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Markets are not homogeneous. Consumers differ in needs, income, lifestyle and preferences. So firms divide the market into groups and then choose which group to serve.
This is called STP:
STP helps a company avoid “one product for all” mistakes and improves marketing efficiency.
You should be able to:
Consumers differ in:
So, one marketing mix cannot satisfy everyone equally.
Segmentation is dividing the total market into smaller groups (segments) of consumers who have similar needs or behavior and respond similarly to marketing efforts.
Common bases:
Quick table:
Segments should be:
Mnemonic: MSADA (Measurable, Substantial, Accessible, Differentiable, Actionable).
Targeting is selecting one or more segments to serve, based on attractiveness and company strengths.
Write/draw this flow in exams:
Market → Segment (divide) → Target (select) → Position (differentiate) → Marketing mix (4Ps)
Positioning is creating a distinct image of the brand in the consumer’s mind relative to competitors.
“For (target segment), Brand X is (point of difference) because (reason to believe).”
Example: For students, Brand A is a value smartphone with long battery because it offers 6000mAh + 1-year warranty at a low price.
A perceptual map shows how consumers perceive brands on two attributes.
Example (Phone market):
Brands can be plotted to see “gaps” and competition. Firms may reposition by changing features, price or communication.
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Markets are not homogeneous. Consumers differ in needs, income, lifestyle and preferences. So firms divide the market into groups and then choose which group to serve.
This is called STP:
STP helps a company avoid “one product for all” mistakes and improves marketing efficiency.
You should be able to:
Consumers differ in:
So, one marketing mix cannot satisfy everyone equally.
Segmentation is dividing the total market into smaller groups (segments) of consumers who have similar needs or behavior and respond similarly to marketing efforts.
Common bases:
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Benefits of segmentation (any three):
Hence, segmentation helps a firm compete better and avoid “one offer for all”.
Any three bases with examples:
Different bases help identify groups that respond differently to marketing.
STP is a strategic approach to match offerings with specific customer groups: Segmentation → Targeting → Positioning.
Market → Segment (divide) → Target (select) → Position (differentiate) → Marketing mix (4Ps)
STP improves focus, reduces wastage in marketing spend and increases customer satisfaction.