Segmenting, Targeting and Positioning

Segmenting, Targeting and Positioning

Segmentation

Segmentation is the process of dividing a heterogeneous market, into several sub-markets or segments, each of which tends to be homogeneous in all significant aspects. The  division is based on the premise, that different people have different preferences.

Market segmentation is the subdividing of a market into homogeneous subsets of customers, where conceivably any subset may be selected as a market target, to be reached through a distinct marketing mix. The power of this concept is that in an age of intense competition for the mass market, marketers venturing into rural markets may prosper through creatively serving specific market segments, whose needs are imperfectly satisfied by the mass –market offerings.

Heterogeneity in Rural

In some places, toothpaste and soap are luxuries, whereas in some other places, it is necessity.

In Haryana and Punjab, hair dye has been used on buffaloes, and washing machines have been used for making lassi.

In some parts of Rajasthan, utensils are cleaned with ash and sand due to water scarcity. A washing powder would face competition from these alternatives that need very little water.

Hard water in most villages in Bikaner is the reason for the low acceptance of soap.

The rural market is heterogeneous in nature. There are a number of factors that display the heterogeneity of rural markets, including:

Socio-cultural differences across regions (caste –based hamlets) Variation in population size and population density of villages

Difference in levels of infrastructural development (BIMARU vs. other states) Media exposure levels (media-dark, media-grey, and media-green regions)

Variation in literacy levels (Bihar vs. Kerala)

Differences in income levels and patterns of income flow (farmers vs. daily wage earners)

Family structure (large joint families vs. small nuclear families)