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STP Segmentation Targeting Positioning. SEGMENTATION . Process of subdividing a total market into different subsets or groups. Where the marketer may select one or more segments. To be reached with an appropriate marketing mix. Basis for market segmentation.

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  • Process of subdividing a total market into different subsets or groups.
  • Where the marketer may select one or more segments.
  • To be reached with an appropriate marketing mix.

Basis for market segmentation

On the basis of consumer’s personal characteristics (non-behavioral correlates)

On the basis of consumer responses (behavioral correlates)



Usage based


Loyal status



geographic segmentation

Geographic Segmentation

Subdividing the whole market into different geographical units which can be further sub-divided into smaller units.

A national marketer may take whole nation as his market. For example-in the detergent market Hindustan Levers and Procter and Gamble are all national marketers in India.

A multinational company may divide the global market on the basis of continents. Like Pepsi and Coca-cola.


Geographical features of India

Source: India 2000, Publication Division, Government of India

demographic segmentation
Demographic Segmentation
  • Subdividing the market in terms of demographic features of a country or a region.
  • Variables that may be considered are age, gender, marital status, family size, etc.
  • Demographic data is essential for estimating the size of the target market.
demographic features of india
Demographic features of India

Source: Census of India,1991 and 2001

socio economic segmentation
Socio-economic segmentation
  • Variables that may considered for market segmentation are Income, occupation, education, religion, social classes, etc.
  • This segmentation is used for durable products such as automobiles, PCs, etc.

Psychographic segmentation

  • Sub division of different groups on the basis of personality, life style and values.
  • Marketers of cosmetics, textiles, fast food providers etc. must understand the life style of the target market.
  • Automobile manufacturers must consider different personality traits in dividing the market.
benefit segmentation
Benefit segmentation


General benefits that consumers seek are cleanliness and hygiene in all segments. Other key benefits are:-

Segmented on the basis of benefits sought by consumers




Protection against foul smell, modernity and cosmic value. Eg-Colgate, Prudent

Family health, extra protection for children. Eg-Colgate Fluoride, Cibaca Fluoride.

Family health and welfare. Traditionally good for health. Eg-Neem, Dabur.

usage based segmentation

Usage based segmentation

Loyal buyers

Market segmented into

High buyers

Medium buyers

light buyers

  • Relationship seekers: buyers who want to develop long term relationships with their suppliers or retailers.
  • Loyal buyers of particular brand: buyers who seek a particular brand among competing brands.
evaluation of segmentation
Evaluation of segmentation
  • Measurable
  • Substantial
  • Accessible
  • Differentiable
  • Actionable
  • Once the firm has segmented the total market ,it should select the target market segment or segments for marketing.
  • Investing in a particular segment should be sensible in terms of company’s mission, objectives, skills and resources.
targeting strategies
Targeting Strategies

Multi segment strategy or differentiated marketing strategy

Undifferentiated marketing strategy

Single segment concentration strategy

single segment concentration strategy
Single segment concentration strategy
  • The firm selects a single segment or market and fully concentrate its marketing efforts to try and seek maximum advantage.

Semi-luxury segment


Single marketing mix

Car maker

Small car segment (affordable,less expensive)

Luxury car segment (very expensive)

multi segments strategy
Multi-segments strategy
  • Here the firm may select two or more then two or may be all the segments and approach each segment with an appropriate marketing mix programme.

Car maker

Marketing Mix

Marketing Mix

Marketing Mix

Semi-luxury segment

Luxury segment

Small car segment

undifferentiated marketing strategy
Undifferentiated Marketing Strategy
  • The firm ignores the market segment differences and goes ahead with 1 single product offer for all segments.


marketing mix

Essential commodity manufacturer.

market positioning
Market Positioning
  • Positioning of a product or service is creating an “image” in the consumers’ mind.
  • Consumers generally buy “images” rather than actual product.
  • Marketers mostly use advertising as a tool to build up brand or corporate “image”.

Health drink market

Competing brands in the health drinks market

Advertising claims






“complete planned food” for growing children. Contains 23 vital nutrition

“The great nourisher-with extra calcium”

“Health strength and energy”.contains protiens,vitamins, menerals and carbohydrates.

“Energy Ah! Energy”

“Double action drink”




determining a competitive positioning strategy
Determining a competitive positioning strategy
  • Identification and selection of good positioning strategy
  • With the help of marketing research

Steps in determining a competitive positioning strategy

  • Identify the strategy group
  • Understand the consumers’ perception of competitive brands of strategy group
  • Determine consumers’ needs and aspirations
  • Select the best one for advertising campaign
identify the strategic group
Identify the strategic group

Strategic Groups Marketing Mix Target Consumer Groups


Hero Honda CD 100

Kawasaki Bajaj

Yamaha & Bullet

Upper middle and middle income classes

High Tech High styling High power High price


Hero Honda

TVS Suzuki

Middle and lower middle income classes

High style High economy Medium price



Hero Puch

Low styling High economy Low price Low Tech

Lower income classes

determine consumers need and aspirations
Determine consumers need and aspirations
  • Price
  • Fuel efficiency
  • After-sales service
  • Warranty
  • Stylish looks
  • Easy to ride
  • High pick up and trouble free

Select the best one for advertising campaign

A sample of respondents can be asked to select the best among the alternatives and the same can be used for the advertising campaign