PROGRAM NAME - M.B.A.

COURSE NAME - Basics of Marketing

UNIT NO. – III
UNIT NAME – STP- Segmentation, Target Marketing and Positioning

PRESENTED BY- Dr. Yogita Gupta.

Topics to be covered.
• Target Market
Concept of Target Markets and criteria for selection.
Segment Marketing, Niche & Local Marketing,
Mass marketing,
Long Tail Marketing.
 Concept of Target Markets
• A target market is a group of customers
with shared demographics who have
been identified as the most likely buyers
of a company's product or service.
• Identifying the target market is
important in the development and
implementation of a successful
marketing plan for any new product.
• The target market also can inform a
product's specifications, packaging, and
distribution.
Four Target Market
Marketing professionals divide consumers into four major segments:

Demographic:
These are the main
Geographic:
characteristics that
define your target This segment is
Psychographic:
market. Everyone can increasingly relevant in
be identified as the era of globalization. This segment goes
Behavioral:
belonging to a specific Regional preferences beyond the basics of
age group, income need to be taken into demographics to This is the one segment
level, gender, account. consider lifestyle, that relies on research
occupation, and attitudes, interests, and into the decisions of a
education level. values. company's current
customers. New
products may be
introduced based on
research into the
proven appeal of past
products.
Criteria for selection of Target Market Understand
the lifestyle
of the
Kind of
consumers
To select a target market, it is environment Age group of
individuals the
essential for the organizations to are exposed individuals
study the following factors: to

Income of the
Social Status
Target consumers

Market
Mentality and Spending
thought capacity of
process of the the
consumers consumers

Education
and
Gender
Profession of
the people
 Segment Marketing
•Market segmentation seeks to identify targeted groups of
consumers to tailor products and branding in a way that
is attractive to the group.
•Markets can be segmented in several ways such as
geographically, demographically, or behaviorally.
•Market segmentation helps companies minimize risk by
figuring out which products are the most likely to earn a share
of a target market and the best ways to market and deliver those
products to the market.
•With risk minimized and clarity about the marketing and
delivery of a product heightened, a company can then focus its
resources on efforts likely to be the most profitable.
•Market segmentation can also increase a company's
demographic reach and may help the company discover
products or services they hadn't previously considered.
Difference between Market Segmentation and Target Market
 Niche & Local Marketing
• A niche market is a segment of a larger market that can be defined by its
own unique needs, preferences, or identity that makes it different from
the market at large. For example, within the market for women's shoes are
many different segments or niches. Nearly every market can be further
refined, or divided, by the specific needs and preferences of its constituents.
• Local market constitutes of the customers who will buy the
products/services in the vicinity of where they are produced. To devise a
proper marketing strategy, it is necessary to know how much will a
customer buy, where he will buy and how far will he travel to buy a
product/service. For example, Weekly Markets, Neighbourhood Markets,
Shopping Complexes or Malls, Wholesale Market.
 Mass Marketing & Long Tail Marketing
• Mass marketing is a marketing strategy in which a firm decides to ignore
market segment differences and appeal the whole market with one offer or
one strategy, which supports the idea of broadcasting a message that will
reach the largest number of people possible.
• Long tail marketing is the strategy of selling large amounts of popular
products in addition to low amounts of niche products or services in
niche markets. The theory is that the combined profit from low demand
product sales will be similar to that of the popular products
THANK YOU