Transcript Segmenting, Targeting & Positioning (STP)

Segmenting, Targeting
& Positioning (STP)
By Dr.Vidya Hattangadi
What is segmentation?
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Segmentation is simply the process of dividing a
particular market into sections, which display
similar characteristics or behavior. There are a
number of segmentation variables that allow an
organization to divide their market into
homogenous groups.
Major bases for segmenting the
market
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Geographic segmentation: Geographic factors such as
climate, region, state, urban/rural, geographic zones etc
are the factors considered in this segment.
Demographic segmentation: factors such as age, marital
status, sex, family size, religion, caste/creed, income,
education, purchasing capacity are considered in this
segment.
Psychographic segmentation: Elements such as
personality traits, attitude, lifestyle, value system are
considered in this segment.
Volume of purchase: This segmentation is purely based
upon volume of the purchase.
Why segment the market?
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It facilitates proper choice of the market. It helps the
marketer to distinguish one customer group from
another.
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Facilitates adapting the offer to the target market: It
helps the marketer to crystallize the needs of the target
buyers. It also helps the marketer to generate accurate
sales targets and revenue targets.
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Makes the marketing effort more economical: The resources of a
firm are limited. The segmentation exercise ensures that the
marketing effort is concentrated on well defined strategies for
chosen segments.
Segmentation benefits the customers as well: Segmentation
brings benefits not only to the marketer, but the customers as
well. When segmentation attains higher level of sophistication
and perfection, customers and companies can conveniently settle
down with each other.
Characteristics/Attributes of
effective segmentation
For effective segmentation markets must be:
 Distinguishable from each other
 Measurable
 Accessible
 Sizable
 Markets with Growth Potential
 Obviously profitable
 Compatible with firm’s resource capability
Targeting
Targeting strategy or targeting is the selection
of the customers you wish to service. The
decisions involved in targeting strategy
include:
 Which segments to target
 How many products to offer
 Which products to offer in which segments
Positioning
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Positioning is a platform for the brand. It
facilitates the brand to get through to the target
consumer. The significance of product
positioning can be understood in David Ogilvy’s
word “ The result of your campaign depends on
less how we write your advertising but on how
your product is positioned”
Main concerns in product
positioning
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Consumers mind is like a black box
By positioning the firm has to reckon
competitors positioning
Positioning is not one time effort
Positioning is not an afterthought
Planning effective marketing strategy
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Formulating effective marketing strategy is the
main concern of marketing planning. Marketing
planning shapes future of a particular business
unit. Fighting competition, protecting market
share and achieving profits are the main
concerns of marketing planning.
Formulating the Marketing Strategy
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Selecting the target market
Positioning
Assembling the marketing mix