TOPIC: STP

 Division: A
 Names: Sumeet Kumar Banchariya,
Swagta Singh, Swati Bajpai
 Roll No: A-52, A-53, A-54
 PRN: 19020441277, 19020441281,
19020441283
What is STP?
Segmentation
The division of a broad
market into small segments
comprising of individuals
who think on the same lines
and show inclination
towards similar products
and brands is called Market
Segmentation.
In simpler words market
segmentation can also be
called as Grouping.
Targeting
Once the marketer creates
different segments within the
market, he then devises
various marketing strategies
and promotional schemes
according to the tastes of the
individuals of particular
segment. This process is
called targeting. Once
market segments are
created, organization then
targets them.
Positioning
Positioning is the last stage in
the Segmentation Targeting
Positioning Cycle.
Once the organization decides
on its target market, it strives
hard to create an image of its
product in the minds of the
consumers. The marketers
create a first impression of the
product in the minds of
consumers through positioning.
STP – Marketing Strategy

 Whatever a business is offering, it cannot be everything for everyone. This is the

main concept behind market segmentation which involves dividing various
customers into different groups that have common needs and characteristics.
This helps the organization to tailor-make their marketing approaches.
 After segmentation companies need to determine which segment they have
to target. Here, companies to analyze different factors such as the profitability
and effectiveness of every segment, analyzing the potential growth and size of
every segment and understand how well the company can serve to the needs
of particular segments
 The final step is positioning strategy that requires companies to determine how
they want to place their offerings to the targeted and most important
customer group. After this, the most appropriate marketing mix can be
selected.
Types of Segmentation

 Psychographic segmentation
The basis of such segmentation is the lifestyle of the individuals. The individual’s
attitude, interest, value help the marketers to classify them into small groups.
 Demographic segmentation
Demographics are the statistical description of population characteristics in terms
of age, gender, income, education, family size and so on..
 Behaviour Based Segmentation
The loyalties of the customers towards a particular brand help the marketers to
classify them into smaller groups, each group comprising of individuals loyal
towards a particular brand.
 Geographic Segmentation
Geographic segmentation refers to the classification of market into various
geographical areas. A marketer can’t have similar strategies for individuals living
at different places.
Zeroing in On Your Target Market

 There are several different ways to define your target market, based on
different characteristics:
1.Consumer or business
2. Geographic
3. Demographic
4. Psychographic
5. Generation
6. Cohort
7. Life stage
8. Behavioural
Positioning: What is the position of the
product in the mind of the consumer?

QUESTIONS to be answered while creating positioning strategy:

 1. What position do you currently own?
 2. What position do you want to own?
 3. Whom you have to defeat to own the position you want.
 4. Do you have the resources to do it?
 5. Can you persist until you get there?
 6. Are your tactics supporting the positioning objective you set?
Example:

 Assume an existing restaurant is trying to market its new business.

The restaurant must segment its market based on various

factors like demographic behaviours, geographical and
other factors then find the target audience and try to
position the image of its products in the mind of the target
audience.
Advantages of STP:

 Reduce Costs
 Improves Product Development
 Break Into New Markets
 Improved Business Focus
 Create sustainable business model
 Improve level of customer satisfaction
Limitations of STP:

 Segmentation increases cost

 Poor segmentation
 Over segmentation
 Lack of data
 Time consuming
 Omission of other consumer
 Expensive
Conclusion:

 Reference:
 Allthe three steps  1.
https://www.marketingteacher.com/positioning/
should be in alignment  2.

with one another so as https://www.marketingtutor.net/segmentation-

targeting-positioning/

to develop a fluid and

3.
sustainable plan.


https://www.managementstudyguide.com/marke
ting-segmentation-targeting-positioning.htm

 4.
https://smallbusiness.chron.com/advantages-
marketing-segmentation-67156.html