Stp

SEGMENTING ,TARGETING AND POSITIONING

Marketing for MOST: Module 6 – S.T.P Strategy

PRESENTED TO

SIR NASIR NADEEM

Marketing for MOST: Module 6 – S.T.P Strategy

PRESENTED BY

• HINA HAMEED ROLL NO: 07

• ARSLA YASEEN ROLL NO:04

• SIAMA BATOOL ROLL NO: 29

• MONIBA NOOR ROLL NO: 14

Marketing for MOST: Module 6 – S.T.P Strategy

SEGMENTING,TARGETING,POSITIONING

• STP STRATEGY• STEPS IN SEGMENTING,TARGETING, AND

POSITIONING• MARKET SEGMENTATION• BASIS FOR SEGMENTING CONSUMER

MARKET

BY HINA HAMEED.

Marketing for MOST: Module 6 – S.T.P Strategy

STP Strategy

1. Market Segmentation

2. MarketTargeting

3. Market Positioning

S T P

Marketing for MOST: Module 6 – S.T.P Strategy

Steps in Segmentation, Targeting, and Positioning

1. Identify Basesfor Segmenting the Market

2. Develop Profilesof Resulting Segments

3. Develop Measuresof Segment Attractiveness

4. Select TargetSegment(s)

5. Develop Positioningfor Each Target Segment

6. Develop MarketingMix for Each Target Segment Market

Positioning

MarketTargeting

Market Segmentation

Marketing for MOST: Module 6 – S.T.P Strategy

Market Segmentation

• Dividing a Market into distinct groups of buyers on the basis of needs, characteristics or behavior who might require separate products or marketing mixes.

Marketing for MOST: Module 6 – S.T.P Strategy

Market Segmentation

• A Market Segment is a group of customers who respond in a similar way to a given set of marketing efforts.

Marketing for MOST: Module 6 – S.T.P Strategy

Step 1. Market SegmentationBases for Segmenting Consumer Markets

Geographic

DemographicAge, gender,

family size and life cycle, or income

PsychographicSocial class, lifestyle,

or personality

BehavioralOccasions, benefits, uses, or responses

Nations, states, regions or cities

Marketing for MOST: Module 6 – S.T.P Strategy

Market Segmentation

• Geographic Segmentation– Dividing the market into different geographical

units such as nations, states, regions, countries, cities, or neighborhoods.

(Philip Kotler)

Marketing for MOST: Module 6 – S.T.P Strategy

Market Segmentation

• Demographic Segmentation– Dividing the market into groups based on

demographic variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, and nationality.

(Philip Kotler)

Marketing for MOST: Module 6 – S.T.P Strategy

Market Segmentation

• Psychographic Segmentation– Dividing a market into different groups based on

social class, lifestyle, or personality characteristics.

(Philip Kotler)

Marketing for MOST: Module 6 – S.T.P Strategy

Market Segmentation

• Behavioral Segmentation– Dividing a market into groups based on

consumer knowledge, attitude, use, or response to a product.

(Philip Kotler)

Marketing for MOST: Module 6 – S.T.P Strategy

Market Segmentation

• Occasion Segmentation– Dividing the market into groups according to

occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

(Philip Kotler)

Marketing for MOST: Module 6 – S.T.P Strategy

Market Segmentation

• Benefit Segmentation– Dividing the market into groups according to the

different benefits that consumers seek from the product.

(Philip Kotler)

Marketing for MOST: Module 6 – S.T.P Strategy

MARKET SEGMENTATION

• Bases for Segmenting Business Markets• Bases for Segmenting International Markets• Levels of Market Segmentation• Effective segmentation

BY ARSLA YASEEN

Marketing for MOST: Module 6 – S.T.P Strategy

Step 1. Market SegmentationBases for Segmenting Business Markets

Basesfor Segmenting

BusinessMarkets

Basesfor Segmenting

BusinessMarkets

DemographicsPersonalCharacteristics

SituationalFactors

OperatingCharacteristics

PurchasingApproaches

Marketing for MOST: Module 6 – S.T.P Strategy

Step 1. Market SegmentationBases for Segmenting International Markets

Political/Legal

Political/Legal

Cultural Cultural IntermarketIntermarket

Economic EconomicGeographicGeographic

Industrial MarketsIndustrial Markets

Marketing for MOST: Module 6 – S.T.P Strategy

Market Segmentation

• Multi-Attribute Segmentation

Crossing several variables to identify smaller, better defined target groups

Marketing for MOST: Module 6 – S.T.P Strategy

Market Segmentation

Marketing for MOST: Module 6 – S.T.P Strategy

Step 1. Market SegmentationLevels of Market Segmentation

Mass MarketingSame product to all consumers

(no segmentation)

Mass MarketingSame product to all consumers

(no segmentation)

Segment MarketingDifferent products to one or more segments

(some segmentation)

Segment MarketingDifferent products to one or more segments

(some segmentation)

MicromarketingProducts to suit the tastes of individuals or locations

(complete segmentation)

MicromarketingProducts to suit the tastes of individuals or locations

(complete segmentation)

Niche MarketingDifferent products to subgroups within segments

( more segmentation)

Niche MarketingDifferent products to subgroups within segments

( more segmentation)

Marketing for MOST: Module 6 – S.T.P Strategy

Market Segmentation

• Requirements for Effective Segmentation:– Measurable– Accessible– Substantial– Differentiable– Actionable

(Philip Kotler)

Marketing for MOST: Module 6 – S.T.P Strategy

Market Targeting

• Evaluating Market Segments• Evaluating and Selecting the Market

Segments• Choosing a Market-Coverage Strategy

By SIAMA BATOOL

Marketing for MOST: Module 6 – S.T.P Strategy

Market Targeting

• Market Targeting:– The process of evaluating each market

segment’s attractiveness and selecting one or more segment to enter.

Marketing for MOST: Module 6 – S.T.P Strategy

Market Targeting

– A target market is a set of buyers sharing common needs or characteristics that the company decides to serve.

Marketing for MOST: Module 6 – S.T.P Strategy

Market Targeting

• Evaluating and Selecting the Market Segments:

Company’s ObjectivesAnd Resources

Attractiveness of the Market

•Size•Growth•Profitability•Scale Economies•Competition•Risks•Synergy

Marketing for MOST: Module 6 – S.T.P Strategy

Step 2. Market TargetingEvaluating Market Segments

Segment Size and GrowthSegment Size and GrowthAnalyze sales, growth rates and expected profitability.

Segment Structural AttractivenessSegment Structural AttractivenessConsider effects of: Competitors, Availability of Substitute

Products and, the Power of Buyers & Suppliers.

Company Objectives and ResourcesCompany Objectives and ResourcesCompany skills & resources relative to the segment(s).Look for Competitive Advantages.

Marketing for MOST: Module 6 – S.T.P Strategy

Step 2. Market TargetingChoosing a Market-Coverage Strategy

Company Resources

ProductVariability

Product’s Stagein the Product Life Cycle

Market Variability

Competitors’Marketing Strategies

Marketing for MOST: Module 6 – S.T.P Strategy

Market Targeting

– Five Patterns of Target Market Selection • (by D.F. Abell)

S1 S2 S3

P1

P2

P3

P = ProductsS = Market Segment

Single Segment Concentration

Marketing for MOST: Module 6 – S.T.P Strategy

Market Targeting

S1 S2 S3

P1

P2

P3

P = ProductsS = Market Segment

Selective Specialization

– Five Patterns of Target Market Selection • (by D.F. Abell)

Marketing for MOST: Module 6 – S.T.P Strategy

Market Targeting

S1 S2 S3

P1

P2

P3

P = ProductsS = Market Segment

Product Specialization

– Five Patterns of Target Market Selection • (by D.F. Abell)

Marketing for MOST: Module 6 – S.T.P Strategy

Market Targeting

S1 S2 S3

P1

P2

P3

P = ProductsS = Market Segment

Market Specialization

– Five Patterns of Target Market Selection • (by D.F. Abell)

Marketing for MOST: Module 6 – S.T.P Strategy

Market Targeting

S1 S2 S3

P1

P2

P3

P = ProductsS = Market Segment

Full Market Coverage

– Five Patterns of Target Market Selection • (by D.F. Abell)

Marketing for MOST: Module 6 – S.T.P Strategy

Step 2. Market TargetingMarket Coverage Strategies

Segment 1Segment 1

Segment 2Segment 2

Segment 3Segment 3

Segment 1Segment 1

Segment 2Segment 2

Segment 3Segment 3

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing Mix 1

CompanyMarketing Mix 1

CompanyMarketing Mix 2

CompanyMarketing Mix 2

CompanyMarketing Mix 3

CompanyMarketing Mix 3

MarketMarket

A. Undifferentiated Marketing

B. Differentiated Marketing

C. Concentrated Marketing

Marketing for MOST: Module 6 – S.T.P Strategy

POSITIONING

• MARKET POSITIONING• CHOOSING A POSITIONING STRATEGY• COMMUNICATING THE CHOOSEN

PPOSITION• USP

BY MONIBA NOOR

Marketing for MOST: Module 6 – S.T.P Strategy

Market Positioning

• Market Positioning• Arranging for a product to occupy a clear, distinctive,

and desirable place relative to competing products in the minds of target consumers.

(Philip Kotler)

Marketing for MOST: Module 6 – S.T.P Strategy

Market Positioning

• “Positioning” according to Ries and Trout• “Positioning is what you do to the minds of the prospect. That

is, you position the product in the mind of of the prospect.

– (Al Ries and Jack Trout: “Positioning: The Battle for Your Mind”, NY Warner Books, 1982)

Here!

Marketing for MOST: Module 6 – S.T.P Strategy

Market Positioning

• “Product Position”– The Way the product is defined by Consumers

on important attributes – the place the product occupies in consumers minds relative to competing products.

(Philip Kotler)

Marketing for MOST: Module 6 – S.T.P Strategy

Market Positioning

• Choosing a Positioning Strategy– Identifying and choosing the right

competitive advantages

– Differentiation• (How many differences to promote?

Which Differences to Promote?)

Marketing for MOST: Module 6 – S.T.P Strategy

Market Positioning

• Product Differentiation– Differentiation is the act of designing a set of

meaningful differences to distinguish the company’s offering from competitor’s offerings.

– Q: Is only the product differentiable?

(Philip Kotler)

Marketing for MOST: Module 6 – S.T.P Strategy

Market Positioning

• A difference is worth establishing if it is:– Important– Distinctive– Superior– Communicable– Pre-emptive– Affordable– Profitable

(Philip Kotler)

Marketing for MOST: Module 6 – S.T.P Strategy

Market Positioning

• Communicating the Chosen Position

– How do you differentiate your message?

– How do you get your message across when most people are trying hard to dismiss it – in the midst of information overload?

Marketing for MOST: Module 6 – S.T.P Strategy

Market Positioning

• Find your USP– (Unique Selling Proposition)

– And stand out from the crowd!

Marketing for MOST: Module 6 – S.T.P Strategy

Market Positioning

• USP defined – The concept of "USP" is credited to

Rosser Reeves, chairman of the Ted Bates & Co. advertising agency in the 1950s. He was one of the first to develop a technique for communicating in an overcrowded marketplace. His definition of what makes a USP holds true today.

Marketing for MOST: Module 6 – S.T.P Strategy

Market Positioning

• USP defined • All advertising must make a proposition to the

customer: Buy this, and you will receive a specified benefit.

• The proposition must be unique; something competitors cannot claim, or have not chosen to emphasize in their promotions.

• The proposition must be so compelling that it motivates individuals to act.

Marketing for MOST: Module 6 – S.T.P Strategy

CONCLUSION