mad mork stp framework for reaching the right user.pptx
TRANSCRIPT
Marketing-in-a-Box
STP FrameworkTargeting the Right User
Copyright: Patrick "Mad" Mork 1
Contents
What is STP and why do marketers need it?
Who owns it?
When should you use it?
How does it work?
Examples
Appendix:
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20 years experience in strategy, marketing and sales
Large company / start-up experience
Multi-cultural working experience across 4 continents / languages
Expertise: Digital Content / Apps, Mobile Games, Consumer Goods, Mobile Advertising
About Mad Mork
What is STP?
Segmenting, Targeting, Positioning (STP) is a framework designed to help marketers better understand
their market; identify segments with unmet needs in this market and position their product & services to
address these needs
4Copyright: Patrick "Mad" Mork
Why is STP important?
As markets grow they create opportunities for monetization
This in turn attracts new players who spend marketing dollars to capture users
These new players push new products / features which generate greater marketing noise among users
Which forces marketers to identify segments with unmet needs which they can target with more relevant messaging
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Market Growth
Attracts competition
Which increases marketing
spend
That generates more noise
Segmentation becomes needed
Copyright: Patrick "Mad" Mork
Who owns the framework?
The marketing / head of marketing typically owns the overall strategy for the STP framework and has final say on target audience and messaging
In smaller organizations this might be owned by the CEO / Founder if no marketing resources exist
Input sources come from:Senior leadership to ensure STP is aligned with the overall company strategySales / customer support to make sure STP is aligned with market realities and customer use casesProduct / engineering who should agree and also will need to build a product that is inline with the messaging needed to effectively reach the user6
Marketing- head and product
marketing manager
Sales – customer / user input
Senior mgmt – overall company strategy
Product / Eng –product roadmap, features, direction
Copyright: Patrick "Mad" Mork
When should you use it?
STP should ideally determine what kind of product you’re going to build
STP reveals which group of users in your desired market have unmet needs which you could capture
STP helps you formulate which message this group of users is most open / receptive to
The above then guides what kind of product you will need to fulfill that message / brand promise
In some cases the product / technology has already been developed to solve a problem but the target has not been specified
In this case STP takes place after product development but before any marketing spend takes place
STP may result in a different target being focused on based on the characteristics of the product / service
Future changes to the product roadmap must take into account the agreed STP moving forward so that changes are based on the agreed target audience and positioning
Before product launch
After product launch
7Copyright: Patrick "Mad" Mork
Requirements and output
Segmentation Targeting Positioning
Requirements
1. Market data – size, demographics, growth, trends
2. User data – frequency of use, types of use, levels of engagement, propensity to spend
Output
3. Segmentation matrix4. Segmentation
criteria
Requirements
1. Clear, agreed market segments
2. Agreed criteria for choosing desired target market
3. Organizational buy-in (snr. Mgmt, product, sales)
Output
4. Agreed target audience and target user profile
Requirements
1. Locked down target audience
2. Organization buy-in on actual message
Output
3. Brand key / Brand Pyramid
4. Brand Statement / Brand Idea
3. Brand Book / Bible8Copyright: Patrick "Mad" Mork
Segmentation - Goals / output
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2
3
Establish the criteria under which you segment the market (age, race, income, time, location…)Segment the market into different groupsUnderstand the size, value, growth, dynamics of each market segmentDetermine what is important to each market segmentDetermine segments your competitors are addressing / identify where they are weakUnderstand what segment(s) you are addressing directly or indirectly
Determine if another segment has unmet needs that you can either target with an existing product or with a new oneAssess whether you have the adequate resources (product, human, capital) to address the various segments available
9Copyright: Patrick "Mad" Mork
Implementing STP - Segmenting
The first step is understanding who your users are and why they use your product
To this end you want to:1. Do Quantitative research to understand your user base and how they see your product2. Do Qualitative research (focus groups) to drill down and ask users more specifics around your findings in #1
The Goal of your research is:1. Understand how user behavior towards your product changes based on demographic factors (age, race, sex, income, location)2. Understand if there are areas where your consumers feel underserved by competitors and which demographic is most underserved
10Copyright: Patrick "Mad" Mork
Segmentation – Quantitative Research
Questions types:1. Filtering – filter out users
who aren’t meaningful to you
2. Satisfaction – how satisfied are users with your product? With competitors?
3. Reason for being – how do users “feel” about your product?
4. Functionality – why do users use your product?
5. Features – which features do they use and why?
6. Awareness – how did they hear about you? From whom?
Things to keep in mind:1. Keep questions neutral;
avoid leading2. Avoid open ended questions
that can’t be measured3. Rotate the order of the
answers to avoid bias4. Provide multiple answers
and, when appropriate, the option to check multiple answers
5. Ensure you have a large enough sample size to be representative (N=?)
6. Keep your survey short (15-20 questions)
11Copyright: Patrick "Mad" Mork
Research providers
Multiple online solutions exist:Ask Your Target MarketSurvey MonkeyUserlytics
Turn around can be 3-5 days typically
Cost is done on a cost per contact basis typically
Providers can reach out either using your own target list or their own
Providers tabulate and provide dashboards for results
12Copyright: Patrick "Mad" Mork
Segmentation – Criteria definition
With the research done you should break your users into groups / cohorts
Could be by demo: age, race, sex, income, time of use, location, etc.Could also be by personas
Example - Adventurous travelers: Male typically 24-35, middle / upper middle class, loves technology and gadgets, highly social and enjoys traveling to exotic destinations
Analyze how responses differ from one group to another and key reasons for using your product or that of competitors
13Copyright: Patrick "Mad" Mork
Segmentation Output example – mobile racing games users’ based on graphics and gameplay
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Ultra-realistic
Cartoony
Traditional racing
Fantasy racing
Graphics Style
Gameplay Style
Target Segment
Opportunity?
Segmentation – Key questions to ask
1. What criteria am I using to segment my market? (Age, Race, Sex, Household Income, Location, Lifestyle …)
2. Are these the right criteria? 3. Are there other criteria which could become relevant to users?4. How likely are these criteria to change over time?5. Do these criteria result in groups that are readily identifiable,
targetable and monetizable?6. Is this group actually meaningful enough for me to solicit data
from them / perform research?7. Can I actually make money from any of these segments?
15Copyright: Patrick "Mad" Mork
Targeting- Goals / output of
1
2
3
Identify a segment of the market that is underservedAssess whether you have the right product and resources to properly address that market
Pick a target that is easily identifiable and who will likely consider your product if messaged properlyChose an audience to whom you can craft a message that you can “own”
Ensure the target group is large enough to be commercially viable both today and in the immediate futureSelect a target audience that will be more challenging for competitors to target
16Copyright: Patrick "Mad" Mork
How to find out what your target audience wants
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Use social channels to monitor user feedback
Monitor customer reviews on retail e-commerce sites
Engage press to get 3rd party professional feedback / reviews
Engage users directly on social media asking for feedback / suggestions
Email surveys directly to existing users using tools like Survey Monkey or SurveyGizmo
Target beyond your user base (or if you have no current users) using tools like Ask My Target Market
Make sure you target a broad enough base of users to ensure statistical significance
Keep questions broad and avoid “leading” users to the answers you might like
After quant research, perform focus groups with 6-12 people per group
Groups should be moderated by an independent 3rd party agency
Groups should be representative of the target audience demographic
Multiple groups should be run over multiple days
Ideally, groups should be run in different regions of the US to compare differences
Social Channels / Reviews
Direct research (Quantitative)
3rd Party Research(Qualitative)
Copyright: Patrick "Mad" Mork
As markets mature, your target market will likely evolve
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Broad-based, generic
Demographic (age, race, sex)
Needs based
Aspirational
Market maturityOver time
Segments Targeted OverTime
Copyright: Patrick "Mad" Mork
Targeting output example – mobile racing games target group
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Ultra-realistic
Cartoony
Traditional racing
Fantasy racing
Graphics Style
Gameplay Style
Target Segment
Women who want traditional gameplay with good
but not ultra
realistic visuals
Targeting– Key questions to ask
1. How attractive is my target category, is it growing?
2. How mature is the market? How developed is it?3. How well can I address this target?4. Am I in the right target category?5. How competitive / crowded is the target
category?6. How well do my competitors compete in their
target categories?7. Do these target categories really reflect what
consumers want? 20Copyright: Patrick "Mad" Mork
Positioning – what is it?
Definition:
The way in which marketers
attempt to create a distinct
impression in consumers’ mind
What it must answer:
Frame of Reference (FOR) - What is your product / service?
Point of Difference (POD) How is it different from competitors?
Reason to Believe (RTB) Why should consumers care?
21Copyright: Patrick "Mad" Mork
Your Brand Idea is the essence of your brand and helps define your positioning
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The essence of your brand is what drives your positioningBrand
Idea
Manifestation of brand in human characteristics
Brand / Product Persona
How does it make users feel?
Emotional benefits
Tangible benefits to the user
Functional benefits
Most distinguishable product attributes / features
Features & Attributes
Copyright: Patrick "Mad" Mork
Apple – Brand pyramid example
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Think DifferentBrand Idea
(none)Brand / Product Persona
I’m a rebel and an artist. I’m not a geek
Emotional benefits
Attractive, elegant, fast, easy to use
Functional benefits
Sleek design, powerful processors, advanced operating system
Features & Attributes
Source: Casual Executive Summit 2012
Copyright: Patrick "Mad" Mork
6 Keys to a strong positioning statement
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Simple, memorable and designed for specific target audience
Clear, unmistakable picture of your product which is unique
Credible; you can deliver on this promise to users
Ownable – you can own it and be uniquely positioned
Acts as a guidepost on current / future marketing decisions
Open and leaves room for future growth
Source: Doug Stayman, Associate Dean MBA program, Cornell University GSB
Pepsi Max – Targeting and Positioning example
Soft DrinksUsers
Diet Soft DrinksUsers
Pepsi MaxUsers
Want something refreshingTarget: M/F 15-44 years oldPositioning: Quenches Thirst fast
Users want something with less caloriesTarget: M/F 24-44 mostly femalePositioning: Same great taste, less caloriesMale SD users feel “diet” is for women. Dislike weight conscious imageTarget: Male 34-54, sports, health consciousPositioning: 100% Taste, 0% Sugar. Aggressive, cool, extreme sports
25Copyright: Patrick "Mad" Mork
Summary
STP is a framework designed to ensure the right message hits the right audience
Proper use of STP is key in hyper competitive markets with excessive “noise”
Segmenting involves breaking the market down into identifiable groups / cohorts
Targeting involves choosing an underserved market segment that can be captured by relevant messaging
Positioning involves developing messaging that is unique, defendable and relevant to the target audience
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APPENDIXSTP Framework – Reaching the Right User
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References & sites
BooksPositioning: The Battle for your MindThe 22 immutable laws of BrandingBrand against the machine
SitesDefinition – WikipediaThe Art of Brand PositioningCornell’s guide to writing Positioning Statements
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