1. Segmenting, Targeting, and Positioning
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Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

2. Step 2 Market Targeting Evaluating Market Segment
Segment Structural Attractiveness Consider effects of: Competitors, Availability of Substitute Products and, the Power of Buyers & Suppliers.
Segment Size and Growth
Analyze sales, growth rates and expected profitability for various segments.
Company Objectives and Resources
Company skills & resources relative to the segment(s).
Look for Competitive Advantages.
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Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

3. Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Target Marketing
Evaluating Market Segments
Segment size and growth
Segment structural attractiveness
Level of competition
Substitute products
Power of buyers
Powerful suppliers
Company objectives and resources
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Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

4. Target Marketing Strategies
Figure 8-2:
Target Marketing Strategies

5. Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Target Marketing
Choosing a Target- Marketing Strategy Requires Consideration of:
Company resources
The degree of product variability
Product’s life-cycle stage
Market variability
Competitors’ marketing strategies
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Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

6. Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Target Marketing
Socially Responsible Targeting
Some segments are at special risk:
Children
Inner-city minority consumers
Internet shoppers
Controversy occurs when the methods used are questionable.
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Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

7. Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Target Market
“ A set of buyer sharing common needs or characteristics that the company decide to serve”
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Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

8. Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Activity
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Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

9. Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Answer: 042
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Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

10. Five Patterns of Target Market Selection
Single-segment
concentration
Selective
specialization
M1 M2 M3 P1 P2 P3
Product
specialization
M1 M2 M3 P1 P2 P3 P1 P2 P3
M1 M2 M3
P = Product
M = Market
Market
specialization
M1 M2 M3 P1 P2 P3
M1 M2 M3
Full market
coverage P1 P2 P3
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Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

11. Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Single-segment
concentration
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Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

12. Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Selective
specialization
M1 M2 M3 P1 P2 P3
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Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

13. Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Selective
specialization
M1 M2 M3 P1 P2 P3
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Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

14. Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Product
specialization
M1 M2 M3 P1 P2 P3
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Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

15. Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
specialization
M1 M2 M3 P1 P2 P3
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Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

16. Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
M1 M2 M3
Full market
coverage P1 P2 P3
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Unit II -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA