abhishreshthaa
Abhijeet S
STPs of Marketing
Segmentation, Targeting and Positioning
Segmentation:
Dividing market into smaller groups of buyers’ distinct needs, characteristics or behaviour who might require separate products or marketing mixes.
It is based upon the modern marketing concept i.e. market oriented strategy and philosophy. Segmentation gives special emphasis on the demand side of the market. It is used for achieving maximum market response for limited marketing resources by recognising differences in the response characteristics of various parts of the market. It is the strategy of divide and rule.
Types of market segmentation:
Demographic segmentation:
Age: 15-19; 20-34; 35-49; 50-64; 65+
Gender: Male and Female
Income: Below 5000; 5000-15000; 15000-30000; 30000-60000; 60000-100000; 100000+
Occupation: Students, clerical jobs, business class people, call centre employees.
Education: Literate and Illiterate
Religion: Hindu, Muslim, Catholic, Jewish
Psychographic segmentation:
Social Class: Lower class, Working class, Middle class, Lower upper class and Upper Uppers
Lifestyle Achievers, Strivers, Survivors
Personality: Compulsive, Gregarious, Authoritarian, Ambitious
Geographical segmentation
For “Quench-It”, Quintessence Pvt. Ltd has decided to open centers in the following 3 place
• Delhi – 1 center
• Kolkata – 1 center
• Chennai – 1 center
Chennai, Delhi, and Kolkata were selected because they are thriving metropolises with large populations and opening distribution centers in these cities cover a large population of smokers.
Chennai and Bangalore on the other hand are not as dense as the other three when it comes to population; however they have been included to set up our distribution centers because they have a high population of middle and upper class people.
Depending on the response we receive from these 4 places we will expand geographically and within a short span of time we will go international also.
Targeting:
Target Market: It is the set of buyers sharing common needs or characteristics that the company decides to serve.
Undifferentiated Marketing:
In undifferentiated (or mass marketing) strategy, a firm might decide to ignore market segment differences and target the whole market with one offer. This mass-marketing strategy focuses on what is common in the needs of consumers rather than on what is different. The company designs a product and a marketing program that will appeal to the largest number of buyers.
Most modern marketers have strong doubts about this strategy. Difficulties arise in developing a product or brand that will satisfy all consumers. Moreover, mass marketers often have trouble competing with more focused firms that do a better job of satisfying the needs of specific segments and niches.
Since “Quench-It” is targeting the entire smoking population of India we are not concerned with different segments.
Positioning:
“Positioning is the act of designing, the company’s so that it occupies a distinct and valued place in the target customers’ minds.” -Philip Kotler.
The importance of positioning is that your brand or product should occupy a particular space continuously in the consumers’ mind. It is called renting mind space, and not let your rivals dislodge you.
Positioning is based on some Unique Selling Proposition (USP). It is normally based on some unique feature of the product, brand, some unique feature of the market or some feature of the competition.
Steps included in product positioning:
1. Product differences- “Quench-It” is completely different, cheaper and efficient than any other anti-smoking products available in the market.
2. Image of the company- Our Company stands out amongst the many other manufacturers of chewing-gums and confectionaries and it is well known for its brands all over India. We give importance to the consumers’ needs and always serve the society responsibly.
Segmentation, Targeting and Positioning
Segmentation:
Dividing market into smaller groups of buyers’ distinct needs, characteristics or behaviour who might require separate products or marketing mixes.
It is based upon the modern marketing concept i.e. market oriented strategy and philosophy. Segmentation gives special emphasis on the demand side of the market. It is used for achieving maximum market response for limited marketing resources by recognising differences in the response characteristics of various parts of the market. It is the strategy of divide and rule.
Types of market segmentation:
Demographic segmentation:
Age: 15-19; 20-34; 35-49; 50-64; 65+
Gender: Male and Female
Income: Below 5000; 5000-15000; 15000-30000; 30000-60000; 60000-100000; 100000+
Occupation: Students, clerical jobs, business class people, call centre employees.
Education: Literate and Illiterate
Religion: Hindu, Muslim, Catholic, Jewish
Psychographic segmentation:
Social Class: Lower class, Working class, Middle class, Lower upper class and Upper Uppers
Lifestyle Achievers, Strivers, Survivors
Personality: Compulsive, Gregarious, Authoritarian, Ambitious
Geographical segmentation
For “Quench-It”, Quintessence Pvt. Ltd has decided to open centers in the following 3 place
• Delhi – 1 center
• Kolkata – 1 center
• Chennai – 1 center
Chennai, Delhi, and Kolkata were selected because they are thriving metropolises with large populations and opening distribution centers in these cities cover a large population of smokers.
Chennai and Bangalore on the other hand are not as dense as the other three when it comes to population; however they have been included to set up our distribution centers because they have a high population of middle and upper class people.
Depending on the response we receive from these 4 places we will expand geographically and within a short span of time we will go international also.
Targeting:
Target Market: It is the set of buyers sharing common needs or characteristics that the company decides to serve.
Undifferentiated Marketing:
In undifferentiated (or mass marketing) strategy, a firm might decide to ignore market segment differences and target the whole market with one offer. This mass-marketing strategy focuses on what is common in the needs of consumers rather than on what is different. The company designs a product and a marketing program that will appeal to the largest number of buyers.
Most modern marketers have strong doubts about this strategy. Difficulties arise in developing a product or brand that will satisfy all consumers. Moreover, mass marketers often have trouble competing with more focused firms that do a better job of satisfying the needs of specific segments and niches.
Since “Quench-It” is targeting the entire smoking population of India we are not concerned with different segments.
Positioning:
“Positioning is the act of designing, the company’s so that it occupies a distinct and valued place in the target customers’ minds.” -Philip Kotler.
The importance of positioning is that your brand or product should occupy a particular space continuously in the consumers’ mind. It is called renting mind space, and not let your rivals dislodge you.
Positioning is based on some Unique Selling Proposition (USP). It is normally based on some unique feature of the product, brand, some unique feature of the market or some feature of the competition.
Steps included in product positioning:
1. Product differences- “Quench-It” is completely different, cheaper and efficient than any other anti-smoking products available in the market.
2. Image of the company- Our Company stands out amongst the many other manufacturers of chewing-gums and confectionaries and it is well known for its brands all over India. We give importance to the consumers’ needs and always serve the society responsibly.