12 - STP: Importance of serving customers by grouping

Market segment - Group of customers who share similar set of needs and wants.

Segmentation:

v  Geographic - class I & II cities; thought of while developing product.

v  Demographic - SEC AB F 20-34 yrs

v  Psychographic - Outdoor-oriented lifestyle

v  Behavioural - potential/ regular users, medium usage rate, readiness - aware & interested, positive attitude towards product. 

Consumer behaviour and demographics provides info on customer perceived value.

SEC - Classify urban households on the basis of education & occupation.

Need based market segmentation - to  identify small, better defined target groups

Segmentation criteria -

·         measurable

·         substantial

·         accessible

·         differentiable

·         actionable

Purpose of segmentation - risk reduction. Determined by behavioural variables for existing categories. Prerequisite for segmentation - established categories. For each segment, there are different brands that occupy a different mind-space.

For a particular category and customers, there is 1 final segmentation.

Targeting:

Lakme has several products in varied price ranges for different segments.

Targets through ad's, marketing mix elements, branding, brand building.

If Lakme wants to take on a competitor for a particular product, it should -

·         Identify segment

·         Decide if it is worth its time to invest on the segment

·         Have relevant POP comparable to competitor and POD which differentiates its product.

Positioning:

The way individuals rank products in their head; most Vs least preferred.

Lakme is the 47th most trusted brand in the world, no 1 cosmetic brand in the country.

Marketers want a brand's acceptance to be so high that there is no mind space for another brand.