PROCESS OF STP
1. Segmentation
2. Targeting
3. Positioning
1. SEGMENTATION
 SEGMENT – part of market
 Groups that have similar characteristics
and behavior are called MARKET
SEGMENTS.
 Development of technologies enables
better adjusting of services offer
according to the different segments
requirements.
THE SEGMENT SHOULD BE:
 Enough large
 Measurable
 Stable
 Similar (homogeneous) within the
group and dissimilar
(heterogeneous) across the different
group
WHY SEGMENTATION?
 Meet consumer needs more precisely.
 Increase profits.
 Segment leadership.
 Retain customers.
 Focus marketing communications.
B2C: SEGMENTATION CRITERIA
 Demographic – organization provides
products and services only to segments
chosen on the bases of age, sex, marital
status, education level, disposable income,
occupation, religion etc.
 Geographic – organization decides to provide
the products only in limited area (cities x
villages, seaside area x inland etc.).
 Behavioural – differentiation according to
preferences, personality, lifestyle, buying
methods, …
B2B: SEGMENTATION
CRITERIA
Size of firm (employees, sells, …)
Industry branch
Location etc.
2. TARGETING
 TARGET SEGMENT – part of market
which is selected by firm.
 MARKET NICHE – there is a demand for
some product but there is no supply on
the market.
 Specific x economically advantageous
segments today???
 Customization x Mass customization
FIRMS TYPICALLY CHOOSE FROM THE
FOLLOWING TARGETING STRATEGIES:
 Undifferentiated targeting, through which the
firm directs the same marketing mix (same
product, price, distribution, marketing
communication) at all potential customers.
 Differentiated targeting, through which the
firm offers a unique marketing mix to each
distinct segment, a mix tailored to the needs
and wants of consumers in those segments.
 Concentrated (Niche) targeting,
through which the firm picks out a single
segment or very limited number of similar
segments on which to concentrate its
efforts.
 Customized targeting, a more recent
strategy through which the firm crafts
specific offers for each individual
consumer.
FIRMS TYPICALLY CHOOSE FROM THE
FOLLOWING TARGETING STRATEGIES:
3. POSITIONING
❑ It is the placing of a product (brand) in the mind of a
customer, in relation to other products (brands) in
the market.
❑ „It is place in customer´s mind.“ (Duracell, Dobrá
voda, …).
❑ Positional map (perceptual map) – graphic
presentation how consumer feels the similarity or
dissimilarity of brand of specific product in
comparison with competitive products in the
marketplace.
POSITIONAL MAP OF DIFFERENT BRAND A - E
Price index
Quality
C
A
D
B
E
POSITIONAL MAP
❑ Underpositioning – there is no sufficient
difference among competitive products (Kia,
Hyundai – very similar!)
❑ Overpositioning - excessive pointing out to only
one benefit of certain product (impact on price!)
❑ Confused – result of the inadequate marketing
communication or the choice of bad distribution
channels (branded goods – supermarket,
outlets!)
POSITIONING STRATEGY
ALTERNATIVES
REPOSITIONING
 It responds to the change of market
demand or it´s aimed to reach more
profitable segments.
 It uses the same tools as positioning, i.e.
marketing communication in order to
establish new image or product.
 ! Repositioning x rebranding x redesign!
REPOSITIONING STRATEGY
Unchanged
target market
Changed target
market
Unchanged
product
attributes
Image
repositioning
Market
repositioning
Changed
product
attributes
Product
repositioning
Total
repositioning