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Segmentation , Targeting and

Positioning:
(BUILDING THE RIGHT RELATIONSHIPS WITH THE
RIGHT CUSTOMERS)
BY
TANIA CHAKRABORTY (14-50-117)
RITUPARNA DEVI (14-50-118)
ANGARAAG SHARMA (14-50-119)

CONTENTS
INTRODUCTION
SEGMENTATION
TARGETING
POSITIONING
CASE STUDY
CONCLUSION

INTRODUCTION
SEGMENTATION, TARGETING , POSITIONING
(STP) is a familiar strategic approach in
Modern Marketing.
It is one of the most commonly applied
marketing models in practice
It is the second most popular marketing
model , only beaten by the venerable SWOT
analysis.

What is STP ?
STP or segmentation targeting positioning is a
marketing tool with the help of which
marketers differentiate, attract, retain and
grow customer base for their respective
products.
The STP model is useful when creating
marketing communications plans since it helps
marketers to prioritize prepositions and then
develop and deliver personalized and relevant
messages to engage with different audiences.

MARKET SEGMENTATION
Grouping consumers by some criteria so that
those within a group will respond similarly to
a marketing action and those in a different
group will respond differently

Segmentation Variables

Segmentation Variables
Geographic
Geodemographic
Behavioral
Demographic
Psychographic

Geographic Segmentation
Division of the market based on the location of the target market
People living in the same area have similar needs and wants that
differ from those living in other areas
Climate
Population density
Taste
Micromarketing

Demographic Segmentation
Partitioning of the market based on factors
such as
age
gender
marital status
income
occupation
education
ethnicity

Geo-demographic
Segmentation
A hybrid segmentation scheme
Based on notion that people who live close
to one another are likely to have similar
financial means, tastes, preferences,
lifestyles and consumption habits

Psychographic
Segmentation
Partitioning of the market based on lifestyle and
personality characteristics
Marketers use it to further refine a target market
Its appeal lies in the vivid and practical profiles of
consumer segments that it can produce
Accomplished by using AIO inventories

Behavioral Segmentation

Partitioning of the market based on attitudes


toward or reactions to a product and to its
promotional appeals
Behavioral segmentation can be done on the
basis of:
i.
ii.
iii.

Usage rate
Benefits sought from a product
Loyalty to a brand or a store

MARKET TARGETING

After doing the market segmentation the firm has to


evaluate the segment of their market potential. Then
the company has to decide which and how many
segments to serve and how to serve them.
i.
ii.
iii.
iv.
v.

Single segment concentration.


Selective specialization.
Product specialization
Market specialization
Full market coverage

Evaluating and selecting the market


segments
i) Single segment concentration
a) Single product in single market
b) The farm equipment division of
Mahindra and Mahindra concentrated on
tractors and primarily targeted
agriculture market
c) The Zodiac brand concentrates on
formal shirts on executive and
professionals
d) Some hospitals focus on certain
therapeutic area, heart speciality, etc

M1

M2

M3

P1
P2
P3

There are certain in single segment concentration: a particular


market segment can become sour or a competitor may invade the
segment

ii) Selective Specialization

a) Specialized
product in
specialized
market
b) The firm attempts
to serve all
customer group

M1
P1
P2
P3

M2

M3

iii) Product Specialization


a) Single product in
different markets
b) The firm makes a
certain product that it
sells to several
different market
segments

M1
P1
P2
P3

c) Eg. A microscope
manufacture, for
instance, sells to
university ,
government and
commercial

M2

M3

iv) Market Specialization


a) Various products
in single market
b) The firm
concentrates on
serving many
needs of a
particular
customer group or
market

M1
P1
P2
P3

M2

M3

v) Full market coverage


a) Different products in different
markets.
b) The firm attempts to serve all
customer group with all the
products they might need.
c) It is possible for only the large
firms
d) Eg. Reliance : They have wide
range of products in nearly all
kind of markets

M1
P1
P2
P3

M2

M3

PRODUCT POSITIONING
Positioning has come to mean the process
by which marketers try to create an image or
identity or value in the minds of their target
market for its product, brand, or
organization.
Involves implanting the brands unique
benefits and differentiation in the customer
mind by developing
Best quality
Best service
Lowest price

Positioning the product or service into the


targeted sector is done by evaluating each
sector via the 4Ps framework (Product,
Price, Place and Promotion) basing a decision
around what the product would sell at, to
whom it would be targeted at , where we
would sell it and how we would promote it,
i.e developing the marketing mix that will
support the positioning in the market place.

3 STEPS OF POSITIONING
PROCESS
Determine what consumers currently
think about your product (with respect
to competing products)
Decide what you want consumers to
think about your product.
Figure out how to reposition.

Positioning strategies
Competitive advantages
Points of difference or product
differentiation
Positioning results from differentiation
and competitive advantages

Positioning for competitive


advantage
Product attributes (Ariel with micro cleaning system)
Benefits offered (P&Gs Head & Shoulders shampoo)
Usage occasion (Cadbury drinking chocolate : the
good night cup)
User class (Baby shampoo vs. gentle shampoo)
Against a competitor (7UP is the UNCOLA)
Product class (Raymond brand, Titan watches)

Steps to choosing and implementing


a Positioning Strategy

Step 1. Identifying Possible Competitive


Advantages: Competitive Differentiation.
Step 2. Selecting the Right Competitive
Advantage: Unique Selling Proposition (USP).
Step 3. Communicating and Delivering the
Chosen Position.

Developing competitive
differentiation
Product differentiation
Service differentiation
Personnel differentiation
Channel differentiation
Image differentiation

Selecting right competitive


advantages
Important to customers
Distinctive
Superior
Communicable to customers
Preemptive
Affordable
Profitable

CASE STUDY 1:
STP of Maggi 2-Minute Noodles

CASE STUDY 2:
Cadbury Dairy Milk Chocolate

Market segmentation
o Geographical segmentation
Age and life cycle: the buyers who mostly prefer
dairy milk come under the age group of 4-50 years
Gender : it is for all types of persons whether male
or female
Income: price is reasonable and affordable so
person does not have to think much before buying
Generation : it is not much affected by generation
difference

o Behavioral segmentation
Decision roles: it is mostly played by children
and youngsters
Occasion : there is no specific occasion
Benefits : it is easily available and has quality
User status: regular
User rate : heavy
loyalty status : absolute

Target Market Of Cadbury Dairy


Milk
o The main target is children and youth
o Commonly targets all types of customers
whether old or young , male or female

Market Positioning Of Cadbury


Dairy Milk
Used promotional techniques by

Giving ad through any superstar


Electronic media
Press media
Sign boards

It has competitive advantage over competitors:


Important: according to customers needs, wants and
requirements
Distinctive: more quality and more features like
unique taste, design, logo, etc
Superior: superior in quality, continuous
improvements and have different features
Communicable: easy to understand about the quality
and features
Preemptive: logo, quality, taste and other features are
not copied
Affordable: reasonable and affordable by all customers

CONCLUSION
In Summary, first comes segmentation, then
targeting and then positioning. And once the
product has been established, a change in one
brings a change in the other and vice versa. A
change in targeting will bring a change in
positioning. And a change in segmentation will
bring a change in targeting. STP focuses on
commercial effectiveness, selecting the most
valuable segments for a business and then
developing a marketing mix and product
positioning strategy for each segment

THANK YOU