AN ASSIGNMENT ON

HOW STUDYING MARKETING MANAGEMENT CAN HELP COMPANIES TO

DESIGN STP FOR NEW PRODUCT
COURSE TITLE: MARKETING MANAGEMENT
COURSE CODE: MGT-308

PREPARED FOR

MR.MD RAKIBUL HASSAN

ASSOCIATE PROFESSOR
DEPARTMENT OF MARKETING
JAHANGHIRNAGAR UNIVERSIYY

PREPARED BY

TAMANNA NUSRAT MEEM

DEPARTMENT OF MANAGEMENT STUDIES
ID: 1810 REGISTRATION NO: 45566
EXAM ROLL: 172261
MGT-7TH BATCH
SESSION: 2016-17
JAHANGHIRNAGAR UNIVERSITY

SUBMISSION DATE: JULY 15th, 2021

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 INTRODUCTION

“Beautiful product development in an ugly market segment simply makes no sense.” – Dan
Adams.

By this line we can understand that a product must be developed in a right market with proper
segmentation, targeting, positioning. In STP analysis the knowledge of marketing management
play a vital role for effective analysis.

Before jumping into the core of this assignment let’s split the subject and shed some light on
Segmentations-Targeting-Positioning(STP), Marketing and Marketing Management.This shall
lead the way to have a clear understanding of how studying Marketing Management help
Companies to design STP for a new product.

What Is Marketing?
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering,
and exchanging offerings that have value for customers, clients, partners, and society at large.

What Is Marketing Management?

Marketing management simplifies the activities and functions which are involved in the
distribution of goods and services.

According to Philip Kotler: “Marketing management is the analysis, planning, implementation and
control of programs designed to bring about desired exchanges with target markets for the purpose
of achieving organizational objectives.”

In short word, marketing management is a process by which a product or service is introduced and
promoted to potential customers. The process covers advertising, public relations, promotions, and
sales. It represents the “road map” to accomplish greater results, such as sales growth, brand
recognition, higher market percolation, and much more.

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What is STP marketing?

STP marketing is an acronym for Segmentation, Targeting, and Positioning – a three-step model
that examines your products or services.

Segmentation

The first step of the STP marketing model is the segmentation stage. The main goal here is to
create various customer segments based on specific criteria and traits that we choose. The four
main types of audience segmentation include:

Targeting

Step two of the STP marketing model is targeting. The main goal here is to look at the segments
that have created before and determine which of those segments are most likely to generate

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desired conversions (depending on marketing campaign, those can range from product sales to
micro conversions like email signups).

Positioning

Positioning is the final part of STP analysis, and it's the part that most people think about when
they think about marketing. How do you market your product to the target segment of customers?
What messages will you use to encourage customers to buy from you instead of your competitors?
What channels will you use?

In simple terms, positioning is all about finding competitive edge – the benefit or feature that the
offer that competitors don't offer, which marketers call "unique selling proposition." There are
many ways to figure out positioning, but it generally involves learning what customers are looking
for in a product (quality, value for money, specific features, etc.) and then ranking yourself and
your competitors according to those criteria.

Marketing Management in STP Analysis

Before explaining the Role of Marketing Management in Designing STP analysis let’s prepare
Segmenting-Targeting-Positioning for a new product for better understanding.

To grow business, we don't have to sell to everyone – in fact, it would be impossible to even try.

A better approach is to identify the people who are most likely to enjoy product or service and
focus on marketing there. STP stands for segmentation, targeting and positioning. As a
marketing model, it's designed to help in discover ideal customers and target them with the perfect
messages that will persuade them to buy.

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ABOUT THE PRODUCT

Pandessert Dairy Milk is a brand of milk chocolate.

Segmentation:

Demographic segmentation: Dividing audience based on age, gender, education level,

occupation, gender, etc.

 Age Group: All age people specially children and young teenagers.
 Income: Pandessert pricing strategy is low costing, availing any one can afford.
 Gender: For purchasing Pandessert dairy milk gender does not matter. It is for all type of
gender whether male or female.
 Occupation: Any occupations

Behavioral segmentation: Dividing audience based on how they interact with business: What
they buy, how often they buy, what they browse, etc.

 Decision roles: The decision role is played by the children and youngsters when to buy the
Chocolate.
 Occasion: For purchasing the Chocolate no specific occasion are required.

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  Effort: Pandessert dairy milk is easily available in every confectionary shop of urban and
rural market.
 User status: There are mainly the Impulse users found in the user status of Chocolate.
 User rate: The user rate is heavy in the behavioral segmentation of Pandessert Chocolate

Psychographic segmentation: Dividing audience based on “who” is potential customer like

Lifestyle, hobbies, activities, opinions, etc.

 Substitute of Traditional Bengali Sweets

 Pandessert Chocolate Product Segmentation Is Done On The Basis Of 'Size' As Bars, Small
Blocks, Large Blocks.
 Attitude: There is an enthusiastic type of attitude seen in buyers
 Loyalty status: There is mainly the absolute loyal customers.

Targeting

 Age:5-16,17-26,27-40,40-65+
 Status: Middle class to Upper class
 Consumers: Children, Teenagers, Couples, Husband-Wife

Positioning

 Quality
 Price
 Innovation
 Points of difference
 Points of parity

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The Value of the STP Model

The segmentation, targeting and positioning model is one of the most valuable marketing processes
that can help you decide who customer is and how can market to them. It will test ability to get
under the skin of consumers and research where gaps might exist in the market. It makes sure the
market is large enough to matter and helps present a compelling offer that customers aren't able to
refuse.

 Segmentation splits buyers into groups with similar needs and wants to best utilize a firm's
finite resources through buyer based marketing.
 Attract the right customer.
 Reduce risk in deciding where, when, how, and to whom a product will be marketed.
 Increase marketing efficiency by directing effort specifically toward the designated
segment in a manner consistent with that segment's characteristics.
 Helps in customer retention.
 Customer delight
 Reduce the cost of the company by not marketing the product where it’s not required.

Application of Marketing Management in STP Analysis

Marketing management has the direct responsibility to find out areas where the company’s
products and services fail to fulfill consumer needs and expectations and to initiate vigorously
marketing programs to provide desired satisfactions explicitly demanded by consumerism.
Marketing management’s nature and objectives will have become vastly more consumer-oriented
and much less product and/or corporation-oriented for the maximum long-range benefits of the
corporation itself.

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 Marketing Management Tasks

We can identify a specific set of tasks that make up successful marketing management and
marketing leadership and also help in the design of STP.

Developing marketing strategies and plans:

The first task of Marketing Management is to identify its potential long-run opportunities given its
market experience and core competencies for a successful STP Analysis. It helps STP by defining:

Value Delivery Process: From value delivery process the STP analysis become more
mark-able. For STP Analysis Firstly we must know what we are offering how we are
offering.
Strategic Planning: The Real objective of a particular product whether it is generating
more profits or delivering more quality services is defined by Strategic planning .This
planning help STP to reach the particular Mission, Vision, Goal, Objective, Value etc.

SWOT Analysis: SWOT Analysis provide the Strength, Weakness, Opportunity and
Threat of the organization which helps STP to develop the segmentation process more
wisely to succeed.

Goal Formulation: Marketing Management help the STP to formulate the goal of a
company as well as the goal of particular product.

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Capturing marketing insights:

To understand what is happening inside and outside the company, it needs a reliable marketing
information system as it will want to monitor its marketing environment closely as well as also
STP. It helps STP by defining:

Collective Information and Future Demand: Marketing Management measure demand of the
market for better STP Analysis and also evaluate the future demand for better performing by-

Modern Marketing Information System

Internal Records
Marketing Intelligence
Analyzing the Microenvironment
Measurement of Market Demand also Future Demand

Conducting Marketing Research: Marketing Management conduct Marketing Research for

penetrate the market situation and circumstance which helps the designing of STP analysis. There
are many type of Research are conducted for better view like Quantitative, Qualitative,
Descriptive, Analytical, Exploratory etc.

Connecting with customers:

Companies must consider how to create the best value for their chosen target markets and develop
strong, profitable, long-term relationships with customers through STP.

Creating long term loyalty Relationship Marketing: Management create long-term relationship
which helps to make more effective STP analysis and customer satisfaction and post purchase
behavior by creating:

Customer Perceived Value

Customer Loyalty
Value Proposition
Measuring and Monitoring Customer Satisfaction

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 Customer Relationship Management
Customer Empowerment

Analyzing Consumer Markets

Analysis of Customer Behavior

Consumer Buying Process

Analyzing Business Market

Organizational Buying
Buying Situations
Business Buying Process

Tapping into Global Market

Entry Modes in Foreign Country

Global Strategies

Building strong brands:

Companies must understand the strengths and weaknesses of their brand via company brands in
consumers’ eyes. Marketing Management helps to:

Identifying Market Segments and Targets

Bases for Segmenting Consumer Markets

Segmentation Criteria
Market Targeting

Crafting the Brand Positioning

Developing Brand Positioning

Competitive Frame of Reference

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 Points of Parity and Differences
Brand Mantra
Emotional Branding

Creating Brand Equity

Role of Brand
Developing Brand Equity
Branding Strategy
Brand Portfolio

Addressing Competition and Driving Growth

Growth Strategies
Competitive Strategies
Market in a slow growth economy

Shaping market offerings:

At the heart of the marketing program is the product-the firm’s tangible offering to the market,
which includes product quality, design, features, and packaging. Marketing Management helps to:

Setting Product Strategy

Designing and Managing Services
Introducing New Market Offerings
Developing Pricing Strategy and Programs

Delivering value:

Companies must also determine how to deliver the value embodied by these products and services
to the target market. It includes various activities that the company undertakes to make the product
available to target customers. Marketing Management helps to:

12 | M a r k e t i n g M a n a g e m e n t
 Designing and managing integrated marketing channels
Managing retailing, wholesaling and logistics

Communicating value:

Companies must also adequately communicate the value embodied by its products and services to
the target market. Marketing communications activities are how firms attempt to inform, persuade,
and remind consumers about the brands they sell. Companies must develop an integrated
marketing communication program that maximizes the individual and collective contribution of
all communication activities. Marketing Management helps to:

Designing and Managing Integrated Marketing Communications

Managing Mass Communication Advertising, Sales Promotion, Events and Experience and
Public Relation
Managing Digital Communications Online Social Media and Mobile
Managing Personal Communications: Direct and Database Marketing and Personal Selling

Creating long term growth:

Companies must also consider their products and brands and how their profits should be grown.
Based on its product positioning, they must initiate new-product development, testing, and
launching. The strategy also will have to take into account changing global opportunities and
challenges. Marketing Management helps to Managing a Holistic Marketing Organization for the
Long Run which is good for better STP analysis in the Market.

13 | M a r k e t i n g M a n a g e m e n t
 Final Thoughts

Most people do not understand their customer groups well enough to do full-blown market
segmentation. Knowing and admitting that is half the battle. As we grow, we will learn more about
each customer group and then further be able to make “spotlight” assessments on what segments
look the most attractive for business.

Marketing Management help us to be able to doing things for a right STP analysis and to identify
wrong and improve on those areas.

REFERENCES

Bibiliography

Marketing Management by Philip Kotler and Keller.

Websites

1. https://www.activemarketing.com/blog/strategy/market-segmentation-youre-doing-it-
wrong/
2. https://bizfluent.com/info-8693419-stp-marketing.html

3. https://www.linkedin.com/pulse/importance-stp-business-ashutosh-vyas

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