Segmentation, Targeting and Positioning

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SEGMENTATION-TARGETTING-POSITIONING

Table of Contents
Chapter 1
1.1 Overview…………………………………………………………………………………………..3-4 Chapter 2
2.1 0 STP Process- segmentation and different bases………………………………4 2.11 Segmentation of B2C markets…………………………………………………………..4-6 2.12 Differences between B2B and B2C market segmentation…………………6-7 Chapter 3

3.10 Target marketing………………………………………………………………………..7-8 3.11 Marketing mix………………………………………………………………………9 Chapter 4
4.10 Positioning………………………………………………………………………………9-10 4.11 Branding………………………………………………………………………………….11 4.12 Value Proposition……………………………………………………………………..11-12 Chapter 5
5.10 Conclusion- Benefits of STP ………………………………………………………12-13 References

OVERVIEW
“A deep understanding of a group of potential customers and a marketing plan specifically tailored for that group helps to ensure the success of a product”(Penny M Simpson, Marketing Best Practices,P. 197) In today’s context, consumers greatly vary in their location, needs and purchasing behavior. Companies cannot satisfy all the consumers nor have an appeal over all of them in the similar way. Hence arises the strategy of market segmentation, targeting and positioning. Instead of competing in a whole market, the companies select or identify sectors of market where they can sell their products profitably. The first step is market segmentation- dividing markets into smaller segments, target marketing- determine the significance and select the target segments and market positioning- evolve positioning and marketing mix for each segments. It is difficult to target a consumer group without first identifying the various consumer segments present in a particular market. Brand positioning is also not eligible before knowing who the targets are. STP analysis helps a company or marketer to more conveniently identify the groups of buyers they are aiming at and also how to offer their products more desirably and attractively. It also surfaces unexplored or omitted niches within widely scattered markets. The effectiveness and implementation of STP vary widely with companies. In the same market various companies may device multiple ways to view the segments and approach them. Some companies identify one or two sub segments and starts targeting that segment with exclusive positioning attracting the consumers. For example PUMA started selling its shoes to mainly athletes and soccer players. Puma had a great impact in those sub segments that their products gained popularity in other segments and wide spread. Now the company has broadened their product range to fashion wear, trainers, sailing, golf motorsport, etc. Some companies like P&G, Unilever, Pepsi co, etc create sub brands for competing in different segments.

STP PROCESS
Segmentation and different bases
Kotler says that every individual is unique and different, the purpose of segmentation involves grouping customers, buyers, etc into more definite and realistic groups that share similar characteristics. By doing so the marketer can easily target and serve this sub population with what they desire. Segmentation of B2C markets

Already developed tools like ACORN, PRIZM classifications provide segmentation assistance for marketers. ACORN classifies UK population based on geodemographics and PRIZM classifies US population into segments based on lifestyle. Various bases and variables used to segment consumer markets are given below: Geographic

* World region: Game consoles manufacturers like Sony, Nintendo, Microsoft Xbox targets countries like US, Japan and Britain consisting of die hard gamers. PUMA concentrates Latin America, Europe and Africa for its soccer accessories sales. * Climate: Air conditioning manufacturers like Carrier, Voltas, etc aggressively target Middle East, Australia, etc where the climate is hot. Snow plough manufacturers similarly go for regions where it snows.

Demographics
* Age and life cycle: Procter and Gamble sells its Pampers range of baby...
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