stp mm class

8/8/2019 STP Mm Class

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Segmenting, Targeting, and

Positioning Cornerstones of

Marketing ManagementPresented By:

Antra Singh


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Steps in Market Segmentation,

Targeting, and Positioning

1. Identify

segmentationvariables and

segment the

market

2. Develop

profiles of

resulting

segments

MarketSegmentation

3. Evaluate

attractivenessof each

segment

4. Select the

target

segment(s)

MarketTargeting

5. Identifypossible

positioningconcepts foreach target

segment

6. Select,develop, andcommunicate

the chosenpositioning

concept

MarketPositioning


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Basic Market-Preference Patterns

(a) Homogeneous(a) Homogeneouspreferencespreferences

SweetnessSweetness

Cre

amine

ss

Cre

amine

ss

(c) Clustered(c) Clusteredpreferencespreferences

Crea

miness

Creamine

ss

SweetnessSweetness

(b) Diffused(b) Diffusedpreferencespreferences

Crea

mine

ss

Crea

miness

SweetnessSweetness


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Market Aggregation The

Strategy of Mass Marketing

Advantages & Disadvantages

Product Differentiation


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Step 1. Market SegmentationLevels of Market Segmentation

Mass MarketingSame product to all consumers

(no segmentation)

Mass MarketingSame product to all consumers

(no segmentation)

Segment Marketing

Different products to one or more segments(some segmentation)

Segment Marketing

Different products to one or more segments(some segmentation)

MicromarketingProducts to suit the tastes of individuals and locations

(complete segmentation)

MicromarketingProducts to suit the tastes of individuals and locations

(complete segmentation)

Niche MarketingDifferent products to subgroups within segments

(more segmentation)

Niche MarketingDifferent products to subgroups within segments

(more segmentation)

Local Marketing

Tailoring brands/ promotionsto local customer groups

Individual Marketing

Tailoring products/ programsto individual customers


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Market Segmentation

Subdividing the Market


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Steps in the Market Segmentation

Process

Determine Market Boundaries

Decide Which Segmentation Variables toUse

Collect and Analyze Segmentation Data

Develop a Profile of Each Segment Target Segments to be Served

Design a Marketing Plan


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Bases for Segmenting

Consumer Markets

Occasions, Benefits,Uses, or Attitudes

Behavioral

Geographic

Region, City or MetroSize, Density, Climate Demographic

Age, Gender, Family sizeand Fife cycle, Race,Occupation, or Income ...

Lifestyle or PersonalityPsychographic


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Step 1. Market SegmentationBases for Segmenting Business Markets

Bases

for Segmenting

Business

Markets

Bases

for Segmenting

Business

Markets

DemographicsPersonal

Characteristics

Situational

Factors

Operating

Characteristics

PurchasingApproaches


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MeasurableMeasurable

AccessibleAccessible

SubstantialSubstantial

DifferentialDifferential

Segments must be large or

profitable enough to serve.

Segments can beeffectively reached andserved.

ActionableActionable

Size, purchasing power,profiles of segments canbe measured.

Segments must responddifferently to

different marketing mixelements & actions.

Must be able to attract and

servethe segments.

Effective Segmentation


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Descriptive Bases

Age

Gender

Income

Occupation

Education

Family Size or Family Life Cycle

Religion or Nationality


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Geographic Bases

Region

Density

Climate

Population


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Behavioral Bases

User Status & Brand Loyalty

Personality/Lifestyle

Social Class

Occasion

Readiness to Buy Benefits Sought

Usage Rate


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Heavy and Light Users of Common

Consumer Products

HEAVY HALF LIGHT HALFPRODUCT (% USERS)

75%

71%

Soups anddetergents (94%) 25%

29%

79% 21%

Toilet tissue (95%)

Shampoo (94%)

75% 25%

17%

17%

Paper towels (90%)

Cake mix (74%)

Cola (67%)

83%

83%

13%

5%

87%

19%

Beer (41%)

Dog food (30%)

Bourbon (20%)

81%

95%


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Single Versus Multiple Variable

Segmentation


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Step 2. Market TargetingEvaluating Market Segments

Segment Size and Growth

Analyze sales, growth rates and expected

profitability

for various segments.Segment Structural Attractiveness

Consider effects of: Competitors, Availability ofSubstitute Products and, the Power of Buyers &

Suppliers.

Company Objectives and ResourcesCompany skills & resources relative to the segment(s).

Look for Competitive Advantages.


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Five Patterns of Target Market

SelectionSingle-segmentconcentration

Productspecialization

M1 M2 M3P1

P2P3

Selectivespecialization

M1 M2 M3

P1

P2P3

M1 M2 M3

Full marketcoverage

P1

P2

P3

Marketspecialization

M1 M2 M3P1

P2

P3

P1

P2P3

M1 M2 M3

P = ProductM = Market


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Step 2. Market TargetingMarket Coverage Strategies

Segment 1Segment 1

Segment 2Segment 2

Segment 3Segment 3

Segment 1Segment 1

Segment 2Segment 2

Segment 3Segment 3

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing Mix 1

CompanyMarketing Mix 1

Company

Marketing Mix 2

Company

Marketing Mix 2

Company

Marketing Mix 3

Company

Marketing Mix 3

MarketMarket

A. Undifferentiated Marketing

B. Differentiated Marketing

C. Concentrated Marketing


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Step 2. Market TargetingChoosing a Market-Coverage

StrategyCompanyResources

Product

Variability

Products Life-CycleStage

MarketVariability

Competitors

Marketing Strategies


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Positioning the Offering


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Positioning is t he a c to f des ign ing thecom pan y s o f fe r inga n d im a g e to o c c u p y ad is t inc t ive p lac e inthe the ta rge tm a r k e t s m in d . P 2 9 8


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The BCG Competitive

Advantage Matrix

Volume

FragmentedStalemated

Specialized

Size o

fthe

Advanta

ge

SmallSmall

LargeLarge

Number of Approachesto Achieve Advantage

FewFew ManyMany


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Product Differentiation

Form

Fea-

tures

Perfor-

mance Quality

Conform-

anceQuality

Dura-

bility

Relia-

bility

Repair-

abilityStyle Design


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DeliveryDelivery

Services Differentiation

Ordering

Ease

Ordering

Ease

Maintenance& Repair

Maintenance& Repair

CustomerTrainingCustomerTraining

InstallationInstallation

Customer

Consulting

Customer

ConsultingMis

ce

llan

eo

us

Se

rvice

s


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Differentiation

Personnel

Channel


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Media Atmosphere

Symbols

Events

Image Differentiation


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Differences Worthifferences WorthEstablishingstablishingAffordableffordable Superioruperior

Profitablerofitable

Preemptivereemptive

DistinctiveistinctiveImportantmportant


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Perceptual Map

0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.60.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6

-1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2-1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2

1.01.0

0.80.8

0.60.6

0.40.4

0.20.2

-0.2-0.2

-0.4-0.4

-0.6-0.6

-0.8-0.8

MagicMagicMountainMountain

JapaneseDeer Park

BuschBuschGardensGardens

KnottsKnottsBerryBerryFarmFarm

LionLionCountryCountrySafariSafari

MarinelandMarinelandof theof thePacificPacific

DisneylandDisneyland

Economical

Fun ridesExercise

FantasyGood food

Easy to reach

Educational,animals

Little waitingLive shows


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Positioning Strategies

Product Attributes

Benefits, Problem Solutions & Basic Needs

Price & Quality

Specific Use

Against Other Products Product User

Against a Competitor

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