Segmentation,Targeting and Positioning

8/2/2019 Segmentation,Targeting and Positioning

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S U B M I T T E D T O P R O F J A Y A N T O B O S E

SEGMENTATION,TARGETING

AND POSITIONING

B Y - G R O U P 9


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PURPOSE OF STP

INCREASE MARKETING EFFICIENCY BY FOCUSINGMARKETING EFFORTS TO A PARTICULAR GROUP.

MAXIMIZE SCARCE MARKETING RESOURCES.

FIND A MARKET WITH LIMITED COMPETITION.

SELECT THE MOST PROFITABLE SEGMENT.


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STEPS IN STP

MARKET SEGMENTATIONIDENTIFY BASES FOR SEGMENTING THE MERKETDEVELOP SEGMENT PROFILE

TARGET MARKETINGDEVELOP MEASURE OF SEGMENT ATTRACTIVENESSSELECT TARGET SEGMENTS

MARKET POSITIONINGDEVELOP POSITIONING FOR TARGET SEGMENTSDEVELOP A MARKETING MIX FOR EACH SEGMENT


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DEFINITION

MARKET SEGMENTATION:Dividing a market into distinct

groups with distinct needs, characteristics,or behaviour who might require separate

products or marketing mixes.


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SEGMENTING CONSUMER MARKETS

GEOGRAPHICAL SEGMENTATION:World region or country, state, city, density,climate,etc

DEMOGRAPHIC SEGMENTATION:Age, gender, family size, family life cycle, income, occupation,education, religion, generation, nationality.

PSYCHOGRAPHIC SEGMENTATION:Life style, social class and personality based segmentation

BEHAVIORAL SEGMENTATION:Occasions, benefits, user status, attitude toward the product, userrates, loyalty status, readiness stage


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SEGMENTING BUSINESS MARKETS

Demographic segmentationIndustry, company size, location

Operating variablesTechnology, usage status, customer capabilities

Purchasing approachesSituational factors

Urgency, specific application, size of order

Personal characteristicsBuyer-seller similarity, attitudes toward risk, loyalty


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SEGMENTING INTERNATIONAL

MARKETS

Geographic segmentationLocation or region

Economic factors

Population income or level of economicdevelopment

Political and legal factorsType / stability of government, monetary

regulations, amount of bureaucracy, etc.

Cultural factorsLanguage, religion, values, attitudes, customs,behavioral patterns


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REQUIREMENTS FOR EFFECTIVE

SEGMENTATION

MeasurableSize, purchasing power, and profile of segment

Accessible

Can be reached and served

SubstantialLarge and profitable enough to serve

DifferentiableRespond differently

ActionableEffective programs can be developed


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TARGET MARKETING

Target Market

Consists of a set of buyers

who share common needs or

characteristics that thecompany decides to serve


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TARGET MARKETING

Evaluating Market Segments

Segment size and growth

Segment structural attractiveness. Level of competition

Substitute products

Power of buyers Powerful suppliers

Company objectives and resources


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TARGET MARKETING

Selecting Target Market Segments

Undifferentiated (mass) marketing

Differentiated (segmented) marketing Concentrated (niche) marketing

Micromarketing (local or individual)


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CHOOSING A TARGET MARKETING

STRATEGY

Considerations include:

Company resources

The degree of product variability

Products life-cycle stage

Market variability

Competitors marketing strategies


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TARGET MARKETING

Socially Responsible Targeting

Some segments, especially children,

are at special risk Many potential abuses on the Internet,

including fraud Internet shoppers

Controversy occurs when the methodsused are questionable


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POSITIONING

Positioning: The place the product occupies in

consumers minds relative to competing

products. Typically defined by consumers on the basis

of important attributes.

Involves implementing the brands unique

benefits and differentiation in the customersmind.

Positioning maps that plot perceptions ofbrands are commonly used.


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CHOOSING A POSITIONING STRATEGY

Topics

Identifying possible

competitiveadvantages

Choosing the right

competitive

advantage Choosing a positioning

strategy

Differentiation can be basedon Products

Services

Channels People

Image


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MARKET SEGMENTATION

Topics



Choosing the rightcompetitive


strategy

How many differences topromote?

Unique selling proposition

Several benefits

Which differences topromote? Criteria include:

Important

Distinctive

Superior Communicable

Preemptive

Affordable

Profitable


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MARKET SEGMENTATION

Topics



Choosing the rightcompetitive


strategy

Value propositions representthe full positioning of thebrand

Possible value propositions:

More for More

More for the Same

More for Less

The Same for Less Less for Much Less


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THANK YOU

Segmentation,Targeting and Positioning

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