Market segmentation targeting and positioning by philip kotler pdf
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- Segmentation, Targeting, and Positioning
- Market segmentation
- Culture and Positioning as Determinants of Strategy
In marketing , segmenting, targeting and positioning STP is a broad framework that summarizes and simplifies the process of market segmentation. Segmenting a market has widely been debated over the years as researchers have argued over what variables to consider when dividing the market. Approaches through social, economic and individual factors, such as brand loyalty, have been considered  along with the more widely recognized geographic, psychographics, demographic and behavioral variables proposed by Philip Kotler.
Segmentation, Targeting, and Positioning
In marketing , segmenting, targeting and positioning STP is a broad framework that summarizes and simplifies the process of market segmentation.
Segmenting a market has widely been debated over the years as researchers have argued over what variables to consider when dividing the market. Approaches through social, economic and individual factors, such as brand loyalty, have been considered  along with the more widely recognized geographic, psychographics, demographic and behavioral variables proposed by Philip Kotler.
They must, however, avoid over-fragmenting the market as the diversity can make it difficult to profitably serve the smaller markets. There are two approaches to segmenting a market — a discovery approach or an analytic approach.
Each approach is appropriate to the type of business and market they are approaching. An analytic approach is a much more research and data based approach, where two sets of information are derived and used to segment the market. The first approach gives them an idea on the future growth of the segment, and whether its investment outcome is worthwhile. This, therefore, will usually be done in advance. The second approach is more based around the observation of the buying behaviours of the segment and is more based around primary research.
The discovery approach is more suited to a market with a limited customer base, and the process of discovering segments is based on interest in the offer or a similar offer the business may be able to provide. Both approaches can benefit from elements of the other and, in most situations, work well in unison with each other when determining a profitable and defined segment. Targeting is a follow on process from segmentation, and is the process of actually determining the select markets and planning the advertising media used to make the segment appealing.
Traditional targeting practices of advertising through print and other media sources, has made way for a social media presence, leading a much more 'web-connected' focus. This process is based around the collection of 'cookies', small pieces of information collected by a consumer's browser and sold to businesses to identify potential segments to appeal to.
Undifferentiated marketing is the best option to focus on the market as a whole and to promote products that have a wide target segment, whilst differentiated and niche marketing are more specialized and focus on smaller, more selective segments. Positioning is the final stage in the 'STP' process and focuses on how the customer ultimately views your product or service in comparison to your competitors and is important in gaining a competitive advantage in the market.
There are three types of positioning that are key in positioning the brand to a competitive advantage; these are functional positioning, symbolic positioning, and experiential positioning. Symbolic Positioning is based on the characteristics of the brand that fulfill customers' self-esteem. Experiential positioning is based around the characteristics of the brands that stimulate the sensory or emotional connection with the customers. A combination of the three is key to positioning the brand at a competitive advantage to its immediate competition.
The process described above can be used for both business-to-customer as well as business-to-business marketing. Although most variables used in segmenting the market are based on customer characteristics, business characteristics can be described using the variables which are not depending on the type of buyer.
There are however methods for creating a positioning statement for both B2C and B2B segments. From Wikipedia, the free encyclopedia. Segmentation comprises identifying the market to be segmented; identification, selection, and application of bases to be used in that segmentation; and development of profiles.
Targeting is the process of identifying the most attractive segments from the segmentation stage, usually the ones most profitable for the business. Further information: Market analysis and Market segmentation. Further information: Target market. Further information: Positioning marketing. Further information: Industrial market segmentation. Market segmentation in hospitality research: no longer a sequential process.
Marketing, Planning and Strategy. New Jersey: Prentice Hall International. Business to Business Marketing.
Mason, Ohio: South-Western publishing. Marketing: Defined, Explained, Applied. New Jersey: Pearson Education Inc. Warszawa: Springer Berlin Heidelberg. Hamburg, Germany: Diplomica Verlag. Kotler on Marketing: How to create, win and dominate markets. Categories : Market segmentation. Namespaces Article Talk. Views Read Edit View history.
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Subsumption and Integration of Market Segmentation 2. Into the Marketing Strategy Conception 2. Into the European Environment 2. Into the Historical Context. Levels of Market Segmentation 5.
What does consumer like or dislike? What are consumers activities, opinions, and interests? A sense of belonging, excitement, fun and enjoyment in life, self-fulfillment, being well respected, warm relationship, security, accomplishment and self respect Swatch targets those with an active lifestyle Consumer Business International Geographic segments Psychographic Typically done first Using multiple variables Behavioral Segmentation Variables Occasions Benefits User Status User Rates Loyalty Status Readiness Stage Attitude Toward the Product Needs and benefits are Graphic Designer Student the characteristics or attributes of a product that consumers seek or consider important. Buyers can be grouped according to occasions when they get the idea to buy or actually make their purchase. Consumer Business International Geographic segments Psychographic Using multiple variables Consumer Business International Industry, company size, location Operating variables Technology, usage status, customer capabilities Purchasing approaches Situational factors Urgency, specific application, size of order Personal characteristics Buyer-seller similarity, attitudes toward risk, loyalty 4.
The STP model is a central concept in marketing that is absolute key to serving a market successfully. STP refers to three activities: segmentation, targeting, and positioning. Marketers segment markets and identify attractive segments to target, before developing suitable positioning strategies and allocating resources to prioritise marketing activities. The use of the STP model has become more and more popular because of the increasing prevalence of mature markets, greater diversity in customer needs, and the ability to reach niche segments. The STP model starts with dividing up the market, which is called market segmentation.
develop the offer's value positioning. The formula - segmentation, targeting, positioning (STP) -. is the essence of strategic marketing." (Kotler.
Culture and Positioning as Determinants of Strategy
Market segmentation is a process of dividing a heterogeneous market into relatively more homogenous segments based on certain parameters like geographic, demographic, psychographic, and behavioural. It is the activity of dividing a broad consumer or business market , normally consisting of existing and potential customers , into sub-groups of consumers known as segments based on some type of shared characteristics. In dividing or segmenting markets, researchers typically look for common characteristics such as shared needs, common interests, similar lifestyles, or even similar demographic profiles.
Advantages of Segmentation pp - Competitor offerings and marketing positioning must also be analysed in this context so the company must consider what its competitive advantages and disadvantages are, helping it to clarify its own positioning strategy 3. Steps in Segmentation, Targeting, and Positioning. Select Target Segment s Market 3. Develop Selection Criteria Targeting.