SEGMENTATION, TARGETING, AND POSITIONING STP

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SEGMENTATION, TARGETING, AND POSITIONING (STP)
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Mass Marketing versusTarget Marketing

• Mass Marketing Views the market as a single
  market.
• Target Marketing Recognizes and acts on
  differences within a market
• Optimum set of 4Ps is different for different
  segments

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Target Marketing

• 1. Segmentation
• Carving up the market
• 2. Targeting
• Choosing targets
• 3. Positioning
• Crafting the 4Ps for target(s)

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1. MARKET SEGMENTATION

• Dividing the market into distinct groups of
  buyers who might call for separate 4Ps
• Extent of segmentation varies, from treating each
  individual as a segment (micro-marketing) to
  recognizing only a few (2 or more) segments
• There are many ways to segment a market

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Bases For Segmentation

• Limited by imagination
• Standard (textbook) Bases (page 240)
• Geographic
• Demographic
• Psychographic
• Behavioral
• Multivariable Segmentation

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Segment Representation

• Tables
• Venn Diagrams
• Trees

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Characteristics of Good Segmentation Schemes

• Segments are
• Measurable
• Accessible
• Substantial
• Differentiable
• Actionable

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2. TARGETING

• 1. Evaluate Market Segments
• Size and growth
• Structural Attractiveness
• competition
• buyer/supplier power
• substitutes
• Other
• Company fit (objectives Resources)
• 2. Choose Targets

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Market Coverage

• Undifferentiated Marketing
• 1 basic set of 4Ps
• Differentiated Marketing
• Different set of 4Ps for 2 or more segments
• At extremes..MICROMARKETINGgtINDIV. MARKETING
• Concentrated Marketing
• Concentrate on ONE segment

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3. POSITIONING

• PRODUCT POSITION The place the product occupies
  in consumers minds.
• Function of perceptions, impressions and feelings
• POSITIONING
• Attempting to influence how people see a
  product/service

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3. POSITIONING (Continued)

• Develop 4Ps for each of the selected target
  segments

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Bases For Positioning

• Product Attributes
• Usage Occasions
• Against Competition
• Towards/Against Products
• Others

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Positioning Tasks

• Identify possible Competitive Advantages
• Product/Service differentiation
• Price
• Place
• Promotion
• Choose Competitive Advantages
• Communicate and Deliver