A fascinating study of fundamentals of marketing, giving better insights with real-time examples.

1. How STDP
is Changing
Marketing
Here's a look at STDP
by Maithili Koparde

2. But first....
Think about the
products and
services that you
buy and how
marketing plays a
role in your
purchase decision.
L E T ' S S E E H O W M A R K E T I N G H E L P S B U S I N E S S
D O T H E I R W O R K

3. The STDP framework has 4 consecutive
steps:
2 3 4
S T E P
Targeting
1
S T E P
Segmentation
S T E P
Differentiation
S T E P
Positioning

4. Segmentation
Sub-dividing a market into distinct and
homogenous subgroups of customers, where any
group can conceivably be selected as a target
market to be met with distinctive market mix.
- Philip Kotler

5. Approaches for segmentation
PSYCOGRAPHIC
37.5%
BEHAVIOURAL
31.3%
GEOGRAPHIC
18.8%
DEMOGRAPHIC
12.5%

6. For example. demographic segmentation might target
potential customers based on their income, so your
marketing budget
isn’t wasted directing your
messaging at people who likely can’t afford your product.
DEMOGRAPHIC : THE WHO

7. Geographic segmentation: The where
For example, it’s possible to group customers within a set
radius of a certain location – an excellent option for
marketers of live events looking to reach local audiences.
Being aware of your customers’ location allows for all
sorts of considerations when advertising to consumers

8. Psychographic segmentation: The why
In our experience working with luxury resort business Omni
Hotels & Resorts, for example, we're aware that a big sector of
the company’s target audience was always keen to get the
very best price they could.
By targeting a notification campaign specifically towards
comparison shoppers, Omni Hotels & Resorts achieved a 39%
conversion rate uplift.

9. For example, we can distinguish between a first-time visitor and
someone who’s already been on your site multiple times but
haven’t purchased. Based on this behavioural data, we can tailor
our messaging accordingly:
First time visitor: Hey, learn about our latest collection!
Returning visitor: Join our loyalty program and start saving!
Behavioural segmentation: The how

10. TARGETING
Targeting is a broad term that is used
to describe the process of identifying
groups of consumer who are high likely
to purchase specific goods and services
After segmenting the market based on
the different groups and classes, we
need to choose our targets

11. Process of
Targeting
Additional
Consideration
Selecting the
Marketing
Segments
Evaluating the
marekt
Segments

12. Nike sells apparel, equipment, shoes, and accessories to athletes and people who
play sports. Their products are good quality and last for a long time, driving the
price range up enough so that only people with disposable income can afford to
purchase their products.
But that’s not the only detail about their target audience.
They specifically target young aspiring athletes and runners, two groups of people
who rely on motivation to continue pushing themselves beyond their normal
limitations.
And we can see this play out in most of Nike’s marketing campaigns, where they
create motivational ads that can move viewers to tears.
Nike Target Market

13. Netflix Target Market
A L E S S O N T O B E L E A R N E D F R O M N E T F L I X H A S L E S S
T O D O W I T H I T S A C T U A L T A R G E T M A R K E T , W H I C H I S
C O N S T A N T L Y E V O L V I N G , A N D M O R E T O D O W I T H
T H E I R A P P R O A C H T O R E A C H I N G T H E I R T A R G E T
M A R K E T .
T H E Y C O N T I N U O U S L Y C O N D U C T R E S E A R C H O N T H E I R
A U D I E N C E A N D M E T I C U L O U S L Y P R O V I D E T H E M W I T H
W H A T T H E Y W A N T . F R O M M A I L - I N D V D R E N T A L S T O A
B E H E M O T H O N L I N E S T R E A M I N G S E R V I C E , N E T F L I X H A S
N O T O R I O U S L Y L E A N E D I N T O I T S A U D I E N C E A N D
P I V O T E D W H E N N E E D E D .
A N D I N D O I N G S O , T H E Y L E T W O R D - O F - M O U T H
M A R K E T I N G F U E L T H E I R S A L E S .

14. DIFFERENTIATION
The process of distinguishing a
product or services from other to
make it more apperling to a
specific target market

15. Product differentiation depends on consumers' attention to
one or more key benefits of a product or brand that make it
a better choice than similar products or brands.
The elements of differentiation include product design,
marketing, packaging, and pricing.
A product differentiation strategy should demonstrate that a
product has all the features of competing choices but with
additional exclusive benefits no one else offers.
Companies gain a competitive advantage and market
share through product differentiation.
Product differentiation increases market competition and
controls prices for consumers.

16. 7 Steps of
differentiated
marketing
strategy.
STEP 2
Resersh and understand
your target client
segments .
STEP 3
Position your firm in the
marketplace.
STEP 7
Document your
operation schedule and
budget.
STEP 4
Define and refine your
service offering.
STEP 6
Identify the new tools ,
skills , and infrastructure
you will need .
STEP 5
Identify the marketing
techniques you will be
using .
STEP 1
Understanding the
business situation your
firm is facing .

17. Differentiation strategy
examples: Apple
This elegance and simplicity is highly
valued by customers. And they are
willing to pay a premium price for it.

18. Differentiation strategy
examples: Spotify
One key offering by Spotify is to provide
users with machine-generated playlists
like Discover Weekly, a personalized
playlist with weekly updates.
This allows Spotify to differentiate itself, as
users who are attracted to these auto-
generated playlists choose by Spotify

19. A strategic process
involves creating an
identity/ image of the
brand or product within
the target customers’
minds.
POSITIONING :

20. Tesla positions itself as a luxury status symbol
Starbucks positions itself as a trusted source of
upscale quality coffee and beverage
McDonald’s positions itself as a place to get quick
and cheap meals
Microsoft and Apple position themselves as a tech
company that offers innovative and user-friendly
products.
Let’s see some typical examples of
marketing positioning:
TS 371 SG

21. Types of positioning in marketing
Pricing is an essential factor
that impacts the decisions of
most customers. Companies with
the lowest-priced products at a
reasonable level of quality
usually wins in many product
areas.
Quality can help rebuff most
pricing wars. In some markets,
such as luxury cosmetics or cars,
quality can define who the
competitors are.
Pricing Quality

22. For consumers who want to purchase a
wide range of products online with quick
delivery, Amazon provides a one-stop
online shopping site. Amazon sets itself
apart from other online retailers with its
customer obsession, passion for innovation,
and commitment to operational
excellence.

23. Since 2006, HubSpot has been on a
mission to make the world more
inbound. Today, over 100,000 total
customers in more than 100 countries
use HubSpot's award-winning software,
services, and support to transform the
way they attract, engage, and delight
customers. Comprised of HubSpot's
CRM, Marketing Hub, Sales Hub, and
Service Hub, HubSpot gives companies
the tools they need to Grow Better.

25. Thank you !