MARKET SEGMENTATION,
TARGETING & POSITIONING
Strategies for effective marketing
INTRODUCTION
Market Segmentation Targeting Positioning
Market segmentation is a Targeting is a marketing strategy Positioning is the process of
marketing technique that involves that involves identifying and influencing how a market segment
grouping prospective buyers into selecting a specific group of people perceives a brand, product, or
segments with similar needs and to receive a marketing message. service. It involves developing a
responses to marketing. strategy to establish a brand's
image or identity in the minds of
Targeting helps marketers deliver consumers.
Market segmentation can help more relevant, personalized, and
companies target their product, effective marketing messages to
sales, and marketing methods. It their audience. It also helps The goal of positioning is to
can also apply to inventory, increase the effectiveness of the make a product unique and make
location, and hiring-based campaign. the users consider using it as a
decisions. distinct benefit to them.
MARKET
SEGMENTATION-
Market segmentation can be
defined as the process of dividing
the total heterogenous market into
relatively homogeneous sub groups
of consumers with similar needs.
MARKET
TARGETING-
Market targeting is the process of
evaluating each identified market
segment’s attractiveness and
selecting which segment to enter.
MARKET
POSITIONING-
Market positioning is a strategic
exercise we use to establish the
image of a brand or product in a
consumer's mind.
EXAMPLE OF SUCCESSFUL POSITIONING
• The company has implemented a strong brand
positioning strategy that has helped it to
maintain a dominant position in the fast-food
industry.
• McDonald's brand positioning strategy
revolves around the idea of providing "good
food, fast.
• The company positions itself as a quick and
convenient option for customers looking for a
satisfying meal on the go.
• This is reflected in its slogan "I'm Lovin'
It," which emphasizes the emotional
connection customers have with the brand.
INTEGRATION OF STP-
Today, the STP marketing model (Segmentation, Targeting, Positioning) is a familiar
strategic approach in modern marketing. It is one of the most commonly applied
marketing models in practice, with marketing leaders crediting it for efficient, streamlined
communications practice. STP marketing focuses on commercial effectiveness, selecting
the most valuable segments for a business and then developing a marketing mix and
product positioning strategy for each segment.
The STP model is useful when creating marketing communications plans since it helps
marketers to prioritize propositions and then develop and deliver personalized and
relevant messages to engage with different audiences. The three-step funnel consists of
market segmentation, market targeting, and product positioning. Within your research-
based market segmentation phase, you are aiming to identify a basis for the segmentation
of your target customers and determine important characteristics to differentiate each
market segment. When creating your targeting and positioning strategy, you must evaluate
the potential and commercial attractiveness of each segment, and then develop detailed
product positioning for each selected segment, including a tailored marketing mix based
on your knowledge of that segment.
CHALLENGES IN IMPLEMENTATION
& HOW TO OVERCOME THEM-
CASE STUDY- COCA COLA
Market Segmentation of Coca-Cola Targeting Positioning of Coca-Cola
Coca-Cola's market segmentation focuses on four various
elements, namely geographic, demographic, psychographic, Coca-Cola's targeting strategy is broader, not only Coca-Cola, it positions its products as thirst-
and behavioral. Coca-Cola might have originated from the because of its global presence in the market but quenching and refreshing. The products they offer are
United States, but it has expanded its brand to various countries also with the several products that they provide. said to bring joy to its target market. The drinks and
across the globe over the years. The company's geographic other products from Coca-Cola are also associated
segmentation aims to drive the market into different There is also the need to satisfy various customers,
geographical units, including cities, regions, and ranging from average to health-conscious ones. with having a great time with family and friends
neighborhoods. While Coca-Cola might be focusing on urban The primary target of Coca-Cola is younger while enjoying daily life. Additionally, the company
and suburban areas, it also ensures a countrywide product customers within the age bracket of 10-25 and a also markets its products consistently and of
distribution network. This is the realization that as the company
secondary market composed of people aged 25-40. premium quality.
expands, there is a demand from those in rural areas.
Meanwhile, the demographic segmentation of Coca-Cola is The company targets the market that desires an For those looking for high-quality drinks, one of the
divided into sub-segments based on various variables like age, intense flavor with their regular cola drinks in names that will surely come into their minds will be
occupation, family life cycle, race, religion, generation, social Coca-Cola. The company has an extensive selection
class, and nationality. These variables are the most popular terms of taste. Meanwhile, diet cola drinks and
of refreshments; each offers a positive experience for
basis of Coca-Cola to distinguish customer groups. The their variants target those customers that are health consumers. In contrast to other beverage brands,
psychographic element of the Coca-Cola market segmentation conscious. Coca-Cola campany has also expanded Coca-Cola brands itself as a product that provides
is categorized into different groups based on lifestyle, its product to non-cola beverages to target those
personality, or values. happiness and positive in customers' lives.
not fond of drinking its regular cola drinks. A Ultimately, the company's primary focus is to cater to
The behavioral variable is the final element in Coca-Cola's Coca-Cola product such as Sprite is specifically
marketing segmentation. It generally focuses on the customers' the needs and preferences of its global customers.
knowledge of, use of, response, and attitude toward its designed to target teens and college students, while
products. Most marketers treat the behavioral variables as others target the young working group.
excellent starting points for formulating market segments.
SUMMARY
Segmenting, targeting and positioning are central elements of a marketing plan. The success
of marketing efforts depends on the ability of marketers to identify and choose appropriate
segments to target. Generally segmentation bases can be demographic, geographic,
psychographic and behavioral. The main methods of segmentation discussed here are the
perceptions of value, aesthetics and consumers likelihood to change products and brands. I
have identified that VW focuses its marketing efforts on consumers seeking value in
economical savings, reliability, durability and prestige. Aesthetic concepts such as style are
also mentioned and are used to differentiate types of consumers. They target these segments
because they are profitable and sustainable. VW then positions its products so the consumer
perceives them as satisfactory. The main advantages of segmentation, targeting and
positioning is the economy of scale. The firm could save money on advertising and logistics
by focusing on fewer consumers. Another benefit is the identification of marketing
opportunities or new consumer groups.
The disadvantages may include the financial expenses occurred in engaging and segmenting
the market. Limited market coverage also means that marketers wont be able to reach the
entire market. A brand offering multiple products to similar segments run the risk of
cannibalization of their segments.
THANK YOU!
NAME- Avika Gupta
CLASS- X-A
ROLL NO- 7
