Market Mix and Segmentation, Targeting, and Positioning.pptx

4 P's and STP Process

1. Market Mix

2. Marketing Mix Meaning & Definition Marketing Mix consists of the core element of the business marketing system which develops the product and determines its price and helps in its distribution & promotion to satisfy the customers with the profit to marketers. It covers b oth the product & service market. “Marketing mix is a combination of four elements- product, price, distribution system and promotional activities used to satisfy the needs of an organization’s target market and at the same time achieve its market objectives.” -- William.J.Stanton --

3. Elements of Marketing Mix Elements of Marketing Mix Product Price Place/Physical Distribution Promotion

4. Product Product refers to the combination of all inputs into a output which can be offered for sale. It consists of shape, size, quality, range, package, labels, warranty, features & services, etc. Product Marketing Mix Example Apple 's unique selling proposition is its product marketing mix by producing products with innovative features, advanced technology, and sleek design. From their iconic iPhones to their ingenious MacBooks , Apple’s products are the perfect combination of form and function. Apple’s product mix includes more than just hardware. Their services and add-ons make their products irresistible. Customers have access to the world of entertainment and convenience with iTunes, iCloud, and Apple Music.

5. Apple treats its customers like a kind by providing a simple user interface, exceptional support, and warranty claims. Apple is a legendary marketing example everyone must take notes from.

6. Pricing Price refers to the value received in exchange by selling product or services. Pricing involves decision regarding the basic Price of the product Discount Allowances Credit Terms of payments

7. Coca-Cola  uses a competitive pricing strategy for penetrative marketing. It is a pricing expert such that it matches the competitor’s prices head-on combined with a value-based pricing approach to push discounts to stimulate higher sales. The business is adaptable and it also changes its prices to meet local laws and market conditions. Price Marketing Mix Examples

8. Place (Distribution) Place or Distribution refers to all the activities required to transfer the product from producer to end user through different types of channels of distribution.

9. McDonald’s  has more than  36,000 franchises  and company-owned outlets all across the globe. It also has drive-ins, online ordering through its app, and food delivery partners. Consumers can either dine at the restaurant itself or get a takeaway at their convenience. McDonald’s is located in easily accessible locations providing its customers serving tasty food quickly at low prices. Place Marketing Mix Examples

10. Promotion Promotion consists the various activities aimed at persuading customers to buy the product. It includes Advertising Personal Selling Sales Promotion Publicity/Public Relations

11. Red Bull spends extensively on promotions to stay at the top of its consumer's mind. 'Red Bull gives you wings' tagline has made a home in people’s minds. It’s impossible to plainly say it without dragging out the wings in a high-pitched voice.  Red Bull  promotes itself as a high-energy drink for intense activity. Its promotion strategy includes creative ads, digital marketing, content marketing, and sponsorship of extreme  sports events . Promotion Marketing Mix Example

12. SEGMENTATION, TARGETING & POSITIONING

13. Overview: (STP Process) Segmentation – Grouping consumers by some criteria Targeting – Choosing which group(s) to sell to Positioning – consumer perception of a brand or product relative to the perception of competing brands or products

14. The STP process demonstrates the links between an overall market and how a company chooses to compete in that market. It is sometimes referred to as a process, with segmentation being conducted first, then the selection od one or more target markets and then finally the implementation of positioning. The goal of the STP process is to guide the organization to the development and implementation of an effective marketing strategy.

15. Market Segmentation Segmentation is dividing the market into smaller groups of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

16. Segmentation Methods Geographic Segmentatio n – grouping consumers based on their region, city, climate, etc. Demographic – group consumers based on age, gender, race, etc. Geodemographic – used for classifying and characterizing neighborhoods or localities based on the principle that residents living near each others are likely to have similar demographics, socio-economics, and lifestyle characteristics. Psychographic – divide a market into different groups based on social class, lifestyle, or personality characteristics. Behavioral – Divide buyers into segments based on consumer knowledge, attitude, uses, or response to a product.

17. Targeting After dividing the market into segments, the organization then evaluates the different segments and decide how many or which segments it can serve best. Almost all organizations use a market segmentation approach to target marketing because people are different and seek different ways to satisfy their needs. This approach divides the broad market, into smaller market segments in which customers are grouped by characteristics shared by others in the segment.

18. Approaches to Targeting 1. Undifferentiated Marketing (Mass Marketing) – under this strategy the marketer attempts to appeal to one large market with a single marketing strategy. While this approach offers advantages in terms of lowering development and production costs, since only one product is marketed, there are few markets in which all the customers seek the same benefits. While this approach was very popular in the early days of marketing (e.g., Ford Model-T), few companies now view this is a feasible strategy.

19. Approaches to Targeting 2. Differentiated Marketing – This is were firm target more than one market s egments by introducing several products, each aiming at a different market. (e.g., running shoes, basketball shoes)

20. Approaches to Targeting 3. Concentrated Marketing (Niche Marketing) – This strategy combines mass and segmentation marketing by using a single marketing strategy to appeal to one or more very small markets. It is primarily used by smaller marketers who have identified small sub0-segments of a larger segment that are not served well by larger firms that follow a segmentation marketing approach. In these situations a smaller company can do quite well marketing a single product to a narrowly defined target market.

21. Approaches to Targeting 3. Customized or Micro-Marketing – This target market strategy attempts to appeal to customers with specific wants. For micro-marketing segmentation to be effective the marketers must, to some degree, allow customers to “build-their-own” product. E.g. Dell.

22. Positioning Positioning is concerned with the perception customers hold regarding a product or company. In relates to marketing decisions an organization undertakes to get customers to think about a product or company in a certain way compared to its competitors. Consumers typically form their understanding of product over a period of time using information from a variety of sources, some of which are shown in the following diagram: