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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_Ries8/2/2019 STP in Services
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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)8/2/2019 STP in Services
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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)
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