Segmentation, Targeting &

Positioning
By: Anubhav Bansal
Roll No: 2020/3547
Paper Code: MCCC203
Paper Name: Marketing Management
 What is Market?
• A market is a place which allows the purchaser and the
seller to invent and gather information’s and lets them
carry out exchange of various products and services. In
other words the meaning of Market refers to a place
where the trading of goods & services takes place.

Total Money to Willingness

Felt Need Interested Market
Population Buy to spend
What is Market Segmentation?

“Market Segmentation is the sub-dividing of customers

into homogenous sub-set of customers where any sub-
set may conceivably selected as market target to be
reached with distinct Marketing Mix”
(Philip Kotler)
 It is the Consumer who are segmented, not
Product, nor Price

We have to be clear that in market segmentation, it is the

consumers who are segmented, not the product, nor price .Market is
about the people who consume the product, not about the product
that gets consumed.

For Example
Taking the passenger car instance again, it is
 In segmentation of the passenger car
not the cars that are segmented with price as
market, it is not the passenger cars
the base, but it is the buyer of cars that are
(product) that are segmented, but it is the
segmented, with their price preference for car
consumer/buyer of car that is segmented
as the base.
Bases for Segmenting Consumer Market

Psychographic Geographic

Market
segmentation
Other types
Behavioral
Generational

Online customer
Demographic
Cultural
Geographic segmentation

Region

Country

State

City
Example
 Demographic segmentation

Age Family size

18–24, 25–29, 30–39 1–2, 3–4, 5+

Gender Education
Male, Female Degree; Post graduate
Occupation Income

Professional, self-employed 20,001–30,000; 30,001–40,000

Home ownership
Socio-economic

A, B, C, D Renting, Own home with mortgage

Marital Status Ethnicity

Single, married Asian, African

Example
Behavioral segmentation

Purchase/Usage Occasion #Regular #Special #Festive #Gift-giving

Benefit-Sought: #Economy #Quality #Access #Convenience

Loyalty Status #Loyal #Switcher #Non-loyal #Lapsed

#Price
Attitude to Product or Service #Enthusiast #Indifferent
Conscious
Example
Psychographic Segmentation

Personality Interest

Attitudes &
Values Lifestyle
Example
Benefits of Market Segmentation

Facilitates
Helps to identify Product More efficient
effective
less satisfied development & spending
tapping &
segment design
opportunities
Levels of Market Segmentation
Mass Marketing

• In Segmentation, 
Mass marketing refers to the strategy of targeting the entire potential custo
mer market
 by means of a single marketing message. The marketing strategy used in
this segmentation does not target the specific requirements or needs of
customers.

Mass
Marketing
Segment Marketing
Segment marketing refers to a strategy where
the company divides its target audience into
different segments based on their unique
needs and requirements. This way the
company targets different messages to
different segments, appealing them towards
the unique features the product offers.

For example, Unilever sells different brands of

soap-like—Lux, Lifebuoy, wheel, etc.
Niche Marketing

• This strategy of marketing focuses on a narrower customer segmentation.

Customers may want or desire a product that is not met completely by the
products offered in a market. When companies move forward and develop
highly specialized products to offer these customers their specific needs,
they offer distinct products in a market that caters to specific customer
segments only.

Mountain bikes are an example of a 

niche marketing segment. where the market
segmentation will be individuals interested in mountain
biking only. 
Micro Marketing

• Micro marketing follows an even narrower segmentation marketing

strategy, catering to the attribute of a much-defined subset of potential
customers such as catering to individuals of a specific geographical
location or a very specific lifestyle.

 Red Bull implemented micromarketing strategy

successfully The company chose youth participating in
extreme sports as their target group and built a successful
marketing strategy around it.
 Effective Market Segmentation

Measurability
Substantiality
(In terms of size and
(Large and profitable)
purchasing power)

Actionability
(to be effective makers of segmentation
should be compatible with the manpower,
financial and managerial resources)

Accessibility
Differentiability
(Reached and served through
(Clearly distinguishable)
suitable means of distribution
of promotion)
Target Market

Market targeting is a process of selecting the target

market from the entire market. Target market consists
of group/groups of buyers to whom the company wants
to satisfy or for whom product is manufactured, price is
set, promotion efforts are made, and distribution
network is prepared.
Market targeting procedure consists of two steps:

1. Evaluating Market Segments: Evaluation of market segments calls for

measuring suitability of segments. The segments are evaluated with certain
relevant criteria to determine their feasibility.
•  Attractiveness of Segment
• Objectives and Resources of Company

2. Selecting Market Segments: When the evaluation of segments is over, the

company has to decide in which market segments to enter. That is, the company
decides on which and how many segments to enter. This task is related with selecting
the target market
 Types of Target Marketing

Concentrated or
Undifferentiated
focused marketing
marketing

Differentiated
Micromarketing 
marketing Marketing
Undifferentiated Market Targeting

The company who are approaching the vast audience with the supply of
mass-produced product used this strategy. This strategy results in the lower
cost of production and marketing which helps in earning huge revenue.

Coca-Cola is the best example of it where they target every

kind of customer from children to adults to aged people.
They have a fixed type of production and heavily invest in
marketing to increase their sales.
Differentiated Market Targeting

• In Differentiated market targeting strategy, a company opt to target

multiple market segments and design different and 
effective marketing mix for each market segment. A Differentiated
market targeting approach is likely to create more sales than does
undifferentiated marketing. But due to distinct marketing mix, the
promotion cost also increases.

For example, the segmentation of Unilever

generates more sales by achieving higher market
share through various detergent brands which they
could not with just one brand
Concentrated Market Targeting

• In concentrated / niche market targeting strategy, resources are focused and

target specific market segments. Concentrated marketing strategies are
effective for those small companies having limited resources. Due to
focused strategy they can perform better compare to large businesses.

Example- Justice is a tween girl’s apparel company with

over 800 storefronts in the US and Canada. It cemented its
success by focusing on a particular target audience – girls
ages 6–12yrs
Micromarketing Market Targeting

• Micromarketing strategy involves developing products, services and

marketing programs best match with individuals and locations. Small
business owners can use micromarketing strategy to target customers at
personal level. Micromarketing includes local marketing and individuals
marketing.

Example- T-shirts websites like Teespring

Positioning

This is the last step of the STP Marketing process. Position means place.
The place a product occupies in consumer’s mind relative to competing
product.

Example
Tesla and Audi position themselves as a luxury status
symbol.
Microsoft and Apple position themselves as a tech company
that offers innovative and user-friendly products.
 Positioning of brand, products and
services is a continuous process for
companies. It is a reiterative process so
that companies can continuous create a
positive brand image in the mind of the
customer based on their product
offering.
 World’s 2nd biggest car
company

What so special about this company ?

How it became so successful ?

All this is possible with research on different segments to target different
markets and keeping their position in the market.
Segmentation Strategy of Volkswagen
Volkswagen producing different types of cars for different needs under their subsidiaries
each model of the Volkswagen fully segmented with dedication to specific type
of customer. They are producing small cars like polo, golf and famous beetle to much
costly one like Lamborghini, Bentley and Bugatti.

• Young, Single and Professionals between the ages of 18-24 years old.
•Consumer who regards cars/vehicle as ‘status’ differentiator and has specific technical
details requirement like LED headlights, Bluetooth enable system.
•Consumers who have priority for speeds and better run engine for example the V6/V8
engine with higher horsepower capacities.
•Married Couples with children. Family centric focused on safety features, space and
basic family needs like Rear End monitoring system, Crash optimized rear end.
Targeting Of Volkswagen

• VW targets various groups of consumers from the middle class to the

upper-middle class and upper class.
• The premium brands in the group appeal to the higher-end segment of the
market, whereas the smaller cars by VW target the middle-class families.
• Audi is a brand under the Volkswagen group whose primary target market
is the affluent urban consumer.
• The passenger cars made by VW are targeted at the middle-class
consumers looking for sturdy and safe vehicles at affordable prices.
Positioning Of Volkswagen

• Volkswagen keeping it’s customer values and employed some kind of

value delivery programs. Volkswagen produces his cars all around the
world: Brazil, China, India, Germany, Slovakia, North America, Hungary,
Japan, Russia, Nigeria, Spain, Argentina, Portugal, Poland, Mexico, and,
South Africa.
• VW has positioned itself as the passenger-friendly mobility brand for the
urban masses. The automobile brand offers cars for both the price-sensitive
and premium consumers. 
 Conclusion

A very important concept of segmentation targeting

and positioning model is that all the three steps
should be in alignment with one another so as to
develop a fluid plan. Segmentation allows reaching
the right target market which paves way for an
appropriate positioning strategy. If any step within
the STP model changes, it is important that the
whole work from segmentation should be done and
the strategy needs to be re-worked or else the
market strategy will be destined to fail
Thank You