stp - market segmentation,targeting & positioning
TRANSCRIPT
MARKET MARKET SEGMENTATION,SEGMENTATION,TARGETING AND TARGETING AND
POSITIONING (STP)POSITIONING (STP)
Steps in Segmentation, Steps in Segmentation, Targeting, and PositioningTargeting, and PositioningSteps in Segmentation, Steps in Segmentation,
Targeting, and PositioningTargeting, and Positioning
1. Identify Basesfor Segmenting the Market
2. Develop Profilesof Resulting Segments
3. Develop Measuresof Segment Attractiveness
4. Select TargetSegment(s)
5. Develop Positioningfor Each Target Segment
6. Develop MarketingMix for Each Target Segment Market
Positioning
MarketTargeting
Market Segmentation
Market Market SegmentationSegmentation
What is Market Segmentation?What is Market Segmentation?
Market segmentation is the process of Market segmentation is the process of dividing the total market for good or dividing the total market for good or service into several smaller groups.service into several smaller groups.
Dividing a market into distinct groups of Dividing a market into distinct groups of buyers on the basis of needs buyers on the basis of needs characteristics or behaviour who might characteristics or behaviour who might require separate product or marketing require separate product or marketing mixes.mixes.
Levels of Market Levels of Market SegmentationSegmentation
Mass Marketing:Mass Marketing: ## The seller engages in mass production, mass The seller engages in mass production, mass
distribution, and mass promotion of one product to distribution, and mass promotion of one product to all buyers.all buyers.
## Mass marketing creates the largest potential Mass marketing creates the largest potential market, which leads to the lowest costs, which in market, which leads to the lowest costs, which in turn can lead to lower prices or higher margins.turn can lead to lower prices or higher margins.
## Now a days the explosion of advertising media Now a days the explosion of advertising media and distribution channels has made it difficult and and distribution channels has made it difficult and increasingly expensive to reach a mass audienceincreasingly expensive to reach a mass audience..
Levels of Market Levels of Market SegmentationSegmentation
Micromarketing:Micromarketing: Many companies are turning to Many companies are turning to
micromarketing these days by choosing micromarketing these days by choosing one of the four levels; one of the four levels;
Segment marketingSegment marketing
Individual marketingIndividual marketing Niche marketingNiche marketing Local marketingLocal marketing
Levels of Market Levels of Market SegmentationSegmentation
Segment marketingSegment marketingDividing the market into different Dividing the market into different
segments on the basis of homogenous segments on the basis of homogenous
need.need.
Segmented on basis of broad similarity Segmented on basis of broad similarity
with regard to some attributeswith regard to some attributes
Segmentation is also sometimes Segmentation is also sometimes
identifying, capturing & retaining identifying, capturing & retaining
potential new markets potential new markets
Levels of Market Levels of Market SegmentationSegmentation
Individual marketingIndividual marketing
Extreme marketing in which Extreme marketing in which
marketers focus on individual marketers focus on individual
customers.customers.
Keep track of individual tastes & Keep track of individual tastes &
preferences of individual customers preferences of individual customers
Many companies are approaching Many companies are approaching
individuals through e-mails to individuals through e-mails to
promote their products.promote their products.
Levels of Market Levels of Market SegmentationSegmentation
Niche marketingNiche marketingMarketers effort to position their Marketers effort to position their
product or service in smaller markets product or service in smaller markets
that have similar attributes and have that have similar attributes and have
been neglected by other marketerbeen neglected by other marketer
Segment further divided into sub Segment further divided into sub
segments to cater unsatisfied needs segments to cater unsatisfied needs
of small group is called as nicheof small group is called as niche
Levels of Market Levels of Market SegmentationSegmentation
Local marketingLocal marketingmarketers offer customized products marketers offer customized products to suit the local markets.to suit the local markets.
KFC introduced “Muslimized” or KFC introduced “Muslimized” or “Pakistani” products such as Spicy “Pakistani” products such as Spicy Chicken, Hilal Chicken, Zinger Chicken, Hilal Chicken, Zinger Extreme and more…Extreme and more…
Bases for Consumer Market Bases for Consumer Market SegmentationSegmentation
Market Segementation
GeographicalRegions, cities,
states, countries
DemographicAge,
gender,income,
occupation,religion,
social class,family size
PsychographicLife style,
personality,values,beliefs
BehavioralOccasions,Benefits,
Usage rate,Loyalty status
Bases for Segmenting Business MarketsBases for Segmenting Business MarketsBases for Segmenting Business MarketsBases for Segmenting Business Markets
Basesfor Segmenting
BusinessMarkets
Basesfor Segmenting
BusinessMarkets
DemographicsPersonalCharacteristics
SituationalFactors
OperatingCharacteristics
PurchasingApproaches
Bases for Segmenting International Bases for Segmenting International MarketsMarkets
Bases for Segmenting International Bases for Segmenting International MarketsMarkets
Political/Legal
Political/Legal
Cultural Cultural
Economic EconomicGeographicGeographic
Industrial MarketsIndustrial Markets
Requirements for Effective SegmentationRequirements for Effective SegmentationRequirements for Effective SegmentationRequirements for Effective Segmentation
• Size, purchasing power, profiles of segments can be measured.
• Segments must be effectively reached and served.
• Segments must be large or profitable enough to serve.
Measurable Measurable
AccessibleAccessible
SubstantialSubstantial
DifferentialDifferential
ActionableActionable
• Segments must respond differently to different marketing
mix elements & actions.
• Must be able to attract and serve the segments.
MARKET TARGETINGMARKET TARGETING
MARKET TARGETINGMARKET TARGETING
Once the firm has identified its market-Once the firm has identified its market-segment opportunities, it has to decide segment opportunities, it has to decide how many and which one to target.how many and which one to target.
Target market is a group of customers for Target market is a group of customers for whom a seller designs a particular whom a seller designs a particular marketing mix.marketing mix.
Target Market Selection ProcessTarget Market Selection Process
Evaluating the Market SegmentsEvaluating the Market Segments
Selecting the Market SegmentsSelecting the Market Segments
Evaluating Market SegmentsEvaluating Market Segments
Before selecting the respective market segment, Before selecting the respective market segment, the company should evaluate the possible the company should evaluate the possible market segments in the current markets.market segments in the current markets.
It should identify and select its target It should identify and select its target consumers, give them their product according to consumers, give them their product according to their needs and establish that group of their needs and establish that group of consumer in to permanent market segments. consumer in to permanent market segments.
Selecting the Market SegmentsSelecting the Market Segments
Here the co., can consider five patterns of target Here the co., can consider five patterns of target market selection;market selection;
Single-Segment ConcentrationSingle-Segment Concentration
Selective SpecializationSelective Specialization
Product SpecializationProduct Specialization
Market specializationMarket specialization
Full market coverageFull market coverage
Selecting the Market SegmentsSelecting the Market Segments
Single Segment ConcentrationSingle Segment Concentration: : Focusing on a single segmentFocusing on a single segment gives the gives the marketer the advantage of high sales marketer the advantage of high sales as all the efforts are concentrated on as all the efforts are concentrated on that one segmentthat one segment
Example: Mercedes concentrates on upper Example: Mercedes concentrates on upper income groupincome group
Selecting the Market SegmentsSelecting the Market Segments
Selective Specialization:Selective Specialization:
Process in which the company focuses Process in which the company focuses its resources on a few segments and its resources on a few segments and develops its expertise in fulfilling the develops its expertise in fulfilling the needs of those segmentsneeds of those segments
Selecting the Market SegmentsSelecting the Market Segments
Product Specialization :Product Specialization :The firm makes a certain product that it The firm makes a certain product that it
sells to several segmentssells to several segments
Example: Microscope manufacturer who Example: Microscope manufacturer who sells to university, government, and sells to university, government, and commercial laboratories. commercial laboratories.
Selecting the Market SegmentsSelecting the Market Segments
Market specialization:Market specialization:
The firm concentrates on serving many The firm concentrates on serving many needs of a particular customer group.needs of a particular customer group.
Example: A firm sells assortment of Example: A firm sells assortment of products only to university products only to university laboratories.laboratories.
Selecting the Market SegmentsSelecting the Market Segments
Full market coverage:Full market coverage:
Company targets the full market rather Company targets the full market rather than any specific segment.than any specific segment.
Example: Hewlett-Packard targets the full Example: Hewlett-Packard targets the full market for its printers.market for its printers.
In Full market coverage,In Full market coverage,
Large firms can cover a whole market Large firms can cover a whole market into two broad ways; into two broad ways;
Undifferentiated marketingUndifferentiated marketing
Differentiated marketingDifferentiated marketing
GUIDELINES FOR SELECTING TARGET GUIDELINES FOR SELECTING TARGET MARKETMARKET
it should be consistent.it should be consistent. It should meet organizational goals.It should meet organizational goals. It should be consistent with organizational It should be consistent with organizational
resources.resources. It should generate sufficient profit volume.It should generate sufficient profit volume. It should have competitors small in size It should have competitors small in size
and number.and number.
MARKET POSITIONINGMARKET POSITIONING
PositioningPositioning
In In marketingmarketing, , positioningpositioning has come to has come to mean the process by which marketers try mean the process by which marketers try to create an image or identity in the minds to create an image or identity in the minds of their target market for its of their target market for its productproduct, , brandbrand, , or or organizationorganization..Kotler defined: “designing an offer so Kotler defined: “designing an offer so that it occupies a that it occupies a distinct and valueddistinct and valued place in the minds of the target place in the minds of the target customer.”customer.”
PositioningPositioning
Positioning
“Image that customers have about a product in relation to the product’s competitors”
Positioning StrategyPositioning Strategy
Key to developing the appropriate Key to developing the appropriate marketing mix is the positioning marketing mix is the positioning strategy of the product.strategy of the product.
Select Positioning StrategySelect Positioning Strategy
Effective positioningEffective positioning What consumers currently think about the What consumers currently think about the
product, especially in relation to product, especially in relation to competing products.competing products.
What the marketer wants consumers to What the marketer wants consumers to think about the product.think about the product.
Which positioning strategy will elevate the Which positioning strategy will elevate the consumers’ current product image to the consumers’ current product image to the desired product image.desired product image.
Select Positioning StrategySelect Positioning Strategy
Position Mapping-Position Mapping- creating a creating a visual description about consumer visual description about consumer perceptions of a product on two or perceptions of a product on two or more dimensions in relation to more dimensions in relation to competitors.competitors.
Select Positioning StrategySelect Positioning Strategy
The positioning strategy must determine where The positioning strategy must determine where a company wants to go a company wants to go And how to get there by positioning the And how to get there by positioning the product according to any of the following ways:product according to any of the following ways: Price/QualityPrice/Quality Product AttributesProduct Attributes Product UserProduct User Product UsageProduct Usage Product ClassProduct Class CompetitionCompetition SymbolSymbol