Professional Documents
Culture Documents
STP Segmentation Targeting Positioning
STP Segmentation Targeting Positioning
SEGMENTATION
Process of subdividing a total market into different subsets or groups. Where the marketer may select one or more segments. To be reached with an appropriate marketing mix.
Geographic
Psychographic
Demographic
Socio-economic
Usage based
Benefits
Loyal status
Geographic Segmentation
Subdividing
the whole market into different geographical units which can be further sub-divided into smaller units. A national marketer may take whole nation as his market. For example-in the detergent market Hindustan Levers and Procter and Gamble are all national marketers in India. A multinational company may divide the global market on the basis of continents. Like Pepsi and Coca-cola.
Four major regions : A. The Great mountain zone. B. The Plains of the Ganga and the Indus region. C. The Desert region. D. The Peninsular India Tropical Monsoon types have four seasons A. Winter January to February B. Hot weather March to May C. Rainy (south western monsoon) June to September D. Rainy (north eastern monsoon) October to December
Climate
Demographic Segmentation
Subdividing the market in terms of demographic features of a country or a region. Variables that may be considered are age, gender, marital status, family size, etc. Demographic data is essential for estimating the size of the target market.
2 Sex ratio
3 Metro Cities
Females per 1000 males: 933/1000. 2001 census In Kerela State: 1036/1000 1991 census
1991 census Mumbai : 12.60 million Kolkata : 11.02 million Delhi : 08.42 million Chennai : 05.42 million Kolkata, Chennai, Greater Mumbai, Hyderabad, Delhi, Chandigarh, Mahe, Howrah, Kanpur, Banglore (All of them have a density of above 2000 persons per square km. 5.01% population lives in these 10 cities. Avg. density of these districts is 6885 persons)
Socio-economic segmentation
Variables that may considered for market segmentation are Income, occupation, education, religion, social classes, etc. This segmentation is used for durable products such as automobiles, PCs, etc.
Psychographic segmentation
Sub division of different groups on the basis of personality, life style and values. Marketers of cosmetics, textiles, fast food providers etc. must understand the life style of the target market. Automobile manufacturers must consider different personality traits in dividing the market.
Benefit segmentation
Segmented on the basis of benefits sought by consumers
Toothpaste General benefits that consumers seek are cleanliness and hygiene in all segments. Other key benefits are:-
Cosmetic
Fluoride
Herbal
Protection against foul smell, modernity and cosmic value. EgColgate, Prudent
Family health, extra protection for children. EgColgate Fluoride, Cibaca Fluoride.
Family health and welfare. Traditionally good for health. Eg-Neem, Dabur.
Perceived benefits
sturdy, good for long rides and high resale value. Fuel efficient, high pick up and stylish High pickup, sleek model Fuel efficient, lifelong, high resale value
Scooter brands
Bajaj chetak cub
Kinetic Honda
Loyal buyers
Relationship seekers: buyers who want to develop long term relationships with their suppliers or retailers. Loyal buyers of particular brand: buyers who seek a particular brand among competing brands.
Evaluation of segmentation
Targeting
Once the firm has segmented the total market ,it should select the target market segment or segments for marketing. Investing in a particular segment should be sensible in terms of companys mission, objectives, skills and resources.
Targeting Strategies
The firm selects a single segment or market and fully concentrate its marketing efforts to try and seek maximum advantage.
Car maker Single marketing mix
Semi-luxury segment
(Expensive) Small car segment (affordable, less expensive) Luxury car segment (very expensive)
Multi-segments strategy Here the firm may select two or more then two or may
Car maker
be all the segments and approach each segment with an appropriate marketing mix programme.
Marketing Mix
Marketing Mix
Marketing Mix
Semi-luxury segment
Luxury segment
The firm ignores the market segment differences and goes ahead with 1 single product offer for all segments.
Market Positioning
Positioning of a product or service is creating an image in the consumers mind. Consumers generally buy images rather than actual product. Marketers mostly use advertising as a tool to build up brand or corporate image.
Positioning strategies
Sl. no. 1. Positioning strategies Customer benefits Price and quality Definition Advertising claims
Associate a brand or product with Benefit(s) customer benefits A product is highlighted in terms of service features or performance. Manufacturer charges high price Associating a product or service with a use or application Associating a product or service with a user or class of users. Value for money
2.
3.
Application
Use or application of a product or services. Cine stars or sports heroes using the product
4.
Product user
Positioning strategies
Sl. no. Positioning strategy Definition Advertising claims
Product class
Cultural symbols
Royal
Competitors
Advertising claims complete planned food for growing children. Contains 23 vital nutrition The great nourisher-with extra calcium
Horlicks
Health
Bournvita
Health strength and energy.contains protiens,vitamins, menerals and carbohydrates. Energy Ah! Energy
Double action drink
Drink
Market
Boost Viva
Identification and selection of good positioning strategy With the help of marketing research
Identify the strategy group Understand the consumers perception of competitive brands of strategy group Determine consumers needs and aspirations Select the best one for advertising campaign
Kawasaki Bajaj
Yamaha & Bullet II Hero Honda TVS Suzuki III
Thank you