stp strategies
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TRANSCRIPT
Dr. Ritesh Dalwadi
This learning material is prepared from various published (both print and online) sources for class discussion and teaching purpose only. Feel free to contact me at [email protected] for further information.
STP Strategies in Marketing Planning
Customers exhibiting a wider variety of: Needs, Attitudes, Behaviors, Tastes, and Interests.
Marketers Face Fragmented and Diverse Markets
The Need for Segmentation, Targeting,
and Positioning
Focus on resources to grab the most promising opportunities.
Develops marketing efficiency and effectiveness.
Notice changes in the segment and to respond more quickly.
The process of grouping customers within a market according to similar needs, habits, or attitudes that can be addressed through marketing.
Even within a large segment, marketers often can identify niches.
Market Segmentation
Segmentation Process
1. Select the market
2. Apply segmentation variables.
3. Assess and select segments for targeting.
Business Segmentation Variables
Type of Variable ExamplesBehavioral and Attitudinal
Purchasing patterns and process, user status, benefits expected, order size/frequency, buyer/influencer/user attitudes.
Demographic Industry, business size, business age, ownership structure.
Geographic Location, distance, climate.
Step 3: Assessing and Selecting Target Markets
Target Market: The segment of the overall market that a company chooses to pursue.
Each potential segment must be evaluated based upon fit with the firm’s:
ResourcesGoalsMissionPriorities
Assessing Segment Attractiveness
Source: Graham Hooley, Nigel F. Piercy, and Brigitte Nicoulaud, Marketing Strategy and Competitive Positioning, 5th ed. (Harlow, England: FT Prentice Hall 2012), Fig. 10.3, p. 245.
Coverage Strategies
Undifferentiated
(mass)
marketing
Undifferentiated
(mass)
marketing
Differentiated
(segmented)
marketing
Differentiated
(segmented)
marketing
Concentrated
(niche)
marketing
Concentrated
(niche)
marketing
Micro-marketing
(individual)
Marketing
Micro-marketing
(individual)
Marketing
Targeting broadly Targeting narrowly
Segment Personas
Personas: Detailed but fictitious profiles representing how individual customers behave, live, and buy.
Give marketers a deeper understanding of what shapes each segment’s needs, preferences, buying behavior, and consumption patterns.
Positioning for Competitive Advantage
Positioning: Differentiation on the basis of attributes that customers find meaningful, relevant, important, and superior.
Conveys the value that the brand provides and sets the brand apart.
Sets the tone for the marketing plan.
Should be reevaluated periodically.
Meaningful DifferentiationSome sources of meaningful differentiation:
Product features
Service attributes
Channel attributes
Pricing attributes
Other attributes