An overview on how to segment, target, and position a company for success.

1. Marketing Segmentation,
Targeting, & Positioning
By: Lou Klingensmith

2. What
is a STP
Analysis?
 The segmentation, targeting, and position process is
a five-step process that helps companies' home in on
their ideal consumer base and how to position their
offerings in a way customers understand why it
meets their needs better than the competitions.

3. • Articulatethevision ororobjectives ofcompaniesmarketingstrategy
• Harmonious with and developed from the company's mission, objectives, and
currentSWOTanalysis
Step One:
Establish the Overall
Strategy or
Objectives

4. SWOT Analysis
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS

5. Step Two:
Use Segmentation
Methods
 Choosingone ormoresegmentationmethodsfordividing themarket
 Develop descriptionsforeach segment
 Determinessimilaritiesamongeach segment
 Showsdissimilarities acrosssegments

6. Segmentation Types
Geographic
• Country
• Region
• Areaswithin aregion
Demographic
 Age
 Gender
 Income
 Education
Psychographic
 Self-values
 Self-concept
 Lifestyles
Benefit
 Benefitsderived fromproducts/services
Behavioral
 Occasion
 Loyalty

7.  Identifiable: Identify who is within their market in order to design products/services
to meet their needs
 Substantial: Determine market size ensuring its large enough and possesses enough
buyingpower
 Reachable: Must be able to reach target market through persuasive communication
and product distribution
 Responsive:Consumerreact similarly and positively to company offerings
 Profitable: Current and future profitability of segment base on market growth, market
competitiveness, and marketaccess
Step Three:
Evaluate Segment
Attractiveness

8. What
is a STP
Analysis?
The segmentation, targeting, and position process is a five-step process
that helps companies' home in on their ideal consumer base and how to
position their offerings in a way customers understand why it meets their
needsbetterthanthecompetitions.

9. Step Four:
Select a Target
Market
Undifferentiated Targeting Strategy (Mass
Marketing)
• Customersimilarity focused
• Perceivedto provided similarbenefits to
majorityof consumers
• No need for separatestrategy development
Micromarketing(One-to-One)
 Taylors product/serviceto individual wants&
needs
DifferentialTargetingStrategy
 Target severalmarketingsegmentswithoffers
tailored to eachsegment
 Helps diversify business &reducerisk
ConcentratedTargetingStrategy
 Single, primary targetmarket
 Focuses allenergyon providing a product to
meettheirtargetmarketsneeds

10.  Define the marketing mix variables so the target market
has a clear, distinctive, desirable, understanding of the
product/services compared to the competition's offerings
 Helps communicate value proposition
Value Proposition: Communicates benefits to be received
from product/service
Step Five:
Identify & Develop
Positioning Strategy