RACHEAL MUSIIMA SENYONDO, Chartered marketer DIPM,MCIM

Telephone: 0785-646142
Email: racheal.Senyondo@gmail.com
Segmentation,

Targeting

&Position
STP- Process
Segmentation
 Why
segmentation?
Segmentation of
customer
markets
• Customer segmentation is
the process of dividing
customers into groups based
on common characteristics.
Customer Types
• Price buyers.
• Value buyers.
• Relationship buyers
• Poker player buyers.(are value
or relationship buyers in
price buyer disguise- negiotiations)
Segmentation of
Organizational markets
Organizational market. all the individuals and
companies who purchase goods and services for
some use other than personal consumption.

Organizational markets usually have fewer buyers

but purchase in far greater amounts than
consumer markets, and are more geographically
concentrated.
•Targeting
• Break customers in smaller segments.
• Evaluation of the market attractiveness

Benefits

• Tailoring of products to meet the needs of

particular groups of consumers.

• Sale of products in the most appropriate

places to reach the chosen target
audiences.

• Pricing will be set to reflect what a target

market will be willing to pay for a product or
service.
Positioning
• Positioning is the final stage in the 'STP' process and
focuses on how the customer ultimately views your
product or service in comparison to your competitors
and is important in gaining a competitive advantage in
the market.
• “Positioning is not what you do to a product. Positioning
is what you do to the mind of the prospect. That is, you
position the product in the mind of the prospect.” (Ries
& Trout, 2001)
Therefore, customer perceptions have a huge impact on
the brands positioning in the market.
3 C’s of Positioning
1) Customer-what the target segment deems most
important for brand selection
2) Channel- How your product reaches the customer
3) Competition-where its competitors succeed (and fall
short
Perceptual Map
Spider Diagram
Brand positioning
• Brand positioning is also referred to as
a positioning strategy, brand strategy, or
a brand positioning statement.

• It has been defined by Kotler as “the act of

designing the company’s offering and image to
occupy a distinctive place in the mind of the target
market”.

• In other words, brand positioning describes how a

brand is different from its competitors and where, or
how, it sits in customers’ minds.

• The goal is to create a unique impression in the

customer's mind so that the customer associate.
Limitations of STP
•Costs increase if brands produce multiple versions of
a product/ service.

•Each market segment requires the creation of different

marketing campaigns.

•A change in market segment characteristics leads to

investments becoming useless.