stp model.pptx STP MODEL COMPLETE CHAPTER

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1. MODERN COLLEGE OF PROFESSIONAL STUDIES

2. PRESENTATION SUBJECT NAME :- THE FUNDAMENTAL OF MARKETING SUBJECT CODE :- C010401T SUBMITTED BY :- ADITYA KUMAR UPADHAYAY ANUJ PAL ASTITVA NAKUM ASHISH CHAUHAN DEEPMALA ASHISH KUMAR GAUTAM ANJALI YADAV SUBMITTED TO :- MISS ANJALI GOSWAMI

3. TOPIC :- STP( SEGMENTATION, TARGETING, AND POSITIONING ) MODEL BASIS OF STP TYPES OF STP TARGET MARKETING POSITIONING STRATEGIES

4. STP MODEL:- The STP Marketing Model can help you to analyze your product offering and the way you communicate its benefits and value to specific groups. STP stands for : S egment your market. T arget your best customers. P osition your offering. The model is useful because it helps you to identify your most valuable types of customer, and then develop products and marketing messages tailored to them. This allows you to engage with each target group more effectively, personalize your messaging, and ultimately – increase your sales. ASHISH CHAUHAN

5. Market segmentation is the practice of  dividing your target market into approachable groups . Market segmentation creates subsets of a market based on demographics, needs, priorities, common interests, and other  psychographic  or behavioural criteria used to better understand the target audience. TYPES OF MARKET SEGMENTATION:- Demographic segmentation Geographic segmentation Behavioural segmentation DEEPMALA Psychographic segmentation What is market segmentation?

6. Demographic segmentation:- Demographic segmentation enables you to understand who your  target audience  is, which is critical for building customer personas. A customer persona is essentially a profile used to represent your target market according to the data obtained from segmentation. Segmenting based on personas can provide 90% of companies with better knowledge about their audience . Age Gender Religion Income level Ethnicity Size of household Occupation DEEPMALA Education Marital status Example:-   Say you run a wine company and the majority of your audience is married. In this case, you may promote a special wine bundle for couples to these contacts .

7. Geographic segmentation:- Geographic segmentation tells you where your audience is located. Like demographic segmentation, categorizing your contacts according to geographic location is straightforward. Few geographic variables you can use to divide your audience: Location (Includes factors such as zip code, city, state, and country) Culture Timezone Language DEEPMALA Climate Population density Example:  If your target market is located in an area where the dominant language is Spanish, you can send marketing postcards in Spanish to inform potential customers of your next big in-store event.

8. Psychographic segmentation:- Psychographic segmentation enables businesses to segment their contacts based on psychological traits that influence shopping. Variables include: Attitudes Values Social status DEEPMALA Lifestyle Personality Interests Opinions While it can be difficult to segment audiences using this approach, doing so results in highly effective marketing campaigns. This is because psychographic segmentation provides insight into why consumers buy certain products. Example:-  A brand that focuses on plant-based food products may have an audience segment of vegans, vegetarians, or pescatarians and meat eaters who wish to consume less meat.

9. Behavioral segmentation:- Behavioral segmentation refers to a type of market segmentation in which you group your audience based on consumer behavior, allowing you to see how customers interact with your business. With behavioral segmentation, you can see what your contacts are doing on your website, determine which ones engage with your brand the most, and identify patterns to plan ahead. Variables of behavioral segmentation include:- Purchasing behavior Stage in the customer journey Occasion or timing Usage behavior Benefits sought Customer loyalty Customer satisfaction DEEPMALA Engagement Example:-  You may send special deals and discount codes to those who signed up for your loyalty program but have not made a purchase yet.

10. 7 steps in market segmentation Success in a digital environment often depends on the quality of your insights. Your strategy is only as good as the data it uses. Let’s see what information you need to segment the market and how to put it to use. Step 1 – Define your market:- Start by defining your market and collect information about your customer base through  market research . Dig into the data of your closest competitors to understand their market position and where you can win back  traffic share . Take it further by  benchmarking  against industry standards and conducting a  SWOT analysis  to fully understand your strengths, weaknesses, opportunities, and threats Step 2 – Analyze existing customers The process of market segmentation involves a structured  audience analysis . The more comprehensive your data, the better you can identify groups and address their needs, so we recommend using various  research techniques and types . Learn about demographics, behavior, preferences, and trends. Again, benchmark against the competition. You may stumble upon market segments or niches you didn’t consider. ASHISH KUMAR GAUTAM

11. Step 3 - Create Subgroups The organizations should ensure their target market is well defined. Create subgroups within groups for effective results. Cosmetics for females now come in various categories. Creams and Lotions for girls between 20-25 years would focus more on fairness. Creams and lotions for girls between 25 to 35 years promise to reduce the signs of ageing. Step 4 - Review the needs of the target audience It is essential for the marketer to review the needs and preferences of individuals belonging to each segment and sub-segment. The consumers of a particular segment must respond to similar fluctuations in the market and similar marketing strategies. Step 5- Positioning for the Segment: Once the target market is selected, it is important to develop a product positioning strategy. Product positioning refers to setting up strategies to ensure that the product resides in the minds of target market consumers. To make the target market more approachable, the marketer must determine the characteristics and pictures of each competitor’s product and establish a position for it. Because the product may be very new to the market or the market may be very new to the company, the marketer may not reach the market so easily after choosing a target market. The marketer must create a positioning strategy that is attractive to potential clients . ASHISH KUMAR GAUTAM

12. Step 6 - Expanding the Segment: Scalability is required for all segments. So once a segment has been discovered, it must be in a way that the firm may expand with the type of segmentation selected. If the segment is extremely narrow, the business will eventually fail. As a result, segment expansion is the second last step in market segmentation. Step 7-   Incorporating Segmentation into the Marketing Strategy: The final step of marketing segmentation involves understanding the target market and using the appropriate marketing plan for the target market that will satisfy them and help the firm achieve its goals. The marketer can use several elements of the marketing mix to readily engage with the target audience to create an efficient marketing plan and program. Finally, a marketer may put his positioning plan into action to accomplish organisational  goals. Furthermore, they must assess the effectiveness of the positioning strategy and marketing plan to determine whether they are performing as expected or not. Step 8 - Size of the Target Market: It is essential to know the target market size. Collect necessary data for the same. It helps in sales planning and forecasting. ASHISH KUMAR GAUTAM

13. TARGET MARKETING:- A target market is a group of people that have been identified as the most likely  potential customers  for a product because of their shared characteristics, such as age, income, and lifestyle. Identifying the target market is a key part of the decision-making process when a company designs, packages, and advertises its product . TYPES OF TARGET MARKETING: - Demographic:  These are the main characteristics that define your target market. Everyone can be identified as belonging to a specific age group, income level, gender, occupation, and education level. Geographic:  This segment is increasingly relevant in the era of globalization. Regional preferences need to be taken into account. Psychographic:  This segment goes beyond the basics of demographics to consider lifestyle, attitudes, interests, and values. Behavioral:  This is the one segment that relies on research into the decisions of a company's current customers. New products may be introduced based on research into the proven appeal of past products. ASTITVA NAKUM

14. ASTITVA NAKUM

15. EXAMPLE OF TARGET MARKETING:- McDonald’s Target Market McDonald’s target market has a wide range of customer personas. However, younger professionals are a prominent target market segment for the chain. For example, several McDonald’s locations have been redesigned to look sleeker, more modern, and more appealing to millennials. Another important segment for the chain is ‘full nest’ families with children over six years old. The franchise’s efforts to appeal to this segment are most visible in its Happy Meal options. McDonald’s also consciously tries to appeal to working and middle-class customers. In summary, the company’s target market isn’t clear-cut in demographics — but it’s specific regarding the economic circumstances of its various personas.  Its value proposition is based on the fact that its food is affordable. The franchise positions itself as a low-cost alternative to more expensive options in the markets it attempts to sell in. For example, when promoting its McCafe line, the brand highlighted its low price points as a major selling point. ASTITVA NAKUM

16. PRODUCT POSITIONING:- Product positioning is a strategic activity explaining where and how your product or service fits in the current marketplace and why it’s better than other alternatives. The end goal is to determine your target audience, their needs, and how your product can solve customer problems. ANUJ PAL

17.  Product Positioning Strategies :- Characteristics-based positioning = Brands give certain characteristics to their products that aim at creating associations. It’s done to make consumers choose based on  brand image  and product characteristics. Let’s take the automobile industry, for example. A person who worries about safety will probably choose Volvo because of the brand’s positioning. At the same time, another customer who pays attention to reliability would prefer Toyota. Pricing-based positioning=  This strategy involves associating your company with competitive pricing. Brands often position themselves as those that offer products or services at the lowest price. Let’s take supermarkets, for example. They can afford to provide customers with products for lower prices because of the lower costs they pay for shipping and distribution, huge turnover, and a large procurement of goods. As a result, many consumers already know the supermarkets with attractive prices and choose them without considering other options. ANUJ PAL

18. Use or application-based positioning = Companies can also position themselves by associating with a certain use or application. People who adhere to a healthy lifestyle create a great demand for products that help increase performance in the gym. Hence, many businesses offer nutritional supplements. These brands sell supplements that are high in calories, vitamins, and minerals. Quality or prestige-based positioning = The brands we are talking about now don’t concentrate on their price point; they focus on their prestige or high quality instead. Sometimes, it’s the reputation that makes a brand attract customers. Let’s take Rolex, for example. This famous watch brand is associated with achievement and excellence in sport and is popular among powerful and wealthy people. Competitor-based positioning =   The strategy involves using competitors’ alternatives to differentiate products and highlight their advantages. It helps brands distinguish their products and show their uniqueness . ANUJ PAL

19. Steps in Product Positioning:- Know your target audience well=  You should know about your audience, but if you don’t know what they need to hear, you would be squandering your time and would be barking up the wrong tree with your right message. Knowing your target audience involves knowing the specific needs of the audience as well. Identify the product features=   It is very important for the marketers that they themselves are aware of the features and benefits of the products. It is well said that you really can’t sell something unless and until you yourself are convinced of it. A marketer selling a smart phone should himself also use the same smart phone handset for the customers to believe him . Unique selling Propositions=   Every product should have USPs; at least some features which are unique and different from those previously launched products in the market. The organizations must create USPs of their brands and effectively communicate the same to the target audience. ANJALI YADAV

20. 4. Never make a mistake of underestimating your competitor= A marketer must be knowledge about his competitor’s offerings. You need to convince the consumer how your product is better than the competitors. The marketers must always strive hard to have an edge over their competitors. A good example of this type of product positioning is the comparison pages found on many SaaS websites 5. Promote the benefits= A marketer must be knowledge about his competitor’s offerings. You need to convince the consumer how your product is better than the competitors. The marketers must always strive hard to have an edge over their competitors . ANJALI YADAV