Brand Equity & Customer Equity
Brand Equity is defined as value and strength of the Brand that decides its worth whereas Customer Equity is defined in terms of lifetime values of all customers. Brand Equity and Customer Equity have two things in common- Both stress on significance of customer loyalty to the brand. Both stress upon the face that value […]
Understanding and Managing Product Life Cycle
It is crucial to understand the complete product life cycle before introducing a new product or service in the market. One needs to understand that every product goes through certain stages starting from inception to its manufacturing, marketing, branding and finally losing popularity in the market. It is essential for the organizations to manage the […]
Organizations and Relationship Marketing
Traditionally with Organizations the customers belonged to and were the responsibility of the Marketing Department alone. Organizations probably had too many constraints on meeting the demands and were saddled with limited product range that did not require them to look out and reach out to the Customer. However with evolution of technology, mass production processes […]
Consultative Selling Process
Consultative selling has been the new buzz word doing rounds in marketing and sales circles. Lawyers and consultants have always been selling their services by consulting. However, this has now been recognized as an important attitude and orientation that every salesman, all business managers and organizations need to possess. Organizations for long have realized the […]
Business-to-Business (B2B) Marketing Strategies
You’ve got your business up and running. There’s just a problem. You’re not bringing in enough money. This is a guide for Business-to-Business (B2B) marketing in 2024 and beyond to help you do just that – and perhaps, along the way, refine and smooth out ambiguities in your business offering too. While marketing tools and […]
A market refers to a set up where two or more parties are involved in transaction of goods and services in exchange of money. The two parties here are known as sellers and buyers.
It is the responsibility of the marketers to create awareness of their products amongst the consumers. It is essential for the individuals to be aware of the brand’s existence. The USPs of the brands must be communicated well to the end-users.
An organization can’t afford to have similar strategies for product promotion amongst all individuals. Not every individual has the same requirement and demand.
The marketers thus came with the concept of STP.
STP stands for:
S - Segmentation
T - Targeting
P - Positioning
The first step in the process of product promotion is Segmentation
The division of a broad market into small segments comprising of individuals who think on the same lines and show inclination towards similar products and brands is called Market Segmentation.
Market Segmentation refers to the process of creation of small groups (segments) within a large market to bring together consumers who have similar requirements, needs and interests.
The individuals in a particular segment respond to similar market fluctuations and require identical products.
In simpler words market segmentation can also be called as Grouping.
Kids form one segment; males can be part of a similar segment while females form another segment. Students belong to a particular segment whereas professionals and office goers can be kept in one segment.
Once the marketer creates different segments within the market, he then devises various marketing strategies and promotional schemes according to the tastes of the individuals of particular segment. This process is called targeting. Once market segments are created, organization then targets them.
Targeting is the second stage and is done once the markets have been segmented.
Organizations with the help of various marketing plans and schemes target their products amongst the various segments.
Nokia offers handsets for almost all the segments. They understand their target audience well and each of their handsets fulfils the needs and expectations of the target market.
Tata Motors launched Tata Nano especially for the lower income group.
Positioning is the last stage in the Segmentation Targeting Positioning Cycle.
Once the organization decides on its target market, it strives hard to create an image of its product in the minds of the consumers. The marketers create a first impression of the product in the minds of consumers through positioning.
Positioning helps organizations to create a perception of the products in the minds of target audience.
Ray Ban and Police Sunglasses cater to the premium segment while Vintage or Fastrack sunglasses target the middle income group. Ray Ban sunglasses have no takers amongst the lower income group.
Garnier offers wide range of merchandise for both men and women.
Each of their brands has been targeted well amongst the specific market segments. (Men, women, teenagers as well as older generation)
Men - Sunscreen lotions, Deodorant
Women - Daily skin care products, hair care products
Teenagers - Hair colour products, Garnier Light (Fairness cream)
Older Generation - Cream to fight signs of ageing, wrinkles
A female would never purchase a sunscreen lotion meant for men and vice a versa. That’s brand positioning.
Your email address will not be published. Required fields are marked *
