MARKETING MANAGEMENT

Unit III
Market segmentation, targeting, positioning and branding.
Segmentation – Meaning, factors influencing segmentation, market
aggregation, basis for segmentation, segmentation of consumer and
industrial markets.
Targeting – Meaning, basis for identifying target consumers, target
market strategies. Positioning – Meaning, Product differentiation
strategies, tasks involved in positioning Branding – Concepts of
branding, brand types, brand equity, branding strategies

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Steps
Steps in
in Segmentation,
Segmentation,
Targeting,
Targeting, and
and Positioning
Positioning

6. Develop Marketing
Mix for Each Target Segment Market
5. Develop Positioning Positioning
for Each Target Segment
4. Select Target
Segment(s)
Market
3. Develop Measures Targeting
of Segment Attractiveness
2. Develop Profiles
of Resulting Segments
1. Identify Bases Market Segmentation
for Segmenting the Market

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Levels
Levels of
of Market
Market Segmentation
Segmentation

Mass
Mass Marketing
Marketing
Same
Same product
product to
to all
all consumers
consumers
(no
(no segmentation)
segmentation)

Segment
Segment Marketing
Marketing
Different
Different products
products to
to one
one or
or more
more segments
segments
(some
(some segmentation)
segmentation)

Niche
Niche Marketing
Marketing
Different
Different products
products to
to subgroups
subgroups within
within segments
segments
(( more
more segmentation)
segmentation)

Micromarketing
Micromarketing
Products
Products to
to suit
suit the
the tastes
tastes of
of individuals
individuals or
or locations
locations
(complete
(complete segmentation)
segmentation)
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Bases
Bases for
for Segmenting
Segmenting Consumer
Consumer Markets
Markets

Geographic
Nations, states,
regions or cities

Demographic
Age, gender, family size
and life cycle, or income

Psychographic
Social class, lifestyle,
or personality

Behavioral
Occasions, benefits,
uses, or responses

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Using
Using Multiple
Multiple Segmentation
Segmentation
Bases:
Bases: Geodemographics
Geodemographics

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Bases
Bases for
for Segmenting
Segmenting Business
Business Markets
Markets

Personal Demographics
Characteristics

Bases
Bases
for
for Segmenting
Segmenting
Situational Business
Business Operating
Factors Markets
Markets Characteristics

Purchasing
Approaches

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Bases
Bases for
for Segmenting
Segmenting International
International Markets
Markets

Industrial
Industrial Markets
Markets

Political/
Political/
Geographic
Geographic Economic
Economic Legal
Legal

Cultural
Cultural Intermarket
Intermarket

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Step
Step 1.
1. Market
Market Segmentation
Segmentation
Requirements
Requirements for
for Effective
Effective Segmentation
Segmentation

Measurable
Measurable • Size, purchasing power, profiles
of segments can be measured.

Accessible
Accessible • Segments must be effectively
reached and served.

Substantial
Substantial • Segments must be large or
profitable enough to serve.

Differential
Differential • Segments must respond
differently to different marketing
mix elements & actions.

Actionable
Actionable • Must be able to attract and serve
the segments.

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Steps
Steps in
in market
market segmentation
segmentation

Survey
Survey
(info
(infoon
onawareness,
awareness,attitudes,
attitudes,usage
usagepattern
patternand
andbehaviour)
behaviour)

Analysis
Analysis
(Data
(Datais
istabulated
tabulatedand
andcluster,
cluster,factor
factor
or MDS is done)
or MDS is done)

Profiling
Profiling
(Grouped
(Groupedusing
usingperceptual
perceptualmaps,
maps,
dendrograms,
dendrograms, icicle plotsetc)
icicle plots etc)

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Step
Step 2.
2. Market
Market Targeting
Targeting
Evaluating
Evaluating Market
Market Segments
Segments
• Segment Size and Growth
– Analyze sales, growth rates and expected profitability.

• Segment Structural Attractiveness

– Consider effects of: Competitors, Availability of Substitute
Products and, the Power of Buyers & Suppliers.

• Company Objectives and Resources

– Company skills & resources relative to the segment(s).
– Look for Competitive Advantages.

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Step
Step 2.
2. Market
Market Targeting
Targeting
Market
Market Coverage
Coverage Strategies
Strategies
Company
Company
Marketing
Marketing Market
Market
Mix
Mix

A. Undifferentiated Marketing
Company
Company
Marketing Segment
Segment 11
Marketing Mix
Mix11
Company
Company Segment
Segment 22
Marketing
MarketingMix
Mix22
Company
Company Segment
Segment 33
Marketing
Marketing Mix
Mix33
B. Differentiated Marketing

Segment
Segment 11
Company
Company
Marketing
Marketing Segment
Mix Segment 22
Mix
Segment
Segment 33
C. Concentrated Marketing
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Step
Step 2.
2. Market
Market Targeting
Targeting
Choosing
Choosing aa Market-Coverage
Market-Coverage
Strategy
Strategy
Company
Resources

Product
Variability

Product’s Stage
in the Product Life Cycle

Market
Variability

Competitors’
Marketing Strategies
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 Selecting
Selecting segments
segments

Single segment concentration

Selective specialisation

Product Specialisation

Market Specialisation

Full market coverage

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Step
Step 3.
3. Positioning
Positioning for
for Competitive
Competitive
Advantage
Advantage

• Product’s Position - the place the product

occupies in consumers’ minds relative to
competing products; i.e. Volvo positions
on “safety”.

• Marketers must:
– Plan positions to give products the greatest advantage
– Develop marketing mixes to create planned positions

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Step
Step 3.
3. Positioning
Positioning for
for Competitive
Competitive
Advantage:
Advantage: Strategies
Strategies

Product
Product Product
Product
Class
Class Attributes
Attributes

Away
Away from
from Benefits
Benefits
Competitors
Competitors HH
GG
Offered
Offered
CC

A
A
DD
Against
Against aa E
E
B
Usage
Usage
B
Competitor
Competitor
FF
Occasions
Occasions

Users
Users

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Steps
Steps to
to Choosing
Choosing and
and Implementing
Implementing
aa Positioning
Positioning Strategy
Strategy

• Step 1. Identifying a set of possible

competitive advantages: Competitive
Differentiation.

• Step 2. Selecting the right competitive

advantage.

• Step 3. Effectively communicating adn

delivering the chosen position to the market.

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Developing
Developing Competitive
Competitive
Differentiation
Differentiation
Product
Product Service
Service

Areas
Areas for
for Competitive
Competitive
Differentiation
Differentiation

Personnel
Personnel Image
Image

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Selecting
Selecting the
the Right
Right Competitive
Competitive
Advantages
Advantages

Important
Important

Profitable
Profitable Criteria Distinctive
Distinctive
for
Determining
Which
Differences
Affordable
Affordable to Superior
Superior
Promote

Preemptive
Preemptive Communicable
Communicable

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What
What is
is aa brand?
brand?
• Philip Kotler defines it as a “name, term, sign,
symbol or design or a combination of them
intended to identify the goods or services of one
seller or group of sellers and differentiate them
from those of competitors”

• But brand managers and ad agency professionals

take it one step further and says that it also
involves “the ideas and images that come to your
mind and the feelings associated with those
images when you hear the name mentioned”

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Nimal C Namboodiripad
Brand
Brand

Identifier
Identifier

A brand
thus has
Differentiator
Differentiator
three levels
of uses

Feelings
Feelings

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Brands
Brands
Benefits
Benefits Values
Values

Has upto
Attributes
Attributes six levels Culture
Culture
of meaning

User
User Personality
Personality

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Brands
Brands

Consistency
Consistency Quality
Quality &
& Value
Value

Attributes
Attributes Advantages Identification
Identification
of
Brand Names

Brand
Association
Association Loyalty
Loyalty
Equity

Credibility
Credibility Awareness
Awareness

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Value
Value of
of Branding
Branding

• For Consumers
– Helps speed consumer purchases by identifying specific preferred
products
– Provides a form of self-expression and status
– Evaluates product quality to reduce the risk of purchase
• For Marketers
– Identifies and differentiates a firm’s products from competing
products
– Helps in the introduction of new products
– Facilitates the promotion of all same-brand products
– Fosters the development of brand loyalty
– Can create valuable intangible assets

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Major
Major Brand
Brand Decisions
Decisions
To
To Brand
Brand or
or Not
Not to
to Brand
Brand
Brand
Brand
No
NoBrand
Brand
Brand
Brand Name
Name Selection
Selection
Selection
Selection
Protection
Protection

Brand
Brand Sponsor
Sponsor
Manufacturer’s
Manufacturer’sBrand
Brand Co-branding
Co-branding
Private
PrivateBrand
Brand Licensed
LicensedBrand
Brand

Brand
Brand Strategy
Strategy
New
NewBrands
Brands
Line/Brand
Line/BrandExtensions
Extensions Multibrands
Multibrands
Brand
Brand Repositioning
Repositioning
Brand
BrandRepositioning
Repositioning
No
NoBrand
BrandRepositioning
Repositioning
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Brand
Brand Name
Name Decision
Decision
Individual
Individual Brand
Brand Name
Name
Allen
AllenSolly,
Solly,Byford,
Byford,Van
VanHeusen...
Heusen...

Blanket
Blanket Family
Family Name
Name
BPL
BPL

Separate
Separate family
family name
name
for
for products
products
Meltrack,
Meltrack,Carborundum,
Carborundum,Coromandal,
Coromandal,
Cholamandalam,
Cholamandalam,Parry,
Parry,Tube
TubeInvestment
Investment

Company
Company and
and individual
individual name
name
Britannia
BritanniaLittle
Little Hearts,
Hearts,Britannia
Britannia Tiger
Tiger
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Brand
Brand Name
Name Decision
Decision
•The Brand Name: The part of a product that can be
spoken
• should suggest something about the product’s
benefits
• Should suggest product attributes
• Easy to pronounce, recognise and remember
• Should be distinctive
• Should be protectable
• Should not carry poor meanings in other languages

•The Process of naming the brand includes

•Situation analysis (product/service, Market and
trademark information)
•Setting brand name objectives
•Name creation
•Selecting the name
•Testing the names Nimal C Namboodiripad
 Brand
Brand Strategy
Strategy

Product Category
Existing New
Brand Name

Existing Line Brand

Extension Extension

New
New Multibrands
Brands

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Brand
Brand Strategy
Strategy
• Line Extension
– Existing brand names extended to new forms,
sizes, and flavors of an existing product category.
• Brand Extension
– Existing brand names extended to new product
categories.
• Multibrands
– New brand names introduced in the same product
category.
• New Brands
– New brand names in new product categories.

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Measuring
Measuring Brand
Brand Equity
Equity
• Brand equity is measured by measuring it
component parts among the Target Group:
– Awareness/Recognition
– Loyalty
– Associations
– Perceived quality/credibility
• Awareness has four dimensions
– Top Of Mind - this is the first name that comes to the
mind of the respondent when the product is
mentioned. 100% TOM is the ideal
– Unaided - These are the names that the respondent
mentions without any prompting
– Aided - people remember when you mention name
– Not aware - this has to be rectified at all costs
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Measuring
Measuring Brand
Brand Equity
Equity

• Loyalty has to be looked at from different angles:

– Are they satisfied with the brand now and will they buy it in
the future?
– Has people shifted from our brands to competition?
– Will they buy the brand even if the price is increased or
competitor comes up with a discount or promo?
– Do they ask for the brand when they go to a shop? Brand
Preference
– If the brand is not available what do they do
» Go to next shop(loyal) – called Brand Insistence
» Take another specific brand ( Split loyal)
» Buy whatever is available( Low loyalty)

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Measuring
Measuring Brand
Brand Equity
Equity
• Associations:
– Check whether respondents can associate logo and
other identifiers like mascot, baseline, jingle,
ambassador and house colour with the brand
– Have they internalised the brand platform?
– Can they associate the brand with themselves?
• Perceived quality:
– Check what is the perception of people regarding the
brand
– Find out what respondents think of the credibility of the
company

Stages in building brand equity

Awareness Acceptability Preference Loyalty

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Branding
Branding -- Indian
Indian perspective
perspective
• Branding itself is restricted to a few big companies,
most of them MNCs - many cannot afford it
• Most categories are stll commodity based rather than
brand oriented although things are changing (eg.Petrol-
speed, power…)
• A huge percentage of people are very price conscious
rather than quality conscious
• Brands with low quality is creating havoc to good
brands (eg. Excalibur shirts)
• The cultural diversity of the country is a major barrier in
branding products
• Legal loopholes are a problem area in branding(eg.
Amul Baniyans, Alan Solley Shirts…)

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Some
Some important
important terms
terms
• Brand Personality: it is the character that people impute to the
brand because of long association with it. The communication
reinforces this personality. This in turn create good vibes in the
minds of the people towards the brand which increases their
loyalty. While the brand personality is built up slowly with
infinitesmal increments with each communication it can come
crashing down because of different personality being conveyed in
a small number of ads.
• Private Brand: is also called a distributor, retailer or store brand.
Store brands are gaining importance in India with Food world,
Music world, Shopper’s Stoppe etc.

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Co-branding
Co-branding
• Co-branding is when two brands are jointly promoted.
• In some cases these are independent brands(Surf and Washing
machine companies), in some one forms a component of the other
(Intel and different computers).
• It has to be ensured that there is a synergy because of this and
one brand doesn’t lose out in the deal.
• In most cases there will be some relationship between the brands.
• Capitalizes on the brand equity (customer confidence and trust) of
multiple brands
• Helps take advantage of distribution capabilities of co-branding
partners

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Some
Some important
important terms
terms
• Manufacturer’s Brand - is when the manufacturer himself builds
up the brand eg: Godrej. This is sometimes also called a national
brand.
• Brand Identity – Includes the logo unit, the house colour and the
tagline.
• Logo/Brandmark: The logo, that part of the brand identity which is
made up of symbols and design rather than the name.
• Trade name: The full legal name of an organisation. eg.The
Federal Bank Limited.

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Licensed
Licensed Brand
Brand
• An agreement whereby a company permits another
organization to use its brand on other products for a licensing
fee
• eg: using names of well known designers for the lifestyle
products - Gucci, Pierre Cardin etc.
• Advantages
– Low-cost and/or free publicity
– Revenues from royalty fees
• Disadvantages
– Lack of manufacturing control
– Creating too many unrelated products
– Licensing arrangements can fail

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Some
Some important
important terms
terms
• Trademark - is a legal protection given to the name of a brand so
that nobody else can use it. It is defined as a distinctive name,
phrase, symbol, design, picture or style used by a business to
identify itself to consumers. In service it is called a service mark.
Smell, colour and sound can also be trademarked. But it must be
actively used and defended. The holder of the trademark should
also not use it as a verb or noun implying it as generic
• The trademark is usually registered. While trademark protect
indications of product source, copyrights protect literary and
artistic works. Patents protect useful designs. All this in theory.
Registration and trademark are used interchangeably in many
cases and varies from country to country.

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Some
Some important
important terms
terms
• Brand platform
– It is that one word that you are trying to position in the mind of the
target audience
– It should be a simple word, easy to understand, in the dictionary and
maybe in some way connected to the product characteristics or
benefits
– According to the fifth law, The Law of Focus of The 22 Immutable
Laws of Marketing by Al Ries and Jack Trout it is to be burned into
the minds of the people
– The decision on the brand platform has to be made by the top
management
– It is a major decision as you are sacrificing thousands of other
words in the dictionary and is using the platform throughout the
career of the brand
– All communication will be creative interpretations of this
– Hence it has to be ensured that the word is easily interpretable
creative wise
– One tool used for deciding on the creative platform is Hoffstede’s
Model.
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Hoffstede’s
Hoffstede’s Model
Model

Role Models

Symbols

Rituals

Core
Values

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