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The STP

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6 views

The STP

Uploaded by

darkloom199
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Segmentation-Targeting-

Positioning
Market Matching Strategy

Market Matching

Segmentation Targeting Positioning


Market Matching Strategy
 Segmentation
 Process of identifying different homogeneous
groups of potential buyers in terms of similar kind
of buying behaviour based on Geographic,
Demographic, Psychographic & Behavioral factors
 Every Segment must be Identifiable, Measurable
& Accessible
 Targeting
 Process of reviewing market segments and
deciding which one(s) to pursue
 Positioning
 Establishing a uniquely differentiating image for a
product or service in relation to its competition,
better than the competitors
Segmentation Variables

Segmentation Variables

Geographic Behavioral

Demographic Psychographic
Geographic
Segmentation
 Division of the market based on the location
of the target market
 People living in the same area have similar
needs and wants that differ from those living
in other areas
 Climate
 Population density
Demographic
Segmentation
Partitioning of the market based on
factors such as
 Age & Life Cycle Stages
 Gender
 Marital status
 Income
 Occupation
 Education
 Ethnicity
Age
 Product needs and interests often vary
with consumers’ age & life cycle stages
Gender

 Gender is frequently a distinguishing


variable
Marital Status
 Marketers have identified specific
marital status groups, such as:
1. Singles
2. Divorced individuals
3. Single parents
4. Dual-income married couples
 They then market products specifically
designed for one or more groups
Income, Education &
Occupation
 These three variables are often related and
therefore often used together as a measure
of one’s social class.
 Income is commonly used because marketers
feel it is a strong indicator of ability to pay for
a particular product or service
 Income is often combined with other
variables to narrow target markets:
 With age to identify the important affluent
elderly
 With age and occupation to produce the
premium segment
Geodemographic
Segmentation
 A hybrid segmentation scheme
 Based on notion that people who live close to
one another are likely to have similar financial
means, tastes, preferences, lifestyles and
consumption habits
Psychographic
Segmentation
 Partitioning of the market based on
lifestyle and personality characteristics
 Marketers use it to further refine a target
market
 Its appeal lies in the vivid and practical
profiles of consumer segments that it
can produce
 Accomplished by using AIO inventories
AIO Inventories

 AIO research seeks consumers’


responses to a large number of
statements that measure
 Activities
 Interests
 Opinions
Examples of the use of psychographic
segmentation reflected in marketing
messages

 Kellogg’s targets health-conscious


consumers with brands such as Special K
and Product 19
 Old Spice is targeting the active sports
lifestyle with High Endurance deodorant
Behavioral
Segmentation
 Partitioning of the market based on
attitudes toward or reactions to a
product and to its promotional appeals
 Behavioral segmentation can be done
on the basis of:
1. Usage rate
2. Benefits sought from a product
3. Loyalty to a brand or a store
1. Usage Rate
 Differentiates between
 heavy users
 medium users
 light users
 nonusers
 In general, a relatively small number of
heavy users account for a
disproportionately large percentage of
product usage
 Targeting those heavy users is a common
marketing strategy
2. Benefit Segmentation

 Marketers constantly attempt to identify


the single most important benefit of their
product that will be the most meaningful
to consumers
 Changing lifestyles play a major role in
determining the product benefits that are
important to consumers and also provide
marketers with opportunities for new
products and services
3. Brand and Store Loyalty

 The tendency of some consumers to


repeatedly select the same brand within
a given product category

 A parallel tendency of some consumers


to repeatedly patronize a particular retail
establishment
 Marketers often try to identify the
characteristics of their brand-loyal
customers so they can target consumers
with similar characteristics in the larger
population
 Marketers also target consumers who
show no brand loyalty as a means of
penetrating a larger market
 Marketers reward brand loyalty by offering
special benefits to frequent customers
Choosing Market Segments to
Target
 Once an organization has identified its most
promising market segments, it must decide
whether to target one segment or several
segments

 Each targeted segment will then receive a


specially designed marketing mix — i.e., a
specially tailored product, price, distribution
network and/or promotional campaign
Market Targeting
Strategies
There are three basic types of strategies:
1. Undifferentiated
2. Multisegment (Differentiated)
3. Concentration (Niche)
1. Undifferentiated Strategy
 A strategy that ignores differences
between groups within a market and
offers a single marketing mix to the
entire market
 It works when a product is new to the
market and there is minimal or no
competition
2. Multisegment/Differentiated
Strategy
 Targeting two or more segments with
different marketing mixes for each
3. Concentration/Niche Marketing
Strategy

 Focus on one sub-market


Positioning
 Deciding how the firm wants the company
and its brands to be perceived and
evaluated by target markets
 Differentiating the product from other
products of the firm or its competition
 Positioning complements and is an
integral part of the company’s
segmentation strategy and selection of
target markets
 The same product can be positioned
differently to different market segments
 The result of successful positioning is a
distinctive brand image on which
consumers rely in making product choices
Repositioning
 Marketers may be forced to reposition
products due to competition or a
changing environment
 Modifying an existing brand
 Targeting it to a new market segment
 Emphasizing new product uses and
benefits
 Stressing different features with the
intention of boosting sales

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