STP

Segmentation
Targeting
Positioning
 SEGMENTATION
 Process of subdividing a total market into
different subsets or groups.
 Where the marketer may select one or
more segments.
 To be reached with an appropriate
marketing mix.
 Basis for market segmentation

On the basis of consumer’s personal

On the basis of consumer responses
characteristics (non-behavioral
(behavioral correlates)
correlates)

Geographic Psychographic

Usage Loyal
Demographic Benefits
Socio-economic based status
 Geographic Segmentation
Subdividing the whole market into different
geographical units which can be further
sub-divided into smaller units.
A national marketer may take whole nation

as his market. For example-in the detergent

market Hindustan Levers and Procter and
Gamble are all national marketers in India.
A multinational company may divide the

global market on the basis of continents.

Like Pepsi and Coca-cola.
 Demographic Segmentation

 Subdividing the market in terms of

demographic features of a country or a
region.
 Variables that may be considered are age,
gender, marital status, family size, etc.
 Demographic data is essential for estimating
the size of the target market.
 Socio-economic segmentation
 Variables that may considered for market segmentation are
Income, occupation, education, religion, social classes, etc.

 This segmentation is used for durable products such as

automobiles, PCs, etc.
 Psychographic segmentation

 Sub division of different groups on the basis of

personality, life style and values.
 Marketers of cosmetics, textiles, fast food
providers etc. must understand the life style of
the target market.
 Automobile manufacturers must consider
different personality traits in dividing the
market
 Benefit segmentation
Segmented on the basis of benefits sought by consumers
Toothpaste

General benefits that consumers seek are

cleanliness and hygiene in all segments.
Other key benefits are:-

Cosmetic Fluoride Herbal

Protection against foul Family health, Family health and

smell, modernity and extra protection welfare.
cosmic value. Eg- for children. Eg- Traditionally good
Colgate, Prudent Colgate Fluoride, for health.
Cibaca Fluoride. Eg-Neem, Dabur.
Consumers’ perceived benefits of Two-wheelers

Motorcycle Perceived benefits

brands
Enfield sturdy, good for long rides and high resale
value.
Hero-Honda Fuel efficient, high pick up and stylish
Kawasaki bajaj High pickup, sleek model
Scooter brands
Bajaj chetak cub Fuel efficient, lifelong, high resale value
Kinetic Honda Electronic ignition, easy to ride, trouble
free.
 Usage based segmentation
Market segmented into
 High buyers

 Medium buyers

 light buyers

Loyal buyers
 Relationship seekers: buyers who want to develop
long term relationships with their suppliers or retailers.
 Loyal buyers of particular brand: buyers who seek a
particular brand among competing brands.
 Targeting
 Once the firm has segmented the total
market ,it should select the target market
segment or segments for marketing.
 Investing in a particular segment should be
sensible in terms of company’s mission,
objectives, skills and resources.
 Targeting Strategies

Single segment Multi segment Undifferentiated

concentration strategy or marketing
strategy differentiated strategy
marketing
strategy
 Single segment concentration
strategy
 The firm selects a single segment or market and fully
concentrate its marketing efforts to try and seek maximum
advantage.

Semi-luxury segment
Single marketing mix
Car maker (Expensive)

Small car
segment Luxury car
(affordable, segment
less (very
expensive) expensive)
 Multi-segments strategy
 Here the firm may select two or more then two or may
be all the segments and approach each segment with an
appropriate marketing mix programme.

Car maker

Marketing Mix Marketing Mix

Marketing Mix

Semi-luxury Luxury segment

Small car segment
segment ex. Maruti ex. Honda city,
maruti zen,indica
esteem, daewssaoo lancer
ceilo, contessa.
 An example of this would be airline
companies offering first, business
(segment 1) or economy class tickets
(segment 2) , with separate marketing
programmes to attract the different
groups.
Undifferentiated Marketing Strategy
 The firm ignores the market segment differences and
goes ahead with 1 single product offer for all segments.

Essential commodity Single

All
manufacturer. marketing mix
 Differentiated strategy: This is also referred to multi-segment or selective
specialization plan. In this way, more than one target market is offered the
product and service. The product may be the same or it might be different. But
the branding, advertising campaign and even promotional message will be
different for each target customer group. For example, a Company like Toyota
that sells different models of Camry to different set of customers. The designs
are different, but the spare parts are all the same.
 - Undifferentiated Marketing strategy: This plan entails providing the whole
broad market with a single product or service. The marketer will attempt to
appeal to the whole Total Available Market with just one single product or he
might provide mass marketing mixes to a single market division. The only
advantage of this type of strategy is that it lowers the cost of production and
development of the product. This approach was used in the olden days where
people do not have much choice of selecting. Nowadays, the strategy seems to
be rather unreasonable.
 market coverage strategy whereby a
company ignores differences within a
market and attempts to appeal to the
whole market with a single basic product
line and marketing strategy.
Undifferentiated marketing relies on mass
distribution and mass advertising, aiming
to give the product a superior image in
the minds of consumers. It is cost
effective because there is only one
 Market Positioning
 Positioning of a product or service is
creating an “image” in the consumers’
mind.
 Consumers generally buy “images” rather
than actual product.
 Marketers mostly use advertising as a tool
to build up brand or corporate “image”.
 Positioning strategies

Sl. Positioning Definition Advertising claims

no. strategies

1. Customer Associate a brand or product with Benefit(s)

benefits customer benefits

2. Price and quality A product is highlighted in terms Value for money

of service features or
performance. Manufacturer
charges high price
3. Application Associating a product or service Use or application
with a use or application of a product or
services.
4. Product user Associating a product or service Cine stars or
with a user or class of users. sports heroes
using the product
 Positioning strategies
Sl. Positioning Definition Advertising claims
no. strategy
5 Product class Associating a product or World class products
service in a particular
product class

6 Cultural Associating cultural Royal

symbols symbols with a product or
service to differentiate
from competitors product
7 Competitors Associating with Compares with
competitor’s product or competitors brand
service by comparison
Competing brands in the Advertising claims Health drink
health drinks market market

Complan “complete planned food”

for growing children.
Contains 23 vital nutrition
“The great nourisher-with
Horlicks extra calcium”
“Health strength and Health
energy”.contains Drink
Bournvita
protiens,vitamins,
menerals and Market
carbohydrates.
“Energy Ah! Energy”
Boost
“Double action drink”
Viva
 Determining a competitive positioning
strategy
 Identification and selection of good positioning strategy
 With the help of marketing research

Steps in determining a competitive

positioning strategy
Identify the strategy group
Understand the consumers’ perception of competitive brands of strategy group
Determine consumers’ needs and aspirations
Select the best one for advertising campaign
 Identify the strategic group
Strategic Groups Marketing Mix Target
Consumer Groups
I Upper middle
High Tech
and middle
Hero Honda CD 100 High styling
income
High power
Kawasaki Bajaj classes
High price
Yamaha & Bullet
II Middle and
High style
Hero Honda High economy lower middle
Medium price income classes
TVS Suzuki

III Low styling

High economy Lower income
TVS EXL Champ
Low price classes
Hero Puch Low Tech
 Determine consumers need and
 Price aspirations
 Fuel efficiency
 After-sales service
 Warranty
 Stylish looks
 Easy to ride
 High pick up and trouble free

Select the best one for advertising campaign

A sample of respondents can be asked to select the best among the alternatives
and the same can be used for the advertising campaign