week 5 stp

8/11/2019 Week 5 STP

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Segmentation, Targeting, and

Positioning

Week 5

8/11/2019 Week 5 STP


Objectives

Be able to define the three steps of targetmarketing: market segmentation, targetmarketing, and market positioning.

Understand the major bases for segmentingconsumer and business markets.

Know how companies identify attractivemarket segments and how they choose a

target marketing strategy.Comprehend how companies position their

products for maximum competitiveadvantage.

8/11/2019 Week 5 STP


Definition

Market Segmentation:

Dividing a market into distinctgroups with distinct needs,characteristics,or behavior whomight requireseparate productsor marketingmixes.

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Steps in Market

Segmentation, Targeting,and Positioning

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Market Segmentation

Segmenting

Consumer Markets Segmenting Business

Markets

Segmenting

International Markets

Requirements forEffectiveSegmentation

Geographicalsegmentation

Marketing mixes arecustomized geographically

Demographicsegmentation

Psychographic

segmentation Behavioral segmentation

Using multiplesegmentation variables

Key Topics

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Geographic

Segmentation Variables

City

Neighborhood

Density

Climate

World Region

or Country

U.S. Region

StateCity

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8-

6

Geographical climate is

a legitimate means of

segmentation for many

products or services.

Name several examp les o f

produc ts for which need

(and demand) wou ld vary

on a geog raphical basis.

Discussion Question

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Market Segmentation

Segmenting

Consumer Markets Segmenting

Business Markets

Segmenting



Geographical segments


Most popular typeDemographics are

closely related to needs,wants and usage rates

Psychographic

segmentation Behavioral

segmentation

Using multiplesegmentation variables

Key Topics

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Age

Gender

Family size

Family life cycle

Income

Race

Demographic

Segmentation Variables

OccupationEducation

Religion

Generation

Nationality

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Market Segmentation

Segmenting


Business Markets

Segmenting



Geographic segments


Psychographicsegmentation

Lifestyle, social class,and personality-basedsegmentation

Behavioralsegmentation

Using multiplesegmentationvariables

Key Topics

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Swatch targets

those w i th an

act ive l i festyle

Psychographic segmentation

Outward Bound

Mountaineer ing

Gear

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Market Segmentation

Segmenting


Business Markets

Segmenting



Geographic segments


Psychographicsegmentation

Behavioralsegmentation

Typically done first

Using multiplesegmentationvariables

Key Topics

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Occasions

Benefits

User Status

User Rates

8-

12

BehavioralSegmentation Variables

Loyalty Status

Readiness Stage

Attitude Toward

the Product

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Occasion segmentation: Altoids’ “Love

Tin” is a “curiously strong valentine”

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8-

15

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Market Segmentation

Segmenting


Business Markets

Segmenting



Demographic segmentation

Industry, company size,location

Operating variables Technology, usage status,

customer capabilities

Purchasing approaches

Situational factors

Urgency, specificapplication, size of order

Personal characteristics

Buyer-seller similarity,attitudes toward risk, loyalty

Key Topics

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Market Segmentation

Segmenting


Business Markets

Segmenting



Geographic segmentation

Location or region

Economic factors

Population income or levelof economic development

Political and legal factors

Type / stability ofgovernment, monetary

regulations, amount ofbureaucracy, etc.

Cultural factors

Language, religion, values,attitudes, customs,

behavioral patterns

Key Topics

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Market Segmentation

Segmenting

Consumer Markets Segmenting Business

Markets

SegmentingInternational Markets


Measurable

Size, purchasing power, andprofile of segment

Accessible

Can be reached and served

Substantial

Large and profitable enoughto serve

Reachable

Can be easily/profitablyreached.

Actionable

Effective programs can bedeveloped

Key Topics

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Target Marketing

Evaluating Market Segments

Segment size and growth

Segment structural attractiveness

Level of competition

Substitute products

Power of buyers

Powerful suppliers

Company objectives and resources

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Target Marketing

Strategies

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Target Marketing

Choosing a Target-

Marketing Strategy

Requires Consideration of:

Company resources

The degree of product variability

Product’s life-cycle stage

Market variability

Competitors’ marketingstrategies

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Target Marketing

Socially Responsible Targeting

Some segments are at special risk:

Children Inner-city

minorityconsumers

Internetshoppers

Controversy occurs when themethods used are questionable.

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Positioning

Positioning:

The place the product occupies inconsumers’ minds relative to competing

products.

Typically defined by consumers on thebasis of important attributes.

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Positioning

Choosing a Positioning Strategy:

Identifying possible competitiveadvantages -- many potential

sources of differentiation exist: Products

Services

Channels

People

Image

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Porsche is

pos i t ioned onthe basis of

performance

and freedom .

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Positioning


Choosing the right competitive

advantage

How many differences to promote?

Unique selling proposition

Positioning errors to avoid

Which differences to promote?

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Important

Superior

Preemptive

Criteria for Meaningful Differences

Distinctive

Communicable

Affordable

Profitable

Positioning

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Possible Value Propositions

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Positioning


Developing a positioning statementPositioning statements summarize the

company or brand positioning

EXAMPLE: To (target segment andneed) our (brand) is (concept) that(point-of-difference).

Communicating the chosen position

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Positioning


Communicating and delivering thechosen position

Entire marketing mix must support thechosen strategy

May require changes to the product,pricing, distribution or promotion.

week 5 stp

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