STP in Services

8/2/2019 STP in Services

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Market segmentation is the sub dividing of marketinto homogenous sub sections of customers, whereany sub- section may conceivably be selected as amarket target to be reached with a distinct marketing

mix. Market segmentation allows a marketer to take a

heterogeneous market, a market consisting ofcustomers with diverse characteristics needs, wants& behavior & carve it up into one or morehomogeneous markets which are made up ofindividuals or organization with similar needs, wants& behavioral tendencies.


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Homogeneous Preferences.

Clustered Preferences.

Diffused Preferences

Herein a Flexible Marketing Offering is there

1. Naked solution. 2. Discretionary options.

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BASES FOR

MARKET

SEGMENTATION

GEOGRAPHIC

SEGMENTATION

DEMOGRAPHIC

SEGMENTATION

BEHAVIORAL

SEGMENTATION

PSYCHOGRAPHIC

SEGMENTATION


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Here, a marketer divides the target market into different geographicalunit such as nations, states & regions.

This works well in South Asian markets wherein markets are dividedinto Rural, Urban and Metros.

These markets differ in terms of consumer preferences and

purchasing habits.

Co. may decide to operate in one or more than one geographicalareas.

E.g. A particular brand may be popular only in North India then the

north Indian market can be divided on the bases of zones, village,cities, etc.

Ex Coolers/ Ac , Coffee/ Tea, Assam Tea/ Nilgiri Tea, MTR/ Aashirvad,Curry powder etc.


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In demographic segmentation, a marketerdivides the market on the bases ofdemographic factor like age, gender, family

size, marital status, income occupation etc.

For e.g. cosmetic manufacturers & food

manufactures particularly keep in mind theage categories.


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AGE & LIFE CYCLE STAGE

TV Channels.

Products like baby soap, Doy soap, anti ageing

cream.

Music

Novels.

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LIFE STAGE LIFE STAGE defines a persons major concern such

as getting married, buying a home, taking care of

elders members, sending kids to school.

Co. target these needs by advertisements & sales

promotion offers , saving cum insurance, savingschemes at higher rates.

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Gender

Both are different a MEN often has to be invited to

touch a product while WOMEN are likely to pick up

without prompting. Men go thru product

information & female on personal basis.

Bajaj bikes and waves etc , bicycles , Fairness cream,

shoes, colors of clothes.

Decision maker in daily groceries , vegetables etc .

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Income segmentation

Income as a criteria has been a long termpractice.

Even people from same income segment

have different attributes depending on

their lifestyle, values, attitudes.

Small packing is an approach towards it in

form of affordability.

Bangladesh they have Grameen phone for

phone ladies.

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It involves developing sub group

identification on the basis of psychological

characteristics.

Psychological/Personality traits, VALS.

Religion has a significant impact on values

Ex Vegetarian, Non Vegetarian , Beef, Jhatka &

Halal meat


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Lifestyle parameters:

Titan watches has wide range of sub brands as

Raga, Nebula, Edge , Regalia to appeal to differentsegments.

Fast track for youngsters.

Sonata for working people with affordable prices.

Hidesign bags, purses , handbags, Briefcases for

people who value style and elegance in a classical

sense.

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Targeting

Undifferentiated/Mass Marketing

differentiatedMarketing

Niche MarketingTarget Marketing


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Mass/Undifferentiated

Singleservice offer

Singlemarket


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Mass/Undifferentiated

Singleservice offer

Singlemarket


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Differentiated

Service Offer 1

Service Offer-2Single market


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Niche

Single Service Niche market


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Differentiated

Service Offer 1

Service Offer-2

Market Segment -1

Market Segment 2


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How you differentiate your product or service

from that of your competitors and then

determine which market niche to fill.


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The term was coined in 1969 by Al Ries and Jack Trout

in the paper "Positioning" is a game people play intodays me-too market place"in the publicationIndustrial Marketing.

A good position is:1. What makes you unique.2. This is considered a benefit by your targetmarket
http://en.wikipedia.org/wiki/Al_Rieshttp://en.wikipedia.org/wiki/Jack_Trouthttp://en.wikipedia.org/wiki/Jack_Trouthttp://en.wikipedia.org/wiki/Al_Ries


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positioninghas come to mean the process by

which marketers try to create an image or

identity in the minds of their target marketfor its product, brand, or organization.

It is the 'relative competitive comparison'their product occupies in a given market as

perceived by the target market.
http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Product_(business)


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Positioning Strategies

There are seven positioning strategies that can bepursued:

Product Attributes: What are the specific productattributes? (dettol antiseptic, Ariel- cleaning even

the dirtiest cloth, Colgate- preventing cavities,promise- clove oil toothpaste, Nirma- low pricedetergent, Maruti-fuel efficient)

Benefits: What are the benefits to the customers?(fair and lovely fairness, master card:- u can buyeverything except emotions, Optra Chevrolet-sunroof)


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Usage Occasions:When / how can the product be used?(perk- kahin bhi kabhi bhi, Rasna offered as a soft drinkwhen one is fatigued after days work, when you have

party, when guests come suddenly or when you feelthirsty.)

Users:Identify a class of users. (Johnson & Johnson baby

products)

Against a Competitor: Positioned directly against acompetitor. (Pepsi and coke, Avis (auto rental company)

we are no. 2. We try harder, Onida was placed against thecompetitor as if this is the only original brand and othersare clones, wheel against Nirma as better in washing andgentle on hands, Kinetic Honda against Bajaj as moremileage to a litre of petrol)


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Away from a Competitor: Positioned awayfrom competitor. (Babool and Close up,medimix and lux)

Product Classes/ life style positioning:

Compared to different classes ofproducts. (Mercedes- premium segment,longines range of watches or Nakshatrabrand of diamonds and luxury homes and

villas by DLF and Unitech are positioned asaspirational product and for high class)

STP in Services

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