2. PRESENTATION
SUBJECT NAME :- THE FUNDAMENTAL OF MARKETING
SUBJECT CODE :- C010401T
SUBMITTED BY :- ADITYA KUMAR UPADHAYAY
ANUJ PAL
ASTITVA NAKUM
ASHISH CHAUHAN
DEEPMALA
ASHISH KUMAR GAUTAM
ANJALI YADAV
SUBMITTED TO :-
MISS ANJALI GOSWAMI
3. TOPIC :-
STP(SEGMENTATION, TARGETING, AND
POSITIONING) MODEL
BASIS OF STP
TYPES OF STP
TARGET MARKETING
POSITIONING STRATEGIES
4. STP MODEL:-
• The STP Marketing Model can help you to analyze
your product offering and the way you communicate its
benefits and value to specific groups.
STP stands for:
• Segment your market.
• Target your best customers.
• Position your offering.
The model is useful because it helps you to identify your most
valuable types of customer, and then develop products and
marketing messages tailored to them. This allows you to engage
with each target group more effectively, personalize your
messaging, and ultimately – increase your sales.
ASHISH CHAUHAN
5. • Market segmentation is the practice of dividing your target market
into approachable groups. Market segmentation creates subsets of a
market based on demographics, needs, priorities, common interests,
and other psychographic or behavioural criteria used to better
understand the target audience.
TYPES OF MARKET SEGMENTATION:-
Demographic segmentation
Geographic segmentation
Behavioural segmentation DEEPMALA
Psychographic segmentation
What is market segmentation?
6. Demographic segmentation:-
Demographic segmentation enables you to understand who your target audience is, which is
critical for building customer personas. A customer persona is essentially a profile used to
represent your target market according to the data obtained from segmentation. Segmenting
based on personas can provide 90% of companies with better knowledge about their audience.
•Age
•Gender
•Religion
•Income level
•Ethnicity
•Size of household
•Occupation DEEPMALA
•Education
•Marital status
Example:- Say you run a wine company and the majority of your audience is married. In this
case, you may promote a special wine bundle for couples to these contacts.
7. Geographic segmentation:-
Geographic segmentation tells you where your audience is located. Like demographic
segmentation, categorizing your contacts according to geographic location is
straightforward.
Few geographic variables you can use to divide your audience:
•Location (Includes factors such as zip code, city, state, and country)
•Culture
•Timezone
•Language DEEPMALA
•Climate
•Population density
Example: If your target market is located in an area where the dominant language is
Spanish, you can send marketing postcards in Spanish to inform potential
customers of your next big in-store event.
8. Psychographic segmentation:-
Psychographic segmentationenables businesses to segment their contacts based on psychologicaltraits
that influence shopping.Variables include:
•Attitudes
•Values
•Social status DEEPMALA
•Lifestyle
•Personality
•Interests
•Opinions
While it can be difficult to segment audiences using this approach,doing so results in highly effective
marketing campaigns. This is because psychographicsegmentationprovidesinsight into why consumers
buy certain products.
Example:- A brand that focuses on plant-based food products may have an audience segment of
vegans, vegetarians,or pescatariansand meat eaters who wish to consume less meat.
9. Behavioral segmentation:-
Behavioralsegmentationrefers to a type of market segmentationin which you group your audiencebased
on consumer behavior,allowing you to see how customers interact with your business.With behavioral
segmentation,you can see what your contacts are doing on your website, determine which ones engage
with your brand the most, and identify patterns to plan ahead.
Variables of behavioral segmentation include:-
•Purchasing behavior
•Stage in the customer journey
•Occasion or timing
•Usage behavior
•Benefits sought
•Customer loyalty
•Customer satisfaction DEEPMALA
•Engagement
Example:-You may send special deals and discount codes to those who signed up for your loyalty
program but have not made a purchase yet.
10. 7 steps in market segmentation
Success in a digital environmentoften depends on the quality of your insights. Your strategy is only as
good as the data it uses. Let’s see what informationyou need to segment the market and how to put it to
use.
Step 1 – Define your market:-
Start by defining your market and collect informationabout your customer base through market research.
Dig into the data of your closest competitors to understandtheir market position and where you can win
back traffic share. Take it further by benchmarkingagainstindustry standardsand conducting a SWOT
analysis to fully understandyour strengths,weaknesses, opportunities,and threats
Step 2 – Analyze existing customers
The process of market segmentation involves a structured audience analysis. The more
comprehensive your data, the better you can identify groups and address their needs, so
we recommend using various research techniques and types.
Learn about demographics, behavior, preferences, and trends. Again, benchmark
against the competition. You may stumble upon market segments or niches you didn’t
consider. ASHISH KUMAR GAUTAM
11. Step 3 - Create Subgroups
The organizationsshould ensure their target market is well defined. Create subgroups within groups for
effective results.
Cosmetics for females now come in various categories.
Creams and Lotions for girls between 20-25 years would focus more on fairness.
Creams and lotions for girls between 25 to 35 years promise to reduce the signs of ageing.
Step 4 - Review the needs of the target audience
It is essential for the marketer to review the needs and preferences of individualsbelongingto each
segment and sub-segment.The consumers of a particular segment must respond to similar fluctuations
in the market and similarmarketing strategies.
Step 5- Positioning for the Segment:
Once the target market is selected, it is important to develop a product positioning strategy. Product
positioning refers to setting up strategies to ensure that the product resides in the minds of target market
consumers. To make the target market more approachable, the marketer must determine the
characteristics and pictures of each competitor’s product and establish a position for it. Because the
product may be very new to the market or the market may be very new to the company, the marketer may
not reach the market so easily after choosing a target market. The marketer must create a positioning
strategy that is attractive to potential clients. ASHISH KUMAR GAUTAM
12. Step 6 - Expanding the Segment:
Scalability is required for all segments. So once a segment has been discovered, it must be in a way that
the firm may expand with the type of segmentation selected. If the segment is extremely narrow, the
business will eventually fail. As a result, segment expansion is the second last step in market
segmentation.
Step 7- Incorporating Segmentation into the Marketing Strategy:
The final step of marketing segmentation involves understanding the target market and using the
appropriate marketing plan for the target market that will satisfy them and help the firm achieve its goals.
The marketer can use several elements of the marketing mix to readily engage with the target audience
to create an efficient marketing plan and program. Finally, a marketer may put his positioning plan into
action to accomplish organisational goals. Furthermore, they must assess the effectiveness of the
positioning strategy and marketing plan to determine whether they are performingas expected or not.
Step 8 - Size of the Target Market:
It is essential to know the target market size. Collect necessary data for the same. It helps in sales
planning and forecasting. ASHISH KUMAR GAUTAM
13. TARGET MARKETING:-
A target market is a group of people that have been identified as the most likely potential
customers for a product because of their shared characteristics, such as age, income, and
lifestyle.
Identifying the target market is a key part of the decision-making process when a company
designs, packages, and advertises its product.
TYPES OF TARGET MARKETING:-
1. Demographic: These are the main characteristics that define your target market.
Everyone can be identified as belonging to a specific age group, income level,
gender, occupation, and education level.
2. Geographic: This segment is increasingly relevant in the era of globalization.
Regional preferences need to be taken into account.
3. Psychographic: This segment goes beyond the basics of demographics to
consider lifestyle, attitudes, interests, and values.
4. Behavioral: This is the one segment that relies on research into the decisions of a
company's current customers. New products may be introduced based on
research into the proven appeal of past products.
15. • EXAMPLE OF TARGET MARKETING:-
McDonald’s Target Market
McDonald’s target market has a wide range of customer personas. However, younger
professionals are a prominent target market segment for the chain. For example,
several McDonald’s locations have been redesigned to look sleeker, more modern, and
more appealing to millennials.
Another important segment for the chain is ‘full nest’ families with children over six
years old. The franchise’s efforts to appeal to this segment are most visible in its Happy
Meal options. McDonald’s also consciously tries to appeal to working and middle-class
customers.
In summary, the company’s target market isn’t clear-cut in demographics — but it’s
specific regarding the economic circumstances of its various personas.
Its value proposition is based on the fact that its food is affordable. The franchise
positions itself as a low-cost alternative to more expensive options in the markets it
attempts to sell in. For example, when promoting its McCafe line, the brand highlighted
its low price points as a major selling point. ASTITVA NAKUM
16. PRODUCT POSITIONING:-
Product positioning is a strategic activity explaining where and how your product or
service fits in the current marketplace and why it’s better than other alternatives. The
end goal is to determine your target audience, their needs, and how your product can
solve customer problems. ANUJ PAL
17. • Product Positioning Strategies :-
•Characteristics-based positioning =Brands give certain characteristics to their
products that aim at creating associations. It’s done to make consumers choose based on brand
image and product characteristics. Let’s take the automobile industry, for example. A person
who worries about safety will probably choose Volvo because of the brand’s positioning. At the
same time, another customer who pays attention to reliability would prefer Toyota.
•Pricing-based positioning= This strategy involves associating your company with
competitive pricing. Brands often position themselves as those that offer products or services
at the lowest price. Let’s take supermarkets, for example. They can afford to provide customers
with products for lower prices because of the lower costs they pay for shipping and distribution,
huge turnover, and a large procurement of goods. As a result, many consumers already know
the supermarkets with attractive prices and choose them without considering other options.
ANUJ PAL
18. •Use or application-based positioning = Companies can also position themselves
by associating with a certain use or application. People who adhere to a healthy lifestyle create a
great demand for products that help increase performance in the gym. Hence, many businesses
offer nutritional supplements. These brands sell supplements that are high in calories, vitamins,
and minerals.
•Quality or prestige-based positioning = The brands we are talking about now
don’t concentrate on their price point; they focus on their prestige or high quality instead.
Sometimes, it’s the reputation that makes a brand attract customers. Let’s take Rolex, for
example. This famous watch brand is associated with achievement and excellence in sport and
is popular among powerful and wealthy people.
•Competitor-based positioning = The strategy involves using competitors’
alternatives to differentiate products and highlight their advantages. It helps brands distinguish
their products and show their uniqueness.
ANUJ PAL
19.
20. Steps in Product Positioning:-
1. Know your target audience well= You should know about your audience, but if you don’t know
don’t know what they need to hear, you would be squandering your time and would be
barking up the wrong tree with your right message. Knowing your target audience involves
knowing the specific needs of the audience as well.
2. Identify the product features= It is very important for the marketers that they themselves are
themselves are aware of the features and benefits of the products. It is well said that you
really can’t sell something unless and until you yourself are convinced of it. A marketer
selling a smart phone should himself also use the same smart phone handset for the
customers to believe him.
3. Unique selling Propositions= Every product should have USPs; at least some features which are
unique and different from those previously launched products in the market. The
organizations must create USPs of their brands and effectively communicate the same to
the target audience. ANJALI YADAV
21. 4. Never make a mistake of underestimating your competitor= A marketer must
be knowledge about his competitor’s offerings. You need to convince the consumer how your
product is better than the competitors. The marketers must always strive hard to have an edge
over their competitors. A good example of this type of product positioning is the comparison
pages found on many SaaS websites
5. Promote the benefits= A marketer must be knowledge about his competitor’s
to convince the consumer how your product is better than the competitors. The marketers must
always strive hard to have an edge over their competitors.
ANJALI YADAV
