Segmentation Targeting Positioning STP MODEL

1. P.Venkata Subbaiah,MBA.Ph.d (AITS)
Topics : STP Model
Segmentation

2. MARKET SEGMENTATION
Market segmentation means dividing the market into several homogeneous
submarkets or segments.
Market can be broadly classified into two types
– consumer markets and organizational markets.
Consumer market covers the ultimate users who normally buy in smaller quantities.
Organizational market covers–Industrial Market, Reseller Market and Government
Market

3. Market Segmentation
• Market segmentation is a process that consists of selecting the target market into smaller
groups that share similar characteristics, such as age, income, personality traits, behavior,
interests, needs or location.
• These segments can be used to optimize products, marketing, advertising and sales
efforts.
• Segmentation allows brands to create strategies for different types of consumers,
depending on how they perceive the overall value of certain products and services.
• In this way they can introduce a more personalized message with the certainty that it will
be received successfully.

4. Significance of Market Segmentation
1. Products are designed to be responsive to the needs of the
marketplace
2. Increase Profits
3. Effective Resource Allocation
4. There is Product Differentiation

5. Marketing Segmentation Requirement
 Measurable
 Accessible
 Differentiable
 Substantial
 Actionable
 Formulation of Effective Programmes

6. Bases For Market Segmentation

7. Steps to implement a market segmentation strategy
 Define the market
 Segment the market
 Understand the current market
 Build the customer segment
 Test the strategy

8. Advantages of market segmentation
 Create stronger marketing messages
 Find the ideal marketing strategies
 Attract potential customers
 Differentiate your brand from the
competition
 Identify your niche market
 Identify your niche market
 Create a customer connection