[MUSIC] Hello to everybody, welcome back. Once we analyze the market and the different market segments. Once we are clear about the attractiveness and feature of them, considering the company resources and our objectives, we need to decide what segmentation strategies to be followed. Although there is a large number of possibilities, we are going to take a segmentation alternative model as defined by Kotler. This model is a simplified version of what you can get, but it will helps us to understand different options we have. The first possible approach is to concentrate in one market segment and target it with one product or service. One of the main advantages of this approach is that you are going to have a very solid know how of that segment, while on the other hand the main risk is that you are going to be focused in one segment, and you can be severely exposed to market changes. One example of this threat is you could be Red Bull in the very beginning when they introduce an energy drink for a very, very clearly defined target group. The second possible approach could be what we call more selective specialization. And what they're trying to do here is to reach out to different segments with different products. In the end, we're going to have specific product or surveys to serve the needs of that specific segment we are going to go forward. In this approach, we may have or not synergies across those segments, but the main objective, and that's something we have to bear in mind, is that every single segment should be profitable in itself. This could be for instance the case of that has the E class for tackling with the the A class for the segment. This for reaching out the segment and finally the small front for the juicers. The third possible strategy could be what's called the market specialization. So, in the first approach we're going to focus in one market and the difference is that, in this case, we're going to learn to pull off services and products that cover the different needs that the segment we are specialised in is going to have. For example, we may only want to specialize in old people or handicapped people, and kind of, with a pool of products and services, especially designed to cope with the specific needs that that segment has. The fourth strategy would be product specialization. In this case, the company offers one product that is adapted to the specific requirement that each segment has. For instance, let's think about a piano manufacturer that can offer models for kids, for band users, and also for professionals. And the last strategy could be opting for full market coverage in hand with different products and services that cover every single segment available. The lateral can be done through a differential marketing, where we introduce the product and services adapted to every single segment, or through a differentiated marketing, in which we take one product or service to serve the entire market. This strategy is founded by L'OREAL, and what L'OREAL do Is basically they're reaching out a different segments thanks to their house of branch strategy, and what they do is they reach out for instance, the mass market with branch like L'OREAL Paris and Maybelline. They go for the luxury market with branch like Helena Rubinstein and biotherm they go for the professional segment like KERASTASE, and finally they reach out the active users with terms brands like or. And then we want to take on the other hand an example of an approach, we could take for instance a company who is selling table salt. In this case, it's differentiated, and they're reaching out a mass market. In general, I have to say, the differentiated marketing approach has more potential, but we cannot lose out of sight, and it brings in additional production administrative marketing cost. Then we finalize this video by insisting that the segmentation process is not a static process, and therefore this would be revealed regularly, so that could be for this module. The next one we will cover is second element of positioning. Money proposition. See you soon. Thank you. [MUSIC]
