Marketing Strategies - STP

Segmentation, Targeting & Positioning

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Marketing Strategies

Market segmentation dividing the markets into distinctive groups Target marketing Selecting a particular group(s) whose requirements are closest to a companys offering Positioning marketing strategy to position the product in the identified targeted segments
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Market Segmentation

Dividing the market into a distinct group of buyers on the basis of needs, characteristics or behavior who might require separate products or marketing mixes.
Subdividing the markets into similar groups which are broadly homogenous pattern of needs. A segment is a group of customers who share certain relevant characteristics and respond in a similar way to a given set of marketing efforts.

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Segmentation
Basis of Segmentation

Behavioral Demographic Psychographic Geographic

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Market Segmentation
Geographic Region of the Country Farm Products Urban or rural Apparel Industry Demographic Age, sex, family size Television Channels Income, occupation, education Passenger Cars Religion, race, nationality - Restaurants Psychographic Social class Private Yachts, Private Jets Lifestyle Type Precooked Meals, Networking Sites Personality Type - Movies Behavioral Product usage Motorbikes Brand loyalty: LIC, Maggie Noodles, Thums Up Type of user Heavy Users, Occasional Users
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Market Segmentation Strategies

Traditional Approaches to market Segmentation Mass Marketing Differentiated Marketing Multisegment Approach Market Concentration Approach Niche Marketing

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Mass Marketing Strategy

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Multisegment Strategy

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Market Concentration Strategy

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Niche Marketing Strategy

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Segmentation
Emerging Approaches to Segmentation One-to-One Marketing Mass Customization Permission Marketing Segmentation Criteria Identifiable and Measurable Substantial Accessible Responsive Viable and Sustainable
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Target Marketing

Target marketing is a process of focusing marketing resources on a particular part of the market.
A segment is a subgroup within the market whose members share certain relevant characteristics a group of customers with certain things in common whose needs can be met with a distinct marketing mix.
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Basic Target Marketing Strategies

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Target Marketing

Single-segment strategy I Phone

Also known as a concentrated strategy. One market segment (not the entire market) is served with one marketing mix. A single-segment approach often is the strategy of choice for highly differentiated product companies.

Selective specialization Honda Cars in India

This is a multiple-segment strategy, also known as a differentiated strategy. Different marketing mixes are offered to different segments. The product itself may or may not be different - in many cases only the promotional message or distribution channels vary.

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Target Marketing (Contd..)

Product specialization Computer Hardware

The firm specializes in a particular product and tailors it to different market segments.

Market specialization Setting up of a college IT

Lab

The firm specializes in serving a particular market segment and offers that segment an array of different products.

Full market coverage Levis, Nokia

The firm attempts to serve the entire market. This coverage can be achieved by means of either a mass market strategy in which a single undifferentiated marketing mix is offered to the entire market, or by a differentiated strategy in which a separate marketing mix is offered to each segment. 15

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Positioning

The process of creating an image for the product in the minds of customers.
The activity directed towards creating and maintaining an intended product concept and image in the minds of the targeted customers. Arranging for a brand or a product to occupy a clear and distinctive place in the minds of the customers relative to the competing products and brands.

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Positioning Strategies

Differentiation Airbus A380 Competing in the market by offering something different, relevant or superior.
Cost leadership Sony Products, Micromax Competing on the basis of pricing lowest or highest. Delivery interface Singapore Airlines Gaining competitive advantage by employing better trained people. Distribution Exclusive/Selective/Intensive The channels engaged or developed for distributing the product/service can influence the image perception.
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