24744172 STP Market Segmentation Targeting Positioning

7/30/2019 24744172 STP Market Segmentation Targeting Positioning

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MARKETMARKETSEGMENTATION,SEGMENTATION,

TARGETING ANDTARGETING AND

POSITIONING (STP)POSITIONING (STP)


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Steps in Segmentation,Steps in Segmentation,

Targeting, and PositioningTargeting, and Positioning

Steps in Segmentation,Steps in Segmentation,

Targeting, and PositioningTargeting, 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


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MarketMarket

SegmentationSegmentation


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What is Market Segmentation?What is Market Segmentation?

Market segmentation is the process ofMarket segmentation is the process of

dividing the total market for good or servicedividing the total market for good or service

into several smaller groups.into several smaller groups.

Dividing a market into distinct groups ofDividing a market into distinct groups of

buyers on the basis of needs characteristicsbuyers on the basis of needs characteristics

or behaviour who might require separateor behaviour who might require separateproduct or marketing mixes.product or marketing mixes.


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Levels of Market SegmentationLevels of Market Segmentation

Mass Marketing:Mass Marketing:## The seller engages in mass production, massThe seller engages in mass production, mass

distribution, and mass promotion of one product todistribution, and mass promotion of one product toall buyers.all buyers.

## Mass marketing creates the largest potentialMass marketing creates the largest potentialmarket, which leads to the lowest costs, which inmarket, which leads to the lowest costs, which inturn can lead to lower prices or higher margins.turn can lead to lower prices or higher margins.

## Now a days the explosion of advertising mediaNow a days the explosion of advertising mediaand distribution channels has made it difficult andand distribution channels has made it difficult andincreasingly expensive to reach a mass audienceincreasingly expensive to reach a mass audience..


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Micromarketing:Micromarketing:

Many companies are turning toMany companies are turning tomicromarketing these days by choosing one of themicromarketing these days by choosing one of thefour levels;four levels;

Segment marketingSegment marketing Individual marketingIndividual marketing Niche marketingNiche marketing Local marketingLocal marketing


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Segment marketingSegment marketing

Dividing the market into different segments onDividing the market into different segments on

the basis of homogenous need.the basis of homogenous need.

Segmented on basis of broad similarity withSegmented on basis of broad similarity with

regard to some attributesregard to some attributes

Segmentation is also sometimes identifying,Segmentation is also sometimes identifying,capturing & retaining potential new marketscapturing & retaining potential new markets


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Individual marketingIndividual marketing

Extreme marketing in which marketersExtreme marketing in which marketers

focus on individual customers.focus on individual customers.

Keep track of individual tastes &Keep track of individual tastes &

preferences of individual customerspreferences of individual customers

Many companies are approaching individualsMany companies are approaching individuals

through e-mails to promote their products.through e-mails to promote their products.


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Niche marketingNiche marketing

Marketers effort to position their product orMarketers effort to position their product or

service in smaller markets that have similarservice in smaller markets that have similarattributes and have been neglected by otherattributes and have been neglected by other

marketermarketer

Segment further divided into sub segments toSegment further divided into sub segments tocater unsatisfied needs of small group iscater unsatisfied needs of small group is

called as nichecalled as niche


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Local marketingLocal marketing

marketers offer customized products to suitmarketers offer customized products to suit

the local markets.the local markets.

KFC introduced Muslimized or PakistaniKFC introduced Muslimized or Pakistani

products such as Spicy Chicken, Hilalproducts such as Spicy Chicken, Hilal

Chicken, Zinger Extreme and moreChicken, Zinger Extreme and more


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Bases for Consumer Market SegmentationBases for Consumer Market Segmentation

MarketSegementation

GeographicalRegions, cities,

states, countries

Demographic

Age,

gender,

income,

occupation,

religion,

social class,

family size

Psychographic

Life style,personality,

values,

beliefs

Behavioral

Occasions,Benefits,

Usage rate,

Loyalty status


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Bases for Segmenting Business MarketsBases for Segmenting Business MarketsBases for Segmenting Business MarketsBases for Segmenting Business Markets

Basesfor Segmenting

Business

Markets

Basesfor Segmenting

Business

Markets

DemographicsPersonalCharacteristics

SituationalFactors

OperatingCharacteristics

PurchasingApproaches


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Bases for Segmenting InternationalBases for Segmenting International

MarketsMarkets

Bases for Segmenting InternationalBases for Segmenting International

MarketsMarkets

Political/Legal

Political/Legal

CulturalCultural

EconomicEconomicGeographicGeographic

Industrial MarketsIndustrial Markets


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Requirements for Effective SegmentationRequirements for Effective SegmentationRequirements for Effective SegmentationRequirements for Effective Segmentation

Size, purchasing power, profilesof segments can be measured.

Segments must be effectivelyreached and served.

Segments must be large orprofitable enough to serve.

MeasurableMeasurable

AccessibleAccessible

SubstantialSubstantial

DifferentialDifferential

ActionableActionable

Segments must respond

differently to different marketingmix elements & actions.

Must be able to attract andserve the segments.


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MARKET TARGETINGMARKET TARGETING


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MARKET TARGETINGMARKET TARGETING

Once the firm has identified its market-segmentOnce the firm has identified its market-segment

opportunities, it has to decide how many and whichopportunities, it has to decide how many and which

one to target.one to target.

Target market is a group of customers for whom aTarget market is a group of customers for whom a

seller designs a particular marketing mix.seller designs a particular marketing mix.


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Target Market Selection ProcessTarget Market Selection Process

Evaluating the Market SegmentsEvaluating the Market Segments

Selecting the Market SegmentsSelecting the Market Segments


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Evaluating Market SegmentsEvaluating Market Segments

Before selecting the respective market segment,Before selecting the respective market segment,

the company should evaluate the possiblethe company should evaluate the possible

market segments in the current markets.market segments in the current markets.

It should identify and select its targetIt should identify and select its target

consumers, give them their product according toconsumers, give them their product according to

their needs and establish that group oftheir needs and establish that group of

consumer in to permanent market segments.consumer in to permanent market segments.


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Here the co., can consider five patterns of targetHere the co., can consider five patterns of targetmarket selection;market selection;

Single-Segment Concentrationingle-Segment Concentration Selective Specializationelective SpecializationProduct Specializationroduct SpecializationMarket specializationarket specializationFull market coverageull market coverage


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Single Segment ConcentrationSingle Segment Concentration::

Focusing on a single segmentFocusing on a single segmentgives thegives the

marketer the advantage of high sales asmarketer the advantage of high sales as

all the efforts are concentrated on thatall the efforts are concentrated on thatone segmentone segment

Example: Mercedes concentrates on upperExample: Mercedes concentrates on upperincome groupincome group


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Selective Specialization:Selective Specialization:

Process in which the company focusesProcess in which the company focuses

its resources on a few segments andits resources on a few segments and

develops its expertise in fulfilling thedevelops its expertise in fulfilling the

needs of those segmentsneeds of those segments


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Product Specialization :Product Specialization :

The firm makes a certain product that itThe firm makes a certain product that it

sells to several segmentssells to several segments

Example: Microscope manufacturer whoExample: Microscope manufacturer who

sells to university, government, andsells to university, government, andcommercial laboratories.commercial laboratories.


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Market specialization:Market specialization:

The firm concentrates on serving manyThe firm concentrates on serving many

needs of a particular customer group.needs of a particular customer group.

Example: A firm sells assortment ofExample: A firm sells assortment of

products only to universityproducts only to university

laboratories.laboratories.


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Full market coverage:Full market coverage:

Company targets the full market ratherCompany targets the full market rather

than any specific segment.than any specific segment.

Example: Hewlett-Packard targets the fullExample: Hewlett-Packard targets the full

market for its printers.market for its printers.


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In Full market coverage,In Full market coverage,

Large firms can cover a whole marketLarge firms can cover a whole marketinto two broad ways;into two broad ways;

Undifferentiated marketingUndifferentiated marketing

Differentiated marketingDifferentiated marketing


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GUIDELINES FOR SELECTING TARGETGUIDELINES FOR SELECTING TARGET

MARKETMARKET

it should be consistent.it should be consistent.

It should meet organizational goals.It should meet organizational goals.

It should be consistent with organizationalIt should be consistent with organizationalresources.resources.

It should generate sufficient profit volume.It should generate sufficient profit volume.

It should have competitors small in size andIt should have competitors small in size andnumber.number.


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MARKET POSITIONINGMARKET POSITIONING


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PositioningPositioning

InIn marketingmarketing,, positioningpositioning has come to meanhas come to meanthe process by which marketers try to createthe process by which marketers try to createan image or identity in the minds of their targetan image or identity in the minds of their target

market for itsmarket for its

productproduct

,,

brandbrand

, or, or

organizationorganization

.

.

Kotler defined: designing an offer so thatKotler defined: designing an offer so thatit occupies ait occupies a distinct and valueddistinct and valued place inplace inthe minds of the target customer.the minds of the target customer.
http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Marketing


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PositioningPositioning

Positioning

Image that customers have about a product in relationto the products competitors


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Positioning StrategyPositioning Strategy

Key to developing the appropriateKey to developing the appropriatemarketing mix is the positioningmarketing mix is the positioning

strategy of the product.strategy of the product.


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Select Positioning StrategySelect Positioning Strategy

Effective positioningEffective positioning What consumers currently think about theWhat consumers currently think about the

product, especially in relation toproduct, especially in relation to

competing products.competing products. What the marketer wants consumers toWhat the marketer wants consumers to

think about the product.think about the product.

Which positioning strategy will elevate theWhich positioning strategy will elevate theconsumers current product image to theconsumers current product image to thedesired product image.desired product image.


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Position Mapping-Position Mapping- creating acreating a

visual description about consumervisual description about consumerperceptions of a product on two orperceptions of a product on two or

more dimensions in relation tomore dimensions in relation to

competitors.competitors.


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The positioning strategy must determine where aThe positioning strategy must determine where acompany wants to gocompany wants to go

And how to get there by positioning the productAnd how to get there by positioning the productaccording to any of the following ways:according to any of the following ways:

Price/QualityPrice/Quality Product AttributesProduct Attributes Product UserProduct User Product UsageProduct Usage

Product ClassProduct Class CompetitionCompetition SymbolSymbol

Documents

24744172 STP Market Segmentation Targeting Positioning