Claras College Of Commerce

Academic year : 2015-16

Name: Girish G. Poojary
Roll No: 35
Name Of The Program: B.M.S
Class: T.Y.B.M.S
Semester: Semester V
Name Of The Course: Service Sector Management
Name Of The Faculty: Prof. Amit Bansod

CERTIFICATE

This is to certify that the project report titled Segmentation

marketing and targeting is prepared by Mr. Girish G. Poojary,
Student of the Bachelor of Management Studies (BMS)
Degree, University of Mumbai conducted by our college
Important sources used in this have been duly
acknowledged in this report. The project report is submitted in
partial fulfillment of the Bachelor of Management Studies
(BMS) Degree, curriculum as per the rules of the University of
Mumbai.

(Dr Mamta Rajani)

BMS co-ordinator

(Dr Zahida Shaikh)

principal

INDEX

SR.NO

TOPIC

Introduction to STP

Segmentation /process

Targeting /process

Positioning /process

SIGN

Segmentation, Targeting and Positioning

Introduction

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 first step in the process of product promotion is 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.

The Basics of Market Segmentation

An organization can choose to sell to everyone in the market or it can choose to segment a large
market into smaller groups.

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.

Why Subdivide Markets?

Globalization, increased numbers of competitors, more diversity among customers,
technology, and other factors encourage the use of segmentation strategies to reach more
narrowly defined customer segments with highly targeted marketing mixes.

Customer Value and Target Marketing

Customer satisfaction is related closely to value as perceived by the customers
themselves; organizations must not only deliver value to their customers but also do so better
than the competition.

Steps in the Segmentation Process

Five major steps are involved in dividing markets into meaningful segments, although
these steps and their description may vary from one situation to another.

Define and analyze the market

Determine market parameters (based on characteristics that may include or
exclude customers from a group) within organizations mission and business definition,
as well as its strategic intent.

Identify and describe potential segments

Decide on the most useful dimensions or variables for selecting members of
potential market segments; then aggregate customers into homogeneous groups,
develop a profile of the characteristics of each group, etc.

Select the segment(s) to be served

Select segments by evaluating against predetermined criteria, then rank
according to the organizations ability to serve the market profitably while providing
customer satisfaction.

Determine the product positioning strategy

Determine the best fit between a product and a market according to features
most desired by customers; consider competitors positioning strategies, organizational
goals, and the market situation.

Design and implement the marketing program

Develop a tactical plan (marketing mix) and determine objectives for the
marketing program; all elements of the marketing mix must be consistent with the
selected positioning strategy

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.

Steps in targeting process

Define your target market

The first step you need to take is to define your target market. Having a clear
profile of your target customers will help you weed out the maybes and nevers, and
ensure that your marketing activities are targeted and cost-effective.

Reach your target market

You now need to give consideration to how you are going
to reach your target audience. Having spent time on profiling your
target market, you should find this step of the process much easier.

Identify what type of customers they are

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.

Tailor your marketing to your customers

When you really understand who youre talking to, you can ensure that all your
communications are on-message and sent using the right channels and media. Using the
intelligence you have gained in the right way ensures that your marketing budget has the
most impact, and is much more likely to lead to high value sales, and loyal, repeat
customers.

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.

Steps in the Positioning Process

Identify the target market.

Determine specific customer wants, needs, benefits desired.

Analyze attributes and perceived images of present and potential competitors.
Compare your position and that of competitors on each dimension valued by customers
(perceptual mapping).

Identify a unique position that offers desired benefits to target market that are not offered
by competitors.

Design marketing program to communicate benefits and persuade customers.

Continue to assess/reassess present and potential target markets, competitors, and
marketing efforts.

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/