Segmentation Targeting Positioning

Name Roll No
Gagan Rajendra Mandavkar D-31
Gaurav Singh D-32
Himanshu Pandey D-33
 STP
Introduction:

1. STP marketing is a three-step approach to building a targeted marketing plan.

2. The "S" stands for segmenting, the "T" for targeting and the "P" for positioning.
3. Going through this process allows a business owner and marketing consultants
or employees to formulate a marketing strategy that ties company, brand and
product benefits to specific customer market segments.
 Segmentation
What is it?
1. Market Segmentation is a process of dividing the market of potential
customers into different groups and segments on the basis of certain
characteristics.
2. Market segmentation involves identifying homogenous groups of consumers
who behave differently in response to a given marketing strategy than other
groups

Why it is important?
- They can create custom marketing mix for each segment.
- Convenient method for marketers to cut costs and boost their conversions.
- It allows them to be specific in their planning and thus provide better results
 Segmentation
There are different ways to segment your market:-
1. Demographic
2. Geographic
3. Psychographic
4. Behavioural
Example:
A company that sells nutritious food might market the product to the
older people while fast food chains target the working demographic or
teens.
 Targeting

What is T?
• Targeting: Market targeting is a process of selecting the target market from
the entire market.

• Target market consists of group/groups of buyers to whom the company

wants to satisfy or for whom product
is manufactured, price is set, promotion efforts are made, and distribution
network is prepared.
Example: Razor company
 Targeting

Company may opt for any one of the following strategies

• Single Segment Concentration:
• Single product to multi segment.
Example: Colgate tooth paste
• Multiple product to multiple segment.
Example: Patanjali
 Targeting

• Merits
- High probability of increase in sales
- Branding is done effectively
- Market and targets are known so less risky.

• Challenges:
- High Marketing research cost
- Promotional costs
- A manager needs a lot of expertise, experience and knowledge
 Positioning

What is it?
- Positioning refers to the methods and strategies that a company uses
in order to distinguish its brand from others
- They want to create a certain image in the mind of their costumers
that sets them apart from the competition
 Positioning
Why it is important?
- To standout from the competition
- Effective product positioning creates a clear understanding of customer needs
so that the right communication channels are selected and key messages will
resonate with customers.
- Effective positioning conveys to consumers why this company's product or
service should be preferred over other competitive options based on what the
company knows about the target audience's needs.
Examples
- Coca cola positions itself as a drink that spreads happiness
The buddy coke campaign.
- Colgate brands itself as protective
- Nike positions itself as a company that honours great athletes

References:

-Dibb, S., Simkin, L., Pride, W. and Ferrell, O.C., Marketing: Basic Concepts and Decisions, Houghton
Mifflin, Boston, 1990.
- https://strategiccfo.com/market-positioning/
- Application of end users market segmentation using statistical methods by Ales Ziberna and Vesna
Zabkar