WEEK 4 24TH OCTOBER, 2008

SEGMENTATION

The identifiable profilers become the basis for segmentation for example:
-Age
-Gender
-Social class
-Personality
-Colour and type of hair

In the Victorian times carbolic soap, bright red in colour with a very interesting fragrance was used to clean everything form washing the floor to also washing your body.
Nowadays we have different shampoos or products for example for greasy hair, dry hair, blonde hair, red hair, brunettes, dyed hair, tinted hair, grey hair, thin hair, curly hair, damaged hair, frequently washed hair and for dandruff as well.

Thinking of teeth and toothpaste there are a wide range of products available like to prevent gum diseases, for white white teeth, to protect against tooth decay, for added confidence or specially for babies. People use toothpaste for fresh breath, for the pain during brushing or also to get the cigarette smell away.

What is STP Marketing
-S- segmentation
-T- targeting
-P- positioning

Segmentation by Smith (1957). Segmentation is based on the observation of evolution of demand and represents a more precise and rational adaptation of the product and the marketing effort to meet customers or users demand.
Segmentation by Kotler (2000). The subdividing of a market into homogenous subsets of customers, where any subset may conceivably be selected as a target market to be reached with a distinct marketing mix.

STP Marketing by Doyle

The reason we segment is so that we can better match our customer needs by increasing brand quality.
To enhance profits by raising prices in some premium sectors.
To retain customers through FLC.
To target communications and to market segment share.
-Effective- truly different needs from other segments?
-Identifiable- how can you find those people?
-Profitable- is the segment big enough to offer real profits?
-Accessible- can you reach this group easily?
-Actionable-can it be done?