SSM
SSM
SSM
CERTIFICATE
INDEX
SR.NO
TOPIC
Introduction to STP
Segmentation /process
Targeting /process
Positioning /process
SIGN
A market refers to a set up where two or more parties are involved in transaction of
goods and services in exchange of money. The two parties here are known as sellers and
buyers.
It is the responsibility of the marketers to create awareness of their products amongst the
consumers. It is essential for the individuals to be aware of the brands existence. The USPs of
the brands must be communicated well to the end-users.
An organization cant afford to have similar strategies for product promotion amongst all
individuals. Not every individual has the same requirement and demand.
STP stands for:
S - Segmentation
T - Targeting
P Positioning
Segmentation
The division of a broad market into small segments comprising of individuals who think
on the same lines and show inclination towards similar products and brands is called
Market Segmentation.
Market Segmentation refers to the process of creation of small groups (segments) within
a large market to bring together consumers who have similar requirements, needs and
interests.
The individuals in a particular segment respond to similar market fluctuations and require
identical products.
In simpler words market segmentation can also be called as Grouping.
Kids form one segment; males can be part of a similar segment while females form
another segment. Students belong to a particular segment whereas professionals and
office goers can be kept in one segment.
Mass Marketing
Appropriate strategy when demand is homogeneous, or every potential customer has
the same basic need that can be satisfied in the same basic way, and with the same marketing
mix.
Market Segmentation
Process of dividing a large market into smaller groups or clusters of customers with
similar wants and needs and responses to marketing activities and programs.
Targeting
Once the marketer creates different segments within the market, he then devises
various marketing strategies and promotional schemes according to the tastes of the
individuals of particular segment. This process is called targeting. Once market
segments are created, organization then targets them.
Targeting is the second stage and is done once the markets have been segmented.
Organizations with the help of various marketing plans and schemes target their products
amongst the various segments.
Nokia offers handsets for almost all the segments. They understand their target audience
well and each of their handsets fulfils the needs and expectations of the target market.
Tata Motors launched Tata Nano especially for the lower income group.
With each marketing outreach you undertake, remember to also think about
the type of customers you are trying to connect with. Are they existing, new, lapsed or
repertoire customers (repertoire customers are those who are not loyal to one brand, but
who may be influenced by things like promotional offers)? This will impact on the
messaging and tone that you adopt for your communications.
Positioning
Positioning is the last stage in the Segmentation Targeting Positioning
Cycle.
Once the organization decides on its target market, it strives hard to create an
image of its product in the minds of the consumers. The marketers create a first
impression of the product in the minds of consumers through positioning.
Positioning helps organizations to create a perception of the products in the
minds of target audience.
Ray Ban and Police Sunglasses cater to the premium segment while Vintage or
Fastrack sunglasses target the middle income group. Ray Ban sunglasses have
no takers amongst the lower income group.
Garnier offers wide range of merchandise for both men and women.
Each of their brands has been targeted well amongst the specific market
segments. (Men, women, teenagers as well as older generation)
Men - Sunscreen lotions, Deodorant
Women - Daily skin care products, hair care products
Teenagers - Hair colour products, Garnier Light (Fairness cream)
Older Generation - Cream to fight signs of ageing, wrinkles
A female would never purchase a sunscreen lotion meant for men and vice a versa.
Thats brand positioning.
Identify a unique position that offers desired benefits to target market that are not offered
by competitors.
References
http://www.managementstudyguide.com/marketing
-segmentation-targeting-positioning.htm
http://archive.csustan.edu/market/williams/4490%2
0ch%207%20outline.htm
http://www.talentedladiesclub.com/all-help/foursimple-steps-to-defning-and-reaching-your-targetmarket/