STPD

Segmentation: It is the process of dividing a market up into distinct groups of buyers who have
different needs, characteristics or behaviors, and who might require separate products or
marketing programs.

For instance, some people might want luxury cars, some would want performance cars, and some
might want safe cars. Here, there are three different segments (one with the need of luxury cars,
other with the need of performance cars, and another with the need of safe cars).

Targeting: It is about evaluating each segment’s attractiveness & selecting one or more
segments to enter. A target market is a group of customers for whom a seller designs a particular
marketing mix.

For instance, a marketer might find that customers, who need luxury cars, are profitable enough
for the company. Hence it will not target other two segments. BMW thus targeted premium
customers with high income who can afford luxury cars.

Positioning: Arranging for a product to occupy a clear, distinctive, and desirable place relative
to competing products in the minds of target consumers.

For example, BMW has positioned in customer’s mind as luxury car. BMW is “The Ultimate
Driving Machine” to customers.

Differentiation: Differentiating the market offering to create superior customer value. It is a

marketing strategy whereby businesses attempt to make their product unique to stand out from
competitors.

For example, the primary reason for BMW's success in the global market has been its ability to
offer innovative automobile vehicles. The company has managed differentiate itself from the rest
of the competitors; due to its focus on introducing the latest cutting edge technology to the
market, before anyone else. The management at BMW believes that a car must grow and evolve
similarly to a human being, and in this process continues advancements in the technological
breakthroughs are essential.