Dr. Ritesh Dalwadi

This learning material is prepared from various published (both print and online) sources for class discussion and teaching purpose only. Feel free to contact me at email.dalwadi@gmail.com for further information.

STP Strategies in Marketing Planning

Customers exhibiting a wider variety of: Needs, Attitudes, Behaviors, Tastes, and Interests.

Marketers Face Fragmented and Diverse Markets

The Need for Segmentation, Targeting,

and Positioning

Focus on resources to grab the most promising opportunities.

Develops marketing efficiency and effectiveness.

Notice changes in the segment and to respond more quickly.

The process of grouping customers within a market according to similar needs, habits, or attitudes that can be addressed through marketing.

Even within a large segment, marketers often can identify niches.

Market Segmentation

Segmentation Process

1. Select the market

2. Apply segmentation variables.

3. Assess and select segments for targeting.

Business Segmentation Variables

Type of Variable ExamplesBehavioral and Attitudinal

Purchasing patterns and process, user status, benefits expected, order size/frequency, buyer/influencer/user attitudes.

Demographic Industry, business size, business age, ownership structure.

Geographic Location, distance, climate.

Step 3: Assessing and Selecting Target Markets

Target Market: The segment of the overall market that a company chooses to pursue.

Each potential segment must be evaluated based upon fit with the firm’s:

ResourcesGoalsMissionPriorities

Assessing Segment Attractiveness

Source: Graham Hooley, Nigel F. Piercy, and Brigitte Nicoulaud, Marketing Strategy and Competitive Positioning, 5th ed. (Harlow, England: FT Prentice Hall 2012), Fig. 10.3, p. 245.

Coverage Strategies

Undifferentiated

(mass)

marketing

Undifferentiated

(mass)

marketing

Differentiated

(segmented)

marketing

Differentiated

(segmented)

marketing

Concentrated

(niche)

marketing

Concentrated

(niche)

marketing

Micro-marketing

(individual)

Marketing

Micro-marketing

(individual)

Marketing

Targeting broadly Targeting narrowly

Segment Personas

Personas: Detailed but fictitious profiles representing how individual customers behave, live, and buy.

Give marketers a deeper understanding of what shapes each segment’s needs, preferences, buying behavior, and consumption patterns.

Positioning for Competitive Advantage

Positioning: Differentiation on the basis of attributes that customers find meaningful, relevant, important, and superior.

Conveys the value that the brand provides and sets the brand apart.

Sets the tone for the marketing plan.

Should be reevaluated periodically.

Meaningful DifferentiationSome sources of meaningful differentiation:

Product features

Service attributes

Channel attributes

Pricing attributes

Other attributes