Segmentation, Targeting and Positioning (STP)

STP -
1. Segmentation - Market segmentation is the process of
dividing a target market into smaller, more
defined categories.

It segments customers and audiences into
groups that share similar characteristics
such as demographics, interests, needs, or
location.
2. basis of segmentation - a) Demographics b) Geographic c) Psychographic d) Behavioral e) Benefit segmentation.
3. Advantages of segmentation - Helps distinguish one customer group from another within a given market.
Facilitates proper choice of target market.
Facilitates effective tapping of the market.
Helps divide the markets and conquer them.
Helps crystallize the needs of the target buyers.
Makes the marketing effort more efficient and economic.
4. Examples -
5. Effective market segmentation - Measurability (In terms of size and purchasing power)
Accessibility (Reached and served through suitable means of distribution of promotion)
Substantiality (Large and profitable)
Differentiability (Clearly distinguishable)
Action ability (To be effective makers of segmentation should be compatible with the manpower, financial and managerial resources)
6. Targeting - Targeting is a strategy that breaks a large market into smaller
segments to concentrate on a specific group of customers
within that audience.

Instead to trying to reach an entire market, a brand uses target
marketing to put their energy into connecting within a
specific, defined group within that market.
7. Targeting strategy - Undifferentiated Strategy
Concentrated Strategy
Differentiated Strategy
Micro – marketing Strategy
8. Mckinsey matrix
9. Positioning - Positioning refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors and different from the concept of brand awareness.
10. Why positioning? - To create a distinct place of product & service or corporate in the minds of customer.
To provide a competitive edge to a product or an attempt to convey attractiveness of the product to the target market.
To give the target market reason of buying our product/service and then formulation of all strategies according to the customer perception.
11. Strategies of positioning
12. Final steps of framework - Symbolic positioning
Functional positioning
Experiential positioning
13. example of coca cola vs pepsi

1. STP Segmentation Targeting Positioning Presented By - Miss . Akansha Poswal Miss . Prerna Singh Miss . Ritika Singh Mr . Saif Ur Rahman

2. SEGMENTATION Market segmentation is the process of dividing a target market into smaller, more defined categories. It segments customers and audiences into groups that share similar characteristics such as demographics, interests, needs, or location.

3. BASIS OF SEGMENTATION DEMOGRAPHICS GEOGRAPHIC Behavioural Benefit Segmentation Region, state, district, urban/rural, etc. Occasions, benefits sought, user status, etc. 01 02 04 05 Psychographic Values, system , belief, interest, attitude, etc. 03 Age, gender, status, culture, etc.

4. DEMOGRAPHIC SEGMENTATION

5. Examples of Demographic Segmentation

6. GEOGRAPHICAL SEGMENTATION

7. PSYCHOGRAPHIC SEGMENTATION

8. EXAMPLE

9. ADVANTAGES Helps distinguish one customer group from another within a given market. Facilitates proper choice of target market. Facilitates effective tapping of the market. Helps divide the markets and conquer them. Helps crystallize the needs of the target buyers. Makes the marketing effort more efficient and economic.

10. EFFECTIVE MARKET SEGMENTATION Measurability (In terms of size and purchasing power) Accessibility (Reached and served through suitable means of distribution of promotion) Substantiality (Large and profitable) Differentiability (Clearly distinguishable) Action ability (To be effective makers of segmentation should be compatible with the manpower, financial and managerial resources)

11. MARKET TARGETING

12. MARKET TARGETING Targeting is a strategy that breaks a large market into smaller segments to concentrate on a specific group of customers within that audience. Instead to trying to reach an entire market, a brand uses target marketing to put their energy into connecting within a specific, defined group within that market.

13. TARGETING STRATEGIES Undifferentiated Strategy Concentrated Strategy Differentiated Strategy Micro – marketing Strategy Mass Marketing Niche Marketing Segmented Marketing Individual Marketing Entire Market Target Market Segment 1, Segment 2 Individual

14. Mckinsey Matrix

15. POSITIONING MARKET

16. POSITIONING MARKETING Positioning refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors and different from the concept of brand awareness.

17. WHY POSITIONING? To create a distinct place of product & service or corporate in the minds of customer. To provide a competitive edge to a product or an attempt to convey attractiveness of the product to the target market. To give the target market reason of buying our product/service and then formulation of all strategies according to the customer perception.

18. STRATEGIES OF POSITIONING UNIQUE SELLING PROPOSITION DUAL BENEFIT POSITIONING Product features Services attributes Channel attributes Pricing attributes Product Benefits Other attributes

19. THE FINAL STEPS OF FRAMEWORK Symbolic positioning Functional positioning Experiential positioning

20. STP EXAMPLE

21. Coca Cola Vs Pepsi POSITIONING - “Choice of new generation” SEGMENTATION - Attitude and Loyalty segmentation approach

22. Combined Budget

23. Change in Target Market selection of Pepsi -

24. THANKS MBA, 2 nd semester, JIMS, DELHI