Transcript Lecture 12-Segmentation Targeting and Positioning.ppt

MGT-519
STRATEGIC MARKETING
AAMER SIDDIQI
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LECTURE 12
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RE-CAP
• Introduction to STP
• STP Model
• Definition of Segmentation
• 3 Approaches to Marketing in STP
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VARIABLES FOR SEGMENTATION
• Following are the common kinds of variables for segmentation
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Geographic variables refer to location
Include region of the world, continent or country,
East/West/North/South/Central/Coastal/Upland
Country size, area size & type
Urban, rural, semi-urban, town, village, city and
Importantly climate, Hot, Cold, Humid, Arid, Rainy
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VARIABLES FOR SEGMENTATION (CONT’D)
• Demographic variables
• Refer to personal statistics
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Income
Age
Gender
Education
Occupation
Ethnicity
Religion
Nationality/race
Language and
Family size
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VARIABLES FOR SEGMENTATION (CONT’D)
• Psychographic variables
• Take this a step farther
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Segment on
lifestyle
attitudes
personality
values
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VARIABLES FOR SEGMENTATION (CONT’D)
• Behaviour is another basis for segmentation.
• Some consumers are “brand loyal”,
• Tend to stick with their preferred brands even when a
competing one is on sale.
• Some consumers are “heavy” users while others are “light”
users; classic examples for this are smoking and soft drinks
– Buying status
– Buying role
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VARIABLES FOR SEGMENTATION (CONT’D)
• Segmentation by usage occasion
• Similar to behaviour but focuses on when the product is used,
e.g. Wedding dresses
• Segmentation on benefits sought,
• Special form of behavioural segmentation
• Essentially bypassing demographic explanatory variables, e.g.
soap powder on better whitening, or non-run of colours
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EFFECTIVE SEGMENTATION
• Effective segmentation is achieved when customers sharing
similar patterns of demand are grouped together and
• Each group or segment differs in the pattern of demand from
other segments in the market
• Theoretically, the base(s) used for segmentation should lead
to segments that are:
1. Measurable/identifiable
2. Accessible
3. Meaningful
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EFFECTIVE SEGMENTATION (CONT’D)
MEASURABLE/IDENTIFIABLE
• Should lead to ease of identification in terms of who is in each
segment
• Measurement in terms of the potential customers in each
segment
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EFFECTIVE SEGMENTATION (CONT’D)
ACCESSIBLE
• The base used should ideally
– lead the company being able to reach selected market
targets with their individual marketing efforts
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EFFECTIVE SEGMENTATION (CONT’D)
MEANINGFUL
• Must lead to segments which have different preferences or
needs
• Show clear variations in market behaviour and
• Response to individually designed marketing mixes
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EFFECTIVE SEGMENTATION (CONT’D)
SUBSTANTIAL
• The base(s) used should lead to segments which are
sufficiently large
– to be economical and
– practically worthwhile
• Serving as discrete market targets with a distinctive marketing
mix.
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SUMMARY
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Introduction to STP
STP Model
Definition of Segmentation
3 Approaches to Marketing in STP
Variables For Segmentation
Effective Segmentation
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THANKYOU
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