MARKET SEGMENTATION,

TARGETING, POSITIONING
(STP)
Presented to : Dr. M. Majid Mehmood Bagram
Presented by : Zahid Latif
Roll No. : BZ786897
Course : Strategic Marketing (8703)
Level : MS HRM Session 2020
STP PROCESS

 Segmentation Market information

 Targeting

 Positioning Decision making;

STP PROCESS

1.Define Market_Coke_Not go for o orverall beverage market instead go specific segment. Which is generic and has too many diverse
segments. For homogeneous segments that would have similar needs and requirements e.g diet cola soft drinks (diet conscious)
2.Create the segment_Segment the market using different segmentation basis or variables. Allocate the consumers in define market to the
similar consumer groups ( based on need, behavior or characteristics)
3.Viability or feasibility of segment_evaluate the segments on set citeria., Actionable, differentiable, measurable, substantial,Accesable
4.Segment profile_on the basis of segmentation, Age_Baby boomers, Generation x, Generation Y
5.Attractiveness of segment_added research findings to the segment profiles e.g segment size, growth rate, price, loyalty,
6.Target market_firm strategy, competent rivals, ability to compete
7.Positioning strategy
8.Market mix_product design, suitable price, distribution channel, promotional program
9.Review performance_to look for new opportunities

Targeting

Positioning Decision making;

MARKET SEGMENTATION

• The process of defining and subdividing a large heterogeneous

market into clearly identifiable segments having similar needs,
wants or demand characteristics. Its objective is to establish a
market mix that precisely matches the expectations of customers in
targeted market.
• Nestle
• Coffee, tea, chocolate milk
IMPORTANCE OF MARKET SEGMENTATION

 Market Opportunities- new product NESTLE COFEE, TEA, MILK

 Product Development-new product needs, improvements DIFFRENTIATION-
LEMON,GREEN,CHOCLATE TEA
 Promotion Mix- meggy noddles- NESCAFE
 Pricing –FAIR & LOVELY, Dove
 Distribution
 Media Selection
 Use Of Resources
 Better Service To Customer
NEEDS OR BASES FOR SEGMENTATION
NEEDS OR BASES FOR SEGMENTATION

1. Geoghraphic-
Region_ local vs global, province wise, zones, urban vs rural (FFC, FG, Auriga, Engro)
Climate_
Market Size_Salt, Coffee
Density_how much custmors would buy our product
2. Demoghraphic:-
Age:- taste is different according to age. Medonald kids_fries,young burger, aged_deal
Gender_Female-Trendy, Male_Sober
Income_low,middle,high, elite class_ School,
Occupation_
Education_
Family size_
3.Pshychoghrphic_
Lifestyle_
Belief,Region_Christian white dress-marriage, hindu-grief, Muslims-black
Behavioral:-
Readiness_instinct buyer, words of mouth, speculative buyer, Laggards, Early Adapter, Late Adapters
APPROACHES TO SEGMENTATION

• Undifferentiated Marketing (Mass)

• Differentiated Marketing (Segmented)
• Concentrated Marketing (Target)
• Micromarketing Marketing (Individual)
APPROACHES TO SEGMENTATION
APPROACHES TO SEGMENTATION

• Undifferentiated Or Mass Marketing

Undifferentiated marketing occurs when a company creates one campaign for its entire, broad audience—all
segments of the audience see one message. Usually, the message is more general since it’s meant to appeal to such a
wide range of people.

Economies of scale- Reduction in cost due to increased production

APPROACHES TO SEGMENTATION
APPROACHES TO SEGMENTATION

• Target Or Concentrated Marketing

Concentrated marketing occurs when a company creates one marketing message for a specific, narrow
demographic. This marketing strategy typically works best for startups and is a natural step for any
business looking to find their ideal prospect or niche.
 Higher Rate of Investment (ROI)
 Words of mouth
 Loyalty of customers
 Potential customers

 High risk
Higher cost in case of market expansion or change in fashion
APPROACHES TO SEGMENTATION
APPROACHES TO SEGMENTATION

• Product-variety Or Differentiated Marketing

Differentiated marketing occurs when a company creates campaigns meant to appeal to two or more different target
audiences, demographics, or marketing segments. By targeting multiple well-defined customer profiles, a brand can
build its customer base, master their niche, and begin to grow organically to build their brand awareness.
APPROACHES TO SEGMENTATION
FACTOR AFFECTING FEASIBILITY OF SEGMENTATION

Measurable: - The size, purchasing power, and profiles of the segments can be measured.
1. Can be measured in term of sale volume(No of customers)
2. Size of market so the strategist can focus their effort to that segment efficiently.
 Accessible: - The market segments can be effectively reached and served.
Falls within the strength of marketing department so that outdoor marketing, tv infomercials, social media campaigns can be run
Substantial: - The market segments are large or profitable enough.
1. Must not insufficiently large or having negligible purchasing power
2. longevity_Focus on unstable customer that likely to disperse
Differentiable: - The segments are conceptually distinguishable and respond differently to different marketing mix elements
and programs.
Internally homogenous but externally heterogeneous so that product and marketing tools can be implemented without overlap.
 Actionable: - Effective programs can be designed for attracting and serving the segments.
Homogeneous:- Within the market segment all customers should have similar needs.
MARKET TARGETING

• Market targeting involves evaluating the various segments identified during

the segmentation process and deciding how many and which segments it can
serve best.
• Life style of consumers
• Age group
• Income of consumers
• Spending capacity
• Education and profession
• Mentality and thought process
• Social status
• Kind of environment
FACTORS EFFECTING TARGET MARKET

In evaluating different market segments, a firm must look at three factors:

 segment size and growth

 Overall attractiveness of segment-potential profitability current and future prospet
 segment structural attractiveness
 and company objectives and resources
 MARKET TARGETING STRATEGIES


Single Segment Concentration_
One Product_One Segment(income base),
Strong market position
Specialization in product,distribution, promotion
Higher Return on investment
I.High cost in case of change of faahion
II.Competitrs invasion

Selective Specialization
Many products, many segments
Diversification low risk firm can earn from other segments if one or two segments or unattractive

Product Specialization
One product- many segments

Market Specialization
One segment-Many product
Company posirion

Full Market Coverage
 EXTENDED MARKETING MIX

People_individual involes in sale and purchase of products

Process_how product reach its target market
Physical evidence_tool to communicate the USP I.e Branding,
packing, hairdo, mailing of evidence of insurance company in
micro marketing
Promotion_ Advertisemnt, words of mouth
Place_ virtual or physical market

3 extra Ps were suggested by booms and bitner

4Cs
Product_________--Comodity
Price____________Cost
Placement________channel
Promotion ________Communication
MARKET NICHE

 A niche is more narrowly defined customer group seeking a distinctive mix of benefits.
Marketers usually identify niches by dividing a segment into sub segment.
 Shield_teether & Soother, diaper, Stylo shoes
MARKET POSITIONING

• Market positioning involves "arranging for a product to

occupy a clear, distinctive and desirable place relative to
competing products in the minds of target consumers". It is
about formulating competitive positioning for a product and a
detailed marketing mix (Kotler et al., 1999).
• Coke_open happiness, think globally act locally
PRODUCT POSITIONING PROCESS

1. Know your target audience well_know demands of customer

2. Identify product features_sale of nokia must himself no the use of different feaures
3. Unique Selling Prepositions_uniqueness of brand. Nokia (better Battery Time) Apple
(Security), communicate the USP’s,
4. Know your competitors-
5. Ways to promote brands
6. Maintain position of brand_no compromise on quality, no drastic reduce in price
Mercedes, rado watch will lose its charm if it reduced below a certain level.
EFFECTIVE MARKET POSITIONING STRATEGY

1. Determining company uniqueness by comparing to the competitors

2. Identify current market position
3. Competitors positioning analysis
4. Develop a positioning strategy
POSITIONING ERRORS

 Doubtful Positioning:- customer do not accept claims of brand.

Example:- hair care products,
Confused Positioning:- customer having confused image of brand resulting from the company making too many
claims or changing the brand positioning frequently.
Example:- Lipton, Sunlight washing powder

 Over Positioning : - customer has too limited awareness of brand.

Example:- Rolex watches, Apple

 Under Positioning ;- customer has unclear or blurred image of the brand.
Example:- PTL EVO & Wi-Tribe
REPOSITIONING STRATEGY
• Marketing repositioning is when a company changes its existing brand or product status in the
market place.

Many companies instead of repositioning choose to launch new product or brand because of the high
cost and efforts required to successfully reposition a brand.
Repositioning is usually done due to the
 Declining performance
 Environment shift
 Example:- Horlilcks, Lipton
 Lipton “Light premium price tea with best quality” – “chai chahiye konsi janab
lipton he to he hmm lajawab” – “clear the mind”
 Horlicks “food for convalescing” – “Taller, stronger, sharper” – “pleasureable
nourishment”
REPOSITIONING STRATEGY
Thank you