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.
On the basis of consumer’s personal characteristics (non-behavioral correlates)
On the basis of consumer responses (behavioral correlates)
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.
Source: India 2000, Publication Division, Government of India
Source: Census of India,1991 and 2001
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.
Market segmented into
Multi segment strategy or differentiated marketing strategy
Undifferentiated marketing strategy
Single segment concentration strategy
Single marketing mix
Small car segment (affordable,less expensive)
Luxury car segment (very expensive)
Small car segment
Essential commodity manufacturer.
Competing brands in the health drinks market
“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”
Steps in determining a competitive positioning strategy
Strategic Groups Marketing Mix Target Consumer Groups
Hero Honda CD 100
Yamaha & Bullet
Upper middle and middle income classes
High Tech High styling High power High price
Middle and lower middle income classes
High style High economy Medium price
TVS EXL Champ
Low styling High economy Low price Low Tech
Lower income classes
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