stp
DESCRIPTION
TRANSCRIPT
The STP Process
Segmentation is the process of classifying customers
into groups which share some common characteristic
Targeting involves the process of evaluating each
segments attractiveness and selecting one or more
segments to enter
Positioning is arranging for a product to occupy a
clear, distinctive and desirable place relative to
competing products in the mind of the consumer
Market SegmentationThe process of dividing a
potential market into distinct subsets of
consumers and selecting one or more segments as a target market to be reached
with a distinct marketing mix.
Why Segment?
Marketsegmentation
Marketsegmentation
More precise definition of customers needs and wants
More precise definition of customers needs and wants
More accurate marketing objectives
More accurate marketing objectives
Improved resource allocation
Improved resource allocation
Better marketing results
Better marketing results
Advantages of Segmentation
1. The process of breaking up a homogeneous market into heterogeneous segments forces the marketer to analyse and consider both the needs of the market and the company’s ability to competently serve those needs – thereby making the company better informed about its customers
2. Competitor offerings and marketing positioning must also be analysed in this context so the company must consider what its competitive advantages and disadvantages are, helping it to clarify its own positioning strategy
3. Limited resources are used to best advantage, targeted at those segments that offer the best potential
Steps in Segmentation, Targeting, and Positioning
1. Identify Basesfor Segmenting the Market
2. Develop Profilesof Resulting Segments
3. Develop Selection Criteria
4. Select TargetSegment(s)
5. Develop Positioningfor Each Target Segment
6. Develop MarketingMix for Each Target Segment Market
Positioning
MarketTargeting
Market Segmentation
• Size, purchasing power, profiles of segments can be measured.
• Segments can be effectively reached and served.
• Segments are large or profitable enough to serve.
Measurable Measurable
AccessibleAccessible
SubstantialSubstantial
DifferentialDifferential
ActionableActionable
• Segments must respond differently to different marketing mix elements & programs.
• Effective programs can be designed to attract and serve
the segments.
Requirements for Effective Segmentation
Levels of Market Segmentation
Mass MarketingSame product to all consumers
(no segmentation)
Mass MarketingSame product to all consumers
(no segmentation)
Segment MarketingDifferent products to one or more segments
(some segmentation)
Segment MarketingDifferent 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/ promotions to local customer groups
Individual Marketing
Tailoring products/ programs to individual customers
Bases for Segmenting Consumer Markets
Geographic
Demographic
Age, gender, family size and or income
Psychographic
Social class, lifestyle, or personality
Behavioural
Occasions, benefits sought, user status, usage rate, loyalty
Nations, states, regions or cities
Summary of Basic Methods
Market Segmentation
Occupation
SEGMENTATION BASE SELECTED SEGMENTATION VARIABLESGeographic Segmentation
Climate
Density of area
City Size
Region Southwest, Mountain States
Major metropolitan areas, small cities, towns
Urban, suburban, rural
Temperate, hot, humid, rainy
Demographic Segmentation
Income
Marital statusSexAge Under 11, 12-17, 18-34, 35-49, 50-64, 65-74, 75-99, 100+
Male, femaleSingle, married, divorced, living together, widowed
Under 25,000, 25,000-34,999, 35,000-49,999, 50,000-74,999, 75,000-99,999, 100,000 and over
Education Some high school, high school graduate, some college, college graduate, postgraduate
Professional, blue-collar, agricultural, military
continuedSEGMENTATION BASE SELECTED SEGMENTATION VARIABLESPsychological Segmentation
Learning-involvement
Perception
Personality
Needs-motivation Shelter, safety, security, affection
Extroverts, aggressives,
Low-risk, moderate-risk, high-risk
Low-involvement, high-involvement
Psychographic
Subcultures (Race/ethnic)
Religion
Cultures
(Lifestyle) Segmentation Economy-minded, outdoors enthusiasts, status seekers
American, Italian, Chinese, Mexican, French, Pakistani
Catholic, Protestant, Jewish, Moslem, other
African-American, Asian
Family life cycle
Social class Lower, middle, upper
Bachelors, young married, full nesters, empty nesters
Attitudes Positive attitude, negative attitude
Sociocultural Segmentation
SEGMENTATION BASE SELECTED SEGMENTATION VARIABLESUse-Related Segmentation
Brand loyalty
Awareness status
Usage rate Heavy users, medium users, light users, non users
Unaware, aware, interested, enthusiastic
None, some, strong
Use-Situation Segmentation
Location
Objective
Time Leisure, work, rush, morning, night
Personal, gift, fun, achievement
Home, work, friend’s home, in-store
Person Self, family members, friends, boss, peers
Benefit Segmentation Convenience, social acceptance, long lasting, economy, value-for-the-money
Indian car market Segmentation
THE TOOTHPASTE MARKETThe package of benefits sought
WHITENESS FRESHNESS GOOD TASTING PRODUCT APPEARANCE DECAY PREVENTION GUMS PROTECTION TEETH SENSITIVITY ECONOMY