Week 3 - Segmentation, Targeting & Positioning PDF

Module – 3 SEGMENTATION, TARGETING & POSITIONING Space, time, perception, and value vary significantly amongst consumers. They are not uniform. The market is heterogeneous if it consists of individuals with varied features and desires. To effectively sell to individuals in...

Module – 3 SEGMENTATION, TARGETING & POSITIONING Space, time, perception, and value vary significantly amongst consumers. They are not uniform. The market is heterogeneous if it consists of individuals with varied features and desires. To effectively sell to individuals in such a market, marketers must determine the traits and desires of diverse groups of people inside the market, since a single marketing mix cannot satisfy all of them. The core of all marketing strategies is the concentration of marketing energy, and market segmentation is the conceptual instrument that assists in obtaining this focus. The marketer must attempt to comprehend the requirements, desires, and expectations of the target market. After understanding marketing environment, in the module 3, concepts relevant to STP (Segmentation, Targeting & Positioning) will be discussed. The topic discusses are, concept of segmentation, and its bases & benefits, requisites of effective market segmentation, process of market segmentation, targeting & its strategies, differentiation and positioning, differentiation and positioning, differentiation, undifferentiation and niche marketing. 1. Concept of Segmentation and its Base & Benefits. The globe is becoming acknowledged as a global village, marketing has become an essential component of any business's success. Every rival is finding it tough to stay in the market for an extended length of time since competition is fierce. Successful marketing strategies or marketing campaigns often include a mix of numerous marketing approaches that operate in concert to develop your brand, eliminate sales resistance, and generate interest and demand for your product or service. The technique of discovering smaller markets inside a larger market is known as market segmentation. These categories are known as market segments. target segmentation enables marketers to create marketing mixes tailored to certain target groups. Market segmentation enables marketers to create marketing strategies that are more precisely targeted to the traits and preferences of individuals in the identified and chosen target categories. Market segmentation was first put forward in the middle of 1950s by Wendell.R.Smith, an American professor of marketing. According to Wendell. R. Smith, “Market segments breaks the larger heterogenous market into small homogenous market segments. The elements of each smaller segment are more similar in terms of wants, needs and behavior than the total market is. A separate marketing program is developed to best match each segment, individual needs and wants.” According to Charles W.Lamb, “Market segmentation is to divide a market into smaller groups of buyers with distinct needs, characteristics, or behaviors who might require separate products or marketing mixes.” According to Philp Kotler, “Market segmentation is sub-dividing a market into distinct and homogenous subgroups of customers, where any group can conceivably be selected as a target market to be met with distinct marketing mix.” All the definition are similar in nature and we can draw the following inferences out of it: Market segments should be created in such a way that the differences between buyers within each segment can be brought down. Through segmentation, marketers can examine the differences carefully among the customer groups and decide on the appropriate strategies or offers for each group The process of segmentation, which involves separating clients who have similar lifestyles, needs, and other traits, assists us in better understanding the specific requirements of each customer. In order for marketers to have greater success in analyzing these criteria in their communication and programs, as well as in informing and/or convincing potential consumers that the product or service offering would meet their needs, the more they develop this common ground with customers. Bases of Market Segmentation: The process of segmenting the market and determining the target market typically involves the use of multiple bases. When comparing individual consumer markets to business-to-business markets, the method of segmentation that is used will be different. Using a variety of different basis, one can divide the market up into a few distinct categories. Bases of market segmentation can be broadly divided into four categories i.e.: 1. Geographic segmentation 2. Demographic segmentation 3. Psychographic segmentation and 4. Behavioral segmentation 1. Geographic segmentation: It is the basic type of segmentation. The typical and most common foundation for dividing up a market into several segments is through geographical segmentation. When it comes to planning and administration, the marketers will often find it helpful to subdivide the nation into sections in a methodical approach. This is done for their convenience. When this step is completed, the marketer will have segmented the target audience into several geographical units such as countries, states, and regions. It is possible for him or her to make the decision to do business in one or more than one geographical location. The following is a breakdown of clients according to the geographic considerations: Region – Segmentation by continent/country/state/district/city is a part of this segmentation. Size - Segmentation of a metropolitan area based on the size of the area in relation to its resident population.  Population density – Segmentation based on the population density of different areas, such as urban, sub-urban, and rural areas, etc. Climate - Classification according to the prevailing climatic conditions or weather. Geographic Segmentation is done, because customer segmentation may be based on a lot of geographical factors. various parts of the nation have various ways of living and acting. diverse parts of the nation frequently have diverse weather. Size of city might affect what a customer wants. Even various parts of the same city or suburb might lead to distinct customers. Any geographic division of the population that also separates customers into groups with similar demands might be relevant to a marketer. 2. Demographic segmentation: Under this method the consumers are grouped into homogenous groups in terms of demographic similarities, such as age, gender, income, purchasing power, education, occupation, religion and even ethnic background. This basis is considered to be more dominant since the emphasis ultimately rests on consumers. For example: For instance the food habit of an infant will vary as compared to a 15 year old child. Again, the needs of a person aged 55-60 in terms of purchasing cloths will be entirely different as compared to infant and 15 yr old child. Similarly, the needs of a female will vary as compared to male. 3. Psychographic segmentation: It is also known as the life segmentation; buyers are divided into different groups. It basically involves the study of lifestyle of individuals. It involves developing sub-group identification based on psychographic characteristics. Lifestyle on the other hand is a way of living. It is a representation of a person's life as a whole, comprised of a person's behaviours, interests, and ideas. 4. Behavioral segmentation: The last bases of market segmentation is through behavioral segmentation. Here the market is divided based on purchase decision and product, or brand usage made by consumers. Dividing the market based on variables such as use occasion, benefits sought user status, usage rate, loyalty status, buyer readiness stage, and attitude is termed as behavioristic segmentation. Customers can be classified according to the situation in which they feel the need to satisfy that need by either making a purchase or using a service. Benefits of market segmentation: It assists in differentiating one consumer group from another within a specific market, which is one of the many benefits that may be enumerated. It makes it easier to choose the appropriate target market. It makes effective market penetration much easier to achieve. It is useful for dividing up marketplaces and then taking control of those markets.  It improves the effectiveness as well as the economics of the marketing campaign. 2. Requisites of Effective Market Segmentation Philip Kotler once said that market segmentation makes it easier for competitors to go after specific parts of the market. Instead of trying to reach everyone, each company should figure out the most appealing part of the market that it can serve well. Marketers who are able to successfully segment the total market and tailor their products to meet the requirements of one or more smaller segments stand to benefit in the form of greater profit margins as well as reduced competitive pressures. The objective of segmentation being effective direction of marketing efforts to specific segments, the segments themselves should be accessible through various channels of distribution, advertising media, sales force, etc. Market segments are large identifiable groups within the market. It helps in developing strong positions in specialized market segments and often leads to the rapid growth rate. However, if the accessibility is difficult, segmentation will become meaningless. The purpose of segmentation is, sometimes, to evolve separate marketing programs or develop separate products to cater to the needs of separate segments of consumers. Criteria for Market segmentation: Identity Accessibility Responsiveness Size Measurability Nature of demand. Let us now discuss the six criteria in detail. Identity- The marketing manager needs to have some method for identifying members of the segment, or some basis for classifying an individual as being a member of the segment or not being a member of the segment. In other words, the marketing manager needs to have some way of determining who belongs to the segment and who does not belong to the segment. There must be discernible distinctions between the segments. The members of such segments can be quickly identified by common characteristics as they demonstrate comparable behaviors. If I were to generalize, I would argue that in order to successfully segment the market, one needs to recognize that the consumers within each category have comparable requirements and/or characteristics. If the customers in the general market can be successfully separated into groups with distinct sets of wants using segments, then the rest of your plans will easily fall into place.  Accessibility – The segments must permit the firm to direct successfully different marketing efforts towards the segments. When it comes to promotion and distribution, it is essential that all of the different demographic subgroups be accessible. It is necessary to have an effective means of contacting and exchanging information with each individual sector. In other words, the company needs to be able to concentrate all of its marketing efforts on the particular demographic that it has selected. Segments must be accessible in two senses: First, firms must be able to make segmented customers aware of products or services. Second, they must get products to them through the distribution system at a reasonable cost It is necessary to think about the several ways in which the group may be reached, and it is of critical importance to determine whether doing so is within the capabilities of the marketing department of the organization. It's possible that different demographics may react more favorably to certain types of advertising, such as infomercials on television, social media campaigns, or even outdoor advertising. Responsiveness – The responsiveness of customers in a defined market segment refers to the degree to which those consumers will respond to marketing offers that are directed specifically at them. A market segment is said to be responsive to your marketing efforts when that segment exhibits a positive response to those efforts. When developing a segmentation strategy, it is essential to ensure that the distinct marketing mix for each segment justifies the effort that will be expended. Size – The segment must be reasonably large to be a profitable target. The market segment must have practical value, meaning that its characteristics must provide supporting data for a marketing position or sales approach, and that marketing position or sales approach must have outcomes that are easily quantifiable, ideally in relation to the existing measurements of the market segment as defined by initial market research. Nature of demand – It is a reference to the varying quantities that are desired by the various market segments. Segmentation is required only if there are market differentiation in terms of demand. Measurability –The purpose of segmentation is to measure the changing behavioral pattern of consumers. The sales value or volume of a market segment is often used to classify the segment. (i.e. the number of customers within the segment). A reliable market research study should be able to determine the size of a market segment with a decent degree of precision. This allows business  strategists to decide if, how, and to what extent they should concentrate their efforts on marketing to a particular market group. 3. Process of Market Segmentation Segmentation is more likely to be successful if a step-by-step approach is used. Segmentation strategy is not a simple process. It is the result of applying a systematic and analytical process to the crucial decisions about product market entry Figure 1 highlights the step-by-step process ofmarket segmentation. Form The Segments The Marketing Manager Decides the Basis forForming the Segments Profile The Segments The Marketing Manager Obtains Detailed Buyer Profile Informationfor Each Segment of Interest Evaluate The Segments The Marketing Manager Evaluates Segments by Means of Financialand Strategic Criteria Target Market Selection The Marketing Manager Selects the Segment and Targets the Segment Fig. 1: Segmentation Process Figure 1 shows the four-step process followed by the marketing manager for segmenting the market. Step 1: Forming market segments- The process of dividing up the market into segments has now reached its starting point. In order to identify different market segments, the marketing manager uses two different methods. The build-up and breakdown approaches have that name for a reason. The first technique is utilized in the context of business-to-business markets or for industrial purchasers, whilst the second method is used in the context of business-to-consumer markets or for individual market segments. The first method is better suited for business-to-business markets or for industrial purchasers. When dealing with customers on a business-to-business level, a company's marketing  manager can create segments by analyzing the consistent demand pattern presented by a number of different purchasers. These markets are referred to as B2B markets. Because the demand of a single customer in a commercial market is not sufficient to label each of those customers as a segment, one can construct worthwhile demand segments by analysing demand patterns that are similar to those of other profitable demand segments. The breakdown method analyses vast, diverse markets and divides them up into homogenous segments that have demand patterns that are comparable to one another. These parts are referred to as market segments. Step 2: Profile segments- After market segments have been formed, the marketing manager analyses the segments to understand the profile of customer in each segment. A profile is built for each segment by searching for relationships among segmentation basis variables and descriptive characteristic variables. Although a segmentation basis should clearly classify customers into segments, customers in different segments do not have to score differently on every profile variable. But if total profiles are too similar across segments,they will give the marketing manager little additional insight into how toserve each segment with a specific marketing mix. Step 3: Evaluate market segments- Once segments have been formed and profiled, marketing managers evaluate the profit contribution expected from each segment. Several kinds of information are needed, starting with the demand potential within each segment. The marketing manager measures the demand of each customer and the number of customers in each segment. Step 4: Select target markets- The selection of target markets helps the marketer to correctly identify the markets and the group of target customers for whom the products or services are produced. In these days, market targeting is used for all typesof markets, including developing and emerging markets.. The company can also decide to select few products and target each of these product alternatives for specific market segments. The marketing manager can decide a single product for all the market segments and use product specialisation. The market specialisation strategy allows marketing managers to offer different products in a single segment. A full-scale product market strategy allows marketing managers to launch all types of products for all types of market segments. 4. Targeting and its Strategies Target Market: A set of purchasers who share common wants or characteristics and whom a firm has decided to service can be described as the organization's target market. It is very important to select the target market, which the company decides to serve. It is of the utmost significance that the organisation carefully considers and pick the target market that it will serve. When designing an appropriate marketing plan, marketers can benefit from having knowledge about how consumers make decisions, what the criteria are for acquiring items, the characteristics of the targeted clients, and the lifestyles of those customers. Every marketing plan includes marketing expenditures, and the return on a market program can only be evaluated if we are able to know the target market for which the marketing expenditures are really a waste of business resources since they are spent on non-buyers. The return on a market programmed can only be identified if we are able to know the target market for which the marketing expenditures are spent on non-buyers. If we can know the target market for which the marketing expenditures are being made, then we will be able to calculate the return on an investment made in a marketing program. Therefore, if the marketer has a better understanding of the nature and characteristics of the target market, they will be able to get larger outcomes from a marketing program. With the assistance of the new information obtained about the target market, the marketer will be able to adapt and construct new marketing program for the success of the firm with the help of the knowledge gathered about the target market, including the growth of the target market and changes in attitude. Because of this, having a firm knowledge of the target market and determining how enticing that market is to target is one of the most critical decisions that can be made in marketing. The study of target marketing guides you in deciding on which of the many possible markets to enter, giving you more options to choose from. The marketer will determine which market to target based on the resources at their disposal, as well as their level of experience and expertise, as well as the amount of time they have available. Targeting discusses how to target certain markets, whereas segmentation explains who should be targeted in the market. A set of purchasers who share common wants or characteristics and whom a firm has decided to service can be described as the organization's target market. The selection of the target market that the company will serve is of the utmost importance. Knowledge about how consumers make decisions, what are the criteria for purchasing products, and what are the characteristics and lifestyle of the targeted customers help marketers develop an appropriate marketing strategy. Types of target marketing strategies So far, we have discussed the meaning of target marketing, let us now look at the different types of target marketing options available to the marketing planner. The targeting strategy largely depends on the kind of product market coverage that the firm plans. The product market coverage strategies are broadly classified as concentrated marketing strategies, differentiated marketing strategies and undifferentiated marketing, strategies. Undifferentiated marketing strategy or mass marketing strategy There is a possibility that marketers would opt to go against the concept of a segmented market and instead sell their goods to the whole market. In this scenario, the marketing manager chooses to disregard the concept of distinct segment characteristics in order to concentrate on developing a marketing program for the whole market. Using this strategy reduces the overall expenses of marketing and makes it simpler to handle and keep track of the many market factors in a consistent manner. In this stage of the process, the marketer looks for patterns across all the different segments rather than concentrating on the distinctions between them. The business creates a marketing offer and a marketing program that are intended to appeal to the greatest number of customers possible via the implementation of a program for mass distribution and mass advertising. The challenge of implementing this approach is to come up with a single product and a marketing plan that can appeal to a diverse group of consumers, each of which has their own unique preferences and preferences. In this situation, it is tough for the marketer to compete with competitors in the company that are focused. Concentrated marketing strategy: When a firm's resources are limited and the level of competition is high enough to force the marketing manager to stretch the market budget in order to provide enough market coverage, the company will use a concentrated marketing plan. The corporation has come to the conclusion that it is more profitable to cover a wide niche than to compete for a tiny portion in a vast market. It is a fantastic approach for smaller producers that are able to remain closer to the sector and adapt to the developing requirements of a close loop client base. Because of this, they are able to acquire market share in smaller areas despite the presence of powerful and massive rivals. Because of the increased customer knowledge and the unique reputation that comes with focused marketing, businesses have the ability to gain powerful market positions in the specific market segments or niches that they service. Due to the fact that the companies have specialised in manufacturing, distribution, and marketing, they are able to enjoy operational economies, which may also provide them a larger return on their investments. A concentrated approach to marketing comes with its fair share of dangers as well. When taking into consideration the potential for profits, significant rivals may choose to join this market, which may eventually result in a bid for takeover by a large company already established in the industry. Differentiated marketing strategy: In diversified marketing strategy, marketers target several market groups and  build distinct offerings for each category. They target many segments or niches with a diverse range of marketing offers tailored to meet the requirements of each group. The primary purpose of providing a diverse set of marketing offers is to provide service to a variety of market segments and to achieve increased sales while maintaining a dominating position within each market segment. Increasing one's standing inside each market segment results in greater overall sales than using a mass marketing approach across all market groups combined. The additional costs that may be incurred in marketing research, product development, various forecasting models, sales analysis, promotion planning, and channel management are the kind of risk that is associated with this sort of marketing approach. Spending more money on marketing is necessary if you want to try to target various market groups through a variety of advertising strategies. As a result, it is up to the marketing manager to determine if the greater costs are worth it in light of the increased sales that result from such a plan. Factors affecting Target Marketing: 1. Company’s resources and ability to cater to the market: The market coverage strategy is heavily reliant on the resources available to the organization and their capacity to meet the demands of the market. The variety of the product is another factor that affects which technique is better. The use of undifferentiated marketing is most effective when used to commodities and uniform items such as gasoline, steel, and sugar. 2. On the product variability: When a corporation is in the process of introducing a new product, it often favors entering a market that is either undifferentiated or concentrated with a single offering. When choosing a strategy for market coverage, it is essential to consider a number of critical factors, including the product's life cycle. 3. The product’s life cycle: During the period of the product life cycle known as maturity, there are a lot of firms who employ diverse marketing strategies. If all of the consumers have the same preferences, purchase the same quantity, and react to a marketing program in the same manner, then the market's variability will be at its lowest. Therefore, the most appropriate marketing approach would be one that does not distinguish its products. The marketing strategy of the competition is something that every marketing manager should investigate. If the rival is using a differentiated approach with particular offers for different groups, then an undifferentiated marketing strategy will be doomed to fail in the market. On the other hand, an undifferentiated marketing strategy will be an appropriate strategy for the marketer if the opponent is using the opposite strategy. 5. Differentiation and Positioning We have discussed segmentation and targeting. Segmentation, Targeting, and Positioning (STP) constitute the fundamental pillars of any marketing function. The marketing manager needs to decide which segment to enter and how to target that segment with a product offer through the selection of market segment and target marketing strategy. Market Positioning: Product (brand) placement refers to a product's position within a certain market. This relies on market structure, the firm's competitive position, and the notions of substitution and product competition. Product Image provides a novel approach to product positioning, such as customers' views of a product's position in a specific market. The term positioning incorporates most of the usual definitions of the term position, including position as a location (what place does the product occupy in its market?) and position as a rank (how does the product compare to its rivals on multiple evaluative dimensions?), as well as a mental attitude (consumer attitudes are cognitive, effective, and behavioral inclinations) towards the provided goods. Consequently, product positioning should be evaluated by assessing consumers' or organizational purchasers' views and preference for the product in comparison to its rivals. For Example, Mercedes is positioned for luxury segment and Volvo is positioned for safety. How to determine the consumers' perceived brand positioning: Identifying a comprehensive collection of competing products is vital, since it serves as the stimulus set for the positioning research. In developing the stimulus set, it is occasionally advantageous to include two sorts of goods and brands: brands within the same product class and items and brands outside of the physical product class that customers may use as alternatives for the product under consideration. The consumers' perceived brand positioning is determined by eliciting their responses to a series of questions after the relevant set of brands and items have been identified: Consumers' perceptions using several accessible methodologies for similarity measurement. Customers' preferences -globally and under a variety of use and buying. Situations perceptions and preferences. Requirements for product positioning: There is a high frequency of consumer-targeted marketing communication nowadays. They are exposed to different levels and types of communication via many media such as newspapers, television, radio, the internet, and non- traditional media such as fairs, festivals, exhibits, and outdoor media. However, the consumer's capacity to analyse the information and recall it all is constrained by two things. At a given moment, the consumer pursues a single consuming objective, rendering other information superfluous. Due to a high amount of distortion and a low rate of retention in the consumer's memory box, the consumer's capacity to digest all the information is restricted. Therefore, customers are inundated with information in the marketplace, but their purpose and capacity to digest this information is restricted. To simplify the purchasing procedure and alleviate mental strain, consumer groups should provide information on competing items and assess them on perceptual criteria based on perceived quality in order to establish a distinct place in their minds. A product's position is the complex combination of perceptions, impressions, and emotions that customers have for the product relative to competing alternatives on the market. They position themselves with or without the assistance of marketers. Through the company's marketing communication program, a successful marketer offers the necessary information to the customer while the consumer is still in the process of forming a stance. Therefore, a marketer is able to develop product positioning and build a sustainable competitive advantage for the product in the chosen market categories. Rest other marketing strategies might assist the position that can provide the company with a durable competitive advantage. Each company must have a set of distinctiveness or a unique collection of advantages that appeals to a significant portion of the market. Market Positioning Strategies: 1. Market Segmentation Considerations 2. Product Line Considerations 3. Alternative Bases for Positioning Let’s us discuss understand each of them: 1. Market Segmentation Considerations: Due to the heterogeneity of each market, the true value of product positioning is only exposed when it is coupled with an effective market segmentation approach. This is since there are variances within segments, necessitating a segment-based positioning approach rather than a single positioning for the whole market. 2. Product Line Considerations: Most companies have more than one product, so when deciding how to position a product, you should think about where it fits in the company's product range and how customers and other important people in the company see it. Also, it should aim to make it easier for customers to choose between the many items, and each one should be distinctive in some way that is important to the target market. This cuts down on product duplication. Product line positioning shouldn't only look at the company's own items; it should also look at its rivals' products. 3. Alternative Bases for Positioning: Management may utilise a variety of different basis for positioning when establishing a positioning plan. Positioning on certain product attributes is one of them. Positioning is usually done based on price and certain performance attributes. Product feature positioning may include everything from precise, quantifiable  advantages, as MRF's formula car tyres' "The power of knowledge" of the economic times, to more general, intangible benefits. Benefit positioning, which talks about what the product does for the customer, is closely related to feature positioning. Positioning on benefits, problem solution or needs: Benefit positioning, which talks about what the product does for the customer, is closely related to feature positioning. - For example: In positioning hair shampoo, some says its chemical free, its herbal, it helps in combating damaged hair etc. Positioning for specific usage occasions: : Related to benefit positioning is the positioning for specific occasions. For example: Dominos delivering happiness in 20 minutes; or you can cook a certain noodle in two minutes. Hybrid bases: Product Management could use a hybrid approach incorporating elements from more than one basis for positioning Steps for Positioning a Product: Define: You must first define the different market categories that exist. Decide: Choose which of the segments to focus on. Before deciding to make a purchase, it is important to gain an awareness of the expectations of the target consumers as well as the variables that these consumers perceive as being the most important. Understand: Conceive a product, or more than one product, that is tailored precisely to these requirements and requirements. Develop: Analyse how the target customers of competing products in the selected market segments see the placement of those items in the market, as well as the images those customers associate with those products. Evaluate: Conduct an analysis of the dominant position held by the market's leading brand, which holds a unique standing in the minds of customers. Select: Choose an image for the product that distinguishes it from other similar products on the market; in doing so, you can guarantee that the selected image will fulfil the expectations of the target audience. Inform: Communicate information about the product promotion to the customers who are targeted. The key pillars that support every marketing function are known collectively as STP, which stands for segmentation, targeting, and positioning. We have talked about targeting and segmenting up until this point. The marketing manager is responsible for making the decision of which market segment to enter as well as how to target that market segment with a product offer. This decision is made through the selection of a target marketing strategy. The second thing that needs to be done is to decide what products the company will sell, and then decide what kind of image the business hopes its clients will have. The difficulty lies in  determining what place the company want for its products to have within the market segment(s) that have been chosen. The position of a product is the definition that a consumer assigns to a product based on the significant characteristics of that product. Positioning is an act of developing the company’s offerings and image to occupy a distinct place in the minds of the target market. Positioning is a consumer driven strategy in which the objective is to occupy a unique place in the customer’s mind and maximise its potential benefit for the firm. Each brand must thus be ‘positioned’ in a particular class or segment. Example, Mercedes is positioned for luxury segment and Volvo is positioned for safety. The position of a product is the sum of those attributes normally ascribed to it by the consumers – its standing in the market, its quality, the type of people who use it, its strengths, its weaknesses, its price, the value it represents, and any other unusual or memorable characteristics it may possess. 6. Differentiation, Undifferentiation and Niche Marketing The marketing strategy of companies vary from each other. The strategy of a company may help them to achieve success, but the same strategy might not show good result to another company. So, its important for companies to study the market and design strategy that will best suit them and help them in earning profit and capturing the market. Differentiated marketing: A differentiated marketing strategy is one that lets you go after distinct parts of the company market with different products or services. Because of this, the technique is often dubbed "marketing to multiple segments." By looking at the differentiated marketing definition, we can see that the strategy aims at each group in a distinct manner and gives various segments different advantages. The goal is to raise sales and market share in of the groups you are going for. With a differentiated strategy, a company can target multiple target audiences such as caring person, eco-friendly individuals, health-conscious consumers, etc. When done well, differentiated marketing may lead to a strong, well-established market presence that is hard to move. This is because clients are very interested in items and deals that meet the specific needs of their market niche. Here, your marketing skills and resources are quite important since they let you come up with distinct messaging for each product. With this technique, you may target two or more clearly defined groups of customers with a specific product and a different marketing strategy for each group. With a distinct approach, you may also reach a wider range of customers, increase sales, and develop a strong brand name in the sector. Example: Maruti Suzuki is one of India’s most trusted and popular automakers. Undifferentiated marketing: Undifferentiated marketing is a strategy in which a company develops only one product or product line and markets its offerings to all of its different types of clients using the same set of promotional tools. This strategy is also known as mass marketing, which is another term for it. When it comes to mass marketing, the market coverage strategy basically disregards the variations between the various market segments and pursues the entire market with a single offer. This method of marketing makes an effort to close deals by gaining the support of a large number of people. In most cases, the goal is to connect the message to the greatest number of people feasible using various means of dissemination. The coverage provided by various forms of mass media, such as radio, television, and newspapers, is the primary emphasis of mass marketing. The goal is to get as much attention as possible drawn to the product. Examples: A product is a suitable candidate for undifferentiated marketing when consumers have comparable wants for the product. Sugar, flour, toothpaste, dish soap, and fruits and vegetables are just a few instances of the many various types of products that are not distinguishable from one another. Using undifferentiated marketing strategies, such as mass-market advertising campaigns, well-known brands like Coca-Cola and Colgate have been able to successfully generate billions of dollars in revenue. Niche Marketing: Niche marketing is a kind of marketing that focuses on a relatively small part of the market. So, it's also termed "focused marketing/ concentrated marketing." Companies that use this approach concentrate on a specialized market that needs high-quality service and attention. A niche market is a small part of the market that a certain product is trying to reach. Each niche market is basically a description of the product's design, price range, quality of manufacture, and the kind of people it is meant to reach. In niche marketing, the company only concentrates on one thing. Niche marketing focuses on a limited group if that group is lucrative. This method works well for smaller companies that don't have as many resources. Because there is so much competition in the market and people have so many different wants, it is now difficult for businesses to meet everyone's needs. So, it would be preferable if they choose a few categories of customers to please. A niche market is characterized by a distinct consumer and the provision of a specialty good or service. In most cases, the market is not on the limited side. Before providing a service that will optimally satisfy the requirements of the target market, a company must first make an effort to gain an understanding of the requirements and preferences of the niche market. In this module, segmentation, targeting and positioning have been explored in detail. The different topics have been discussed under the same. Topics acknowledged are Concept of Segmentation and its bases and benefits, requisites of effective market segmentation, process of market segmentation, targeting and its strategies, differentiation and positioning and differentiation, undifferentiation, and niche marketing in detail. In the next module topics relevant to Product Management will be discussed in detail.