Pillar of Marketing
The STP Process
Segmentation is the process of classifying customers into groups which share some common characteristic Targeting involves the process of evaluating each segments attractiveness and selecting one or more segments to enter Positioning is arranging for a product to occupy a g g g p py clear, distinctive and desirable place relative to competing products in the mind of the consumer
Steps in Segmentation, Targeting, and Positioning
6. Develop Marketing Mix for Each Target Segment 5. Develop Positioning for Each Target Segment 4. Select Target Segment(s) 3. Develop Selection Criteria 2. Develop Profiles p of Resulting Segments 1. Identify Bases for Segmenting the Market
Market Positioning
Market Targeting
Market Segmentation
1
Market Segmentation
An undifferentiated market Different needs in a market
But one with many different purchase combinations
Segments in a market
The Market Segmentation Process
Stage 1: Your Market and How it Operates
Step 1 - Market Mapping Structure and decision makers
Stage 2: Customers and Transactions g
Step 2 - Who Buys Customer profiling Step 3 - What is Bought Purchase options
Step 4 - Who Buys What Customers and their purchases
Stage 3: Segmenting the Market
Step 5 - Why it is Bought Customer needs C d Step 6 - Forming Segments Combining similar customers Step 7 - Segment Checklist Reality check
2
Advantages of Segmentation
1. The process of breaking up a homogeneous market into heterogeneous segments forces the marketer to analyse and consider b th th needs of th market and th company’s id both the d f the k t d the ’ ability to competently serve those needs – thereby making the company better informed about its customers 2. Competitor offerings and marketing positioning must also be analysed in this context so the company must consider what its competitive advantages and disadvantages are, helping it to clarify its own positioning strategy 3. Limited resources are used
Segmentation is the process of classifying customers into groups which share some common characteristic Targeting involves the process of evaluating each segments attractiveness and selecting one or more segments to enter Positioning is arranging for a product to occupy a g g g p py clear, distinctive and desirable place relative to competing products in the mind of the consumer
Steps in Segmentation, Targeting, and Positioning
6. Develop Marketing Mix for Each Target Segment 5. Develop Positioning for Each Target Segment 4. Select Target Segment(s) 3. Develop Selection Criteria 2. Develop Profiles p of Resulting Segments 1. Identify Bases for Segmenting the Market
Market Positioning
Market Targeting
Market Segmentation
1
Market Segmentation
An undifferentiated market Different needs in a market
But one with many different purchase combinations
Segments in a market
The Market Segmentation Process
Stage 1: Your Market and How it Operates
Step 1 - Market Mapping Structure and decision makers
Stage 2: Customers and Transactions g
Step 2 - Who Buys Customer profiling Step 3 - What is Bought Purchase options
Step 4 - Who Buys What Customers and their purchases
Stage 3: Segmenting the Market
Step 5 - Why it is Bought Customer needs C d Step 6 - Forming Segments Combining similar customers Step 7 - Segment Checklist Reality check
2
Advantages of Segmentation
1. The process of breaking up a homogeneous market into heterogeneous segments forces the marketer to analyse and consider b th th needs of th market and th company’s id both the d f the k t d the ’ ability to competently serve those needs – thereby making the company better informed about its customers 2. Competitor offerings and marketing positioning must also be analysed in this context so the company must consider what its competitive advantages and disadvantages are, helping it to clarify its own positioning strategy 3. Limited resources are used