The document discusses STP strategies and provides examples of how companies segment, target, and position in the marketplace. It covers segmentation bases like demographics, psychographics, and consumption behaviors. Targeting criteria include identifying sizable, stable, and accessible market segments. Positioning involves developing a product image relative to competitors. An example is provided of Maggi positioning instant noodles in India as a fast, convenient snack.

1. STP STRATEGIES
SHWETANSHU GUPTA (49)
ARJUN GUPTA (09)
SIDHARTH GUPTA (50)

2. Marketing Mix
STP
• The STP process is an important concept in the study and application
of marketing. The letters STP stand for segmentation, targeting,
and positioning.
• The STP process demonstrates the links between an overall market
and how a company chooses to compete in that market. The goal of
the STP process is to guide the organization to the development and
implementation of an appropriate marketing mix, as highlighted in
the following diagram.
STP

3. Importance of Segmentation &
Targeting
• Helps distinguish one customer group from another within a given
market.
• Facilitates proper choice of target market
• Facilitate effective tapping of market.
• Helps divide the market and in conquering them.
• Makes marketing efforts more efficient and economic
• Helps to spot less satisfied segments and succeed by satisfying such
segments.
• When segmentation reaches high sophistication, companies and
customers can choose each other and stay together.
• Helps crystallize the needs of target market and ellicit more
predictable responses from them.

4. Segmentation
• Segmentation as a process consists of segment identification,
segment selection and the creation of marketing mixes for target
segments.
• The outcome of the segmentation process should yield "true market
segments" which meet three criteria: (a) Group identity: true
segments must be groupings that are homogeneous within segments
and heterogeneous across groups. (b) Systematic behaviors: a true
segment must meet the practical requirement of reacting similarly to
a particular marketing mix. (c) The third criteria refers to efficiency
potential in terms of feasibility and cost of reaching a segment (

5. Segmentation strategies
• In the undifferentiated strategy, all consumers are treated as the
same, with firms not making any specific efforts to satisfy particular
groups. This may work when the product is a standard one where
one competitor really can’t offer much that another one
can’t. Usually, this is the case only for commodities .
• In the concentrated strategy, one firm chooses to focus on one of
several segments that exist while leaving other segments to
competitors. For example, Southwest Airlines focuses on price
sensitive consumers who will forego meals and assigned seating for
low prices.

6. • In contrast, most airlines follow the differentiated
strategy: They offer high priced tickets to those who are
inflexible in that they cannot tell in advance when they need
to fly and find it impractical to stay over a Saturday. These
travelers—usually business travelers—pay high fares but can
only fill the planes up partially. The same airlines then sell
some of the remaining seats to more price sensitive
customers who can buy two weeks in advance and stay over.

7. Bases for Segmentation
 Base(s) represents the core attributes of a group existing or potential
customers.
 Consumer’s characteristics are divided into two criteria:
 Facts , which can be determined from direct questioning
versus Cognitions , which are abstract & can be determined
only by complex questioning.
Consumer rooted features arising out of social, physical &
psychological characteristics versus consumption-specific
usage behaviors or attitude and preference towards specific
products or buying situations

8. Bases for Segmentation

9. Consumer rooted segmentation bases
Demographics
Geodemographic
Personality Traits
Lifestyles
Sociocultural
Age, Gender, Marital Status, Family life cycle,
Income, education and Occupation
Geography and Demographics
Geography and Demographics
VALS (Values and Lifestyles)
Culture, Sub-Culture, Indian
Culture and Cross culture

10. Demographic Segmentation
Age
Kids: Amul Kool, chocolate milk
Youth: Amul Kool Kafe
Women and adults: Amul Calci+
Gender

11. Marital status
Market segmentation can also be as per the marital status of the
individuals. Travel agencies would not have similar holiday packages
for bachelors and married couples.
Education
Market can be segmented on the basis of education – matriculation
or less, under graduates, graduates, post-graduation, etc. Most
studies show that the highly educated people spend more than the
poorly educated in respect of housing, clothing, recreation, etc.

12. Age and stage of family life cycle
Consumers’ wants and abilities change with age.
On the basis of age, a market can be divided into four parts viz.,
children, young, adults and old.
For the consumers belonging to the different age groups, different
types of products are produced.
For instance, Pepsodent kids is for children while Pepsodent Gum
Care is for adults.

13. Income
Buying patterns depends on income of the consumers. No two
individuals or families spend money in exactly the same way. If a
researcher knows a person’s income, he can predict with some accuracy
wants and needs of that person and how those wants are likely to be
satisfied.
Pantaloon, Shopper’s stop target the high income group as Big bazaar
who cater to the individuals belonging to the lower income segment.

14. Education
Market can be segmented on the basis of education –
matriculation or less, under graduates, graduates, post-graduation,
etc. Most studies show that the highly
educated people spend more than the poorly educated
in respect of housing, clothing, recreation, etc.
Occupation
A beach house shirt or a funky
T Shirt would have no takers
in a Zodiac Store as it caters
specifically to the
professionals.

15. Geodemographic segmentation
• Geodemographic segmentation combines geographical and demographic
segmentation.
• Geographic segmentation usually involves dividing up geographic markets by
using existing political boundaries, natural climatic zones, or population
boundaries.
• For example, Bennett, Coleman and Co. Ltd divided markets according to
geographical units for their tabloids. In Bangalore, the tabloid is known as
Bangalore Mirror where as it is Mumbai Mirror in Mumbai.

16. Psychological factors
Motivation
Motivation is what stimulates all human
behavior.
It is very important for the marketers to
know the motives influencing the consumer
as they initiate and direct all human
behavior.
Abraham Maslow tried to arrange such
significant needs into a hierarchy of five
levels, depending on the relative
importance of the needs to a person. The
five levels of needs given by him are 1)
physiological needs, 2) safety needs, 3)
social needs, 4) egoistic or self esteem
needs and finally 5) self actualization
needs.

17. Personality traits
When Marketers use personality variables to segment the markets,
they endow their products with brand personality that corresponds to
consumer personalities.
For example, Raymond advertises its fabrics with the tag ‘The
Complete Man.’
Parker Pens use Amitabh Bachchan as their brand ambassador to
project it as a status symbol.

18. Lifestyle

19. VALS (Values and Lifestyles)
• High resource and high innovation people.
• Successful, sophisticated, high self esteem.
• Most receptive to new ideas and technologies
INNOVATORS
THINKERS
• Motivated by ideals: high resources
• Well educated, favor durability, functionality and value in
products
BELIEVERS
• Motivated by Ideals: low resources
• Strongly traditional, respect rule & authority
• Conservative, slow to change, technology averse
• Choose familiar products & established brands
ACHIEVERS
• Motivated by achievement: high resources
• Goal oriented lifestyles that center on family & career
• Avoid changes: Prefer premium products that demonstrate
their success to peers

20. STRIVERS
• Motivated by achievement: low resources
• Trendy and fun-loving: little income, tend to have narrow
interests: Favor stylish products
EXPERIENCERS
• Motivated by self-expression: high resources
• Appreciate the unconventional: are active & impulsive:
Spend high proportion of income on fashion, socializing
and entertainment
MAKERS
• Motivated by self-expression: low resources
• Value practicality and self sufficiency
• Spend leisure time with family and close friends: prefer
value to luxury and buy basic products.
• High innovation and high resource: Lead narrowly focused
lives: Primarily concerned about safety and security
• Tend to be brand loyal SURVIVORS and buy discounted merchandise

21. Sociocultural values and beliefs
• Social class and cultural factors affect consumer buying behavior.
• Social groups include: family, friends, peers, colleagues.
• Culture influence consumer behavior deeply. A given culture brings
its own unique pattern of social conduct. A person usually acquire his
cultural attributes right at his childhood. Culture includes religion,
caste, language, social behavior.
• Example: Mc Donald don’t offer beef
products in India and in Saudi Arabia
Mc Donald outlets include separate
dining sections for both men& women.

22. Social Class
Buying behaviour is reflected by the influence of
social class to which the consumers belong. The
social class can be segmented as – lower -lower,
middle-lower, upper-lower, lower-middle, middle-middle,
upper-middle, lower-upper, middle-upper
and upper-upper. Firms dealing in clothing, home
furnishing, automobiles, etc. can design products
for specific social class.

24. Consumption specific segmentation bases
Usage rate
Usage situation
Benefit segmentation
Perceived brand loyalty
Brand relationship
Heavy, Medium, Light, Non-users
Frequently, Occasionally,
Regularly
Functional, value for money,
social, positive & negative
emotional
Behavior and attitude

25. Usage rate
• Consumers are divided on the basis of usage rate: heavy users, light users,
medium users and non users (prospective adopters or persistent non
adapters).
• For example about 25% of all beer drinkers account for 75% of all beer
consumed. Therefore most beer companies focus on those 75% of beer
consumers.
• Besides usage rate consumers can also be segmented on the basis of
awareness status and also level of involvement: awareness of product,
readiness to buy the product, unawareness and involvement in product.
• Alan Paine textile brand, offered 4 cotton trousers for Rs. 999. Here, the
Company is interested in getting profits from sales volume rather than its
selling price.

26. Usage situation
• Occasion or situation often determines what consumers
will purchase or consume.
• Under different occasions or situations same consumer
might make different choices.
• For example Diamond industry promotes Diamond ring
as an engagement symbol.

27. Benefit segmentation
• Functional benefits
• Value for money
• Social benefits
• Positive emotional benefit
• Negative emotional benefit
Peter England, a Madhura garment brand positioned its wrinkle free
trousers on the basis of benefits.
Colgate cavity protection range position itself as a product to protect
teeth against cavity.

28. Brand loyalty
Loyalty: if companies can identify customer loyalty to their brand, and
then delineate other characteristics these people have in common,
they will locate the ideal target market.
User readiness stage
Stage of readiness: potential customers may be unaware, aware,
informed, interested, desirous, and intending to buy. If a marketing
manager is aware of where the specific segment of potential
customers is, he or she can design the appropriate market strategy
to move them through the various stages of readiness.

29. Targeting
• A target market refers to a group of individuals who are
inclined towards similar products and respond to similar
marketing techniques and promotional schemes.
• Kellogg’s K Special mainly targets individuals who want to cut
down on their calorie intake. The target market in such a case
would be individuals who are obese. The strategies designed
to promote K Special would not be the same in case of any
other brand say Complan or Boost which majorly cater to
teenagers and kids to help them in their overall development.
The target market for Kellogg’s K Special would absolutely be
different from Boost or Complan.

30. Criteria for effective Targeting
• Identifiable: Target market segment should have
same characteristics that are relevant to the
product/service. Characteristics make it easier to
identify the target market.
• Sizeable: In order to be a viable market, segment
should consist of enough customers to make
targeting profitable.

31. • Stable: Marketer prefer to target consumer
segments that are relatively stable in terms of
lifestyles and consumption patterns and avoid
“fickle” segments that are unpredictable.
• Accessible: To be targeted a segment must be
accessible, which means marketers must be able
to reach that market segment in an economical
way.

32. Strategies
Behavioral Targeting
• Behavioral targeting comprises a range of technologies and techniques used by
online website publishers and advertisers aimed at increasing the effectiveness of
advertising using user web-browsing behavior information. In particular,
"behavioral targeting uses information collected from an individual’s web-browsing
behavior to select advertisements to display".
• When a consumer visits a web site, the pages they visit, the amount of time they
view each page, the links they click on, the searches they make and the things that
they interact with, allow sites to collect that data, and other factors, create a
'profile' that links to that visitor's web browser. As a result, site publishers can use
this data to create defined audience segments based upon visitors that have similar
profiles.
• When visitors return to a specific site or a network of sites using the same web
browser, those profiles can be used to allow advertisers to position their online ads
in front of those visitors who exhibit a greater level of interest and intent for the
products and services being offered.

33. Micro Targeting
• It is aggregating individual consumers into relatively small groups,
based on data available on them from diff databases and targeting
them with tailor made messages.
• Data sources of micro-targeting include virtually any piece of
information available- voting records, residence and address change,
tax records, media exposure, feedbacks, credit card records and much
more.
• Individual messages are then transmitted via narrowcasting- using e-mails,
mobile devices and even door to door presentation on small
screens to deliver personalized messages to individuals

34. Concentrated Vs Differentiated Marketing
• A differentiated marketing strategy is when a company
creates campaigns that appeal to at least two market
segments or target groups. For example, a store can
promote a sale that appeals to people in at least two cities
or locations, or a company can market a product that
appeals to women in at least two age groups.
• A concentrated marketing strategy is targeted to one
specific market segment or audience. For example, a
company might market a product specifically for teenage
girls, or a retailer might market his business to residents in
a specific town. Concentrated marketing strategies are
often geared for smaller groups of people, because they are
designed to appeal to a specific segment.

35. Counter-segmentation
• Sometimes marketers adopt too many micro
segments, which later become redundant. In
such a case, all segments are clubbed together
with a single marketing mix (counter
segmentation).

36. Positioning
• Positioning is developing a product and brand image in the minds of
consumers. It can also include improving a customer's perception
about the experience they will have if they choose to purchase your
product or service. The business can positively influence the
perceptions of its chosen customer base through strategic
promotional activities and by carefully defining your business'
marketing mix.
• Effective positioning involves a good understanding of competing
products and the benefits that are sought by your target market. It
also requires you to identify a differential advantage with which it
will deliver the required benefits to the market effectively against
the competition. Business should aim to define themselves in the
eyes of their customers in regards to their competition.

37. PRACTICAL EXAMPLES

38. MAGGI INDIA
NESTLE introduced Maggi brand in INDIA in 1982.
With the launch of Maggi noodles, NUL created a new food category
in Indian packaged food market.
Over in India, Maggi became a popular snack food product.
In fact, "Maggi" has become a generalized name for instant noodles
in India and Malaysia.

39. Segmentation
• Segmented the market on the basis of lifestyle and
eating habits of the Indian consumer.
• Focus mainly on age and appetite of the urban
families.

40. Target
• Target audience are
kids
Youth
Working women
• It helps mothers with the promise of fast to cook
and good to eat snacks.
‘convenience savvy time misers’

41. Position
• Positioned their product with the well known
slogan
• “2minute noodles”
• “taste bhi health bhi”
• “Easy to cook, good to eat”
• Positioned their product as
to get fast relief from hunger.

42. Apple Iphone
Segment Stylish and smart touch phones
Target Group Urban young from middle and upper class
Positioning
Device which is helps in communication
and also serves as an entertainment device