MM- STP (1)

Segmentation, Targeting, Positioning (STP) Overview

  • STP Model: Framework for identifying target markets and developing strategies.

    • Segmentation: Divide markets into meaningful customer groups.

    • Targeting: Choose which customer segments to serve.

    • Positioning: Create offerings in the minds of consumers.

Market Segmentation

  • Definition: Dividing a market into smaller groups with distinct needs or behaviors.

  • Benefits:

    • More efficient marketing efforts.

    • Better customer service and satisfaction.

    • Clearer product differentiation.

Bases of Segmentation

  1. Geographic: Region, city, rural/urban.

  2. Demographic: Age, gender, income, education.

  3. Psychographic: Lifestyle, values, personality.

  4. Behavioral: User status, benefits sought, loyalty.

Targeting Strategies

  • Types of Market Targeting:

    • Undifferentiated (Mass) Marketing: One offer for the whole market.

    • Differentiated Marketing: Separate offers for multiple segments.

    • Concentrated (Niche) Marketing: Focus on a single market segment.

    • Micromarketing: Tailoring products to individual preferences.

Positioning

  • Concept: How consumers perceive a product relative to competitors.

  • Steps in Positioning:

    1. Identify competitive frame of reference.

    2. Determine points of difference (PODs).

    3. Craft the positioning statement.

  • Value Proposition: The full positioning of a brand—why consumers should buy it.

Positioning Strategies

  • More for More: Premium products at higher prices.

  • Same for Less: Offering equivalent quality at a lower price.

  • Less for Much Less: Basic products at a significantly lower price.

  • More for Less: Challenging to sustain but ideal positioning.