STP

Segmentation:
Market segmentation is dividing up a market into distinct groups that have common
needs and will respond similarly to a marketing action.
Market segmentation is the process of dividing a market into a smaller groups of buyers
with distinct needs, characteristics, or behavior who might require separate products or
marketing mixes.

Target marketing:
Target marketing is the process of evaluating each market segments attractiveness and
selecting one or more segments to enter.
Target marketing strategies:
The target market coverage strategies are available
Undifferent
iated
marketing

Differentiat
ed
Marketing

Concentrat
ed
Marketing

MicroMarketing

i) Undifferentiated Marketing: It is a market coverage strategy in which a firm decides to

ignore the market segment differences and go after the whole market with one offer. It
involves ignoring segment differences and offering just one product or service to the
entire market. for example, Coca Cola offered only one product version. The company
designs a product and a marketing program that will appeal to the largest number of
buyers.
ii) Differentiated marketing: it is a market coverage strategy in which a firm decides to
target several market segments and designs separate offers for each. It involves marketing
in a number of segments, developing separate marketing strategies for each. For
example, Nike offers athletic shoes for a dozen or more different sports, from running,
fencing, golf and aerobics to bicycling and baseball. Through differentiation, products or
advertising appeals may be developed for the various segments, increasing the
opportunity to satisfy the needs and wants of various groups.
iii) Concentrated Marketing: it is a market coverage strategy in which a firm goes after a
large share of one or a few segments or niches. It is used when the firm selects one
segment and attempts to capture a large share of this market. for example, Oshkosh Truck
is the worlds largest producer of air port rescue and frontloading concrete mixers.
iv) Micro-marketing: Micro-marketing is the practice of tailoring products and marketing
programs to the needs and wants of specific individuals and local customer groups.
Micro-marketing includes
a) Local marketing

b) Individual marketing
Local marketing: local marketing involves tailoring brands and promotions to the needs
and wants of local customers groups-cities, neighborhoods and even specific stores.
Individual marketing: tailoring products and marketing programs to the needs and
preferences of individual customers-also labeled markets of one marketing, customized
marketing and one to one marketing.

Positioning:
Positioning is the act of designing the companys offering and image to occupy a
distinctive place in the mind of the target market.
Market positioning is the process of arranging for a product to occupy a clear, distinctive
and desirable place relative to competing products in the minds of target consumers.
Positioning involves implanting the brands unique benefits and differentiation in
customers minds. Mercedes and Cadillac are positioned on luxury and Volvo is
positioned on safety.
Approaches to positioning:
A number of positioning strategies might be employed in developing a promotional
program. David Aaker and J. Gary Shansby discuss such strategies
i) Positioning by Product attributes: a company position itself on the basis of specific
characteristics such as size or number of years existence. For example, Disneyland can
advertise itself as the largest theme park in the world.
ii) Positioning by benefits: a product is positioned as the leader in a certain benefit. For
example, when Apple first introduced its computers, the key benefit stressed was ease of
use- an effective strategy, given the complexity of computers in the market at that time.
iii) Positioning by price/quality: Marketers often use price/ quality characteristics to
position their brands. Another way to use price/quality characteristics for positioning is to
focus on the quality or value offered by the brand at a very competitive price. For
example, Busch Garden can position itself on offering the best value for the money.
iv) Positioning by use or application: another way to position for a product is to
associate it with a specific use or application. For example, a TV commercial showed
various uses for the product. Japanese Deer Park can position itself for the tourist who
has only an hour to catch some quick entertainment.
v) Positioning by product class: often the competition for a product comes from outside
the product class. Rather than positioning against another brand, an alternative strategy is
to position oneself against another product category. For example, Amtrak has positioned
itself as an alternative to airplanes, citing cost savings, enjoyment and other advantages.
vi) Positioning by product users: Positioning a product by associating it with a particular
user or group of users is yet another approach. That means positioning the product as best

for some user group. For example, Magic Mountain can advertise itself as the best for
thrill seekers
vii) Positioning by competitor: the product claims to be better in some way than a named
competitor. For example, we are number two, so we try harder. For example, Lion
Country safari can advertise having a greater variety of animals than Japanese Deer Park.
vii) Positioning by cultural symbols: a company can take the positioning strategy in
which cultural symbols are used to differentiate brands from the competitors brands. The
picture of Tiger is used in Rahim Afroz battery.

Positioning errors:
In general, a company must avoid four positioning errors:
i)
Underpositioning: Some companies discover that buyers have only a vague
idea of the brand. The brand is seen as just another entry in a crowded
marketplace. For example, Pepsi introduced its clear Crystal Pepsi in 1993,
customers were distinctly unimpressed. They did not see clarity as an
important benefit in a soft drink.
ii)

Overpositioning: Buyers may have too narrow an image of the brand. Thus a
consumer might think that diamond rings at Tiffany start at $5000 when in
fact Tiffany now offers affordable diamond rings starting at $1000.

iii)

Confused positioning: Buyers might have a confused image of the brand

resulting from the companys making too many claims or changing the
brands positioning too frequently. This was the case with Stephen Jobs sleek
and powerful NeXT desktop computer, which was positioned first for
students, then for engineers and then for business people, all unsuccessfully.

iv)

Doubtful positioning: Buyers may find it hard to believe the brand claims in
view of the products features, price or manufacturer. When GMs Cadillac
division introduced the Cimarron, it positioned the car as luxury competitor
with BMW, Mercedes and Audit. Although the car featured leather seats, a
luggage rack, lots of chrome and a Cadillac logo stamped on the chasis,
customers saw it as a dolled-up version of Chevys cavalier and oldsmobiles
Firenza. The car was positioned as more for more: customers saw it as less for
more.