Unit: 4: MARKET
SEGMENTATION, TARGETING
AND POSITIONING(STP)
Learning Objectives:
•Learn the three steps of marketing, market segmentation, target
marketing, and market positioning
•Understand the major bases for segmenting consumer and
business marketing strategy
•Know how companies identify attractive market segments and
choose market strategy
•Realize how companies position their products for maximum
competitive advantage in the market place
STEPS:
- dividing a market into distinct groups with distinct
needs, characteristics, or behavior who might require
separate products or marketing mixes.
Segmenting Consumer Markets
Segmenting Business Markets
• Demographic Segmentation
- industry, company size, location
• Operating Variables
- technology, usage status, customer capabilities
• Purchasing approaches
• Situational factors
- urgency, specific application,
size of order
• Personal characteristics
- buyer-seller similarity, attitudes
toward risk, loyalty
Segmenting International Markets
•Geographic segmentation
- location or region
•Economic factors
- population income or level of economic development
•Political and legal factors
- type/stability of government, monetary regulations,
amount of bureaucracy, etc.
•Cultural factors
- language, religion, values, attitudes, customs,
behavioral patterns
Requirements for Effective
Segmentation
•Measurable
-size, purchasing power and profile of segment
•Accessible
-can be reached and served
•Substantial
-large and profitable enough to serve
•Differentiable
-respond effectively
•Actionable
-effective programs can be developed
• Consists of a set of buyers who share
common needs or characteristics that the
company decides to serve
SELECTING TARGET MARKET
SEGMENTS
•Undifferentiated (mass) marketing
-same product to all consumers
•Differentiated (segmented) marketing
-different products to one or more segments
•Concentrated (niche) marketing
•Micromarketing (local or individual)
Undifferentiated (mass) Marketing:
Differentiated (segmented) Marketing
Concentrated (niche)
Marketing
•Caters to youth (generation x and y)
•Male and Female
•Active Lifestyle
•Middle and High Income
RIGHT SEGMENT TO BE TARGETING SINCE:
• Standout brand
• All new markets
• Hot products; designs are masculine, sporty and youthful
• Young and diverse audience
Micromarketing (local and
individual)
•retailing and customized marketing (e.g. HAVIANAS –customized slippers)
•Tailoring brand products and marketing programs to suite taste of individual
Choosing a Target
Marketing Strategy
Considerations include:
-company resources
-the degree of product variability
-product’s life-cycle stage
-market variability
-competitor’s marketing strategies
MARKET
POSITIONING
•The place the product occupies in consumer’s
minds relative to competing products
•Typically defined by consumers on the basis of
important attributes
•Involves implanting the brand’s unique benefits and
differentiation in the customer’s mind
•Positioning maps that plot perceptions of brands
are commonly used
CHOOSING A POSITIONING STRATEGY
• Differentiation can be based on
-products
-services
-channels
-people
-image
Communicating the Positioning
Companies must be certain to DELIVER their value
propositions. Positions must be monitored and
adapted over time.
Thank you
for
Attention !
