MBAced

In marketing, a powerful strategy known as Segmentation, Targeting, and Positioning (STP) helps businesses understand and connect with their customers more effectively. Let's break down these concepts in simple terms and see how Horlicks, a popular health drink brand in India, has successfully used this strategy. Segmentation: Dividing the Market Think of the market as a large, diverse group of people. Not everyone in this group has the same needs or wants. Segmentation is about dividing this large group into smaller, more manageable groups of people who share similar characteristics. These smaller groups are called segments. Why Segment? Efficiency: It’s easier to create tailored marketing strategies for smaller groups. Effectiveness: Messaging can be more relevant and impactful when targeted at specific groups. Focus: Businesses can focus their resources on the most promising segments. How to Segment? Demographics: Age, gender, income, education, etc. Geographics: Location, ...