Segmenting and Targeting Markets

&
Positioning
(STP)

Marketing Management-Dr. Charu Wadhwa Apr 3, 2023

 What are Markets?

• Market: people or institutions with

sufficient purchasing power, authority,
and willingness to buy

Marketing Management-Dr. Charu Wadhwa

Apr 3, 2023
Requirements of a Markets
Need
Ability
Willingness
Authority

Marketing Management-Dr. Charu Wadhwa Apr 3, 2023

 STP

Marketing Management-Dr. Charu Wadhwa Apr 3, 2023

 Role of Market Segmentation
Market Segmentation: division of the total market into
smaller, relatively homogeneous groups

 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.

Levels – Mass, Micro and Niche

Marketing Management-Dr. Charu Wadhwa

Apr 3, 2023
Why segment?

Most Most
efficient effective
Many Groups
of One
One Mass
Market

Marketing Management-Dr. Charu Wadhwa

Apr 3, 2023
 The Importance of Market Segmentation

 Markets have a variety of product

needs and preferences.

 Marketers can better define

customer needs.

 Decision makers can define objectives

and allocate resources more
accurately. Marketing Management-Dr. CharuAprWadhwa
3, 2023
Marketing Management-Dr. Charu Wadhwa Apr 3, 2023
 Apr 3, 2023 Marketing Management-Dr. Charu Wadhwa

No Market Segmentation
 Apr 3, 2023 Marketing Management-Dr. Charu Wadhwa

Segmented by Gender
 Marketing Management-Dr. Charu Wadhwa Apr 3, 2023

Segmented by Age
Criteria for Effective Segmentation
Responsiveness

Accessibility

Measurability /
Identifiability

Substantiality Marketing Management-Dr. Charu Wadhwa

Apr 3, 2023
 Most important point to remember !!
In relation to responsiveness to different marketing
mixes, segments must be:
Homogeneous within
Heterogeneous between

Marketing Management-Dr. Charu Wadhwa Apr 3, 2023

Bases for Segmenting Consumer
Markets
Characteristics of individuals,
groups, or organizations used to
divide a total market into segments.

(variables)

Marketing Management-Dr. Charu Wadhwa Apr 3, 2023

 Apr 3, 2023

Bases for Segmentation

Geography

Demographics

Psychographics

Marketing Management-Dr. Charu Wadhwa

 Segmenting Consumer Markets
• Geographic Segmentation: Dividing an
overall market into homogeneous groups
on the basis of their locations
• 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.
Marketing Management-Dr. Charu Wadhwa Apr 3, 2023
 Segmenting Consumer Markets

• Demographic segmentation: dividing

consumer groups according to
characteristics such as gender, age,
income, occupation, education, ethnicity,
household size, and stage in the family
life cycle.

Marketing Management-Dr. Charu Wadhwa Apr 3, 2023

 Family Life Cycle

Age

Marital
Children
Status

Marketing Management-Dr. Charu Wadhwa Apr 3, 2023

 Psychographic Segmentation

• Psychographic Segmentation: dividing a

population into groups that have similar
psychological characteristics, and lifestyles.

• Lifestyle: people’s decisions about how to live

their daily lives, including family, job, social, and
consumer activities
Marketing Management-Dr. Charu Wadhwa Apr 3, 2023
 Steps in Segmenting Markets

1 2 3 4 5
Select Choose Profile Select Design,
a market bases and target implement,
for for analyze markets maintain
study segmen- segments marketing
tation mix

Marketing Management-Dr. Charu Wadhwa

Apr 3, 2023
 Targeting

Choosing one or more segments for which to design

your marketing operations

Marketing Management-Dr. Charu Wadhwa Apr 3, 2023

Identify the Appropriate Targeting Strategy

Undifferentiated Strategy

Differentiated

Concentrated

Apr 3, 2023
Marketing Management-Dr. Charu Wadhwa
 Undifferentiated Strategy

Single
Marketing
Mix

Organization
Target Market
Marketing Management-Dr. Charu Wadhwa Apr 3, 2023
 Differentiated Strategy

Marketing Mix 1

Marketing Mix 2
Organization

Target Market
Marketing Management-Dr. Charu Wadhwa

Apr 3, 2023
Concentrated Strategy

Single
Marketing
Mix

Organization
Target Market
Marketing Management-Dr. Charu Wadhwa Apr 3, 2023
 Product Positioning
 Positioning starts with a product. A Piece of merchandise, a service, a
company, an institution, or even a person... But 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.
 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”.

Apr 3, 2023
Marketing Management-Dr. Charu Wadhwa
 Product Positioning Dimensions
Product Attributes / Differences / Benefits

Product User / Usage

By Association

Problem Solution

Against a Competitor / Away from Competitors

Marketing Management-Dr. Charu Wadhwa Apr 3, 2023

 Competing brands in the Advertising claims Health drink
health drinks market market

Complan “complete planned food”

for growing children.
Contains 23 vital nutrition
“The great nourisher-with
Horlicks extra calcium”
“Health strength and Health
energy”.contains Drink
Bournvita
protiens,vitamins,
menerals and Market
carbohydrates.
“Energy Ah! Energy”
Boost
“Double action drink”
Viva

Apr 3, 2023

Marketing Management-Dr. Charu Wadhwa