Download Segmentation and Positioning

Segmentation and Positioning
Why do we need to segment?
• Because different consumer groups needs
are different
• To maintain focus on the customer target
segment
• To customise advertising according to target
segment
Segmentation is a spectrum
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Concentrated marketing
Differentiated marketing
Mass marketing
Niche marketing
Segmentation Strategy
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Demographic
Usage
Brand Loyalty
Attitudes and benefits
Psychographic or lifestyle
Culture and ethnic subculture
Reaching Target segments
• Controlled coverage
• Customer self-selection
Positioning
• What the product stands for?
• Mind-share
Positioning and segmentation strategies
must have fit. A brand must be positioned to
be maximally effective in attracting the
desired target segment.
Positioning strategies
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Product characteristics/benefits
Price-quality approach
Use or application approach
Product class approach
Product user approach
Cultural symbol approach
Competitor approach
Positioning strategies
• Identify competitors
• Determine how competitors are perceived
and evaluated
• Determine the competitors positions
• Analyse the customers
• Select the position
• Monitor the position
Psychographically Understanding the TV User
High Price/ Quality
The prestige-seeker
Philips
Samsung
Sony
The technology-seeker
LG
The reliance-seeker
Conservative
Toshiba
BPL
Videocon
Innovative
Onida
Akai
Sansui
I am very interested in new technology and gadgets
The economy-seeker
Aiwa
Sharp
Low Price/ Quality
Positioning Decision
• Economic analysis should guide the decision
• Segmentation commitment
• Not change for change sake. To stick with the
advertising if it is working.
• Make it easy for customers to remember/recall.
Use symbols, logos, etc. as a memory aid.
• Be honest.