STPD STRATEGIES

Presented by:Akshay Gaykar Satish Kannoujiya Amol Gambhirrao Gaurav Navale

SEGMENTATION STRATEGIES

 There are many ways in which a market can be

segmented. A marketer will need to decide which strategy is best for a given product or service. Sometimes the best option arises from using different strategies in conjunction. Approaches to segmentation result from answers to the following questions: where, who, why and how?

 Approaches to subdivision of a market or

population into segments with defined similar characteristics. Market Segmentation Strategies How a market is segmented is based on variables used for segmentation; behavioral, demographic, psychographic and geographical differences.

Bases for Segmenting Consumer Markets

Geographic Region, City or Metro Size, Density, Climate

Demographic
Age, Gender, Family size and Fife cycle, Race, Occupation, or Income ...

Psychographic Lifestyle or Personality Behavioral Occasions, Benefits, Uses, or Attitudes

Four major segmentation strategies are

Behaviour segmentation,

Demographic segmentation,
Geographic segmentation, and Psychographic segmentation

Behavioural Segmentation:
Behavioural segmentation is based on the

customer's needs and subsequent reaction to those needs or toward the purchase of intended products and/or services. This study is conducted on all variables that are closely related to the product itself, like loyalty to a particular brand, cost effectiveness in terms of benefits and usage, circumstances responsible for the purchase, whether the customer is a regular, a first timer or and has the potential to become a customer, and whether the readiness to buy is linked to status.

Psychographic Segmentation
Segmenting people according to their lifestyles

and values, and how they translate into consumption or purchases of products of services is what psychographic segmentation is all about. How one's interest, opinions, values, attitude and the activities they perform, all affects how and why a group of people would lean towards one product more than others. A high status would translate into an expensive flying habit, while a thrift value will translate into an economy flight.

Geographical Segmentation
Geographical segmentation is done by dividing

people (markets) into different geographical locations. The country, state, or neighborhood, the king of gentry, climate, size of a place segmented into size of its age wise population, etc. all play a role in devising market strategies. This helps the producer and the marketers to understand what will sell and what won't, for example, a market for winter wear would definitely not work in warm regions.

Demographic Segmentation
Demographic segmentation refers to a wide study of

the potential customers. While marketing a product many variables like age, gender, education, income, size of the family, occupation, socioeconomic status, culture and religion, language and nationality are taken into account. There are many instances where such a segmentation has worked very profitably, toys and clothes for every age group, certain food products that do well in certain counties and don't in some, either due to cultural or religious reasons. Demographic segmentation plays a vital role in determining whether a product can be mass marketed or designed for specific clientele.

Targeting Strategies

 Targeting strategies are generally used in terms

of advertising as ways to maximize sales profits by directing marketing projects directly at the most likely consumer base. There are several different targeting strategies but the basic goal of each remains the same, to identify the target market or audience who is most likely going to be interested in buying your product so that you reach the people who will make a purchase. In general, the aim is to spend money reaching only consumers who want your services instead of a wide audience out of which only a few people may be interested in your services or products.

Some of the most popular and frequently used targeting strategies are :
Consumer marketing strategy,

Behavioural targeting,
Contextual targeting, and Segment marketing The common link of most of these targeting

strategies is based around identifying the needs of your target audience and tailoring your marketing efforts so that you meet their needs and wants.

Consumer Marketing Strategy

Consumer marketing strategy is the best way to

optimize your advertising and pr team. In order to maximize your profits from advertising you need to ensure that your target audience is receiving the proper information about your product or service. At the core of consumer marketing strategy is a focus on your consumers wants and needs. They need to feel as if you are concerned with their well being and see this reflected in the product offerings you have for them.

Behavioural Targeting
Behavioral targeting is a technique used by

online publishers and advertisers to increase the effectiveness of their campaigns. Behavioral targeting uses information collected on an individual's web-browsing behavior, such as the pages they have visited or the searches they have made, to select which advertisements to display to that individual. Practitioners believe this helps them deliver their online advertisements to the users who are most likely to be interested.

Contextual targeting
Contextual targeting is the practice of aiming your

advertising efforts directly at the audience who is interested in your product. The aim of contextual targeting is to place your advertisements on web pages that deal specifically with your product so that you reach only consumers who are interested in your product or service instead of a wide range of people who may have little interest in what you are selling.

Segment marketing
Segment marketing is the practice of defining your

customers needs and wants by placing them in specialized groups that receive different attention and different levels of marketing. The way customers are segmented by a company can vary from business to business but generally include areas such as income, regional location, sex, socioeconomic factors, and previous buying or business associations. Once the groups are designed, the object of segment marketing becomes unified; to offer customers marketing strategies and offers that are designed with their group characteristics in mind to

 The concept behind segment marketing is that if

you can identify the needs of your consumers by groups then you can direct your marketing efforts to make a larger impact Segment marketing is aimed at addressing consumers needs without forcing them to look for items that they desire. When you place the appropriate service or project dressed in a marketing effort they appreciate and with a price tag that meets their expectations you can watch your marketing sales profits skyrocket, but it is not an overnight process.

 The process of target marketing is the

manipulation of the marketing mix such that a distinctive product is made available for each chosen market segment. It involves formulating market coverage policies that determine the segments of the market that present the best opportunities.

Positioning Strategy

 Positioning is a strategy of differentiating

your product from that of the competition, in the mind of the prospect. A positioning strategy may be developed from the products attributes, its specific uses, the type of uses, the product class or category, or the competition. Each of these represents a different approach to developing a positioning strategy. However, all of them have the ultimate objective of developing or reinforcing an image in the minds of the audience.

Developing a Positioning Strategy

While a company can create many differences, each

difference created has a cost as well as consumer benefit. A difference is worth establishing when the benefit exceeds the cost. More generally, a difference is worth establishing to the extent that it satisfies the following criteria. Important: The difference delivers a highly valued benefit to a sufficient number of buyers. Distinctive: The difference either isn't offered by others or is offered in a more distinctive way by the company. Superior: The difference is superior to the ways of obtaining the same benefit. Communicable: The difference is communicable and visible to the buyers. Preemptive: The difference cannot be easily copied by competitors. Affordable: The buyer can afford to pay the higher price

Positioning
Positioning is the result of differentiation

decisions. It is the act of designing the company's offering and identity (that will create a planned image) so that they occupy a meaningful and distinct competitive position in the target customer's minds. The end result of positioning is the creation of a market-focused value proposition, a simple clear statement of why the target market should buy the product.

Different positioning strategies or themes

Attribute positioning: The message highlights one

or two of the attributes of the product. Benefit positioning: The message highlights one or two of the benefits to the customer. Use/application positioning: Claim the product as best for some application. User positioning: Claim the product as best for a group of users. - Children, women, working women etc. Competitor positioning: Claim that the product is better than a competitor. Product category positioning: Claim as the best in a product category Ex: Mutual fund ranks Lipper. Quality/Price positioning: Claim best value for price

There are six basic strategies for product positioning:

By attribute or benefit- This is the most frequently used positioning

strategy. For a light beer, it might be that it tastes great or that it is less filling. For toothpaste, it might be the mint taste or tartar control. By use or application- The users of Apple computers can design and use graphics more easily than with Windows or UNIX. Apple positions its computers based on how the computer will be used. By user- Facebook is a social networking site used exclusively by college students. Facebook is too cool for MySpace and serves a smaller, more sophisticated cohort. Only college students may participate with their campus e-mail IDs. By product or service class- Margarine competes as an alternative to butter. Margarine is positioned as a lower cost and healthier alternative to butter, while butter provides better taste and wholesome ingredients. By competitor- BMW and Mercedes often compare themselves to each other segmenting the market to just the crme de la crme of the automobile market. Ford and Chevy need not apply. By price or quality- Tiffany and Costco both sell diamonds. Tiffany wants us to believe that their diamonds are of the highest quality, while Costco tells us that diamonds are diamonds and that only a

Differentiation Strategy

Differentiation
Definition: is the act of designing a set of

meaningful differences to distinguish the company's offering from competitor's offerings.

Five Dimensions of Differentiation

Product

Services that accompany marketing, sales and

after sales services. Personnel that interact with the customer Channel Image

Differentiating a Product
Features Quality: performance and conformance Performance - the performance of the prototype or

the exhibited sample, Conformance - The performance of every item made by the company under the same specification Durability Reliability Reparability Style Design

Services differentiation
Ordering ease

Delivery
Installation Customer training Customer consulting Miscellaneous services

Personnel Differentiation
Competence

Courtesy
Credibility Reliability Responsiveness Communication

Channel differentiation
Coverage

Expertise of the channel managers

Performance of the channel in ease of ordering,

and service, and personnel

Image differentiation
First distinction between Identity and Image - Identity is

designed by the company and through its various actions company tries to make it known to the market. Image is the understanding and view of the market about the company. An effective image does three things for a product or company. It establishes the product's planned character and value proposition. It distinguishes the product from competing products. It delivers emotional power and stirs the hearts as well as the minds of buyers. The identity of the company or product is communicated to the market by Symbols Written and audiovisual media Atmosphere of the physical place with which customer comes into contact Events organized or sponsored by the company.

Fast Track
Segmentation- Gender-male,female,fashion

obsessed youngsters. Targeting- 18-30 yrs old, Earlier Fast Track was targeted at 20-25 years olds. Then the company found out that the youth in the age group of 11-20 years account for 42% of watch buying in India. Positioning: 18-30 yrs old- how many you have? 20-25 years old- cool watches from Titan. Differentiation- cool mesh straps,wrist hugging cases,oversized displayes.

Hero Honda Pleasure

Segmentation- Gender female,

scooter-gear less scoter. Targeting The company is targeting Ladies and ladies only,age group 1835. Positioning- Pleasure is positioned as a pleasure scooter. Why should boys have all the fun? Differentiation- 21 exclusive For her showrooms in the country operated and managed by women employees.

Frooti
Segmentation- Pan India,

people who prefer fruit drink against soft drinks. Targeting- youth aged between 16-21. Positioning- A mango drink that is fresh-n-juicy . Differentiation- first tetrapack fruit juice in india, green mango variant.

Mahindra Scorpio
Segmentation- people who

prefer a sturdy vehicle with luxury and comfort. Target- High income families in class I and II cities, in Metros. Positioning- nothing else will do luxury of a car and Thrill of a SUV. Differentiation- combined benefits of an SUV and a Car.