MODULE – 2
(HEALTHCARE MARKETING AND
PATIENTS RELATIONS MANAGEMENT
 S.No.
- 2/4
 LECTURE TITLE – MARKET SEGMENTATION &
CONSUMER BEHAVIOUR
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ICRI, Mumbai
 We have already studiedLevels of market segmentation
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Segment marketing
Niche marketing
Local marketing
Individual customer marketing
Target marketing
 A company cannot serve all the customers in a broad
market. Customers are numerous and diverse in their
buying requirements.
 So it needs to identify segments it can serve effectively.
 Sellers distinguishes segments, and develop products
and programs tailored to each.
Steps
1) Need based segmentation
2) Segment identification
3) Segment attractiveness
4) Segment profitability
5) Segment Positioning
6) Segment acid test
3) Marketing mix strategy
- 5Ps etc
Summary of steps
• Segment Size and Growth
– Analyze current segment sales, growth rates, and expected
profitability for various segments.
• Segment Structural Attractiveness
– Consider effects of: competitors, availability of substitute
products, and the power of buyers & suppliers.
• Company Objectives and Resources
– Examine company skills & resources needed to succeed in that
segment(s).
– Offer superior value & gain advantages over competitors.
Step 2. Market Targeting
Evaluating Market Segments
 Segment Size and Growth
 Analyze current sales, growth rates and expected profitability
for various segments.
 Segment Structural Attractiveness
 Consider effects of: competitors, availability of substitute
products and, the power of buyers & suppliers.
 Company Objectives and Resources
 Company skills & resources needed to succeed in that
segment(s).
 Look for Competitive Advantages.
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Target marketing
M1
• Single segment concentrationP1
Porsche concentrates only on
sports car market.
• In this form acquires strong
knowledge of needs and
P2
achieves strong market
presence.
• It also enjoys operating
P3
economies through specialising
its production, distribution and
promotion.
• It becomes leader and enjoys
high return on investment.
- Risks involved – a particular market
can turn sour
M2
M3
Target marketing
Selective specialisationM1
M2
P1
• firm selects a number of
segments , each objectively
attractive and appropriate.
There may be little or no
synergy among segments but
each promises to be a
moneymaker.
P2
P3
M3
Target marketing
Product specialisationfirm makes a product that
it sells to various
segments. Like microscope
manufacturer.
M1
P1
P2
P3
M2
M3
Target marketing
Market specializationM1
•The firm concentrates
on serving many needs
of a particular group.
An example would be
a firm that sells an
assortment of
products only to
universities.
P1
P2
P3
M2
M3
Target marketing -Full market coverageM1
•the firm attempts to
serve all the customer
groups with all the
products they might
need.
only large firm can
undertake full market
coverage strategy like
coca cola or IBM.
P1
P2
P3
M2
M3
FULL COVERAGE
• It can be done in 2 ways
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a) undifferentiated
 ignores segment difference, and try to appeal whole
market.
 It relies on mass distribution and mass advertising.
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b) differentiated marketing The firm operates in several market segments and designs
differentiated product for each segment. GM does it as it
says it produces car for every- Purse, purpose and
personality.
Concerns with targeting
• Product modification costs- modifying a product to
meet different market segment requirements usually
involves R&D, engineering .
• Manufacturing costs:- unless the product is sold in
large volume it is expensive to produce different
products in varying units.
• Inventory costs:- it is costly to manage inventories of
many products
Concerns with targeting
 Promotion costs:- company has to reach different
market with different promotion programs
 Admin costs:- the company has to develop
separate marketing plan for each market segment.
This requires extra research, analysis, planning ,
channel arrangement.
Process flow
Now we will move to positioning
Positioning
Is the act of designing the company’s offering and image
to occupy a distinctive place in mind of target market.
Sporty drink
Bujhaye pyaas baki all bakwaas
Product positioning Strategies
 By attribute or benefit sugar free
 By use or application easy to use
 By price or quality Nirma super
 By user – Bikes segment.
 Mileage or race
 By competitor coke and pepsi
 By product or service class-Dalda alternative to ghee.
Cheaper and healthier.
Competitive advantage by
positioning
• Product’s Position - the way the product is defined by
consumers on important attributes.
• Product is compared with competing products.
• Simplifies the buying process by helping consumers
organize products into categories.
• Marketers must:
– Plan positions to give their products the greatest advantage
in selected target markets,
– Design marketing mixes to create these planned positions.
Choosing a Positioning Strategy
Step 1. Identifying Possible
Competitive Advantages
Step 2. Choosing the Right
Competitive Advantage
Step 3. Communicating and
Delivering the Chosen Position
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Identifying Possible Competitive
Advantages
 Key to winning and keeping customers is to understand
their needs and buying processes better than
competitors do and deliver more value.
 Competitive advantage is an advantage over
competitors gained by offering consumers greater value,
either through lower prices or by providing more
benefits, that justify competitive advantage,
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Identifying Possible Competitive
Advantages
Product
Differentiation
i.e. Features, Performance,
Style & Design, Attributes
Services
Differentiation
i.e. Delivery, Installation,
Repair Services, Customer
Training Services
Channel
Differentiation
Image
Differentiation
i.e. Symbols, Characters
People
Differentiation
i.e. Hiring, Training Better
People Than Competitors
Do
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examples
 Reliance Mobile- 100 million customers & counting 
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diverse segments
TATA Photon +
positioned ‘speed” as its USP –
giant banner with device from an aircraft at Banglore
stadium cricket match- grab maximum eyeballs
INQ cell phone – Dhoni riding on the back of a truck in a
supposedly boring journey. Talks to all his friends – social
networks. Positions INQ well among the youngs.
TATA ACE – chhota haathi –
LAKME’ Fruit Blast- “Kare Aapke chehre ki gahri safia aur
lautaye nami lautaye
ISSUES WITH
POSITIONING
 What 4 major positioning errors should a company
strive to overcome?
 Under positioning- buyers have vague idea of brand.
 Over positioning- buyers have a narrow image of brand.
 Confused positioning- company making too many
claims or changing brand position frequently.
 Doubtful positioning- buyers find it hard to believe the
brand claims.
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Choosing the Right Competitive
Advantages
Important
Profitable
Criteria
For Determining
Which Differences
To Promote
Affordable
Preemptive
Distinctive
Superior
Communicable
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Selecting an Overall Positioning
Strategy
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Communicating and Delivering the
Chosen Position
 Company must take strong steps to deliver and
communicate the desired position to target consumers.
 All the company’s marketing mix must support the
positioning strategy.
 Positioning strategy must be monitored and adapted
over time to match changes in consumer needs and
competitors’ strategies.
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Reviewing the Concepts
 Three steps of target marketing: market
segmentation, market targeting, and market
positioning.
 List and discuss the major levels of market
segmentation for segmenting consumer.
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 Explain how companies identify attractive market
segments and choose a market-coverage strategy.
 Discuss how companies can position their products for
maximum competitive advantage in the marketplace.