Marketing Management 1

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STP

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Segmentation, Targeting, Positioning

Segmentation: grouping consumers by some criteria Targeting: choosing which group(s) to sell to Positioning: select the marketing mix most appropriate for the target segment(s)

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The Concept of Market Segmentation

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Market Segmentation Strategies

Traditional Approaches to Market Segmentation

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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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Market Segmentation Strategies

Emerging Approaches to Segmentation

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One-to-One Marketing Mass Customization Permission Marketing

Criteria for Successful Segmentation

Identifiable and Measurable o Substantial o Accessible LBSIM NEW DELHI 4/27/12
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Bases for Segmenting Consumer Markets

Behavioral Segmentation
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Segments based on actual behavior or product usage Occassions, Benefits seeking, User Status, loyalty styatus

Demographic Segmentation
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Segments based on demographic factors (e.g., gender, age, income, education, etc.)

Psychographic Segmentation
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Segments based on state-of-mind issues (e.g., motives, attitudes, opinions, values, lifestyles, interests, personality, etc.)

Geographic Segmentation
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Segments based on geographic location

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Bases for Psychographic Segmentation

Personality Motives Lifestyles Psychograph ic Segmentatio n Geodemographics
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Benefit Segmentation of the SnackFood Market

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Bases for Segmenting Business Markets

Type of Organization Organizational Characteristics Benefits Sought or Buying Processes Personal and Psychological Relationship Intensity
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Target Marketing Strategies

Five basic strategies for target market selection:

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(1) Single Segment Targeting (2) Selective Targeting (3) Mass Market Targeting (4) Product Specialization (5) Market Specialization
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Basic Target Marketing Strategies

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Differentiation and Positioning

Relative perception Process of creating favorable relative position:

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(1) Identification of target market (2) Determination of needs, wants, preferences and benefits desired (3) Examination of competitors characteristics and positioning
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Differentiation and Positioning

Differentiation Strategies
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Product Descriptors

Product features Advantages Benefits

Customer Support Services Image

Positioning Strategies
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Strengthen the Current Position Repositioning Reposition the Competition

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Using Product Descriptors for Product Differentiation

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