Stp

SEGMENTING ,TARGETING AND POSITIONING

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

PRESENTED TO

SIR NASIR NADEEM


PRESENTED BY

• HINA HAMEED ROLL NO: 07

• ARSLA YASEEN ROLL NO:04

• SIAMA BATOOL ROLL NO: 29

• MONIBA NOOR ROLL NO: 14


SEGMENTING,TARGETING,POSITIONING

• STP STRATEGY• STEPS IN SEGMENTING,TARGETING, AND

POSITIONING• MARKET SEGMENTATION• BASIS FOR SEGMENTING CONSUMER

MARKET

BY HINA HAMEED.


STP Strategy

1. Market Segmentation

2. MarketTargeting

3. Market Positioning

S T P


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


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.


Market Segmentation

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


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


Market Segmentation

• Geographic Segmentation– Dividing the market into different geographical

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

(Philip Kotler)


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)


Market Segmentation

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

social class, lifestyle, or personality characteristics.

(Philip Kotler)


Market Segmentation

• Behavioral Segmentation– Dividing a market into groups based on

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

(Philip Kotler)


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)


Market Segmentation

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

different benefits that consumers seek from the product.

(Philip Kotler)


MARKET SEGMENTATION

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

BY ARSLA YASEEN


Step 1. Market SegmentationBases for Segmenting Business Markets

Basesfor Segmenting

BusinessMarkets

Basesfor Segmenting

BusinessMarkets

DemographicsPersonalCharacteristics

SituationalFactors

OperatingCharacteristics

PurchasingApproaches


Step 1. Market SegmentationBases for Segmenting International Markets

Political/Legal

Political/Legal

Cultural Cultural IntermarketIntermarket

Economic EconomicGeographicGeographic

Industrial MarketsIndustrial Markets


Market Segmentation

• Multi-Attribute Segmentation

Crossing several variables to identify smaller, better defined target groups


Market Segmentation


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)


Market Segmentation

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

(Philip Kotler)


Market Targeting

• Evaluating Market Segments• Evaluating and Selecting the Market

Segments• Choosing a Market-Coverage Strategy

By SIAMA BATOOL


Market Targeting

• Market Targeting:– The process of evaluating each market

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


Market Targeting

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


Market Targeting

• Evaluating and Selecting the Market Segments:

Company’s ObjectivesAnd Resources

Attractiveness of the Market

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


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.


Step 2. Market TargetingChoosing a Market-Coverage Strategy

Company Resources

ProductVariability

Product’s Stagein the Product Life Cycle

Market Variability

Competitors’Marketing Strategies


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


Market Targeting

S1 S2 S3

P1

P2

P3


Selective Specialization



Market Targeting

S1 S2 S3

P1

P2

P3


Product Specialization



Market Targeting

S1 S2 S3

P1

P2

P3


Market Specialization



Market Targeting

S1 S2 S3

P1

P2

P3


Full Market Coverage



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






MarketMarket

A. Undifferentiated Marketing

B. Differentiated Marketing

C. Concentrated Marketing


POSITIONING

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

PPOSITION• USP

BY MONIBA NOOR


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)


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!


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)


Market Positioning

• Choosing a Positioning Strategy– Identifying and choosing the right

competitive advantages

– Differentiation• (How many differences to promote?

Which Differences to Promote?)


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)


Market Positioning

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

(Philip Kotler)


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?


Market Positioning

• Find your USP– (Unique Selling Proposition)

– And stand out from the crowd!


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.


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.


CONCLUSION

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