DwDnZZt0aqqolZgLrkvYOSAq5b40WW9kBuzGtggY.pptx

MARKET SEGMENTATION,
TARGETING AND
POSITIONING FOR A
SERVICE FIRM
By Advance Saraswati Prakashan Pvt. Ltd
Sankhamul, 01-4780359
3

Learning Objectives
After comprehensive studying of this chapter, learners will be able to:
Concept and Process of Market Segmentation for Service Product,
Market Segment Strategies for Service Products,
Concept and Process of Service Positioning in the Target Market,
Service Positioning Strategies.
02/19/2025 2

Market Segmentation for Service Product
 Market segmentation is the most popular technique used to reach the market with
service packages.
 The process of dividing the total market into large homogeneous groups of customers
who share similar needs and characteristics is called market segmentation.
 “Market segmentation is a process of dividing the total market for a goods or service into
several smaller groups, such that the members of each group are similar with respect to the
factors that influence demand.”
 William J. Stanton, Michael J. Etzel and Bruce J. Walker
 “Market segmentation is the act of identifying and profiling distinct group of buyers who
might require separate product and/or marketing mixes.”
 Philip Kotler

What type of market do you serve?
Homogenous:
Large proportion of customers have similar needs for a product – Examples: salt, sugar, milk,
gas,
Heterogeneous:
Customers have diverse needs for products in a specific product class – Computers -laptops
vs desktops; Macs vs. PCs, – Books –fiction, non-fiction, e-Readers
Market
segmentation is
the process of
dividing a market
into a group that
have similar
needs.
A market
segment is a
group that has
similar needs

How Do You Segment a Market?
How do you break apart a
large group to identify a
group that you are
interested in?

Process of Market Segmentation for Service Product
Survey Analysis Profiling
Evaluation of
Market
Segments
Selection of
Market
Segments

Market survey is conducted
to collect the information
which is necessary for market
segmentation.
Analysis Profiling
Evaluation of
Market Segments
Selection of Market
Segments

Survey
The collected information should be
carefully studied and analyzed. An
element which affects the demand of
the product and service should be
classified as major and minor
elements.
Profiling
Evaluation of
Market Segments
Selection of Market
Segments

Survey Analysis
Evaluation of
Market Segments
Selection of Market
Segments
After identifying the basis
for market segmentation,
each of them should be
profiled.

Each segment is profiled after
dividing the market into different
segments. Then, better option should
be selected by the marketing
manager or service provider.
Selection of Market
Segments

Evaluation of
Market Segments
After evaluating each segment,
appropriate segment should be
selected. The segment which provide
opportunity to the organization is the
appropriate segment.

Market Segmentation Variables for Services Product
Market Segmentation Variables
for Services Product
Geographic
Variables
Demographic
Variables
Psychographic
Variables
Behavioral
Variables

Geographic
Variables 1. Region
2. Topography/
Climate
3. Population
Density

Demographic
Variables
1. Age
2. Family Life Cycle
3. Income
4. Gender
5. Education
6. Occupation
7. Family Size
8. Social Class
9. Religion
10.Ethnic Background

Psychographic
Variables
1. Lifestyle
2. Personality
3. Value in Life

Behavioral
Variables 1. Buying Occasion
2. Benefit Sought
3. Usage Rate
4. User’s Status
5. Brand Loyalty
6. Attitude

Which bucket do these products/brands Fit in?

Market Segmentation Strategies for Service Products
1. Single Segment Coverage
The single market segmentation or the concentrated strategy is the most focusing plan as it
pinpoints only one segment based on the above mentioned strategies.
2. Multi Segment Coverage
The multi-segmentation focuses on more than one consumer type expanding the business
to reduce risk.
3. Service Specialization
Service specialization occurs when a company sells certain products or services to several
potential customer wherever they are located.

Contd…
4. Market Specialization
Here the company takes up a particular market segment for supplying all relevant products
to the target group.
5. Full Segment Coverage
The firm attempts to serve the entire market. This coverage can be achieved by means of
either a mass market strategy in which a single undifferentiated marketing mix is offered
to the entire market, or by a differentiated strategy.
6. Niche Marketing
The needs and requirements of potential customers might not be completely met by the
good sand services currently delivered to a market segment. In this case, a company might
create a niche market and develop highly specialized products or services to meet the
customers’ needs that aren’t being met by other offerings.

Create a Profile for Advance Saraswati Prakashan
 What characteristics would you look for to segment the market and develop your
target market?
 Demographic
 Geographic
 Psychographic
 Behavioristic
 What is your marketing mix?
 Product
 Price
 Promotion
 Place/Distribution
Hands on Exercise:
Segment a market,
create a target market
and develop a
Product/Service

Target Market
 A target market refers to a group of potential customers to whom a company wants to
sell its products or services.
 This group also includes specific customers to whom a company directs its marketing
efforts.
 “A target market is a group of customers (individuals, households or organizations), for which
an organization designs, implements and maintains a marketing mix suitable for the needs and
preferences of that group.”
 Pride, W. M., R.J., Kapoor, J.R.
 “Target marketing goes against the grain of mass marketing. It involves identifying and
selecting specific segments for special attention.”
 Verma H.G.

Service Positioning
 Service positioning is a creative exercise tried with every existing service.
 Service positioning is not what you do to a service; positioning is what you do to the
mind of a prospect.
 For example, expensive school is Rato Bangla School, Luxury and expensive hotel is
Hotel Yak and Yeti.
 “Positioning is the act of designing the company’s image and value offer so that the segment’s
customers understand and appreciate what company stands for in relation to its competitors.”
 Philip Kotler
 “Product positioning is a process of identifying the needs of market segments, product strength
and weakness and the extent to which competing product are perceived to meet the consumer
needs.”
 James L. Hesket

Process of Service Positioning in the Target Market
1
Identify Key
Product or
Service
Characteristics
2
Draw a
Positioning
Map
3
Decide on a
Competitive
Strategy
4
Design
Product or
Service
Attributes and
Associated
Imagery
5
Sustain a
Competitive
Advantage

Service Positioning Strategy
Service
Positioning
Strategy
Service Attributes
Service Benefits
Service User Positioning
Service Use Positioning
Competitive Positioning
Quality Positioning
Price Positioning
Positioning by Service Category

Any Question?
Contact Us for More Information
Sankhamul, Kathmandu
01-4750359, 9843262646
www.advancesaraswati.com
advancesaraswatip@gmail.com

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