This document discusses market segmentation, targeting, and positioning (STP). It explains that marketers segment the market into groups with similar characteristics. There are various bases for segmentation like location, demographics, lifestyle, and behavior. Marketers then select target markets based on factors like segment size and viability. There are different targeting strategies like mass, differentiated, and niche marketing. Market positioning involves how consumers perceive and categorize brands based on their attributes. Effective positioning creates a unique value proposition that satisfies customer needs better than competitors. The document provides examples of segmentation, targeting, and developing a positioning statement.

1. MARKET SEGMENTATION,
TARGETING, AND POSITIONING
(STP)

2.  Marketers endeavor to more effectively and efficiently
promote and sell their products to the market.
 Marketing is effective when any effort made by the
marketer produces the most favorable results for the
product.
 It is efficient when done with the least amount of effort,
time, and resources.
 Today, marketing plans are more targeted to an identified
market, providing them with products and services to their
needs.
 This is done through market segmentation, market
targeting and market positioning.

3.  When you break up the market into smaller groups
composed of individuals with similar requirements or
identifiable characteristics, you are performing market
segmentation.
MARKET SEGMENTATION

4. 1. Location - global brand like Nike. Phil- basketball,
Indonesia- football
2. Demographics – age, gender, family size,
occupation, education, religion and nationality. Ex.
Smart and Globe has two segments: students and
working adults.
3. Lifestyle or psychographics – activities, interest and
personalities of customers. Ex. Max and Kenny
Rogers. Both centered on chicken dishes. Max is
more on values family bonding and celebrations
while Kenny on dinners who value healthy living.
BASES OF SEGMENTATION

5. 4. Behavior – based on how they purchase and buy the
products. Individuals can be segmented based on
occasion of purchase or use, or on usage of the
products and services.
a. Occasion – encourage purchase (weekly/monthly)
b. Usage – user’s status ( regular users, occasional, first-
time, nonusers) and by usage volume – heavy,
medium, or light users.

6.  Marketers must select one or more groups of customers to
provide products and services to and this is called the
target market.
 Factors to consider: size of the segment, identifiable,
viability, consistency
MARKET TARGETING

7. 1. Mass marketing – marketer decided not to choose a specific
segment and instead develop and offers the product for a
sizable number of customers, serving the needs of the
majority. Often employed by fast-moving consumer goods
(FMCGs)
2. Differentiated Marketing – based on demographics,
lifestyle, and behavior, marketers can then select different
target markets and then develop a marketing plan specific
to the needs of each of these segments.

8.  Niche Marketing – focus on a smaller market segment or
niche.
 Individual marketing – cater each of it’s customers’ personal
needs. Factors to consider: resources, product, competition,
customers
DIFFERENTIATED MARKETING

9.  To mentally organize the market place, customers
categorized products and services based on product
characteristics and on their personal needs.
 From here, the consumer creates a definition and a meaning
to the products in relation to competing products in the
category.
MARKET POSITIONING

10.  Where marketers look at how consumer perception place
the different brands in comparison to other category
players based on identifiable attributes.
 For a product to be placed in a distinct and desirable
position in minds of customers, marketers must create a
differentiation of the product against competing products
through an offering that satisfies the target market’s needs
in a unique and appealing way.
POSITIONING MAP

11. 1. Identify competitive advantage – appearance characteristics and
features, or services that the product offers, distribution of the
product, image of the product, providing best value
2. Choosing the most valuable competitive advantage – the
brand’s unique selling proposition
3. Creating positioning statement
Format:
To (target segment and needs) our (brand) is (concept) that (point a
difference).
Ex. To women who want soft, smooth and easy to comb hair, our
brand X is a deep conditioning shampoo that has coconut oil
essence for deep and lasting conditioning, making hair noticeably
beautiful.
STEPS IN IDENTIFIYNG A POSITIONING
AND DIFFERENTIATION STRATEGY