This document provides an overview of marketing concepts including segmentation, targeting, and positioning (STP). It defines STP and explains why companies use it. The key aspects of STP covered include identifying distinct customer groups, selecting target market segments, and positioning a company's offering to communicate its benefits to each segment. Common variables used for segmentation such as geographic, demographic, and psychographic factors are described. The document also discusses approaches for evaluating and selecting target market segments.

1. Marketing – Introduction

2. Marketing
• Dettol
• Savlon
• Why do you think the market did not accept Savlon’s
soothing product?
• Should Savlon be re-introduced as a product with
attributes similar to Dettol?
• Is there any particular market segment that Savlon
should try to appeal to? Give Reasons for your
answers.

3. What is Marketing??
• Good Marketing is no Accident
• Helps introduce and gain acceptance of new
products that have eased and benefitted
people
• Identifying and meeting human needs
profitably

4. American Marketing Association
• “Marketing is the activity, conducted by organizations
and individuals, that operates through a set of
institutions and processes for creating, communicating,
delivering, and exchanging market offerings that have
value for customers, clients, marketers, and society at
large.” (2004)
• “Marketing is an organizational function and a set of
processes for creating, communicating and delivering
value to customers and for managing customer
relationships in ways that benefit the organization and
its stakeholders.” (Pre 2004)

5. Marketing Management
• The art and science of choosing target markets
and getting, keeping, growing customers
through creating, delivering and
communicating customer value.

6. What is Marketed?

8. What is Marketed?
• Goods / Product

10. What is Marketed?
• Goods
• Services

12. What is Marketed?
• Goods
• Services
• Experiences

14. What is Marketed?
• Goods
• Services
• Experiences
• Events

16. What is Marketed?
• Goods
• Services
• Experiences
• Events
• Persons

18. What is Marketed?
• Goods
• Services
• Experiences
• Events
• Persons
• Places

20. What is Marketed?
• Goods
• Services
• Experiences
• Events
• Persons
• Places
• Properties

22. What is Marketed?
• Goods
• Services
• Experiences
• Events
• Persons
• Places
• Properties
• Organizations

24. What is Marketed?
• Goods
• Services
• Experiences
• Events
• Persons
• Places
• Properties
• Organizations
• Information

26. What is Marketed?
• Goods
• Services
• Experiences
• Events
• Persons
• Places
• Properties
• Organizations
• Information
• Ideas

27. Who Markets?
• Marketers and Prospects
• Demands
– Negative Demand
– Non-Existent Demand
– Latent Demand
– Declining Demand
– Irregular Demand
– Full Demand
– Over Full Demand
– Unwholesome Demand

28. Market

29. Market
• Key Customer Markets
– Consumer Market
– Business Market
– Global Market
– Non – Profit & Government Markets
• Market Places
• Market Spaces
• Meta Markets
– Automobile Meta market

30. Which Brand
• Adolf Dassler

31. Core Marketing Concepts
• Needs
– Stated
– Real
– Unstated
– Delight
– Secret
• Target Markets, Positioning and Segmentation
• Offerings and Brand
• Value and Satisfaction

32. Core Marketing Concepts
• Marketing Channels
– Communication Channels
– Distribution Channels
– Service Channels
• Supply Chain
• Competition
• Marketing Environment
– Task Environment
– Broad Environment

33. The New Marketing Realities
Major Societal Forces
• Network Information Technology
• Globalization
• Deregulation
• Heightened Competition
• Industry Convergence
• Retail Transformation
• Disintermediation
• Consumer Buying Power
• Consumer Information
• Consumer Participation
• Consumer Resistance

34. The New Marketing Realities
New Company Capabilities
• Marketers can use the Internet as a powerful
information and sales channel.
• Marketers can collect fuller and richer information
about markets, customers, prospects, and competitors.
• Marketers can tap into social media to amplify their
brand message
• Marketers can facilitate and speed external
communication among customers.
• Marketers can send ads, coupons, samples, and
information to customers who have requested them or
given the company permission to send them.

35. The New Marketing Realities
New Company Capabilities
• Marketers can reach consumers on the move with
mobile marketing.
• Companies can make and sell individually
differentiated goods.
• Companies can improve purchasing, recruiting,
training, and internal and external communications.
• Companies can facilitate and speed up internal
communication among their employees by using the
Internet as a private intranet
• Companies can improve their cost efficiency by
skillful use of the Internet

36. Company Orientations Toward the
Marketplace
• Production Concept
• Product Concept
• Selling Concept
• Marketing Concept
• Holistic Marketing Concepts
– Relationship Marketing (Customers, Employees,
Marketing Partners, Financial Community)
– Integrated Marketing
– Internal Marketing
– Performance Marketing

38. Components of Marketing
• Product
• Price
• Place
• Promotion
• People
• Process
• Physical Environment

39. Functions of Marketing

40. Which Brand

42. Segmentation, Targeting and
Positioning

49. Why STP?
• To Compete Effectively
• Focus on Customer and Satisfy

50. Requirements for STP?
• Identifying and Profiling distinct group of
Buyers who differ in their needs and wants
• Select one or more market segments to enter
• For each segment, establish and communicate
the distinctive benefit of the Company’s
market offering

51. Market Segment
• Consists of group of customers who share
similar needs or wants
• Factors considered for Segmentation
– Measurable – Size, Purchase
– Accessibility – Effectively reached and served
– Actionability – Effective programs can be designed
– Differentiable – Distinguishable
– Substantial – Large and Profitable

52. Variables for Segmentation
• Descriptive Characteristics
– Geographic
– Demographic
– Psychographic
• Behavioral Characteristics
– Needs and Benefit
– User and Usage Related
– Loyalty Status

53. Geographic Segmentation
• Regions
• Cities
• Rural / Urban
• Nations
• Grassroot Marketing
• Size and Market Attractiveness of different
geographic markets are important
considerations

54. Demographic Segmentation
• Age and life cycle stage
• Gender
• Income
• Socio-Economic Classification
• Generation

55. Psychographic Segmentation
• Use of Psychology to understand customers
• Division based on Psychological / Personality
Traits / Lifestyle / Values
• People in the same demographic group can
display different Psychographic profiles
• Most popular classification is VALS
Framework, classifies adults into 8 groups
based on responses to a questionnaire

56. VALS Framework
• Main Dimensions are Consumer Motivation
and Consumer Resources

58. VALS Framework
• Consumers are inspired by one of three
primary motivations
– Ideals: People guided by knowledge and principles
– Achievement: look for products and services that
demonstrate success to their peers
– Self Expression: Social / Physical Activity, Variety
and risk

59. VALS Framework
• The 4 groups with higher resources are
– Innovators
– Thinkers
– Achievers
– Experiencers
• The 4 groups with lower resources are
– Believers
– Strivers
– Makers
– Survivors

60. Behavioral Segmentation
• Needs and Benefit
• Decision Roles
• User and Usage Related: Occasions, User
Status, Usage Rate
• Buyer Readiness Stage
• Loyalty Status

61. TARGETING
• There are many statistical techniques for
developing market segments
• Marketers are increasingly combining several
variables in an effort to identify smaller better
defined target groups
• This has led to need based market
segmentation approach

62. Effective Segmentation Criteria
• Measurable
• Substantial
• Accessible
• Differentiable
• Actionable

63. Evaluating and Selecting the Market
Segments
• 2 Factors: Segment Overall Attractiveness and
Company’s Objectives and Resources
• There are 4 approaches
– Full Market Coverage
– Multiple Segment Specialization
– Single Segment Concentration
– Individual Marketing

64. Full Market Coverage
• A firm attempts to serve all customer groups with all the
products they might need, e.g. Microsoft, GM, Coca-Cola
• Undifferentiated Marketing
– Mass Communication
– Largest Potential Market
– Lowest cost, highest margin
– Narrow product line keeps R&D, production, inventory costs
down
• Differentiated Marketing: Different product to different
segments
– Creates more sales than undifferentiated marketing
– Increases the cost of business

65. Multiple Segment Specialization
• Selective Specialization: A firm selects a subset of all
the possible segments
• There may be little or no synergy among segments,
but each promises to be a moneymaker
• This strategy diversifies risk
• Supersegment is a set of segments sharing some
exploitable similarities
• A firm can attempt to achieve some synergy with
– Product Specialization e.g. Microscope
– Market Specialization

66. Single Segment Concentration
• Firm markets to only one particular segment
• Concentrated Marketing
• Niche is a narrowly defined customer group
seeking a distinctive mix of benefits within a
segment

67. Individual Marketing
• Ultimate level of segmentation leads to
Customized Marketing or one-to-one
marketing
• Customerization combines operationally
driven mass customization with customized
marketing in a way that empowers consumers
to design the product and service offering of
their choice

68. Ethical Choice of Market Targets
• Marketers must target carefully to avoid any
backlash
• Targeting can generate controversy when
marketers take unfair advantage of vulnerable
groups
• Socially Responsible Marketing

69. La Fin