everyone, but can be everything
to a selected few” and that no two
individuals can be the same. These
are the foundations for segmentation. For this purpose market
segmentation is core to marketing. To create differentiation, marketers use
segmentation, targeting, and positioning, or STP.
MEANING OF SEGMENTATION
Segmentation process consists of three
stages: Segmenting, targeting, and
positioning. The three are popularly
known as STP in marketing. .
Market segmentation is the process of
dividing a heterogeneous market
(aggregated) into homogeneous sub
unit (segregated). Market
segmentation is the identification of portions of the market that are
different from one another or share a similar set of needs.
IMPORTANCE OF SEGMENTATION
, IMPORTANCE OF SEGMENTATION
No market is totally homogeneous and to create meaningful segments,
marketers must understand different purchase combinations that satisfy
the need. For example: Mercedes produces worldwide the same cars, but it
advertises the cars as “quality” cars in Germany, but as “prestige” cars in
India
1.Improved Customer Relations: Segmentation will enable the buyer
to find the products most fitting to their physical or/and psychological
needs. Customers finding products more tailored to their needs, would be
more loyal to the firm (s). Since segmentation helps to meet the customer
needs, expectations, aspirations and share of wallet, market segmentation is
customer-oriented.
2.Perfect-like Marketing Mix: Since market segmentation assists in
defining shopping habits (when, how much and how many times), price
sensitivity and the benefits required. This helps in making marketing mix
more accurate.
3.Better Resource Allocation: Since Segmentation’s objective is to serve
customers better and earn more profits, the firm would like to
allocate resources more efficiently. Segmentation reveals who not to target
and which customer groups will be best recipients of resources. Thus,
market segmentation will lead to better marketing.
4.Competitor Analysis: To compete better in the market one must have
complete knowledge of the competitors, the segments being served by
them, and their working practices. Especially, the medium-sized firms can
grow rapidly through strong positions in specialised market segments.
Thus, segmentation is a source of competitive advantage and enhances
awareness of external market trends and competition.
5.Taking care of Dynamic Environment: Customer segments, which are
likely to frequent changes due to changing environment, can be taken
care of in strategic marketing planning. In fact, large companies with
resources at command are leaving mass marketing.
6.Focus Marketing Communication: Segmentation establishes
commitment and single-mindedness with the organisation: one vision,
one voice, harmonised messages. Segmentation allows an organisation to
identify media channels competent to reach the target group. Young women
interested in fashion are more likely to read ‘Femina’. Thus marketer can
select this medium instead of going in for mass media.
