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Session-3 - CB, BBA (STP)

The document discusses segmentation, targeting, and positioning (STP) strategies in consumer behavior. It defines STP and explains different bases for segmenting consumers such as demographic, geographic, psychographic, and behavioral factors. Common segmentation bases used in consumer packaged goods are discussed through the example of toothpaste brands targeting different consumer benefits. The document also covers positioning a product to create a distinct image in the mind of consumers and provides examples of how mineral water brands are positioned differently based on price and benefits.

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Ranganadh Panchakarla
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54 views18 pages

Session-3 - CB, BBA (STP)

The document discusses segmentation, targeting, and positioning (STP) strategies in consumer behavior. It defines STP and explains different bases for segmenting consumers such as demographic, geographic, psychographic, and behavioral factors. Common segmentation bases used in consumer packaged goods are discussed through the example of toothpaste brands targeting different consumer benefits. The document also covers positioning a product to create a distinct image in the mind of consumers and provides examples of how mineral water brands are positioned differently based on price and benefits.

Uploaded by

Ranganadh Panchakarla
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Consumer Behavior: STP

Fall 2018, BBA, Session: 3


Jindal Global Business School
Prof. Diptiman Banerji
Classroom ground rules
What you can expect from me What I expect you to follow
1. I will arrive at the class on time. Anyone coming later than 5 minutes (I
follow IST) is neither welcome, nor
allowed inside.
2. I will come to class prepared. Please read the relevant book chapters
and cases before coming to class.
3. My cell phone will not distract. Please maintain decorum in class.
4. I will not look at my cell phone while No looking at the screen while in class. If
teaching, no matter how attractive that its critical stuff, please go outside the
new email or message is to me. classroom and come back when you’re
through.
5. I like meaningful interactions and Put your hand up if you want to speak /
discussion in class. answer.

10/8/2018 @ Diptiman Banerji, JGBS 2


STP
• S - Dividing a market into subsets of consumers
with common needs or characteristics
• T - selecting the segments that the company
views as prospective customers and pursuing
them.
• P - the process by which a company creates a
distinct image and identity for its products,
services, and brands in consumers’ minds.
• Remember, STP decisions are strategic ones.
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10/8/2018 @ Diptiman Banerji, JGBS 4
Segmentation bases
• Demographic: Grouping customers by age, income level, gender,
family size, religion, race, nationality, language, etc.
• Geographic: Grouping customers by a specific area, such regions of
the country or state and urban or rural.
• Psychographic: Grouping your customers into cultural clusters, social
status, lifestyle and personality type.
• Behavioral: Grouping customers by product usage (quantity,
frequency) and occasion.
• Distribution: Grouping customers based on where they go to
purchase your product, such as online, store or through a catalog.
• Consumption-specific attitudes and preferences, such as the
benefits sought in products and attitudes regarding shopping.

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Psychographics
• Consumers’ lifestyles, which include
consumers’ activities, interests, and opinions

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Benefit segmentation
• Benefits sought represent consumer needs
• Important for positioning

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Benefit segmentation in same category
• Toothpaste
– White teeth

– Freshness

– Cavity protection

– Sensitive teeth (Sensodyne; “jhanjhanahat”!)

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What segmentation base is used?

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To be an effective target…
a market segment must be:
• Identifiable
• Sizeable
• Stable and growing
• Reachable
• Congruent with the marketer’s objectives and
resources

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Which segment is this ad targeting?

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Behavioral targeting
• Sending consumers personalized and prompt
offers and promotional messages
– Designed to reach the right consumers and deliver to
them highly relevant messages at the right time and
more accurately (while in a shopping mall?)
– Than when using conventional segmentation
techniques
– See
https://www.technologyreview.com/s/603743/mosco
w-billboard-targets-ads-based-on-the-car-youre-
driving/

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Positioning
• The process by which a company creates a
distinct image and identity for its products,
services, or brands in consumers’ minds.

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Positioning application…(1/2)
• Positioning is especially difficult among
commodities, where the physical characteristics
of all the brands are identical, such as water.
• Nevertheless, marketers offer many brands of
mineral water that range in price and are
positioned differently.
• Table 2.12 (in your text book) describes the
positioning claims, unique benefits, and prices of
several brands of bottled water.
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Positioning application…(2/2)

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Positioning case study…(1/2)
• The Multix, India’s first personal utility vehicle,
was launched in June 2015.
• Target segment – small businessmen, farmers

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Positioning case study…(2/2)
• “Positioned as a vehicle which offered the ideal mix of
personal travel and commercial applications, the
Multix just could not get the right balance”.
• “…these customers preferred established cargo carriers
like the Tata Ace and a full-fledged car when they
wanted to graduate from a two-wheeler.”
• “Eicher Polaris then decided to reposition the Multix as
an urban offering where it could possibly reach out as a
customised solution for user segments such as laundry
and food delivery services and so on.”
• Source -
https://www.thehindubusinessline.com/news/its-the-
end-of-the-road-for-multix/article23130223.ece

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All the best!

Contact: [email protected]

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