Marketing Process
Understa Design Devise Build Capture
nd marketin Integrat profitable customer
customer g ed = relationshi value,
needs strategy Marketin p profit
g
Program
Analysis of Product Create loyal
market Select Price CRM customers
place market to and Increase
serve Place PRM market
Analysis of
(STP) share
customer Promotion
behaviour
Module 2 Session 1
Market Selection ( STP )
How to Segment Markets
How to select segments to target
How to develop positioning strategies
What is STP ?
Select customers to serve Decide on value proposition
Segmentation Differentiation
Divide market into Differentiate to create
segments customer value
Targeting Positioning
Select segment to enter Positioning the market
offering in the consumers
mind
STP
Take away Dine-in
Drive
through
Deliveries
[Link]
Segmentation - Definition
Segmentation:
Divide entire market into
segments to focus on those
consumers the firm has the
greatest chance of
satisfying.
Segment:
Distinct group of customers
who share a similar set of
needs and preferences
How markets are segmented?
Geographic Segmentation – location based
Demographic Segmentation – age, gender,
income, occupation, family size
Psychographic Segmentation - lifestyle
Behavioral Segmentation – usage behaviour
Geographic Segmentation
Geographic Segmentation: Division of market
into geographic units(countries,states,cities etc)
Eg: TATA Tea – Darjeeling, Kannan Devan
Demographic Segmentation
Age and Life Stage: Consumer behaviour changes with age &
life stage
Eg: Dairy milk Silk v/s Dark Milk
Eg: Elle18, Maybelline , L’Oreal
Gender: Men are from Mars, Women are from Venus (due to
genetic make up and socialisation).
Eg: Hero – Pleasure
[Link]
Income: Income determines the ability of consumers to
participate in the market exchange.
Eg: Sachet marketing, Jio mobile
S U
UP YO
RO O
G RT
Identify IHCL segments
VE
O
No frills
Luxury Business
Leisure
IDENTIFY THE
SEGMENTATION
Psychographic Segmentation
Segmenting based on Personality,
attitudes, lifestyle,value system
Psychographics =Psychology +
Demography
VALS
[Link]
TITAN Octane - Experiencer
TITAN Fastrack- Maker
TITAN Sonata – Believer
TITAN Xylys - Achiever
TITAN Nebula - Innovators
?? Lindt
Cadbury Dairy milk
Cadbury Bournville Cadbury Dairy milk Silk
Cadbury Perk, 5 star Cadbury Fuse Cadbury Dairy milk shots, Gems
Dairy milk Eclairs??
Behavioral Segmentation
Segmentation of buyers into groups based on their knowledge of, use of and
response to a product (behaviour towards a product).
Occasions used: Occasion segmentation can help increase product usage.
Eg: Cadbury Dairy milk
Benefits sought: different customers expect different benefits from same
product category
Eg: Colgate Sensitive, Colgate Max Fresh, Colgate Advanced Whitening
Toothpaste, Colgate Total
User Status: You can be a non-user, ex-user, potential user, first time user
and regular user – different marketing strategy
Eg: Zomato ( 50 Rs Off on first order)
SEGMENTATION (OCCASION)
Behavioral Segmentation
Usage Rate: Segment customers as light, medium, heavy product users.
Pareto’s 80:20 principle (One heavy user is better than several light users)
Eg: Uber offers (star rating for riders)
Eg: Platinum Credit Cards
Loyalty Status:
Hard core loyals: Loyal to one brand
Split loyals: Loyal to 2 -3 brands
Shifting loyals: Shift from one brand to other
Switchers: Absolutely no brand loyalty
Eg: Emirates Skywards FFP and frequent flier miles, BPCL-Petro Card
Success elements of Kerala Tourisms Branding efforts over the years.
‘Your moment is
waiting’ campaign
‘Come Out and Play’ Focus: Discover your
campaign (2018) self
‘Travel for Good’ Focus: Renew your Segment: Foreign
campaign (2022) life tourists
Focus: Experience Segment: Non-
responsibly Keralite youth
Segment: Non-
Keralite families
OU
Y
V
TO PS
ER OU
O GR
Profiling Market Segments
for Kerala Tourism
Segment 1 Segment 2 Segment 3
Segment description
Customer characteristics
Needs, motivations, issues
How are they meeting their needs?
Location/geography
Key trends
Segment 1 Segment 2 Segment 3
Market Size
Annual Growth rate
Kerala’s competence
Market Targeting
Market Targeting
Targeting - Choosing a segment to target
Selected segments should be:
Measurable (Eg: Left handers, Hero Maestro)
Substantial (Eg: Young India - % below 35)
Accessible (Eg: North Pole)
Differentiable (Eg: Age cohorts)
Choosing Target Markets
‘Your moment is waiting’
campaign (2016)
Focus: Discover your self
‘Come Out and Play’
‘Travel for Good’ campaign campaign (2018)
(2022) Focus: Renew your life
Focus: Experience responsibly
5 ways of target market selection
Single segment Concentration: One product - One market segment.
Eg: RIM-Blackberry (for executives) ; Vegan restaurants
Selective Specialisation: Different product - Different segments, each a money
spinner
Eg: Tanishq – Mia – Rivaah – Aveer
[Link] [Link]
v=EA4VZh91tcM
Product Specialisation: One product tailored to different market segments
Eg: Samsonite ([Link] – Luggage for all types of travelers; Kerala
tourism
Market Specialisation: One market - many needs - many products.
Eg: Milma; CISCO; freshtohome
[Link]
Full market Coverage: Serve entire market through mass marketing
Eg:Jio
IDENTIFY TARGETING
STRATEGY