Concepts of marketing

Marketing, as indicated in the term, denotes a process that is continuous in nature. The market
should be continuously involved in initiating, conducting and finalizing transactions and
exchange. This is an unending process and would continue till production and consumption cease
to exist in the world.

Meaning: The term ‘marketing’ can be defined analytically or operationally. The analytic way of
explaining the terms to show how marketing differs from various other activities of a firm,
marketing deals with identifying and meeting human and social needs. One of the shortest
definitions of marketing is “meeting needs profitably”.

Definitions: According to kotler: “Marketing is the science and art of exploring, creating, and
delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled
needs and desires”

According to American management association: “Marketing is the process of planning and

executing the conception, pricing, promotion and distribution of ideas, goods and services to
create exchanges that satisfy individual and organizational objectives”. Thus marketing may be
defined as those as those business functions which are most directly and primarily concerned
with three activities

∑ The recognition of the demand,

∑ The stimulation of demand

∑ The satisfaction of demand

Marketing Management is a social and managerial process by which individuals or firms obtain what they
need or want through creating, offering, exchanging products of value with each other. the total marketing
can be fulfilled the core concepts of business.

NEED/ WANT/ DEMAND:

Need: It is state of deprivation of some basic satisfaction. eg.- food, clothing, safety,shelter.

Want: Desire for specific satisfier of need. eg.- Indians needs food – wants paneer tikka/ tandoori
chicken. Americans needs food- wants hamburger/ French fries.

Demand: Want for a specific product backed up by ability and willingness to buy.

eg.- Need – transportation. Want – Car (say, Mercedes)……but able to buy only Maruti. Therefore,
Demand is for Maruti.
PRODUCTS- GOODS/ SERVICES/ PLACE.

Product is anything that can satisfy need/ want.Product components are Physical Good., Service,Idea.eg.
Fast food- burger/ pizza.Physical Good – material eaten.Service – purchase of raw material/ cooking,Idea
– speed of computer/ processing power.

VALUE/ COST/ SATISFACTION:

o Decision for purchase made based on value/ cost satisfaction delivered by product/ offering .Product
fulfills/ satisfies Need/ Want. Value is products capacity to satisfy needs/ wants as per consumer’s
perception or estimation. Each product would have a cost/ price elements attached

o Satisfaction – Estimated in terms of time lead & travel comfort.

o VALUE– Products capacity to satisfy.

o COST– Price of each products.

EXCHANGE/ TRANSACTION:

EXCHANGE: – The act/ process of obtaining a desired product from someone by offering something in
return. For exchange potential to exist, the following conditions must be fulfilled.

There must be at least two parties.

Each party has something of value for other party.

Each party is capable of communication & delivery an innovation to final adoption.

A new product is a good, service or idea that is perceived by some potential customers as new.

Each party is free to accept/ reject the exchange offer. Each party believes it is appropriate to
deal with the other party.

TRANSACTION: – Event that happens at the end of an exchange. Exchange is a process

towards an agreement. When agreement is reached, we say a transaction has taken place. Barter
transaction. Monetary Transaction. At least two things of value. Condition agreed upon. Time of
agreement. Place of agreement. May have legal system for compliance.

RELATIONSHIP/ NETWORKING: Relationship marketing:- It’s a pattern of building long

term satisfying relationship with customers, suppliers, distributors in order to retain their long
term performances and business. Achieved through promise and delivery of ,high quality, good
service, fair pricing, over a period of time.

MARKETING NETWORK: It is made up of the company and its customers, employees,

suppliers, distributors, advertisement agencies, retailers, research & development with whom it
has built mutually profitable business relationship. Competition is between whole network for
market share and NOT between companies alone.
 MARKET: A market consists of all potential customers sharing particular need/ want who may
be willing and able to engage in exchange to satisfy need/ want. Market Size = fn (Number of
people who have need/ want; have resources that interest others, willing or able to offer these
resources in exchange for what they want.

MARKETERS/ PROSPECTS: Working with markets to actualize potential exchanges for the
purpose of satisfying needs and wants. One party seeks the exchange more actively, called as “
Marketer”, and the other party is called “Prospect”. Prospect is someone whom marketer
identifies as potentially willing and able to engage in exchange. Marketer may be seller or buyer.
Most of time, marketer is seller. A marketer is a company serving a market in the face of
competition. Marketing Management takes place when at least one party to a potential exchange
thinks about the means of achieving desired responses from other parties.

Main concepts of marketing:.

1. Production Concept

2. Product Concept

3. Selling Concept

4. Marketing Concept

5. Societal Marketing Concept

1.Production Concept: Those companies who believe in this philosophy think that if the
goods/services are cheap and they can be made available at many places, there cannot be any
problem regarding sale. Keeping in mind the same philosophy these companies put in all their
marketing efforts in reducing the cost of production and strengthening their distribution system.
In order to reduce the cost of production and to bring it down to the minimum level, these
companies indulge in large scale production.

2.Product Concept: Those companies who believe in this philosophy are of the opinion that if
the quality of goods or services is of good standard, the customers can be easily attracted. The
basis of this thinking is that the customers get attracted towards the products of good quality. On
the basis of this philosophy or idea these companies direct their marketing efforts to increasing
the quality of their product.

3.Selling Concept: Those companies who believe in this concept think that leaving alone the
customers will not help. Instead there is a need to attract the customers towards them. They think
that goods are not bought but they have to be sold.

4.Marketing Concept: Those companies who believe in this concept are of the opinion that
success can be achieved only through consumer satisfaction. The basis of this thinking is that
only those goods/service should be made available which the consumers want or desire and not
the things which you can do.

5.Societal Marketing Concept: This concept stresses not only the customer satisfaction but also
gives importance to Consumer Welfare/Societal Welfare. This concept is almost a step further
than the marketing concept. Under this concept, it is believed that mere satisfaction of the
consumers would not help and the welfare of the whole society has to be kept in mind.

Role of Marketing

Marketing is perhaps the most important activity in a business because it has a direct effect on
profitability and sales. Larger businesses will dedicate specific staff and departments for the
purpose of marketing. It is important to realise that marketing cannot be carried out in isolation
from the rest of the business. For example:The marketing section of a business needs to work
closely with operations, research and development, finance and human resources to check their
plans are possible. Operations will need to use sales forecasts produced by the marketing
department to plan their production schedules. Sales forecasts will also be an important part of
the budgets produced by the finance department, as well as the deployment of labour for the
human resources department. A research and development department will need to work very
closely with the marketing department to understand the needs of the customers and to test
outputs of the R&D section.

Marketing Process

The activities of marketers both reflect and shape the world we live in. Every year new products
and services are launched and some of them succeeds on an unprecedented scale. As in the case
of Apple's iPod, iPhone, and also iPad. They all are great inventions and highly successful in
market.

The Marketing Process of a company typically involves identifying the viable and potential
marketing opportunities in the environment, developing strategies to effective utilise the
opportunities, evolving suitable marketing strategies, and supervising the implementation of
these marketing efforts. Marketing process involves ways that value can be created for the
customers to satisfy their needs.

Marketing process is a continual series of actions and reactions between the customers and the
organisations which are making attempt to create value for and satisfy needs of customers. In
marketing process the situation is analysed to identify opportunities, the strategy is formulated
for a value proposition, tactical decisions are taken, plan is implemented, and results are
monitored.
Steps in Marketing Process

Following are the steps involved in the Marketing Process :-

∑ Situation Analysis

∑ Marketing Strategy

∑ Marketing Mix Decision

∑ Implementation and Control

1. Situation Analysis:

Analysis of situation in which the organisation finds itself serves as the basis for identifying
opportunities to satisfy unfulfilled customer needs. Situational and environmental analysis is
done to identify the marketing opportunities, to understand firms own capabilities, and to
understand the environment in which the firm is operating.

2. Marketing Strategy :After identifying the marketing opportunities a strategic plan is

developed to pursue the identified opportunities.

3. Marketing Mix Decisions: At this step detailed tactical decisions are made for the
controllable parameters of the marketing mix. It includes - product development decisions,
product pricing decisions, product distribution decisions, and product promotional decisions.

4. Implementation and Control: Finally, the marketing plan is implemented and the results of
marketing efforts are monitored to adjust the marketing mix according to the market changes.

Marketing Environment

Environmental analysis is a strategic tool. It is a process to identify all the external and internal
elements, which can affect the organization’s performance. The analysis entails assessing the
level of threat or opportunity the factors might present. These evaluations are later translated into
the decision-making process. The analysis helps align strategies with the firm’s environment.
Our market is facing changes every day.

Many new things develop over time and the whole scenario can alter in only a few seconds.
There are some factors that are beyond your control. But, you can control a lot of these things.
Businesses are greatly influenced by their environment. All the situational factors which
determine day to day circumstances impact firms. So, businesses must constantly analyze the
trade environment and the market. There are many strategic analysis tools that a firm can use, but
some are more common. The most used detailed analysis of the environment is the PESTLE
analysis. This is a bird’s eye view of the business conduct. Managers and strategy builders use
this analysis to find where their market currently. It also helps foresee where the organization
will be in the future.

 Political factors
 Economic factors
 Social factors
 Technological factors
 Legal factors
 Environmental factor

P for Political factors: The political factors take the country’s current political situation. It also
reads the global political condition’s effect on the country and business. When conducting this
step, ask questions like “What kind of government leadership is impacting decisions of the
firm?”

Some political factors that you can study are:

∑ Government policies

∑ Taxes laws and tariff

∑ Stability of government

∑ Entry mode regulations

E for Economic factors: Economic factors involve all the determinants of the economy and its
state. These are factors that can conclude the direction in which the economy might move. So,
businesses analyze this factor based on the environment. It helps to set up strategies in line with
changes.

Here listed some determinants you can assess to know how economic factors are affecting your
business below:

∑ The inflation rate

∑ The interest rate

∑ Disposable income of buyers

∑ Credit accessibility

∑ Unemployment rates

∑ The monetary or fiscal policies

∑ The foreign exchange rate

 S for Social factors: Countries vary from each other. Every country has a distinctive mindset.
These attitudes have an impact on the businesses. The social factors might ultimately affect the
sales of products and services.

Some of the social factors you should study are:

∑ The cultural implications

∑ The gender and connected demographics

∑ The social lifestyles

∑ The domestic structures

∑ Educational levels

∑ Distribution of Wealth

T for Technological factors: Technology is advancing continuously. The advancement is

greatly influencing businesses. Performing environmental analysis on these factors will help you
stay up to date with the changes. Technology alters every minute. This is why companies must
stay connected all the time. Firms should integrate when needed. Technological factors will help
you know how the consumers react to various trends.

Firms can use these factors for their benefit:

∑ New discoveries

∑ Rate of technological obsolescence

∑ Rate of technological advances

∑ Innovative technological platforms

L for Legal factors: Legislative changes take place from time to time. Many of these changes
affect the business environment. If a regulatory body sets up a regulation for industries, for
example, that law would impact industries and business in that economy. So, businesses should
also analyze the legal developments in respective environments.

Here mentioned some legal factors you need to be aware of: Product regulations

∑ Employment regulations

∑ Competitive regulations

∑ Patent infringements
∑ Health and safety regulations

E for Environmental factors: The location influences business trades. Changes in climatic

changes can affect the trade. The consumer reactions to particular offering can also be an

issue. This most often affects agri-businesses. Some environmental factors you can study

are:

∑ Geographical location

∑ The climate and weather

∑ Waste disposal laws

∑ Energy consumption regulation

∑ People’s attitude towards the environment

There are many external factors other than the ones mentioned above. None of these

factors are independent. They rely on each other.

If you are wondering how you can conduct environmental analysis, here are 5 simple steps

you could follow:

1. Understand all the environmental factors before moving to the next step.

2. Collect all the relevant information.

3. Identify the opportunities for your organization.

4. Recognize the threats your company faces.

5. The final step is to take action

Consumer behavior.

The modern marketing management tries to solve the basic problems of consumers in the area of
consumption. To survive in the market, a firm has to be constantly innovating and understand the
latest consumer needs and tastes. It will be extremely useful in exploiting marketing
opportunities and in meeting the challenges that the Indian market offers. It is important for the
marketers to understand the buyer behaviour due to the following reasons.

The study of consumer behaviour for any product is of vital importance to marketers in shaping
the fortunes of their organisations.
  It is significant for regulating consumption of goods and thereby maintaining economic
stability.
 It is useful in developing ways for the more efficient utilisation of resources of
marketing.
 It also helps in solving marketing management problems in more effective manner.
 Today consumers give more importance on environment friendly products.
 They are concerned about health, hygiene and fitness.
 They prefer natural products.

Hence detailed study on upcoming groups of consumers is essential for any firm.

 The growth of consumer protection movement has created an urgent need to understand
how consumers make their consumption and buying decision.
 Consumers’ tastes and preferences are ever changing. Study of consumer behaviour gives
information regarding colour, design, size etc. which consumers want. In short, consumer
behaviour helps in formulating of production policy.
 For effective market segmentation and target marketing, it is essential to have an
understanding of consumers and their behaviour.

Consumer Decision Making Process

1. Problem or Need Recognition: Consumer decision making process begins with an

unsatisfied need or problem. Everyday we face multiple problems which individuals resolve by
consuming products or services. Consumer problem can be routine or unplanned. For example –
run out of milk or cooking oil, car indicating low level of fuel, are some of the routine problems
that individuals face. Such problems are quickly recognised, defined, and resolved. Recognition
of unplanned problem may take much longer time as it may evolve slowly over time. For
example - need of a new refrigerator as existing one is not working properly.

2. Information Search :Information search is done to know about product or service, price,
place and so on. In the process of decision making, the consumer engages in both internal and
external information search. Internal information search involves the buyer identifying
alternatives from his memory. Internal information search is sufficient for low involvement
products or services. For high involvement product or service, buyers are more likely to do
external information search. The amount of efforts a buyer put in information search depends on
various factors like market, competition, difference in brands, product characteristics, product
importance, and so on.

3. Alternatives Evaluation :At this step the buyer identifies and evaluates different alternatives
to choose from. It is not possible to examine all the available alternatives. So, buyer develops
evaluative criteria to narrow down the choices. Evaluative criteria are certain characteristics that
are important to buyer such as price of the product, size, colour, features, durability, etc. Some of
these characteristics are more important than others. To narrow down the choices the buyer
considers only the most important characteristics.

4. Purchase Decision :The earlier mentioned evaluation step helps the consumer in arriving at a
purchase intention. In the decision evaluation stage, the consumer forms preferences among the
brands in the choice set. The consumer may also form a purchase intention and lean towards
buying the most preferred brand. However factors can intervene between the purchase intention
and the purchase decision. A buyer who decides to execute a purchase intention will be making
up to five purchase decisions brand decision, vendor decision, quantity decision, timing decision
and payment method decision.

5. Post-purchase Use and Evaluation : Once the buyer makes a decision to purchase a product
or service there can be several types of additional behaviour associated with that decision such as
decisions on product uses and decision on services related to the product purchased. The level of
satisfaction experienced by the buyer after his purchase will depend on the relationship between
his expectations about the product and performance of the product. If the buyer is satisfied then
he will exhibit a higher probability of repeat purchase of the product or service. The satisfied
buyer will also tend to say good words about the product or service. Whereas a highly
dissatisfied buyer will not buy the product or service again and spread negative words about
service and company.

Consumer Adoption Process

The adoption process is the mental process through which an individual passes first hearing abouCore
concepts of marketing:

And we define the adoption process as the mental process through which an individual passes from first
learning about an innovation to final adoption.

Consumers go through 5 stages in the process of adopting a new product.

1. Product Awareness.

2. Product Interest.

3. Product Evaluation.

4. Product Trial.

5. Product Adoption.

5 Stages of Consumer Adoption Process

1. Product Awareness

The consumer becomes aware of the new product but lacks information about it.
Initially, the consumer must become aware of the new product. Awareness leads to interest and the
customer seeks information about the new product.

2. Product Interest

The consumer seeks information about the new product.

Once information has been gathered, the consumer enters the evaluation stage and considers buying the
new product.

3. Product Evaluation

Next, in the trial stage, the consumer tries the product on a small scale to improve his or her estimate of
its value.

The consumer considers whether trying the new product makes sense.

4. Product Trial

The consumer tries the new product on a small scale to improve his or her estimate of its value.

If the consumer is satisfied with the product, he or she enters the adoption stage, deciding to use the new
product fully and regularly.

5. Product Adoption

The consumer decides to make full and regular use of the new product.

The new product is a good, service or idea that is perceived by some potential customer as new. Now we
discuss the buyer decision process for new products.

Organizational Buying:

Organization buying is the decision-making process by which formal organizations establish the need for
purchased products and services and identify, evaluate and choose among alternative brands and
suppliers.

Organizational Buying Behaviour:

Organizational buying behavior is the sum total of an organization’s attitudes, preferences, intentions and
decisions regarding the buying behavior in the marketplace when purchasing goods for manufacturing or
reselling.

2. Organizational Buying /Business Buying Decision Process

Organizational buying behavior refers to the process of how companies or organizations buy goods and
services. Organizational Buying is not an easy activity as most people think of it.
Following are the stages in the Organizational Buying process:

Stage-1 – Problem Recognition:

The first stage of the business buying process in which someone in the company recognizes a problem or
need that can be met by acquiring a good or a service.

Stage-2 – General Need Description:

At this stage of business buying Process Company describes the general characteristics and quantity of a
needed item.

Stage-3 – Product Specification: At this stage of the business buying process buying organization
decide on the product and specifies the best technical product characteristics for a needed item

Stage-4 – Value Analysis:

An approach to cost reduction, in which components are studied carefully to determine if they can be
redesigned, standardized or made by less costly methods of production.

Stage-5 – Supplier Search:

At this stage of the business buying process buyer tries to find the best vendors.

Stage-6 – Proposal Solicitation:

The stage of the business buying process in which the buyer invites qualified suppliers to submit
proposals.

Stage-7 – Supplier Selection:

The stage of the business buying process in which the buyer reviews proposal and selects a supplier or
suppliers.

Stage-8 – Order-Routine Specification:

The stage of the business buying process in which the buyer writes the final order with the chosen
suppliers, listing the technical specifications, quantity needed, expected time of delivery, return policies
and warranties.

Stage-9 – Performance Review:

The stage of the business buying process in which the buyer rates its satisfaction with suppliers, deciding
whether to continue, modifies or drops them.

Definition: Market Segmentation

Market segmentation is a process of dividing the entire market population into multiple meaningful
segments based on marketing variables like demographics (age, gender etc), geographic, psychographics
(lifestyle, behaviour) etc. Market segmentation in marketing is identifying a set of homogenous segments
having similar needs, properties & demands which can be used by a company to sell their product/service
more effectively.

Once an entire population is divided into market segments, companies can target them more accurately
and design their positioning accordingly. This entire process is also known as STP (Segmentation,
Targeting strategy and Positioning) marketing strategy.

Importance of Market Segmentation:

Market segmentation is an important aspect for any business as it helps them slice the market into smaller
groups or segments, which can then be identified based on their needs and can be catered to. Market
segmentation reduces the population in the market and gives a much more addressable audience rather
than giving random groups of people. Having similar groups would enable companies to be more focused
in terms of their product offerings, product differentiation strategies, marketing strategies, pricing
strategies etc. This would help companies mitigate unnecessary risks, reduce costs, target customers
better, have better retention and generate more profits. Hence, segmenting the entire population of market
is essentially critical for any business to prosper.

Types of Market Segmentation:

The most important variables in market segmentation are based on demographics, geographic,
psychographics & behavioural. These are explained in detail below:

1. Demographic Segmentation:

Slicing the market on criteria based on demographics like age, gender, income, family members,
educational qualification, socio-economic status etc, is called demographic segmentation. This type of
market segmentation helps in profiling the customers based on demographic parameters & help to form
homogeneous groups.

2. Geographic Segmentation:

When a population is divided on the basis on geographies i.e. country, state, city, village, region, postal
code etc, it is referred to as geographic segmentation. This market segmentation type helps form clusters
based on location, topography, location etc.

3. Psychographics Segmentation:

Market segmentation done based on personality of people, their characteristics, their lifestyle, social
status etc is called as psychographic segmentation.

4. Behavioural Segmentation:

When companies divide the market based on the customer behaviour or usage patterns, it is known as
behavioral segmentation. This type of market segmentation considers the past behaviour of consumers.

The above image shows the STP (Segmentation, Targeting, Positioning) process & types of market
segmentation
Advantages of Market Segmentation:

Market segmentation can have many benefits for companies which can benefit their business. Some are
discussed below:

1. Segmenting a market gives focus to company as it helps to understand the market better

2. Unnecessary costs are avoided by efficient market segmentation as only the required population can be
tapped

3. Segmentation can help companies identify newer markets where existing products can be launched

4. If certain overlapping markets are identified, companies can create new products to capture them

5. Once proper market segmentation is done, after identifying target groups accurately, advertising &
marketing can be more effective rather than having loosely created ad campaigns

6. Homogeneous groups can themselves promote the products or services even more if they like it

7. Systematic market segmentation helps in market expansion and also helps in customer retention

Disadvantages of Market Segmentation:

Apart from the several advantages, there are also certain drawbacks of market segmentation. Some
disadvantages are:

1. A company having multiple segments would have to cater to them separately i.e. more costs

2. Giving products/ services to multiple segments can be a time-consuming process for companies

3. If a company selects a wrong segment, their entire business can collapse

4. Smaller clusters/ niche markets often get neglected in the bigger scheme of things

Example of Market Segmentation

Let us take an example of a brand of chocolate cookies. If we have to launch these cookies in the market.
We need to see whether we need to target everyone or some specific people in the population. Here is
where market segmentation will help us get the answer. Let us consider the market. Market can be
considered as a country if it is a local launch.

The marketer can use various variable as discussed above to slice the market. Should we use
demographics or psychographics here for market segmentation?

Chocolate chip cookies is not a lifestyle or complicated product nor is it going to be very costly product.
So demographic segmentation can help.
A marketer can use age and geography as variables to divide the market into multiple segments.
Companies can get data for the population and then can use various statistical methods like multi
dimensional scaling and factor analysis to come at simple variables. In this case, we can have segments
like:

1. Geography: Urban / Rural

2. Age(years): 5 to 10/ 10 to 18/ 18 to 25/ 25 to 40/ 40 to 50/ 50+

Now the product being a chocolate cookie, people in the age group of 40 and above can be removed from
both rural and urban. Also, as the product has chocolate, marketer can chose to target only to urban
population for initial launch. Now 10 year old to 25 year old segment in urban can have people who love
chocolate and would be willing to buy cookies on a regular basis. Now this can form a decent target
group.

In practice the process is much more complicated, here it has been simply put. This way a company
actually uses market segmentation to arrive at segments which can be further analysed to arrive at a target
group.

Hence, this concludes the definition of Market Segmentation along with its overview.

A market refers to a set up where two or more parties are involved in transaction of goods and
services in exchange of money. The two parties here are known as sellers and buyers.

It is the responsibility of the marketers to create awareness of their products amongst the consumers. It is
essential for the individuals to be aware of the brand’s existence. The USPs of the brands must be
communicated well to the end-users.

An organization can’t afford to have similar strategies for product promotion amongst all individuals. Not
every individual has the same requirement and demand.

The marketers thus came with the concept of STP.

STP stands for:

S - Segmentation T - Targeting P - Positioning

The first step in the process of product promotion is Segmentation

The division of a broad market into small segments comprising of individuals who think on the same lines
and show inclination towards similar products and brands is called Market Segmentation.

Market Segmentation refers to the process of creation of small groups (segments) within a large market to
bring together consumers who have similar requirements, needs and interests.

The individuals in a particular segment respond to similar market fluctuations and require identical
products.

In simpler words market segmentation can also be called as Grouping.

Kids form one segment; males can be part of a similar segment while females form another segment.
Students belong to a particular segment whereas professionals and office goers can be kept in one
segment.

Targeting

Once the marketer creates different segments within the market, he then devises various marketing
strategies and promotional schemes according to the tastes of the individuals of particular segment. This
process is called targeting. Once market segments are created, organization then targets them.

Targeting is the second stage and is done once the markets have been segmented.

Organizations with the help of various marketing plans and schemes target their products amongst the
various segments.

Nokia offers handsets for almost all the segments. They understand their target audience well and each of
their handsets fulfils the needs and expectations of the target market.

Tata Motors launched Tata Nano especially for the lower income group.

Positioning

Positioning is the last stage in the Segmentation Targeting Positioning Cycle.

Once the organization decides on its target market, it strives hard to create an image of its product in the
minds of the consumers. The marketers create a first impression of the product in the minds of consumers
through positioning.

Positioning helps organizations to create a perception of the products in the minds of target audience.

Ray Ban and Police Sunglasses cater to the premium segment while Vintage or Fastrack sunglasses target
the middle income group. Ray Ban sunglasses have no takers amongst the lower income group.

Garnier offers wide range of merchandise for both men and women.

Each of their brands has been targeted well amongst the specific market segments. (Men, women,
teenagers as well as older generation)

Men - Sunscreen lotions, Deodorant Women - Daily skin care products, hair care products Teenagers -
Hair colour products, Garnier Light (Fairness cream) Older Generation - Cream to fight signs of ageing,
wrinkles

A female would never purchase a sunscreen lotion meant for men and vice a versa. That’s brand
positioning.

Different Levels of Market Segmentation

Marketers subdivide markets into segments, so they can do focus on marketing plans. Each Level of
market segmentation determines the strategy a company will follow to promote, distribute and position its
product in the market and respectively target audience or its customers. Before developing a marketing
plan, one must know the what are the levels of market segmentation.

Mass Marketing

In Segemetation, Mass marketing refers to the strategy of targeting the entire potential customer
market by means of a single marketing message. The marketing strategy used in this segmentation does
not target the specific requirements or needs of customers. Mass marketing strategy, instead of focusing
on a subset of customers, focuses on the entire market segment that can be a probable customer of a
product.

An example of mass marketing strategy is of Baygon cockroach spray or Mortein mosquito repellent
coils that target all its potential customers through a single marketing message.

Segment Marketing

Segment marketing refers to a strategy where the company divides its target audience into different
segments based on their unique needs and requirements. This way the company targets different messages
to different segments, appealing them towards the unique features the product offers. This strategy creates
product differentiation for customers with similar needs and preferences, based on their gender, age,
income and location.

The example of segment marketing within clothing industry may be men, women, casual, fashionable and
business clothing segments.

Niche Marketing

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

Mountain bikes are an example of a niche marketing segment. where the market segmentation will be
individuals interested in mountain biking only. Since not every bike manufacturing company caters to
mountain bikers, it is a niche segment. Companies that produce mountain bikes target the niche segment
of mountain bikers and cater to their specific needs, preferences and requirements.

Micro Marketing

Micro marketing follows an even narrower segmentation marketing strategy, catering to the attribute of
a much-defined subset of potential customers such as catering to individuals of a specific geographical
location or a very specific lifestyle.

An example of niche marketing is luxury cars that are very high priced and offer exceptional features
such as high speed, customized look, etc. Since these cars are very expensive and limited in number, the
niche market for these vehicles target rich, car lovers that are interested in the unique features and has the
financial capability to buy them.
Market positioning is the process of establishing and defending a valuable position for products and
services relative to the competition. Positioning can encompass branding, advertising, promotion,
pricing,product development, sales, distribution and operations.

The following are common types of market positioning.

Customer Needs

Identifying your target customers and how you will fulfill a set of needs. This can include functionality
and experience.

Customer Perceptions

Finding a way to capture the imagination of your target customer. For example, a cosmetic brand that
does good things for the environment and communities and tells the story in a compelling way.

Brand Recognition

Promoting basic visual symbols and information such that customersrecognize you in a crowded market.

Pricing

Pricing is a primary form of competition. In many markets, the lowest price competitor with a reasonable
level of quality tends to win.

Quality

Often the only way to avoid intensive price competition is to offer asuperior level of quality that your
target customers strongly prefer.

Convenience

Customers gravitate towards products and services that make life easier. This can include location,
usability and terms. For example, the convenience of an ecommerce site with extensive product variety,
low prices, easy ordering and free returns.

Customer Service

Being more friendly, diligent and responsive than the competition.