Market Segmentation, Targeting & Positioning — STP

3.1 Segmentation Bases

Basis	Variables	Marketing Example
Geographic	Region, climate, city size, urban/rural	Rural India FMCG (sachets) vs urban (premium)
Demographic	Age, gender, income, education, family size	Insurance: child plan vs senior citizen plan
Psychographic	Lifestyle, values, social class, personality	SUV buyers (adventure seekers) vs sedan buyers
Behavioural	Usage rate, loyalty, occasion, benefits sought	Frequent flyers (IndiGo ₹999 Blue) vs occasional flyers

For segmentation to be effective, segments must be: Measurable, Substantial, Accessible, Differentiable, Actionable (M-S-A-D-A criteria).

3.2 Targeting Strategies

• Undifferentiated (mass marketing): One offer to entire market — e.g., Salt (Tata Salt → "Desh ka namak" campaign reaches all)
• Differentiated (multi-segment): Different offers for different segments — e.g., Maruti Suzuki sells Alto (entry), Swift (mid), Ciaz (premium)
• Concentrated (niche marketing): Focus on one segment — e.g., Harley-Davidson (aspirational premium bikers)
• Micromarketing: Individual or hyper-local targeting — e.g., Amazon's personalised homepage recommendations (collaborative filtering algorithm)

3.3 Positioning

Positioning is the act of designing the company's offering and image to occupy a distinctive place in the mind of the target market. Positioning statement format: "For [target segment], [brand] is the [frame of reference] that [point of difference] because [reason to believe]."

Perceptual maps plot brands on two dimensions (e.g., price vs. quality) to visualise competitive positions.

Repositioning: Changing consumer perception. Example: Dabur successfully repositioned from an Ayurvedic heritage brand (elderly focus) to a modern wellness brand attracting millennials (2015 onwards).

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