Sample Read
© All rights reserved Price : ` 525 Fifth Edition : July 2026 Published by : Taxmann Publications (P.) Ltd. Sales & Marketing : 59/32, New Rohtak Road, New Delhi-110 005 India Phone : +91-11-45562222 Website : www.taxmann.com E-mail : sales@taxmann.com Regd. Office : 21/35, West Punjabi Bagh, New Delhi-110 026 India Printed at : Tan Prints (India) Pvt. Ltd. 44 Km. Mile Stone, National Highway, Rohtak Road Village Rohad, Distt. Jhajjar (Haryana) India E-mail : sales@tanprints.com Disclaimer Every effort has been made to avoid errors or omissions in this publication. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. It is notified that neither the publisher nor the author or seller will be responsible for any damage or loss of action to any one, of any kind, in any manner, therefrom. No part of this book may be reproduced or copied in any form or by any means [graphic, electronic or mechanical, including photocopying, recording, taping, or information retrieval systems] or reproduced on any disc, tape, perforated media or other information storage device, etc., without the written permission of the publishers. Breach of this condition is liable for legal action. For binding mistake, misprints or for missing pages, etc., the publisher’s liability is limited to replacement within seven days of purchase by similar edition. All expenses in this connection are to be borne by the purchaser. All disputes are subject to Delhi jurisdiction only.
ŽŶƚĞŶƚƐ
PAGE
About the Authors
I-5
Preface to Fifth Edition
I-7
Acknowledgement
I-9
UNIT I INTRODUCTION TO MARKETING 1 BASICS OF MARKETING
What is marketing?
4
Core concepts of marketing
5
Nature of marketing
7
Scope of marketing
8
Importance of marketing
10
Marketing philosophies
13
Difference between selling and marketing
14
Marketing mix
18
Services marketing
21
H=OOEł?=PEKJ KB CKK@O =J@ OANRE?AO
25
A continuum of product attributes
27
Services marketing mix
29
Discussion questions
34 I-11
I-12 Contents PAGE
Case study on Britannia
34
Case study on Apollo Hospitals
37
Case based practical exercise
40
2 MARKETING ENVIRONMENT
Need for studying marketing environment
45
The company’s micro environment
46
The company’s macro environment
47
Discussion questions
53
Case study on Nestle
53
Case based practical exercise
55
UNIT II MARKET SELECTION 3 CONSUMER BEHAVIOUR
Need to study consumer behaviour
62
Consumer buying process
63
#=?PKNO EJŃQAJ?EJC ?KJOQIAN >QUEJC @A?EOEKJO
66
Discussion questions
74
Case study on Gillette
74
Case based practical exercise
79
4 MARKET SELECTION: SEGMENTATION, TARGETING AND POSITIONING
Target marketing process
84
Segmentation
84
Basic segmentation
87
Bases for segmenting consumer markets
87
Bases for segmenting business markets
93
AJAłPO KB OACIAJP=PEKJ
95
Contents I-13 PAGE
Attributes of effective market segmentation
95
Market Targeting
96
Selecting target market segments
97
Factors affecting the choices for targeting
98
Positioning
99
Why positioning?
102
Positioning errors
103
Bases of positioning
103
Repositioning
106
Differentiating
107
How differentiation helps?
108
Bases of differentiation
108
Discussion questions
112
Case study on Airtel
113
Case based practical exercise
115
UNIT III MARKETING DECISIONS RELATED TO PRODUCT 5 PRODUCT DECISIONS
Levels of product
122
Designing value
123
-NK@Q?P ?H=OOEł?=PEKJO
126
Product-mix decisions
130
Product decisions
133
Branding
134
Brand building
135
0ECJEł?=J?A KB >N=J@EJC
135
Building strong brands
136
Strategies for brand name selection
138
Brand sponsorship
140
Brand development strategies
142
Packaging
143
I-14 Contents PAGE
Importance of packaging
143
Functions of packaging
144
Package policies and strategies
146
Criticisms of packaging
146
Labelling
147
Product support services
148
Discussion questions
150
Case study on Patanjali
150
Case based practical exercise
159
6 NEW PRODUCT DEVELOPMENT
The new product development process
163
Product life cycle
171
Discussion questions
175
Case study on Toyota
175
Case based practical exercise
178
UNIT IV MARKETING DECISIONS RELATED TO PRICING AND DISTRIBUTION 7 PRICING DECISIONS
0ECJEł?=J?A KB LNE?EJC
184
Pricing objective
185
Factors affecting price of a product
185
Major pricing methods
189
Pricing policies and strategies
192
Price adjustment strategies
195
Ethical issues in pricing
197
Discussion questions
199
Case study on Starbucks
199
Case based practical exercise
202
Contents I-15 PAGE
8 DISTRIBUTION DECISIONS
Delivering value
206
Meaning of distribution channel
207
Importance of distribution channels
208
Types of distribution channels
210
Factors affecting choice of distribution channel
213
Identifying major distribution strategies
215
Distribution logistics meaning
218
Importance of distribution logistics
218
Tasks in distribution logistics
219
Discussion questions
222
Case study on Pepsi International
223
Case based practical exercise
228
9 RETAILING
Meaning
230
Types of retailing- Store based
231
Non-Store based retailing
234
Management of retailing operations: An overview
237
Retailing in India: Changing scenario
240
Discussion questions
241
Case study on BPCL
242
UNIT V MARKETING DECISIONS RELATED TO PROMOTION AND NEW DEVELOPMENTS 10 PROMOTION DECISIONS
Communicating value
250
Communication process
252
Nature and Importance of promotion
254
I-16 Contents PAGE
Promotion mix
256
Factors affecting promotion mix decisions
258
Advertising
259
Nature and scope of advertising
260
Importance of advertising
262
Personal selling meaning and features
265
The personal selling process
266
Sales promotion meaning and features
267
Sales promotion tools
268
Public relations and publicity
269
Direct marketing
269
Integrated marketing communication
270
Growth of IMC
271
Factors affecting growth of IMC
271
Discussion questions
273
Case study on Maggi
274
Case based practical exercise
276
11 RELATIONSHIP MARKETING
Transactional v. Relationship marketing
281
Dimensions of customer relationship
282
Scope of relationship marketing
284
Relationship marketing: A collaborative approach
285
Relationship customers
285
Discussion questions
287
Case study
287
12 DEVELOPMENT IN MARKETING
Ethics in marketing
290
Evolution of green marketing
293
The four P’s of green marketing
294
Sustainable marketing: Issues and challenges
296
Contents I-17 PAGE
Nature of rural marketing
299
Difference between rural and urban marketing
301
#=?PKNO &JŃQAJ?EJC >AD=REKQN KB NQN=H ?KJOQIANO
302
Marketing mix strategy in rural market
304
Social marketing
307
Digital marketing
309
Discussion questions
311
Case study
311
Case based practical exercise
316
13 RESEARCH ISSUES IN MARKETING
Introduction
319
Modern Marketing Practices
320
Modern Marketing Issues
323
Research Issues in Marketing
326
Market Selection: #(!04%2 Segmentation, Targeting and Positioning
LEARNING OBJECTIVES By the end of this chapter, you should be able to:
Define the major steps in target marketing commonly known as STP.
Discuss the concept and bases of segmenting consumer markets.
Explain how companies choose a market targeting strategy.
Understand how companies differentiate and position their products for attaining competitive advantage.
A company that decided to operate in a broad market recognizes that it norŵĂůůLJ ĐĂŶŶŽƚ ƐĞƌǀĞ Ăůů ĐƵƐƚŽŵĞƌƐ ŝŶ ƚŚĂƚ ŵĂƌŬĞƚ͘ DĂƌŬĞƚ ŽƌŝĞŶƚĂƟŽŶ ƌĞƋƵŝƌĞƐ ƚŚĂƚ ĐŽŵƉĂŶŝĞƐ͕ ŝŶƐƚĞĂĚ ŽĨ ĐŽŵƉĞƟŶŐ ĞǀĞƌLJǁŚĞƌĞ͕ ƐŚŽƵůĚ ĨŽĐƵƐ ŽŶ ŵĞĞƟŶŐ ŶĞĞĚƐ ŽĨ ƐƉĞĐŝĮĐ ĐƵƐƚŽŵĞƌƐ͘ dŽ ĐŚŽŽƐĞ ƚŚĞ ƐĞŐŵĞŶƚ ĂŶĚ ƐĞƌǀĞ ƚŚĞŵ ǁĞůů͕ ŵĂŶLJ companies are embracing ƚĂƌŐĞƚ ŵĂƌŬĞƟŶŐ. In ƚĂƌŐĞƚ ŵĂƌŬĞƟŶŐ͕ ƐĞůůĞƌƐ ĚŝƐƟŶguish the major market segments according to the needs which customers seek ƚŽ ƐĂƟƐĨLJ͕ ƚĂƌŐĞƚ ŽŶĞ Žƌ ŵŽƌĞ ŽĨ ƚŚŽƐĞ ƐĞŐŵĞŶƚƐ ŽŶ ƚŚĞ ďĂƐŝƐ ŽĨ ĞǀĂůƵĂƟŽŶ ŽĨ ĂƩƌĂĐƟǀĞŶĞƐƐ ŽĨ ĞĂĐŚ ƐĞŐŵĞŶƚ͕ ĂŶĚ ĚĞǀĞůŽƉ ƉƌŽĚƵĐƚƐ ĂŶĚ ŵĂƌŬĞƚ ƉƌŽŐƌĂŵƐ tailored to each segment. Instead of going for shot gun approach, marketers ƵƐĞ ƌŝŇĞ ĂƉƉƌŽĂĐŚ ŝŶ ŽƌĚĞƌ ƚŽ ĚĞǀĞůŽƉ ĞīĞĐƟǀĞ ŵĂƌŬĞƟŶŐ ƐƚƌĂƚĞŐLJ ĨŽƌ ƚŚĞ ƐĞlected target market. 83
CHAPTER 4 84 Market Selection: Segmentation, Targeting and Positioning
dĂƌŐĞƚ DĂƌŬĞƟŶŐ WƌŽĐĞƐƐ͗ >ŝŶŬŝŶŐ ƵƐƚŽŵĞƌ EĞĞĚƐ ƚŽ DĂƌŬĞƟŶŐ ĐƟŽŶ
FIGURE 4.1: PROCESS OF TARGET MARKETING
dĂƌŐĞƚ ŵĂƌŬĞƟŶŐ ƌĞƋƵŝƌĞƐ ŵĂƌŬĞƚĞƌƐ ƚŽ ƚĂŬĞ ƚŚĞ ŵĂũŽƌ ƐƚĞƉƐ ĐŽŵŵŽŶůLJ ŬŶŽǁŶ ĂƐ ^dW͘ ^dW ƌĞĨĞƌƐ ƚŽ ^ĞŐŵĞŶƚĂƟŽŶ͕ dĂƌŐĞƟŶŐ ĂŶĚ WŽƐŝƟŽŶŝŶŐ ĂŶĚ ŝƐ Ă ƉƌĞͲƌĞƋƵŝƐŝƚĞ ƚŽ ƉůĂŶŶŝŶŐ ƚŚĞ ĂĐƟǀŝƟĞƐ ĨŽƌ ĂŶLJ ŵĂƌŬĞƚ ŽīĞƌŝŶŐ͗
DĂƌŬĞƚ ^ĞŐŵĞŶƚĂƟŽŶ ŝƐ ŝĚĞŶƟĨLJŝŶŐ ŐƌŽƵƉƐ ŽĨ ďƵLJĞƌƐ ǁŝƚŚŝŶ Ă ŵĂƌŬĞƚ ƉůĂĐĞ ǁŚŽ ŚĂǀĞ ŶĞĞĚƐ ǁŚŝĐŚ ĂƌĞ ĚŝƐƟŶĐƟǀĞ ŝŶ ƚŚĞ ǁĂLJ ƚŚĂƚ ƚŚĞLJ ĚĞǀŝĂƚĞ from average consumer.
DĂƌŬĞƚ dĂƌŐĞƟŶŐ ƌĞƋƵŝƌĞƐ ƐĞůĞĐƟŽŶ ŽĨ ŽŶĞ Žƌ ŵŽƌĞ ƐĞŐŵĞŶƚƐ ŝŶ ƚŚĞ ŵĂƌŬĞƚ ƚŽ ĚĞĐŝĚĞ ĂďŽƵƚ Įƌŵ ĞŶƚƌLJ͘
DĂƌŬĞƚ WŽƐŝƟŽŶŝŶŐ ƌĞƋƵŝƌĞƐ ĞƐƚĂďůŝƐŚŝŶŐ ĂŶĚ ĐŽŵŵƵŶŝĐĂƟŶŐ ƚŚĞ ƉƌŽĚƵĐƚƐ ŬĞLJ ĚŝƐƟŶĐƟǀĞ ďĞŶĞĮƚƐ ŝŶ ƚŚĞ ŵĂƌŬĞƚ͘
DĂƌŬĞƚ ^ĞŐŵĞŶƚĂƟŽŶ DĂƌŬĞƚ ƐĞŐŵĞŶƚĂƟŽŶ1 ŝƐ ĚĞĮŶĞĚ ĂƐ ƚŚĞ ͞ƉƌŽĐĞƐƐ ŽĨ ƚĂŬŝŶŐ ƚŚĞ ƚŽƚĂů ŚĞƚĞƌŽŐĞneous market for a product and dividing it into several sub-markets or segments, ĞĂĐŚ ŽĨ ǁŚŝĐŚ ƚĞŶĚƐ ƚŽ ďĞ ŚŽŵŽŐĞŶĞŽƵƐ ŝŶ Ăůů ƐŝŐŶŝĮĐĂŶƚ͘͟ ^ĞŐŵĞŶƚĂƟŽŶ ŝƐ Ă ƉƌŽĐĞƐƐ ŽĨ ŝĚĞŶƟĮĐĂƟŽŶ ŽĨ ƐƵďƐĞƚƐ ŽĨ ďƵLJĞƌƐ ǁŝƚŚŝŶ Ă ŵĂƌŬĞƚ who share similar needs and who have similar buying process. Market segmenƚĂƟŽŶ ƌĞƉƌĞƐĞŶƚƐ ĂŶ ĞīŽƌƚ ƚŽ ŝŶĐƌĞĂƐĞ Ă ĐŽŵƉĂŶLJ͛Ɛ ƚĂƌŐĞƚ ƉƌĞĐŝƐŝŽŶ͘ /ƚ ĐĂŶ ďĞ ĐĂƌƌŝĞĚ ŽƵƚ Ăƚ ĨŽƵƌ ůĞǀĞůƐ͗ (i) Full Market Coverage - In this case there is full market coverage by the Įƌŵ ƐŽ ĂƐ ƚŽ ĂƩĞŵƉƚ ƚŽ ƐĞƌǀĞ ƚŚĞ ǁŚŽůĞ ŵĂƌŬĞƚ͘ >ĂƌŐĞ ĮƌŵƐ ŐĞŶĞƌĂůůLJ cover whole market in two broad ways, one, either through mass mar
ϭ͘ ƚnjĞů D͘:͕͘ tĂůŬĞƌ ͘:͕͘ ^ƚĂŶƚŽŶ t͘:͘ ĂŶĚ WĂŶĚŝƚ ;ϮϬϭϬͿ ϭϰƚŚ ĞĚŝƟŽŶ dĂƚĂ DĐ'ƌĂǁ ,ŝůů͘
CHAPTER 4
Market Selection: Segmentation, Targeting and Positioning 85
ŬĞƟŶŐ Žƌ ƚŚƌŽƵŐŚ ĚŝīĞƌĞŶƟĂƚĞĚ DĂƌŬĞƟŶŐ͘ /Ŷ DĂƐƐ DĂƌŬĞƟŶŐ͕ ƚŚĞ Įƌŵ ĞŶŐĂŐĞƐ ŝŶ ŵĂƐƐ ƉƌŽĚƵĐƟŽŶ͕ ŵĂƐƐ ĚŝƐƚƌŝďƵƟŽŶ ĂŶĚ ŵĂƐƐ ƉƌŽŵŽƟŽŶ ŽĨ ŽŶĞ ƉƌŽĚƵĐƚ ĨŽƌ Ăůů ďƵLJĞƌƐ͘ &Žƌ ŝŶƐƚĂŶĐĞ͕ DŝĐƌŽƐŽŌ ^ŽŌǁĂƌĞ ĂŶĚ ŽĐĂ ŽůĂ ƵŶĚĞƌƚĂŬĞ ŵĂƐƐ ŵĂƌŬĞƟŶŐ ƐƚƌĂƚĞŐLJ ĂŶĚ ĐƌĞĂƚĞƐ ƚŚĞ ůĂƌŐĞƐƚ ƉŽƚĞŶƟĂů ŵĂƌŬĞƚ ǁŚŝĐŚ ůĞĂĚƐ ƚŽ ƚŚĞ ůŽǁĞƌŝŶŐ ŽĨ ƚŚĞ ĐŽƐƚƐ ƌĞƐƵůƟŶŐ ĞŝƚŚĞƌ ŝŶƚŽ ůŽǁĞƌ ƉƌŝĐĞƐ Žƌ ŚŝŐŚĞƌ ŵĂƌŐŝŶƐ͘ ,ŽǁĞǀĞƌ͕ ƉƌŽůŝĨĞƌĂƟŽŶ ŽĨ ĂĚǀĞƌƟƐŝŶŐ ŵĞĚŝĂ ĂŶĚ ĚŝƐƚƌŝďƵƟŽŶ ĐŚĂŶŶĞůƐ ŝƐ ŵĂŬŝŶŐ ŝƚ ĚŝĸĐƵůƚ ƚŽ ƉƌĂĐƟĐĞ ͚ŽŶĞ ƐŝnjĞ ĮƚƐ Ăůů͛ ŵĂƌŬĞƟŶŐ͘ DĂŶLJ ĮƌŵƐ ĂƌĞ ƌĞƚƌĞĂƟŶŐ ĨƌŽŵ ŵĂƐƐ ŵĂƌŬĞƟŶŐ ĂŶĚ ĂƌĞ ƉƌĂĐƟĐŝŶŐ ĚŝīĞƌĞŶƟĂƚĞĚ ŵĂƌŬĞƟŶŐ͘ /Ŷ ĚŝīĞƌĞŶƟĂƚĞĚ ŵĂƌŬĞƟŶŐ, the Įƌŵ ƐĞůůƐ ĚŝīĞƌĞŶƚ ƉƌŽĚƵĐƚƐ ƚŽ Ăůů ƚŚĞ ĚŝīĞƌĞŶƚ ƐĞŐŵĞŶƚƐ ŽĨ ƚŚĞ ŵĂƌŬĞƚ ĂŶĚ ŐĞŶĞƌĂƚĞƐ ƚŽƚĂů ƐĂůĞƐ ǁŚŝĐŚ ƚĞŶĚ ƚŽ ďĞ ŵŽƌĞ ƚŚĂŶ ƵŶĚŝīĞƌĞŶƟĂƚĞĚ ŵĂƌŬĞƟŶŐ͘ dŚĞ ĚŝīĞƌĞŶƟĂƟŽŶ ƐƚƌĂƚĞŐLJ͕ ŚŽǁĞǀĞƌ͕ ĂůƐŽ ŝŶĐƌĞĂƐĞƐ ƚŚĞ ĐŽƐƚƐ ŽĨ ĚŽŝŶŐ ďƵƐŝŶĞƐƐ͘ &Žƌ ŝŶƐƚĂŶĐĞ͕ 'ŽĚƌĞũ ŝƐ ƵŶĚĞƌƚĂŬŝŶŐ ĚŝīĞƌĞŶƟĂƚĞĚ ƐƚƌĂƚĞŐLJ ďLJ ŽīĞƌŝŶŐ ĨƵƌŶŝƚƵƌĞ͕ ĐŽƐŵĞƟĐƐ͕ ůŽĐŬƐ͕ ĞƚĐ͘ ĨŽƌ ĚŝīĞƌĞŶƚ ƐĞŐŵĞŶƚƐ͘ ŝīĞƌĞŶƟĂƚĞĚ ŵĂƌŬĞƟŶŐ ƐŝŶĐĞ ůĞĂĚƐ ƚŽ ďŽƚŚ Ͳ ŚŝŐŚĞƌ ƐĂůĞƐ ĂŶĚ ŚŝŐŚĞƌ ĐŽƐƚƐ͕ ƚŚĞƌĞ ĐĂŶŶŽƚ ďĞ ĂŶLJ ǀĂůŝĚ ŐĞŶĞƌĂůŝnjĂƟŽŶƐ ĂďŽƵƚ ŝƚƐ ƉƌŽĮƚĂďŝůŝƚLJ͘ (ii) ^egŵeŶt MarkeƟŶg Ͳ ƚ ƚŚŝƐ ůĞǀĞů͕ ƚŚĞ Įƌŵ ƌĞĐŽŐŶŝnjĞƐ ƚŚĂƚ ĐƵƐƚŽŵĞƌƐ ĚŝīĞƌ ŝŶ ƚŚĞŝƌ ǁĂŶƚƐ͕ ƉƵƌĐŚĂƐŝŶŐ ƉŽǁĞƌ͕ ŐĞŽŐƌĂƉŚŝĐĂů ůŽĐĂƟŽŶƐ͕ ďƵLJŝŶŐ ĂƫƚƵĚĞƐ ĂŶĚ ďƵLJŝŶŐ ŚĂďŝƚƐ͘ ŵĂƌŬĞƚ ƐĞŐŵĞŶƚ ĐŽŶƐŝƐƚƐ ŽĨ Ă ůĂƌŐĞ ŝĚĞŶƟĮĂďůĞ ŐƌŽƵƉ ǁŝƚŚŝŶ Ă ŵĂƌŬĞƚ͘ dŚŽƵŐŚ ƚŚĞ Įƌŵ ŝƐ ŶŽƚ ǁŝůůŝŶŐ ƚŽ ĐƵƐƚŽŵŝnjĞ ŝƚƐ ŽīĞƌ ƚŽ each individual customer, instead tries to isolate some broad segments ƚŚĂƚ ŵĂŬĞ ƵƉ Ă ŵĂƌŬĞƚ͘ DĂƌŬĞƚ ƐĞŐŵĞŶƚĂƟŽŶ ŝƐ Ă ŵŝĚƉŽŝŶƚ ďĞƚǁĞĞŶ ŵĂƐƐ ŵĂƌŬĞƟŶŐ ĂŶĚ ŝŶĚŝǀŝĚƵĂů ŵĂƌŬĞƟŶŐ͘ dŚĞ ĐƵƐƚŽŵĞƌƐ ďĞůŽŶŐŝŶŐ ƚŽ Ă ƉĂƌƟĐƵůĂƌ ƐĞŐŵĞŶƚ ĂƌĞ ĂƐƐƵŵĞĚ ƚŽ ďĞ ƋƵŝƚĞ ƐŝŵŝůĂƌ ďƵƚ ŶŽƚ ŝĚĞŶƟĐĂů ŝŶ ƚŚĞŝƌ ŶĞĞĚƐ ĂŶĚ ǁĂŶƚƐ͘ LJ ĨŽĐƵƐŝŶŐ ŽŶ ƐĞŐŵĞŶƚ ŵĂƌŬĞƟŶŐ͕ ĮƌŵƐ ĐĂŶ create products that best suit the needs of the target audience at a price ĂƉƉƌŽƉƌŝĂƚĞ ĨŽƌ ĞĂĐŚ ƐĞŐŵĞŶƚ͘ /ƚ ĂůƐŽ ůĞĂĚƐ ƚŽ ƐƵŝƚĂďůĞ ĚŝƐƚƌŝďƵƟŽŶ ĂŶĚ ĐŽŵŵƵŶŝĐĂƟŽŶ ĐŚĂŶŶĞůƐ ƐƉĞĐŝĂůůLJ ĚĞƐŝŐŶĞĚ ĨŽƌ ƚŚĞ ƐĞŐŵĞŶƚ͘ (iii) EiĐŚe MarkeƟŶg - A small market, whose needs are not being well served, ĐŽŶƐƟƚƵƚĞƐ Ă ŶŝĐŚĞ Ͳ Ă ŶĂƌƌŽǁůLJ ĚĞĮŶĞĚ ŐƌŽƵƉ ŽĨ ĐƵƐƚŽŵĞƌƐ͘ DĂƌŬĞƚĞƌƐ ƵƐƵĂůůLJ ŝĚĞŶƟĨLJ ŶŝĐŚĞƐ ďLJ ĚŝǀŝĚŝŶŐ Ă ƐĞŐŵĞŶƚ ŝŶƚŽ ƐƵďͲƐĞŐŵĞŶƚƐ͘ EŝĐŚĞƐ ĂƌĞ ĨĂŝƌůLJ ƐŵĂůů ĂŶĚ ŶŽƌŵĂůůLJ ĂƩƌĂĐƚ ŽŶůLJ ĨĞǁ ĐŽŵƉĞƟƚŽƌƐ͕ ƚLJƉŝĐĂůůLJ ƐŵĂůůĞƌ ĐŽŵƉĂŶŝĞƐ͘ EŝĐŚĞ ŵĂƌŬĞƚĞƌƐ ƉƌĞƐƵŵĂďůLJ ƵŶĚĞƌƐƚĂŶĚ ƚŚĞŝƌ ŶŝĐŚĞ͛Ɛ ŶĞĞĚƐ so well that their customers willingly pay a premium price. Niche has ƐƵĸĐŝĞŶƚ ƐŝnjĞ͕ ƉƌŽĮƚ ĂŶĚ ŐƌŽǁƚŚ ƉŽƚĞŶƟĂů͘2 A leading brand of women ĂƉƉĂƌĞů ŽīĞƌŝŶŐ ƉůƵƐͲƐŝnjĞĚ ĨĂƐŚŝŽŶ ĨŽƌ ǁŽŵĞŶ ǁŝƚŚ ĂďŽǀĞ ĂǀĞƌĂŐĞ ďŽĚLJ size is a good example.
Ϯ͘ ůůĂƩďĞƌŐ Z͘ ĂŶĚ ĞŝŐŚƚŽŶ :͘ ͞/ŶƚĞƌĂĐƟǀĞ DĂƌŬĞƟŶŐ͗ džƉůŽŝƟŶŐ ƚŚĞ ŐĞ ŽĨ ĚĚƌĞƐƐĂďŝůŝƚLJ͕͟ ^ůŽĂŶ DĂŶĂŐĞŵĞŶƚ ZĞǀŝĞǁ. 33 Fall 1991. PP-5-14.
CHAPTER 4 86 Market Selection: Segmentation, Targeting and Positioning
(iv) >oĐal MarkeƟŶg Ͳ >ŽĐĂů ŵĂƌŬĞƟŶŐ ŝŶǀŽůǀĞƐ ƚĂŝůŽƌŝŶŐ ďƌĂŶĚƐ ĂŶĚ ŵĂƌŬĞƟŶŐ programs to the needs and wants of local customer groups ranging from ĐŝƟĞƐ͕ ŶĞŝŐŚďŽƵƌŚŽŽĚƐ ĂŶĚ ĞǀĞŶ ƐƉĞĐŝĮĐ ƐƚŽƌĞƐ͘ &Žƌ ĞdžĂŵƉůĞ͕ ŝŐ ĂnjĂĂƌ ĐƵƐƚŽŵŝnjĞƐ ŝƚƐ ŽīĞƌŝŶŐƐ ƐƚŽƌĞ ďLJ ƐƚŽƌĞ ƚŽ ŵĞĞƚ ƚŚĞ ŶĞĞĚƐ ŽĨ ŵĂũŽƌůLJ ůŽĐĂů ƐŚŽƉƉĞƌƐ͘ dŚŽƐĞ ŝŶ ĨĂǀŽƵƌ ŽĨ ůŽĐĂůŝnjŝŶŐ Ă ĐŽŵƉĂŶLJ͛Ɛ ŵĂƌŬĞƟŶŐ ƐĞĞ ŶĂƟŽŶĂů ĂĚǀĞƌƟƐŝŶŐ ĂƐ Ă ǁĂƐƚĞĨƵů ĞdžĞƌĐŝƐĞ ďĞĐĂƵƐĞ ŝƚ ĨĂŝůƐ ƚŽ ĂĚĚƌĞƐƐ ůŽĐĂů ƚĂƌŐĞƚ groups. They see powerful local and regional retailers who are demandŝŶŐ ŵŽƌĞ ĮŶĞͲƚƵŶĞĚ ƉƌŽĚƵĐƚ ĂƐƐŽƌƚŵĞŶƚƐ ĨŽƌ ƚŚĞŝƌ ŶĞŝŐŚďŽƵƌŚŽŽĚƐ͘ For instance, Airtel and Vodafone cater to the needs of Northern Indian states and promote highly in these states vis-à-vis Aircel which caters to ƚŚĞ ^ŽƵƚŚĞƌŶ ƉĂƌƚƐ ŽĨ ƚŚĞ ĐŽƵŶƚƌLJ͘ >ŽĐĂů ŵĂƌŬĞƟŶŐ ŵŝŐŚƚ ďĞ ĚĞĨĞŶĚĞĚ ŽŶ ƚŚĞ ŐƌŽƵŶĚ ƚŚĂƚ ŝƚ ĐĂŶ ĚƌŝǀĞ ƵƉ ŵĂŶƵĨĂĐƚƵƌŝŶŐ ĂŶĚ ŵĂƌŬĞƟŶŐ ĐŽƐƚƐ ďLJ ƌĞĚƵĐŝŶŐ ĞĐŽŶŽŵŝĞƐ ŽĨ ƐĐĂůĞ͘ /ƚ ĐĂŶ ĂůƐŽ ĐƌĞĂƚĞ ůŽŐŝƐƟĐƐ ƉƌŽďůĞŵƐ ǁŚĞŶ ĐŽŵƉĂŶŝĞƐ ƚƌLJ ƚŽ ŵĞĞƚ ƚŚĞ ǀĂƌŝĞĚ ƌĞƋƵŝƌĞŵĞŶƚƐ ŽĨ ĚŝīĞƌĞŶƚ ůŽĐĂů ŵĂƌŬĞƚƐ͘ /ŵĂŐĞ ŽĨ ƚŚĞ ďƌĂŶĚ ŝŶ ĚŝīĞƌĞŶƚ ůŽĐĂůŝƟĞƐ ŵŝŐŚƚ ŐĞƚ ĚŝůƵƚĞĚ ŝĨ ƚŚĞ ƉƌŽĚƵĐƚ and message vary too much. (v) /ŶĚiviĚual MarkeƟŶg Ͳ^ĞŐŵĞŶƚĂƟŽŶ ŽĨ ŵĂƌŬĞƚƐ ŽŶ ŝŶĚŝǀŝĚƵĂů ďĂƐŝƐ ůĞĂĚƐ ƚŽ ĐƵƐƚŽŵŝnjĞĚ Žƌ ŽŶĞͲƚŽͲŽŶĞ ŵĂƌŬĞƟŶŐ3, ŝ͘Ğ͕͘ tailoring products and marŬĞƟŶŐ ƉƌŽŐƌĂŵƐ ƚŽ ƚŚĞ ŶĞĞĚƐ ĂŶĚ ƉƌĞĨĞƌĞŶĐĞƐ ŽĨ ŝŶĚŝǀŝĚƵĂů ĐƵƐƚŽŵĞƌƐ͘ ƵƐƚŽŵͲŵĂĚĞ ĐůŽƚŚŝŶŐ͕ ĂŶĚ ũĞǁĞůůĞƌLJ ŝƐ ƚŚĞ ĐĂƐĞ ŽĨ ŝŶĚŝǀŝĚƵĂů ŵĂƌŬĞƟŶŐ͘ Today, with the advent of internet and new technology, customers are ƚĂŬŝŶŐ ŵŽƌĞ ŝŶŝƟĂƟǀĞƐ ŝŶ ĚĞƚĞƌŵŝŶŝŶŐ ǁŚĂƚ ĂŶĚ ŚŽǁ ƚŽ ďƵLJ͘ ^ŵĂƌƚ ƉŚŽŶĞƐ ĂŶĚ ŇĞdžŝďůĞ ŵĂŶƵĨĂĐƚƵƌŝŶŐ ŚĂƐ ůĞĚ ƚŽ ĨŽƐƚĞƌ ŵĂƐƐ ĐƵƐƚŽŵŝnjĂƟŽŶ ŝŶ ĂƌĞĂƐ ůŝŬĞ ǀĂĐĂƟŽŶ͕ ĐŽƐŵĞƟĐƐ͕ ĐƵƐƚŽŵĞƌͲĐŽŶĮŐƵƌĞĚ ĐŽŵƉƵƚĞƌƐ͕ ĞƚĐ͘ ƵƐŝŶĞƐƐ ƚŽ ƵƐŝŶĞƐƐ ŵĂƌŬĞƚĞƌƐ ĂůƐŽ ĐƵƐƚŽŵŝnjĞ ƚŚĞŝƌ ŽīĞƌŝŶŐƐ ďLJ ĮŶĚŝŶŐ ŶĞǁ ǁĂLJƐ ŝŶ ƌĞŐĂƌĚ ƚŽ ƚŚĞ ƚĞƌŵƐ ŽĨ ŽīĞƌ͕ ůŽŐŝƐƟĐƐ ĂŶĚ ĮŶĂŶĐŝĂů ƚĞƌŵƐ ĨŽƌ ĞĂĐŚ ŵĂũŽƌ ĂĐĐŽƵŶƚ͘ dŚĞ ŵŽǀĞ ƚŽǁĂƌĚƐ ŝŶĚŝǀŝĚƵĂů ŵĂƌŬĞƟŶŐ ůĞĚ ƚŽ ƐĞůĨͲŵĂƌŬĞƟŶŐ͕ ǁŚĞƌĞŝŶ individual customers take more responsibility in shaping the products they buy. ^ĞůĨͲŵĂƌŬĞƟŶŐ ǁŝůů ŐƌŽǁ ŝŶ ŝŵƉŽƌƚĂŶĐĞ ĂƐ ƚŚĞ ƚƌĞŶĚ ƚŽǁĂƌĚƐ ŵŽƌĞ ŝŶƚĞƌĂĐƟǀĞ ĚŝĂůŽŐƵĞ ĂŶĚ ůĞƐƐ ŵĂƌŬĞƟŶŐ ŵŽŶŽůŽŐƵĞ ĐŽŶƟŶƵĞƐ͘ dŚĞLJ ǁŝůů ŶĞĞĚ ƚŽ ŝŶǀŽůǀĞ customers more in the product development process so that new products are ǀŝƌƚƵĂůůLJ ĐŽͲĚĞƐŝŐŶĞĚ ďLJ ƚŚĞ ƉƌŽĚƵĐĞƌ ĂŶĚ ƌĞƉƌĞƐĞŶƚĂƟǀĞƐ ŽĨ ƚŚĞ ĐƵƐƚŽŵĞƌƐ͕ ƚŚĞƌĞďLJ ŝŶĐƌĞĂƐŝŶŐ ŽƉƉŽƌƚƵŶŝƟĞƐ ĨŽƌ ĐƵƐƚŽŵĞƌƐ ƚŽ ƉƌĂĐƟĐĞ ƐĞůĨͲŵĂƌŬĞƟŶŐ͘
ϯ͘ tŝŶĚ :͘ ĂŶĚ ZĂŶŐĂƐǁĂŵLJ ͘ ͞ ƵƐƚŽŵĞƌŝnjĂƟŽŶ͗ dŚĞ ŶĞdžƚ ƌĞǀŽůƵƟŽŶ ŝŶ ŵĂƐƐ ĐƵƐƚŽŵŝnjĂƟŽŶ͘͟ :ŽƵƌŶĂů ŽĨ /ŶƚĞƌĂĐƟǀĞ DĂƌŬĞƟŶŐ. 15. Winter 2001. PP-13-32.
CHAPTER 4
Market Selection: Segmentation, Targeting and Positioning 87
FIGURE 4.2: LEVELS OF MARKET SEGMENTATION
Basic Segmentation dŚĞƌĞ ĂƌĞ ĚŝīĞƌĞŶƚ ǁĂLJƐ Ă ĐŽŵƉĂŶLJ ŵĂLJ ĂĚŽƉƚ ƚŽ ƐĞŐŵĞŶƚ ŝƚƐ ŵĂƌŬĞƚ͘ tŚŝůĞ ďĂƐĞƐ ĨŽƌ ƐĞŐŵĞŶƚĂƟŽŶ ǀĂƌLJ ĨƌŽŵ ŽŶĞ ŵĂƌŬĞƚ ƚŽ ĂŶŽƚŚĞƌ͕ ďƌŽĂĚůLJ͕ Ă ƉŽƚĞŶƟĂů market can be divided into two categories - ĐŽŶƐƵŵĞƌ ŵĂƌŬĞƚ and ŝŶĚƵƐƚƌŝĂů market. Consumer buys goods or services for her personal or household use. /ŶĚƵƐƚƌŝĂů ďƵLJĞƌ ŝƐ ĂŶLJ ŽƌŐĂŶŝnjĂƟŽŶ ƚŚĂƚ ĂĐƋƵŝƌĞƐ ŐŽŽĚƐ ĂŶĚ ƐĞƌǀŝĐĞƐ ƵƐĞĚ ĨŽƌ ƚŚĞ ƉƌŽĚƵĐƟŽŶ ŽĨ ŽƚŚĞƌ ŐŽŽĚƐ Žƌ ƐĞƌǀŝĐĞƐ ƚŚĂƚ ĂƌĞ ƐŽůĚ͕ ƌĞŶƚĞĚ Žƌ ƐƵƉƉůŝĞĚ ƚŽ ŽƚŚĞƌƐ͘ ůĞĂĚŝŶŐ ĐĂƌ ĐŽŵƉĂŶLJ͕ DĂƌƵƟ ^ƵnjƵŬŝ͕ ŽīĞƌƐ ǀĂƌŝĂŶƚƐ ůŝŬĞ ^ǁŝŌ njŝƌĞ͕ tĂŐŽŶͲZ͕ ĞƚĐ͕͘ ǁŚŝĐŚ ĐĂŶ ďĞ ďŽƵŐŚƚ ďLJ ĐŽŶƐƵŵĞƌ ŵĂƌŬĞƚ ĨŽƌ ƚŚĞŝƌ ƉĞƌƐŽŶĂů ƐĂƟƐĨĂĐƟŽŶ ĂŶĚ ĨŽƌ ŝŶĚƵƐƚƌŝĂů ďƵLJĞƌƐ ůŝŬĞ hďĞƌ ĂďƐ ĨŽƌ ĐŽŵŵĞƌĐŝĂů ƉƵƌƉŽƐĞƐ͘ dŚĞ ƚǁŽ ƐĞŐŵĞŶƚƐ ƐŝŶĐĞ ďƵLJ ĚŝīĞƌĞŶƚůLJ͕ ŵĂƌŬĞƟŶŐ ŵŝdž ŽĨ Ă ĐŽŵƉĂŶLJ ǀĂƌŝĞƐ ĨŽƌ the consumer or the industrial buyer. ĂƐĞƐ ĨŽƌ ƐĞŐŵĞŶƟŶŐ ĐŽŶƐƵŵĞƌ ŵĂƌŬĞƚƐ /Ŷ ŽƌĚĞƌ ƚŽ ĚŝǀŝĚĞ ƚŚĞ ƐĞŐŵĞŶƚƐ ŝŶƚŽ ŵŽƌĞ ƐƉĞĐŝĮĐ ƚĂƌŐĞƚƐ ǁĞ ŶĞĞĚ ƚŽ ŝĚĞŶƟĨLJ ƐŽŵĞ ĐŚĂƌĂĐƚĞƌŝƐƟĐƐ ǁŝƚŚŝŶ ĞĂĐŚ ŽĨ ƚŚĞƐĞ ƐĞŐŵĞŶƚƐ͘ dŚĞ ďĂƐĞƐ ĨŽƌ ƐĞŐŵĞŶƟŶŐ ĐŽŶƐƵŵĞƌ ŵĂƌŬĞƚƐ ƚŚĂƚ ŵĂLJ ďĞ ƵƐĞĚ ƐĞƉĂƌĂƚĞůLJ Žƌ ŝŶ ĐŽŵďŝŶĂƟŽŶ ĂƌĞ͗ ŐĞŽgraphic, demographic, psychographic and behavioural. 'ĞŽŐƌĂƉŚŝĐ ^ĞŐŵĞŶƚĂƟŽŶ͗ ^ƵĐŚ ƐĞŐŵĞŶƚĂƟŽŶ ĐĂůůƐ ĨŽƌ ĚŝǀŝĚŝŶŐ ůĂƌŐĞ ŵĂƌŬĞƚƐ into smaller groupings according to geographical units - countries, regions, ƐƚĂƚĞƐ͕ ĐŝƟĞƐ͕ ĐŽŵŵƵŶŝƟĞƐ͕ ĞƚĐ͘ DĂƌŬĞƚĞƌƐ ǁŚŽ ŽƉĞƌĂƚĞ ŐůŽďĂůůLJ ŽŌĞŶ ƐĞŐŵĞŶƚ ƚŚĞ ŵĂƌŬĞƚ ďLJ ĐŽŶƟŶĞŶƚ͕ ĐŽƵŶƚƌLJ͕ ĂŶĚ ƌĞŐŝŽŶ ŝŶ ƚŚĞ ĮƌƐƚ ŝŶƐƚĂŶĐĞ͕ ĂŶĚ ƚŚĞŶ ŐŽ ĨŽƌ ƐĞŐŵĞŶƚĂƟŽŶ ŽŶ ŽƚŚĞƌ ďĂƐĞƐ͘ EĂƟŽŶĂů ŵĂƌŬĞƚƐ ǁŝƚŚŝŶ Ă ĐŽƵŶƚƌLJ ŽŌĞŶ ƐĞŐment the market by ƌĞŐŝŽŶ, i.e., north or south, state, ĚŝƐƚƌŝĐƚ, i.e., urban or rural
CHAPTER 4 88 Market Selection: Segmentation, Targeting and Positioning
area, ĐůŝŵĂƚĞ, i.e., warm or cold, ƚŽƉŽŐƌĂƉŚLJ, i.e., hilly region or plain, ĐŝƚLJ ƐŝnjĞ, ŝŶ ƚŚĞ ĮƌƐƚ ŝŶƐƚĂŶĐĞ͕ ĂŶĚ ƚŚĞŶ ŐŽ ĨŽƌ ƐĞŐŵĞŶƚĂƟŽŶ ŽŶ ŽƚŚĞƌ ďĂƐĞƐ͘ DĂƌŬĞƚĞƌƐ though may decide to operate in one or few geographic segments or operate ŝŶ Ăůů ƚŚĞ ƐĞŐŵĞŶƚƐ͕ ďƵƚ ŝƚ ŝƐ ŵƵƐƚ ƚŽ ĂĚĚƌĞƐƐ ƚŚĞ ǀĂƌŝĂƟŽŶƐ ŝŶ ŐĞŽŐƌĂƉŚŝĐ ŶĞĞĚƐ ĂŶĚ ƉƌĞĨĞƌĞŶĐĞƐ ǁŚŝůĞ ĨƌĂŵŝŶŐ ŵĂƌŬĞƟŶŐ ŵŝdž͘ Ɛ ůŽŶŐ ĂƐ ƚŚĞƌĞ ŝƐ ĂŶ ƵŶĚĞƌƐƚĂŶĚŝŶŐ ŽĨ ƌĞŐŝŽŶĂů ĚŝƐƚƌŝďƵƟŽŶ ŽĨ ƉŽƉƵůĂƟŽŶ ŝŶ ĚŝīĞƌĞŶƚ ŐĞŽŐƌĂƉŚŝĐĂů ůŽĐĂƟŽŶƐ͕ ĐƵƌƌĞŶƚ ƉĂƩĞƌŶ ĂŶĚ ƉƌŽũĞĐƚĞĚ ƚƌĞŶĚƐ͕ ĂŶĚ ĐůĞĂƌůLJ ŝĚĞŶƟĮĂďůĞ ĚŝīĞƌĞŶĐĞƐ ďĞƚǁĞĞŶ ŽŶĞ ƌĞŐŝŽŶ ĂŶĚ ƚŚĞ ŽƚŚĞƌ ǁŝƚŚ ŝŵƉůŝĐĂƟŽŶƐ ƚŽ ŵĂƌŬĞƟŶŐ͕ ŐĞŽŐƌĂƉŚŝĐ ƐĞŐŵĞŶƚĂƟŽŶ ǁŝůů ďĞ ƵƐĞĨƵů͘ ĞŵŽŐƌĂƉŚŝĐ ^ĞŐŵĞŶƚĂƟŽŶ͗ ^ƵĐŚ ƐĞŐŵĞŶƚĂƟŽŶ ĐĂůů ĨŽƌ ĚŝǀŝĚŝŶŐ͕ ƚŚĞ ůĂƌŐĞƌ markets into smaller groupings on the basis of demographic variables such ĂƐ ŝŶĐŽŵĞ͕ ĂŐĞ ĂŶĚ ůŝĨĞ ĐLJĐůĞ͕ ŐĞŶĚĞƌ͕ ĞĚƵĐĂƟŽŶ͕ ƉƌŽĨĞƐƐŝŽŶ͕ ƌĞůŝŐŝŽŶ͕ ĨĂŵŝůLJ ƐŝnjĞ͕ ŐĞŶĞƌĂƟŽŶ Žƌ ƐŽĐŝĂů ĐůĂƐƐ͘ ĞŵŽŐƌĂƉŚŝĐƐ ŝƐ ƚŚĞ ŵŽƐƚ ĐŽŵŵŽŶ ďĂƐŝƐ ĨŽƌ ƐĞŐŵĞŶƟŶŐ ĐŽŶƐƵŵĞƌ ŵĂƌŬĞƚƐ͘ dŚĞLJ ĂƌĞ ĨƌĞƋƵĞŶƚůLJ ƵƐĞĚ ďĞĐĂƵƐĞ ĐŽŶƐƵŵĞƌ ǁĂŶƚƐ͕ ƉƌĞĨĞƌĞŶĐĞƐ ĂŶĚ ƵƐĂŐĞ ƌĂƚĞƐ ĂƌĞ ŽŌĞŶ ŚŝŐŚůLJ ĂƐƐŽĐŝĂƚĞĚ ǁŝƚŚ ĚĞŵŽŐƌĂƉŚŝĐ ǀĂƌŝĂďůĞƐ ĂŶĚ ĂƌĞ ƌĞůĂƟǀĞůLJ ĞĂƐLJ ƚŽ ŵĞĂƐƵƌĞ͘ Age and life cycle stage: ŽŶƐƵŵĞƌ ŶĞĞĚƐ ĂŶĚ ǁĂŶƚƐ ĂƌĞ ĚĞƚĞƌŵŝŶĞĚ ďLJ ŽŶĞ͛Ɛ age and they change with age. Many products, such as chocolates, biscuits, juices, candies, toys are targeted at children and younger people. Fairness ĐƌĞĂŵƐ͕ ĂĞƌĂƚĞĚ ĚƌŝŶŬƐ͕ ƉŽƚĂƚŽ ĐŚŝƉƐ͕ ŚĞĂůƚŚ ĚƌŝŶŬƐ ĂƌĞ ƉŽƐŝƟŽŶĞĚ ĨŽƌ LJŽƵŶŐƐƚĞƌƐ͘ Insurance policies, medicines target older audience. Marketers segment the market on the basis of age as under-10 years, 10-20 years, 20-30 years, 30-40 years, 40-50 years, 50-60 years, and above 60 years. Gender: ^ƵĐŚ ƐĞŐŵĞŶƚĂƟŽŶ ŚĂƐ ďĞĞŶ ůŽŶŐ ĂƉƉůŝĞĚ ŝŶ ĐůŽƚŚŝŶŐ͕ ĐŽƐŵĞƟĐƐ͕ ĨĂƐŚŝŽŶ ĂĐĐĞƐƐŽƌŝĞƐ͕ ŵŽƚŽƌĐLJĐůĞƐ͕ ĂŶĚ ƉĞƌĨƵŵĞƐ͘ ^ŽŵĞ ďƌĂŶĚƐ ŚĂǀĞ ďĞĞŶ ƉŽƐŝƟŽŶĞĚ ĂƐ ŵŽƌĞ ŵĂƐĐƵůŝŶĞ Žƌ ĨĞŵŝŶŝŶĞ͘ DŽƚŽƌ ďŝŬĞƐ ďLJ zĂŵĂŚĂ ĂŶĚ ,ŽŶĚĂ ĂƌĞ ƚĂƌŐĞƚĞĚ Ăƚ ŵĞŶ͕ ďƵƚ ds^ ^ĐŽŽƚLJ͕ <ŝŶĞƟĐ ,ŽŶĚĂ͕ ,ŽŶĚĂ ĐƟǀĂ ĂƌĞ ƚĂƌŐĞƚĞĚ Ăƚ ǁŽŵĞŶ͘ ŶĞŐůĞĐƚĞĚ ƐĞŐŵĞŶƚ ƚŚĞƌĞďLJ ƉƌŽǀŝĚĞƐ ŶĞǁ ŽƉƉŽƌƚƵŶŝƟĞƐ ŝŶ ŵĂƌŬĞƚƐ͘ dŚĞ ƉƵŶĐŚ ůŝŶĞ ĨŽƌ ,ĞƌŽ ,ŽŶĚĂ ƉůĞĂƐƵƌĞ ͞tŚLJ ƐŚŽƵůĚ ďŽLJƐ ŚĂǀĞ Ăůů ƚŚĞ ĨƵŶ͟ ǁĂƐ ĚĞǀĞůŽƉĞĚ keeping young fun loving women consumers in mind. Clothing brands like Van ,ĞƵƐĞŶ ǁŚŝĐŚ ǁĞƌĞ ƉƌŝŵĂƌŝůLJ ŵĞŶ͛Ɛ ďƌĂŶĚ ŚĂǀĞ ůĂƵŶĐŚĞĚ Ă ƌĂŶŐĞ ŽĨ ĂƉƉĂƌĞů͕ shoes and handbags for women.
CHAPTER 4
Market Selection: Segmentation, Targeting and Positioning 89
Income: Income determines the ability of the consumer to purchase ĂŶĚ ŚĞŶĐĞ ŝƐ Ă ďĂƐŝĐ ƐĞŐŵĞŶƚĂƟŽŶ ǀĂƌŝĂďůĞ͘ /ŶĐŽŵĞ ďĂƐĞĚ ƐĞŐŵĞŶƚĂƟŽŶ is done in terms of high, middle, low ĂŶĚ ĞĐŽŶŽŵŝĐĂůůLJ ǁĞĂŬĞƌ ƐĞĐƟŽŶƐ͘ The marketers of products like automobiles, clothing, travel, hotels, and Marketers are entering new ĐŽƐŵĞƟĐƐ ŚĂǀĞ ƵƐĞĚ ŝŶĐŽŵĞ ďĂƐĞĚ segments by targeting young girls ƐĞŐŵĞŶƚĂƟŽŶ͘ ĞƚĞƌŐĞŶƚƐ͕ ƐŚĂŵƉŽŽƐ and a host of packaged products are available in small sachets at low unit prices. Many retailers such as Big Bazaar ǁŝƚŚ ŝƚƐ ͞/ƐƐĞ ƐĂƐƚĂ ĂƵƌ ŬĂŚĂŶ͟ ƚĂŐůŝŶĞ ƚĂƌŐĞƚ ůŽǁ ĂŶĚ ŵŝĚĚůĞ ŝŶĐŽŵĞ ŐƌŽƵƉƐ͘ On the other hand, Titan has introduced Edge and Xylys as a separate brand ĐĂƚĞƌŝŶŐ ƚŽ ĂŋƵĞŶƚ ĐůĂƐƐ ĐƵƐƚŽŵĞƌƐ͘ ĚƵĐĂƟŽŶ͗ ^ĞŐŵĞŶƚĂƟŽŶ ŽŶ ƚŚĞ ďĂƐŝƐ ŽĨ ĞĚƵĐĂƟŽŶ ƉƌŽǀŝĚĞƐ ƐĞŐŵĞŶƚƐ ŝƐ done of illiterate, higher secondary, senior secondary, graduate, postgraduate, professional class. Marketers of products like magazines, books, ƐŽŌǁĂƌĞ ƵƐĞ ĞĚƵĐĂƟŽŶ ƐĞŐŵĞŶƚĂƟŽŶ͘ ^ĞǀĞƌĂů ĐĞůůƵůĂƌ ĐŽŵƉĂŶŝĞƐ ůŝŬĞ ZĞůŝĂŶĐĞ͕ /ĚĞĂ͕ ŝƌƚĞů͕ ŶŽǁ ŽīĞƌ ƚŚĞŝƌ ĂƉƉƐ ŝŶ ůŽĐĂů ůĂŶŐƵĂŐĞƐ ůŝŬĞ ,ŝŶĚŝ͕ Tamil, Bengali, Punjabi, apart from English catering to customers from ĚŝīĞƌĞŶƚ ĞĚƵĐĂƟŽŶ ďĂĐŬŐƌŽƵŶĚƐ͘
Big Bazaar target customers with low and middle income groups
KĐĐƵƉĂƟŽŶ͗ ůŽƚŚŝŶŐ ĂŶĚ ĂĐĐĞƐƐŽƌŝĞƐ ŽŶĞ ǁĞĂƌƐ ĚĞƉĞŶĚƐ ƵƉŽŶ ŽŶĞ͛Ɛ ŽĐĐƵƉĂƟŽŶ͘ dĞĂĐŚĞƌƐ͕ ďƵƐŝŶĞƐƐ ĞdžĞĐƵƟǀĞƐ͕ ŚŽƵƐĞǁŝǀĞƐ͕ ƐƚƵĚĞŶƚƐ͕ ůĂǁLJĞƌƐ ŚĂǀĞ ĚŝīĞƌĞŶƚ ƚĂƐƚĞƐ ĂŶĚ ƉƌĞĨĞƌĞŶĐĞƐ ĚĞƉĞŶĚŝŶŐ ƵƉŽŶ ƚŚĞŝƌ ǀŽĐĂƟŽŶ ĂƐ ƌĞŐĂƌĚƐ ĐůŽƚŚŝŶŐ͕ shoes, automobiles, handbags, etc. Markets can be segmented on the basis ŽĨ ƉƌŽĨĞƐƐŝŽŶĂů ĂŶĚ ƚĞĐŚŶŝĐĂů͕ ŵĂŶĂŐĞƌƐ͕ ŽĸĐŝĂůƐ͕ ĐůĞƌŝĐĂů͕ ƌĞƟƌĞĚ͕ ƐƚƵĚĞŶƚƐ͕ homemakers, unemployed. Religion: Markets can be segmented into smaller groups depending on the ƌĞůŝŐŝŽŶ ŽŶĞ ĨŽůůŽǁƐ ŝŶ ĐĂƐĞ ŽĨ ƉƌŽĚƵĐƚƐ ůŝŬĞ ĐůŽƚŚŝŶŐ ĂŶĚ ĞĂƟŶŐ ŚĂďŝƚƐ͘ ƵƐƚŽŵĞƌƐ ĨŽůůŽǁŝŶŐ ĚŝīĞƌĞŶƚ ƌĞůŝŐŝŽŶƐ ĐĞůĞďƌĂƚĞ ĚŝīĞƌĞŶƚ ĨĞƐƟǀĂůƐ ĂŶĚ ǁŽƌƐŚŝƉ ĚŝīĞƌĞŶƚ 'ŽĚ͛Ɛ͖ ƚŚŝƐ ŵŝŐŚƚ ƉƌŽǀŝĚĞ ŵĂƌŬĞƚĞƌƐ ǁŝƚŚ Ă ĚŝīĞƌĞŶƚ ƉŽƚĞŶƟĂů ŵĂƌŬĞƚ opportunity on the basis of religion segment.
CHAPTER 4 90 Market Selection: Segmentation, Targeting and Positioning
Family Size and Life Cycle (FLC) Stage: With the advent of technological adǀĂŶĐĞŵĞŶƚƐ ĂŶĚ ƵƌďĂŶŝnjĂƟŽŶ ŵŽƌĞ ĂŶĚ ŵŽƌĞ ƉŽƉƵůĂƟŽŶ ŝƐ ŵŽǀŝŶŐ ƚŽǁĂƌĚƐ ƵƌďĂŶ ĂƌĞĂƐ ĨŽƌ ƐĞĞŬŝŶŐ ĞŵƉůŽLJŵĞŶƚ ŽƉƉŽƌƚƵŶŝƟĞƐ͕ ƚŚĞƌĞďLJ ůĞĂĚŝŶŐ ƚŽ ŝŶĐƌĞĂƐĞ ŝŶ ŶƵĐůĞĂƌ ĨĂŵŝůŝĞƐ ŝŶ ĐŝƟĞƐ ĂŶĚ ƚŽǁŶƐ͘ ^ŝnjĞ ŽĨ ƚŚĞ ĨĂŵŝůLJ ĚĞƚĞƌŵŝŶĞƐ ƉƌŽĚƵĐƚ ƌĞƋƵŝƌĞŵĞŶƚ ĂŶĚ ĂůƐŽ ŚĂƐ ĚŝƌĞĐƚ ŝŵƉůŝĐĂƟŽŶ ĨŽƌ ďƵLJŝŶŐ ĚĞĐŝƐŝŽŶƐ ƐƵĐŚ ĂƐ ƉůĂĐĞ ŽĨ ďƵLJŝŶŐ͕ ďƵLJŝŶŐ ƟŵĞ͕ ĐŚĂŶŶĞů ƉƌĞĨĞƌĞŶĐĞ͕ ĂŶĚ ŽƌĚĞƌ ƋƵĂŶƟƚLJ͘ Marketers segment the market on the basis of family life cycle stages too. FLC ƐƚĂŐĞƐ ĐŽŵƉƌŝƐĞƐ ŽĨ LJŽƵŶŐ͕ ƐŝŶŐůĞ͖ LJŽƵŶŐ͕ ŵĂƌƌŝĞĚ͕ ŶŽ ĐŚŝůĚƌĞŶ͖ LJŽƵŶŐ ŵĂƌƌŝĞĚ ĐŽƵƉůĞƐ͕ LJŽƵŶŐĞƐƚ ĐŚŝůĚ ƵŶĚĞƌͲϲ͖ LJŽƵŶŐ͕ ŵĂƌƌŝĞĚ͕ LJŽƵŶŐĞƐƚ ĐŚŝůĚ ƵŶĚĞƌ ϲ Žƌ ŵŽƌĞ͖ ŽůĚĞƌ͕ ŵĂƌƌŝĞĚ͕ ǁŝƚŚ ĐŚŝůĚƌĞŶ͖ ŽůĚĞƌ͕ ŵĂƌƌŝĞĚ͕ ŶŽ ĐŚŝůĚƌĞŶ ƵŶĚĞƌ ϭϴ͖ ŽůĚĞƌ͕ ƐŝŶŐůĞ͘ ĞƚĞƌŐĞŶƚƐ͕ ŬĞƚĐŚƵƉƐ͕ ƐŚĂŵƉŽŽƐ͕ ƌĞĮŶĞĚ Žŝů͕ ƐƉŝĐĞƐ͕ ŽƚŚĞƌ &D 'Ɛ ĂƌĞ ĂǀĂŝůĂďůĞ ŝŶ ĚŝīĞƌĞŶƚ ƐŝnjĞƐ ŽĨ ƉĂĐŬĂŐĞ ƚĂƌŐĞƟŶŐ ƚŚĞ ĐƵƐƚŽŵĞƌƐ ǁŝƚŚ ǀĂƌŝĞĚ ĨĂŵŝůLJ ƐŝnjĞ͘ 'ĞŶĞƌĂƟŽŶ͗ Marketers of products like music, movies, travel, apparels, shoes, ŚĂŝƌƐƚLJůŝŶŐ͕ ĞĂƟŶŐ ũŽŝŶƚƐ ƐĞŐŵĞŶƚ ƚŚĞ ŵĂƌŬĞƚ ŽŶ ƚŚĞ ďĂƐŝƐ ŽĨ ŐĞŶĞƌĂƟŽŶ͘ dŚĞ ŝĚĞĂ ŝƐ ƚŚĂƚ ŐĞŶĞƌĂƟŽŶ ŝƐ ƉƌŽĨŽƵŶĚůLJ ŝŶŇƵĞŶĐĞĚ ďLJ ƚŚĞ ŵŝůŝĞƵ ŝŶ ǁŚŝĐŚ ƉĞƌƐŽŶ grows up4. Channels such as Aastha and Sanskar focus on spiritually inclined ŽůĚĞƌ ŐĞŶĞƌĂƟŽŶ ĂŶĚ ĐŚĂŶŶĞůƐ ůŝŬĞ ,ƵŶŐĂŵĂ͕ ŝƐŶĞLJ͕ WŽŐŽ ĂƌĞ ƚĂƌŐĞƚĞĚ Ăƚ LJŽƵŶŐ ŐĞŶĞƌĂƟŽŶ͘ Social Class: ƵƐƚŽŵĞƌƐ ďĞůŽŶŐŝŶŐ ƚŽ ĚŝīĞƌĞŶƚ ƐŽĐŝĂů ĐůĂƐƐĞƐ ůŝŬĞ ƵƉƉĞƌ ĐůĂƐƐ͕ ƵƉƉĞƌ ŵŝĚĚůĞ͕ ůŽǁĞƌ ŵŝĚĚůĞ͕ ƵƉƉĞƌ ůŽǁĞƌ͕ ŚĂǀĞ ĚŝīĞƌĞŶƚ ĐŚŽŝĐĞƐ ŝŶ ŵĂŶLJ ƉƌŽĚƵĐƚ categories, for example a lawyer and a plumber might have the same income ďƵƚ ďĞ ƚŚĞ ŵĞŵďĞƌƐ ŽĨ ĚŝīĞƌĞŶƚ ƐŽĐŝĂů ĐůĂƐƐĞƐ͕ ƚŚĞŝƌ ĐŚŽŝĐĞ ŽĨ ĐůŽƚŚŝŶŐ͕ ĐĂƌ͕ ĂŶĚ ůĞŝƐƵƌĞ ĂĐƟǀŝƟĞƐ ǁŝůů ǀĂƌLJ ƐŝŐŶŝĮĐĂŶƚůLJ͘ DĂƌŬĞƚĞƌƐ ĨƌĞƋƵĞŶƚůLJ ƐĞůĞĐƚ ŽŶĞ Žƌ ƚǁŽ ƐŽĐŝĂů ĐůĂƐƐĞƐ ĂƐ ƚĂƌŐĞƚ ŵĂƌŬĞƚƐ ĂŶĚ ƚŚĞŶ ĚĞǀĞůŽƉ Ă ƉƌŽĚƵĐƚ ĂŶĚ ŵĂƌŬĞƟŶŐ ŵŝdž to reach those segments.
Psychographic Segmentation WƐLJĐŚŽŐƌĂƉŚŝĐ ƐĞŐŵĞŶƚĂƟŽŶ ĂůůŽǁƐ ŵĂƌŬĞƚĞƌƐ ƚŽ ďĞƩĞƌ ƵŶĚĞƌƐƚĂŶĚ ǁŚLJ ĐŽŶƐƵŵĞƌƐ ďĞŚĂǀĞ ĂƐ ƚŚĞLJ ĚŽ͘ dŚĞLJ ĞŶŐĂŐĞ ŝŶ ƉƐLJĐŚŽŐƌĂƉŚŝĐ ƐĞŐŵĞŶƚĂƟŽŶ͕ ǁŚŝĐŚ ŝŶǀŽůǀĞƐ ĞdžĂŵŝŶŝŶŐ ĂƩƌŝďƵƚĞƐ ƌĞůĂƚĞĚ ƚŽ ŚŽǁ Ă ƉĞƌƐŽŶ ƚŚŝŶŬƐ͕ ĨĞĞůƐ ĂŶĚ ďĞŚĂǀĞƐ͘ Among the various elements of psychographics, ůŝĨĞƐƚLJůĞ and ƉĞƌƐŽŶĂůŝƚLJ are ƚŚĞ ĐŽƌĞ ŽŶĞ ĨŽƌ ƐĞŐŵĞŶƚĂƟŽŶ͘ Lifestyle: ^ƵĐŚ ƐĞŐŵĞŶƚĂƟŽŶ ƚĂŬĞƐ ŝŶƚŽ ĂĐĐŽƵŶƚ ĚŝīĞƌĞŶƚ ĚŝŵĞŶƐŝŽŶƐ ŽĨ ĐŽŶƐƵŵĞƌƐ͕ ƐƵĐŚ ĂƐ ƚŚĞŝƌ ĂĐƟǀŝƟĞƐ͕ ŝŶƚĞƌĞƐƚƐ͕ ŽƉŝŶŝŽŶƐ ĂŶĚ ƚŚĞŝƌ ƐƉĞŶĚŝŶŐ͘ dŝƚĂŶ ǁĂƚĐŚĞƐ ŚĂǀĞ Ă ǁŝĚĞ ƌĂŶŐĞ ŽĨ ƐƵďͲďƌĂŶĚƐ ǁŝƚŚŝŶ ƚŚĞŝƌ dŝƚĂŶ ƌĂŶŐĞͲ ZĂŐĂ͕ ZĞŐĂůŝĂ͕ EĞďƵůĂ ƚŽ ĂƉƉĞĂů ƚŽ ĚŝīĞƌĞŶƚ ůŝĨĞƐƚLJůĞ ƐĞŐŵĞŶƚƐ͘ ^ŽŵĞ ŽĨ ƚŚĞƐĞ ŵŽĚĞůƐ ĂƌĞ Žƌ
ϰ͘ DŝƐŚƌĂ D͘ ͞'ĞŶĞƌĂƟŽŶ EĞdžƚ ǀĞƌƐƵƐ 'ĞŶĞƌĂƟŽŶ ŶŽǁ͘͟ DĂƌŬĞƟŶŐ tŚŝƚĞ ŽŽŬ 2011-2012. Business World. P-351.
CHAPTER 4
Market Selection: Segmentation, Targeting and Positioning 91
nate watches and some with leather ƐƚƌĂƉƐ͕ ĞĂĐŚ ĂƉƉĞĂůŝŶŐ ƚŽ ĚŝīĞƌĞŶƚ lifestyle segments. The new generĂƟŽŶ ĐŽīĞĞ ĐĂĨĠ͛Ɛ ŝŶ ŵĞƚƌŽƉŽůŝƚĂŶ ĐŝƟĞƐ ŝƐ ĂŶŽƚŚĞƌ ĞdžĂŵƉůĞ ŽĨ ůŝĨĞƐƚLJůĞ ƐĞŐŵĞŶƚĂƟŽŶ͘ /ƚ ŝƐ ƚŚĞ ůŝĨĞƐƚLJůĞ ŽĨ Ƶƌban middle class youth that supports ƚŚĞ ĐŚĂŝŶ ŽĨ ƚŽƉ ĞŶĚ ĐŽīĞĞ ĐĂĨĠ͛Ɛ ŝŶ ƐĞǀĞƌĂů ŵĂƌŬĞƚƐ͘ zŽƵƚŚ ĮŶĚ ƐƵĐŚ Coffee café chains attracts urban youth ũŽŝŶƚƐ ŶŝĐĞ ĨŽƌ ŵĞĞƟŶŐ ĨƌŝĞŶĚƐ ĂŶĚ by providing aesthetic atmosphere having a chat. Personality: Ŷ ŝŶĚŝǀŝĚƵĂů͛Ɛ ƉĞƌƐŽŶĂůŝƚLJ ŝƐ ƵƐƵĂůůLJ ĚĞƐĐƌŝďĞĚ ŝŶ ƚĞƌŵƐ ŽĨ ƚƌĂŝƚƐ ƚŚĂƚ ŝŶŇƵĞŶĐĞ ďĞŚĂǀŝŽƵƌ͘ dŚĞ ďƵLJŝŶŐ ďĞŚĂǀŝŽƵƌ ŽĨ ĐŽŵƉƵůƐŝǀĞ ĐŽŶƐƵŵĞƌ ŝƐ ĚŝīĞƌĞŶƚ ĨƌŽŵ ĐĂƵƟŽƵƐ ĐŽŶƐƵŵĞƌƐ͕ ĂŶĚ ƋƵŝĞƚ ŝŶƚƌŽǀĞƌƚƐ ĚŽ ŶŽƚ ďƵLJ ƚŚĞ ƐĂŵĞ ƚŚŝŶŐƐ ĂƐ ŐƌĞŐĂƌŝŽƵƐ͕ ŽƵƚŐŽŝŶŐ ƉĞŽƉůĞ͘ ,ŽǁĞǀĞƌ͕ ƉĞƌƐŽŶĂůŝƚLJ ĐŚĂƌĂĐƚĞƌŝƐƟĐƐ ĂƐ ƐĞŐŵĞŶƚĂƟŽŶ ďĂƐŝƐ ŝƐ ĚŝĸĐƵůƚ ƚŽ ĂƉƉůLJ ƉƌĂĐƟĐĂůůLJ ĂƐ ƚŚĞ ƉƌĞƐĞŶĐĞ ŽĨ ƚŚĞƐĞ ĐŚĂƌĂĐƚĞƌŝƐƟĐƐ ŝŶ ŐĞŶĞƌĂů ƉŽƉƵůĂƟŽŶ ĂƌĞ ǀŝƌƚƵĂůůLJ ŝŵƉŽƐƐŝďůĞ ƚŽ ŵĞĂƐƵƌĞ͘ ůƐŽ͕ ƚŚĞƌĞ ŝƐ ĂŶ ĂĐĐĞƐƐŝďŝůŝƚLJ ƉƌŽďůĞŵ ĂƐ ŶŽ ĂĚǀĞƌƟƐŝŶŐ ŵĞĚŝƵŵ ƉƌŽǀŝĚĞƐ ĂĐĐĞƐƐ ƚŽ Ă ƉĂƌƟĐƵůĂƌ ƉĞƌƐŽŶĂůŝƚLJ ƚƌĂŝƚ͕ ŝ͘Ğ͘ ƚĞůĞǀŝƐŝŽŶ ƌĞĂĐŚĞƐ ŝŶƚƌŽǀĞƌƚƐ ĂƐ ǁĞůů ĂƐ ĞdžƚƌŽǀĞƌƚƐ͘ ǀĞŶ ƚŚŽƵŐŚ ƚŚĞ ŝŵƉŽƌƚĂŶĐĞ ŽĨ ƚŚĞ ƉĞƌƐŽŶĂůŝƚLJ ĚŝŵĞŶƐŝŽŶ ŝŶ Ă ƉĂƌƟĐƵůĂƌ ĚĞĐŝƐŝŽŶ ŵĂLJ ďĞ ŝŵŵĞĂƐƵƌĂďůĞ͕ ŵĂƌŬĞƚĞƌ ďĞůŝĞǀĞƐ ƚŚĂƚ ŝƚ ĚŽĞƐ ƉůĂLJ ĂŶ ŝŶŇƵĞŶƟĂů ƌŽůĞ͘ dŚƵƐ͕ ŵŽĚĞůƐ ŽĨ ƚŚĞ >͛KƌĞĂů ďƌĂŶĚƐ ƐƚĂƚĞƐ ǁŚŝůĞ ƵƐŝŶŐ ƚŚĞ ĐŽŵƉĂŶLJ͛Ɛ ƉƌŽĚƵĐƚƐ ͞ ĞĐĂƵƐĞ /͛ŵ ǁŽƌƚŚ ŝƚ͘͟
Behavioural Segmentation /Ŷ ďĞŚĂǀŝŽƵƌĂů ƐĞŐŵĞŶƚĂƟŽŶ ŵĂƌŬĞƚĞƌƐ ĚŝǀŝĚĞ ƚŚĞ ŵĂƌŬĞƚ ŝŶƚŽ ƐŵĂůůĞƌ ƐĞŐŵĞŶƚƐ according to the consumer behaviour variables including product usage, price ƐĞŶƐŝƟǀŝƚLJ͕ ďƌĂŶĚ ůŽLJĂůƚLJ͕ ĐŽŶƐƵŵĞƌ ŶĞĞĚƐ ĨŽƌ ĐĞƌƚĂŝŶ ďĞŶĞĮƚƐ͘ Occasions: ƵLJĞƌƐ ŶĞĞĚƐ ĂŶĚ ƉƵƌĐŚĂƐĞ Žƌ ƵƐĞ ŽĨ Ă ƉƌŽĚƵĐƚ ĚŝīĞƌĞŶƟĂƚĞƐ ĂĐĐŽƌĚŝŶŐ ƚŽ ƚŚĞ ŽĐĐĂƐŝŽŶƐ͘ ŚŽĐŽůĂƚĞƐ ĂŶĚ ƐǁĞĞƚƐ ĂƌĞ ŚĞĂǀŝůLJ ĂĚǀĞƌƟƐĞĚ͕ ƐƉĞĐŝĂůůLJ ƉĂĐŬĞĚ ĂŶĚ ƉƌŽŵŽƚĞĚ ĚƵƌŝŶŐ ĨĞƐƟǀĞ ŽĐĐĂƐŝŽŶƐ ůŝŬĞ ZĂŬŚŝ͕ ŝǁĂůŝ͘ KĐĐĂƐŝŽŶ ƐĞŐŵĞŶƚĂƟŽŶ ĐĂŶ ŚĞůƉ ĞdžƉĂŶĚ ƚŚĞ ƉƌŽĚƵĐƚ ƵƐĂŐĞ͘ :ƵŝĐĞ ŝƐ ƵƐƵĂůůLJ ĐŽŶƐƵŵĞĚ Ăƚ ďƌĞĂŬĨĂƐƚ͖ ŵĂƌŬĞƚĞƌƐ ĐĂŶ ƚƌLJ ƚŽ ƉƌŽŵŽƚĞ ŝƚƐ ƵƐĞ ŽŶ ŽƚŚĞƌ ŽĐĐĂƐŝŽŶƐ ůŝŬĞ ůƵŶĐŚ͕ ĚŝŶŶĞƌ͕ ĞƚĐ͘ 'ƌĞĞƟŶŐ ĐĂƌĚƐ ĂŶĚ ŐŝŌŝŶŐ ŝƚĞŵƐ ĂƌĞ ĚĞƐŝŐŶĞĚ ĨŽƌ ƐƉĞĐŝĂů ŽĐĐĂƐŝŽŶƐ ƚŚĂƚ ƚƌŝŐŐĞƌ ƚŚĞŝƌ ďƵLJŝŶŐ ƐƵĐŚ ĂƐ DŽƚŚĞƌ͛Ɛ ĂLJ͕ &ĂƚŚĞƌ͛Ɛ ĂLJ͕ sĂůĞŶƟŶĞ͛Ɛ ĂLJ͕ dĞĂĐŚĞƌ͛Ɛ ĂLJ ĂƉĂƌƚ ĨƌŽŵ EĞǁ zĞĂƌ͕ ŚƌŝƐƚŵĂƐ ĂŶĚ ďŝƌƚŚĚĂLJƐ͘ ĞŶĞĮƚƐ͗ ĨŽƌŵ ŽĨ ďĞŚĂǀŝŽƵƌĂů ƐĞŐŵĞŶƚĂƟŽŶ ƚŚĂƚ ĚŝǀŝĚĞƐ ƚŚĞ ŵĂƌŬĞƚ ĂĐĐŽƌĚŝŶŐ ƚŽ ďĞŶĞĮƚƐ ƐŽƵŐŚƚ ďLJ ĐƵƐƚŽŵĞƌƐ͘ ^ƵŶƐŝůŬ ƐŚĂŵƉŽŽ͕ ĨŽƌ ĞdžĂŵƉůĞ ŽīĞƌƐ ǀĂƌŝŽƵƐ
CHAPTER 4 92 Market Selection: Segmentation, Targeting and Positioning
ďĞŶĞĮƚƐ ƐƵĐŚ ĂƐ ůŽŶŐ ŚĂŝƌ͕ ĚĂŶĚƌƵī ĐŽŶƚƌŽů͕ ƐŚŝŶĞ ĂŶĚ ďŽƵŶĐĞ͕ ĚĂŵĂŐĞ ƌĞƉĂŝƌ targeted at diverse category of target customers. In the toothpaste category, ŽůŐĂƚĞ ŽīĞƌƐ ƚŚĞ ďĞŶĞĮƚ ŽĨ ŐƵŵ ĂŶĚ ƚŽƚĂů ƉƌŽƚĞĐƟŽŶ ǁŚŝůĞ ůŽƐĞͲhƉ ŽīĞƌƐ freshness. User Status: hƐĞƌ ƐƚĂƚƵƐ ĐŽƵůĚ ĞŝƚŚĞƌ ďĞ ŶŽŶͲƵƐĞƌƐ͕ ĞdžͲƵƐĞƌ͕ ƉŽƚĞŶƟĂů ƵƐĞƌ͕ ĮƌƐƚ ƟŵĞ ƵƐĞƌ ĂŶĚ ƌĞŐƵůĂƌ ƵƐĞƌ ŽĨ Ă ƉƌŽĚƵĐƚ͘ DĂƌŬĞƚĞƌƐ ĂůǁĂLJƐ ƚƌLJ ƚŽ ƐƵƐƚĂŝŶ ƚŚĞ current users of their brand and try to make them use more of it. Marketers also try to convince the non-users. Instant foods and frozen foods marketers ůŝŬĞ DĐ ĂŝŶ ĂŶĚ zƵŵŵŝĞƐ ĂƌĞ ƚĂƌŐĞƟŶŐ ŶŽŶ ĂŶĚ ƉŽƚĞŶƟĂů ƵƐĞƌƐ ŝŶ ŽƌĚĞƌ ƚŽ grow their market share. Marketers with leading share of the market tend to ĨŽĐƵƐ ŽŶ ĂƩƌĂĐƟŶŐ ƉŽƚĞŶƟĂů ƵƐĞƌƐ͕ ǁŚĞƌĞ ĂƐ ĮƌŵƐ ǁŝƚŚ ƐŵĂůůĞƌ ƐŚĂƌĞ ĨŽĐƵƐ ŽŶ ƚƌLJŝŶŐ ƚŽ ĂƩƌĂĐƚ ĐƵƌƌĞŶƚ ƵƐĞƌƐ ĂǁĂLJ ĨƌŽŵ ƚŚĞ ŵĂƌŬĞƚ ůĞĂĚĞƌƐ͘ Usage Rate: Markets can be segmented into non users, light users, medium users and heavy users. A marketer is most interested in the heavy users as ƚŚĞLJ ĂĐĐŽƵŶƚ ĨŽƌ ϴϬй ƚŽ ϵϬй ŽĨ ƚŚĞ ƚŽƚĂů ƉƵƌĐŚĂƐĞƐ͘ ^ŽŵĞƟŵĞƐ Ă ŵĂƌŬĞƚĞƌ ǁŝůů select as a target market the light user to convert them into heavy user. Once ƚŚĞ ĐŚĂƌĂĐƚĞƌŝƐƟĐƐ ŽĨ ůŝŐŚƚ ƵƐĞƌƐ ŚĂǀĞ ďĞĞŶ ŝĚĞŶƟĮĞĚ ŵĂƌŬĞƚĞƌƐ ĐĂŶ ĚŝƌĞĐƚůLJ ĂƩƌĂĐƚ ƚŚĞŵ ƚŽ ŝŶĐƌĞĂƐĞ ƵƐĂŐĞ ďLJ ĚĞƐĐƌŝďŝŶŐ ŶĞǁ ƵƐĞƐ ĨŽƌ Ă ƉƌŽĚƵĐƚ ĨŽƌ ĞdžĂŵƉůĞ͕ ĐŚĞǁŝŶŐ ŐƵŵ ĂƐ ĂŶ ĂůƚĞƌŶĂƟǀĞ ƚŽ ĐŝŐĂƌĞƩĞƐ Žƌ ŽīĞƌŝŶŐ ŵƵůƟͲƵŶŝƚ ƉĂĐŬĂŐŝŶŐ ĨŽƌ ĞdžĂŵƉůĞ͕ Ă ϭϮͲƉĂĐŬ ŽĨ ƐŽŌ ĚƌŝŶŬƐ͘ Loyalty Status: CŽŶƐƵŵĞƌƐ ĞdžŚŝďŝƚ ĚŝīĞƌĞŶƚͲůŽLJĂůƚLJ ƉĂƩĞƌŶƐ ƚŽǁĂƌĚƐ ƚŚĞ ďƌĂŶĚ and a market can be gainfully segmented on the basis of consumer loyalty ƉĂƩĞƌŶƐ ĐŽŵƉƌŝƐŝŶŐ ŽĨ͗
,ĂƌĚͲĐŽƌĞ ůŽLJĂůƚLJ͕ which implies that the consumer prefers to buy one ďƌĂŶĚ Ăůů ƚŚĞ ƟŵĞ
^Ɖůŝƚ ůŽLJĂůƚLJ which implies that consumers prefers to choose between two or three brands
^ŚŝŌŝŶŐ ůŽLJĂůƚLJ ǁŚŝĐŚ ŝŵƉůŝĞƐ ƚŚĂƚ ĐŽŶƐƵŵĞƌƐ ƚĞŶĚ ƚŽ ƐŚŝŌ ƚŚĞŝƌ ƉƌĞĨĞƌence from one brand to another.
^ǁŝƚĐŚĞƌƐ͗ ŝŵƉůŝĞƐ ƚŚĂƚ ĐŽŶƐƵŵĞƌƐ ĚŽ ŶŽƚ ĞdžŚŝďŝƚ ĂŶLJ ƉĂƩĞƌŶ ŝŶ ƚŚĞŝƌ purchase preference, rather they seek variety in their choices5.
LJ ĂŶĂůLJnjŝŶŐ ƚŚĞ ůŽLJĂůƚLJ ƐƚĂƚƵƐ ŽĨ ĐƵƐƚŽŵĞƌƐ͛ ŵĂƌŬĞƚĞƌƐ ĐĂŶ ŝĚĞŶƟĨLJ ƉƌŽĚƵĐƚ͛Ɛ ƐƚƌĞŶŐƚŚƐ ĨƌŽŵ ŚĂƌĚ ĐŽƌĞ ůŽLJĂů͕ ĐŽŵƉĞƟƟŽŶ ĨƌŽŵ ůĞƐƐ ůŽLJĂů ĐƵƐƚŽŵĞƌƐ͘ ƫƚƵĚĞ͗ DĂƌŬĞƚƐ ĐĂŶ ĂůƐŽ ďĞ ƐĞŐŵĞŶƚĞĚ ŽŶ ƚŚĞ ďĂƐŝƐ ŽĨ ĂƫƚƵĚĞ ŽĨ ĐƵƐƚŽŵĞƌ ƚŽǁĂƌĚƐ ƚŚĞ ƉƌŽĚƵĐƚ ǁŚĞƚŚĞƌ ƚŚĞLJ ĂƌĞ ĞŶƚŚƵƐŝĂƐƟĐ Žƌ ŝŶĚŝīĞƌĞŶƚ Žƌ ŶĞŐĂƟǀĞ͘ ƵĞ ƚŽ ĨĂǀŽƵƌĂďůĞ ĂƫƚƵĚĞ ƚŽǁĂƌĚƐ ŚĞĂůƚŚLJ ůŝǀŝŶŐ ĐƵƐƚŽŵĞƌƐ ƉƌĞĨĞƌ ŽůŝǀĞ Žŝů ŽǀĞƌ
ϱ͘ ĚĂƉƚĞĚ ĨƌŽŵ ƌŽǁŶ '͘,͘ ͞ ƌĂŶĚ >ŽLJĂůƚLJ͗ &ĂĐƚ Žƌ &ŝĐƟŽŶ͍͟ ĚǀĞƌƟƐŝŶŐ ŐĞ. June 1952.
CHAPTER 4
Market Selection: Segmentation, Targeting and Positioning 93
ƌĞĮŶĞĚ ŽŝůƐ ĂŶĚ ĐŽŶƐƵŵĞ ŇĂŬĞƐ ĂŶĚ ŽĂƚƐ ŝŶ ďƌĞĂŬĨĂƐƚ͘ ŽŶƐƵŵƉƟŽŶ ŽĨ ŐƌĞĞŶ tea is also increasing in Indian markets. Air fryers are replacing fried foods to ensure healthy lifestyle. Marketers generally do not limit their analysis to a few market segments, ŝŶƐƚĞĂĚ ƚŚĞLJ ĐŽŵďŝŶĞ ƐĞǀĞƌĂů ǀĂƌŝĂďůĞƐ ŝŶ ĂŶ ĞīŽƌƚ ƚŽ ŝĚĞŶƟĨLJ ďĞƩĞƌ ĚĞĮŶĞĚ ƚĂƌŐĞƚ ŐƌŽƵƉƐ͘ ƵƐŝŶĞƐƐ ĮƌŵƐ ƵƐŝŶŐ ŵƵůƟǀĂƌŝĂďůĞ ƐĞŐŵĞŶƚĂƟŽŶ ƐLJƐƚĞŵƐ ŵĞƌŐĞ geographic, demographic, psychographic and behavioural variables so as to ĂƌƌŝǀĞ Ăƚ Ă ƐƵď ŐƌŽƵƉ ŽĨ ůŝŬĞͲŵŝŶĚĞĚ ĐŽŶƐƵŵĞƌƐ͘ hƐŝŶŐ ŵƵůƟƉůĞ ƐĞŐŵĞŶƚĂƟŽŶ ďĂƐĞƐ ƉƌŽǀŝĚĞƐ Ă ƉŽǁĞƌĨƵů ƚŽŽů ƚŽ ĐŽŵƉĂŶŝĞƐ ƚŽ ŝĚĞŶƟĨLJ ĂŶĚ ďĞƩĞƌ ƚĂƌŐĞƚ ƚŚĞŝƌ ĐƵƐƚŽŵĞƌƐ ĂŶĚ ƚĂŝůŽƌ ŵĂƌŬĞƚ ŽīĞƌŝŶŐƐ ƚŽ ƚŚĞŝƌ ƐƉĞĐŝĮĐ ŶĞĞĚƐ͘ ĂƐĞƐ ĨŽƌ ƐĞŐŵĞŶƟŶŐ ƵƐŝŶĞƐƐ DĂƌŬĞƚƐ /Ŷ Ă ďƵƐŝŶĞƐƐ ŵĂƌŬĞƚ ƚŚŽƵŐŚ ŶƵŵďĞƌ ŽĨ ďƵLJĞƌƐ ŝƐ ƌĞůĂƟǀĞůLJ ůĞƐƐ ƚŚĂŶ ƚŚĞ ĐŽŶƐƵŵĞƌ ŵĂƌŬĞƚ͕ LJĞƚ ƐĞŐŵĞŶƚĂƟŽŶ ƌĞŵĂŝŶƐ ŝŵƉŽƌƚĂŶƚ ƐƚƌĂƚĞŐŝĐ ĐŚŽŝĐĞ ĨŽƌ ƚŚĞ ŵĂƌŬĞƚĞƌ͘ ŚŝŐŚůLJ ĨŽĐƵƐĞĚ ŵĂƌŬĞƟŶŐ ĞīŽƌƚ ĚŝƌĞĐƚĞĚ Ăƚ ŵĞĞƟŶŐ ƐƉĞĐŝĮĐ ŶĞĞĚƐ ŽĨ Ă ŐƌŽƵƉ ŽĨ ƐŝŵŝůĂƌ ĐƵƐƚŽŵĞƌƐ ŝƐ ďŽƚŚ ŵŽƌĞ ĞĸĐŝĞŶƚ ĂŶĚ ŵŽƌĞ ůŝŬĞůLJ ƚŽ ďĞ ƐƵĐĐĞƐƐĨƵů͘ dŚĞ ďĂƐĞƐ ĨŽƌ ƐĞŐŵĞŶƟŶŐ ďƵƐŝŶĞƐƐ ŵĂƌŬĞƚƐ ƵƐĞĚ ƐĞƉĂƌĂƚĞůLJ Žƌ ŝŶ ĐŽŵďŝŶĂƟŽŶ ĂƌĞ ŐĞŽŐƌĂƉŚŝĐ͕ ĐƵƐƚŽŵĞƌ ƚLJƉĞ ĂŶĚ ƉƵƌĐŚĂƐĞ ĐŽŶĚŝƟŽŶƐ͘
Geographic Segmentation ƵƐŝŶĞƐƐ ŵĂƌŬĞƚƐ ĂƌĞ ĨƌĞƋƵĞŶƚůLJ ƐĞŐŵĞŶƚĞĚ ŽŶ Ă ŐĞŽŐƌĂƉŚŝĐ ďĂƐŝƐ͘ /ŶĚƵƐƚƌŝĞƐ which are geographically concentrated, like. Businesses that process natural ƌĞƐŽƵƌĐĞƐ ůŽĐĂƚĞ ĐůŽƐĞ ƚŽ ƚŚĞ ƐŽƵƌĐĞ͘ ^ŽŵĞƟŵĞƐ ŶĞǁ Įƌŵ ĐŚŽŽƐĞ ƚŽ ůŽĐĂƚĞ ŶĞĂƌ the industry pioneers so as to provide them with the supplies conveniently. In ĐŽŶƐŝĚĞƌŝŶŐ ŐĞŽŐƌĂƉŚŝĐ ƐĞŐŵĞŶƚĂƟŽŶ ŵĂƌŬĞƚĞƌƐ ŵĂŝŶůLJ ĐŽŶƐŝĚĞƌ ƚŚĞ ƌĞůŝĂďŝůŝƚLJ ŽĨ ƉƵďůŝĐ ƵƟůŝƟĞƐ͕ ƋƵĂůŝƚLJ ŽĨ ƚƌĂŶƐƉŽƌƚĂƟŽŶ ƐLJƐƚĞŵ ĂŶĚ ƐŽƉŚŝƐƟĐĂƟŽŶ ŽĨ ƚŚĞ ĚŝƐƚƌŝďƵƟŽŶ ƐƚƌƵĐƚƵƌĞ ŝŶ ĚĞĐŝĚŝŶŐ ǁŚĞƌĞ ƚŽ ĞdžƉĂŶĚ ŝƚƐ ŽƉĞƌĂƟŽŶƐ͘
Customer Types Market can be segmented into smaller groups according to the size, end users, ĂŶĚ ŽƌŐĂŶŝnjĂƟŽŶ ƐƚƌƵĐƚƵƌĞ ĂŶĚ ƉƵƌĐŚĂƐĞ ĐƌŝƚĞƌŝĂ͘ Size: Size of Business customer is determined on the basis of sales volume, ŶƵŵďĞƌ ŽĨ ĞŵƉůŽLJĞĞƐ͕ ŶƵŵďĞƌ ŽĨ ƉƌŽĚƵĐƟŽŶ ĨĂĐŝůŝƟĞƐ ĂŶĚ ŶƵŵďĞƌ ŽĨ ƐĂůĞƐ ŽĸĐĞƐ͘ ^ĞůůĞƌƐ ĚŝǀŝĚĞ ƚŚĞŝƌ ƉŽƚĞŶƟĂů ŵĂƌŬĞƚ ĂƐ ďƵůŬ ďƵLJĞƌƐ ĂŶĚ ƐŵĂůů ;ƌĞƚĂŝůͿ ďƵLJĞƌƐ ƵƐŝŶŐ ƐĞƉĂƌĂƚĞ ĚŝƐƚƌŝďƵƟŽŶ ĐŚĂŶŶĞůƐ ƚŽ ƌĞĂĐŚ ƚŚĞ ƐĞŐŵĞŶƚƐ͘ >ĂƌŐĞ Žƌ bulk buyers are contacted by sellers, sales force directly, but smaller (retail) ďƵLJĞƌƐ ĂƌĞ ĐŽŶƚĂĐƚĞĚ ƚŚƌŽƵŐŚ ŵŝĚĚůĞŵĞŶ Žƌ ƚĞůĞŵĂƌŬĞƟŶŐ͘
Principles of Marketing AUTHOR : PUBLISHER : DATE OF PUBLICATION : EDITION : ISBN NO : No. of Pages : BINDING TYPE :
Kavita Sharma, Swati Aggarwal Taxmann July 2026 5th Edition 9789375619154 356 Paperback
Rs. 525 DESCRIPTION Principles of Marketing is a lucid, classroom-ready textbook covering the full landscape of modern marketing—from foundational concepts to the contemporary research issues shaping the discipline. Written by two senior University of Delhi faculty, it distils decades of teaching and research into a single accessible volume for Indian graduate and postgraduate learners. What sets this Edition apart is its balance of theory and practice: every concept is anchored in marketing literature and brought to life through illustrated examples, advertisements, figures, flow charts, and real Indian business cases. Its NEP-aligned, case-based exercises push students to analyse, apply, and debate rather than memorise—while giving prominence to sustainable, holistic, digital, and social-media marketing in a fastchanging, technology-driven environment. The result is comprehensive enough to serve as a primary course book, yet practical enough for those already in the field. The book is written to meet the learning needs of undergraduate and postgraduate commerce and management courses, including: • B.Com (Hons.) and B.Com Students • BBA and MBA Students • Learners Across Other Commerce and Management Programmes Because its cases and exercises follow the NEP framework—and reflect curriculum structures such as the LOCF and UGCF—it is well suited to universities that have adopted outcome-based, application-oriented syllabi. Beyond the classroom, practising marketers, management trainees, and teachers will also find the case-based exercises and Indian-context illustrations valuable references for connecting principles to practice. The Present Publication is the 5th Edition, authored by Sr. Prof. (Dr) Kavita Sharma and Dr Swati Aggarwal, with the following noteworthy features: • [Comprehensive Yet Lucid] A single, self-contained text for a full graduate-level marketing course • [Visually Engaging] Product advertisements, figures, tables, and flow charts support every chapter • [Discussion Questions] Review questions close each chapter to consolidate and test the concepts • [Real-World Case Studies] Cases on recognisable brands build students’ critical-analysis skills • [NEP-aligned Case-based Exercises] Application-oriented exercises at each chapter end deepen understanding • [Contemporary & Research-forward] Covers modern marketing research issues and consumerbehaviour insights in the Indian and global context • [Written by Indian Authors] Addresses the dearth of Indian-authored texts, with all cases set in the Indian context
Buy Now