Marketing lec 3 (STP)

market segmentation

Dividing a market into groups with similar needs and behaviors.

ex. A clothing brand creates different lines for teens, working professionals, and athlete

Target Marketing

Evaluating different segments and selecting the best one(s) to serve.
ex: luxury car brand targets high-income professionals rather than college students.

Marketing positioning

Creating a clear image of a product in the consumer’s mind.

ex. Tesla positions itself as a premium, eco-friendly car brand.

Segmentation

Grouping consumers by similarities while ensuring differences between groups.
ex. A gym offers beginner, intermediate, and advanced workout plans.

1. Needs-based: Some customers buy laptops for gaming, while others need them for work.

2. Response-based: Some people only buy coffee when there's a discount.

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Segmentation variables

• Geographic: Location-based (e.g., country, city).

• Demographic: Age, gender, income, etc.

• Psychographic: Lifestyle, values, personality.

• Behavioral: Loyalty, buying habits, usage rate.

VALS (value and lifestyle system )

A system that classifies consumers into eight personality-based group (TIFFANY BUYS ACTUAL SLIME )

Thinkers – Analytical and practical consumers.

Believers – Loyal to familiar brands.

Achievers – Status-driven buyers

Survivors – Budget-conscious and cautious

Criteria for good segments ( MASDA)

Measurable – Can we count the potential customers?

Accessible – Can we reach them?

Substantial – Is the group big enough?

Differentiable – Are they truly different?

Actionable – Can we serve them effectively?

Benefits of segmentation

• Helps new companies find a niche.

• Allows price differences between customer groups.
  Ex. Airlines offer economy and first-class seating for different customer needs

Picking target segments (MCC)

1. Market factors – Size, growth, stability.

2. Company fit – Does it align with company goals?

3. Competitor factors – How competitive is it?

Undifferentiated (Mass) Marketing

One-size-fits-all strategy.
Ex: flour, bounty , orange juice

Differentiated (Segmented) Marketing

Different products for different segments.
Ex: Nike markets running shoes to athletes and casual sneakers to everyday consumers.

Multiple Segment (Selective) Specialization

company targets multiple distinct customer segments with different products or marketing approaches

GAP → Mid-range casual wear for adults and families

Old Navy → Affordable fashion for budget-conscious shoppers

Banana Republic → Premium clothing for professionals and upscale consumers

Athleta → Activewear for fitness-focused women

Single-Segment (Niche) Concentration

focusing on a single market

Ex. Rolex only target lux

Micro-Marketing (Local/Individual)

customizing marketing for individuals.
ex. Starbucks allows customers to personalize drinks with different milk and syrups.

Positioning

Shaping how a product is seen by customers

ex. Volvo is positioned as the safest car brand

Designing Positioning

Using marketing elements to create a brand image.
ex, Luxury brands use high-end packaging and ads to enhance exclusivity.

Distinct & Valued Place

Standing out in a meaningful way
ex. Apple differentiates with sleek design and user-friendly software.

Target Customers' Minds

How consumers view a product.
ex. People see McDonald’s as fast and affordable.

Positioning Analysis

Identifying competitors, differences, and opportunities.
ex. a coffee shop may analyze if customers see them as more premium than Starbucks.

Points of Difference (PODs)

Unique brand features that stand out. (reason to buy) e
Example: Tesla’s self-driving technology.

• Desirable – Customers want it.

• Deliverable – The company can provide it.

• Differentiating – It stands out.

Points of Parity (POPs)

Similarities with competitors to meet industry standards.
Example: All smartphones have touchscreens and cameras.

example of POP vs POD

method hand wash pop: cleans hands, pod: non toxic

Perceptual Positioning Map

visual tool that helps businesses see how consumers perceive different brands or products compared to each other

ex. might compare , price (cheap vs. expensive) and quality (low vs. high).

How to Create a Perceptual Map

1. Identify competitors – Find brands in your industry.

2. List key attributes – Pick important factors (e.g., price, quality, speed, luxury).

3. Rate brands – Score them on these factors.

4. Plot on a graph – Create a visual map to compare them.