Market Segmentation
             • Market segmentation is the subdividing of a market 
                  into distinct subsets of customers.
             Segments
             • Members are different between segments but similar 
                  within.
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             STP is a Core Business Process
             STP - (Segmentation, Targeting, Positioning) is a 
             Decision Process
                      • To identify and select groups of potential customers...
                               − Organizations,  Buying Centers, Individuals
                      • Whose needs within-groups are similar and whose needs 
                           between-groups are different (S)
                      • Who can be reached profitably (T)
                      • With a focused marketing program (P)
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             How STP Creates Value
                           Segmentation                                      Targeting                                      Positioning
                           Identify segments                                 Select segments                                Create competitive 
                                                                                                                            advantage
                                           Marketing resources are focused to better meet customers 
                                                            needs and deliver more value to them
                                           Customers develop preference for brands that better meet 
                                                               their needs and deliver more value
                                           Customers become brand/supplier loyal, repeat purchase, 
                                                             communicate favorable experiences
                                           Brand/supplier loyalty leads to increased market share and 
                                                                 creates a barrier to competition
                                            Fewer marketing resources needed over time to maintain 
                                                            share due to brand or supplier loyalty
                                                           Profitability (value to the firm) increases
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             How Many Different Groups of Cards 
             Are Here?
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                                             for non-commercial educational purposes only is authorized if this notice appears on every copy.
             The Many Uses of Segmentation
             Short term segmentation applications:
             • Salesforce allocation/call planning
             • Channel assignment 
             • Communication program
             • Pricing
             • Today’s competitors and my current relative 
                  advantage to the customer
                                © Copyright DecisionPro, Inc.  2018. Commercial distribution and any publication is not authorized. Copying and distribution             6
                                             for non-commercial educational purposes only is authorized if this notice appears on every copy.