Why marketers need to S-T-P? Companies cannot appeal to all buyers in the marketplace or in the same way Buyers are too numerous, widely scattered and varied in needs and buying practices Companies vary widely in their abilities to serve different segments of the market
S-T-P Segmentation – Targeting - Positioning “I don’t know the key to success but the key to failure is trying to please everyone” Why marketers need to S-T-P? • • Companies cannot appeal to all buyers in the marketplace or in the same way • Companies vary widely in their abilities to serve different segments of the market Buyers are too numerous, widely scattered and varied in needs and buying practices S- Market Segmentation T- Market targeting P- Market Positioning Company aims at designing customer-driven marketing strategies that build the right relationships with the right customers Welcome to S-T-P How to segment the marketplace? • How to select target market segment(s)? • How to differentiate and Position? • Today’s Overview Learning Objectives • • • • Understand cornerstone concepts Know criteria to segment market Know criteria to select target market(s) Know how to differentiate and position products/services Market Segmentation Market • • Buyers who differ in one or more way Way: wants, resources, locations, buying attitudes and buying practices Selecting target market segments • Differentiated marketing – segmented marketing, a firm decides to target several market segments and designs separate offers for each Selecting target market segments • Concentrated marketing (niche marketing) a market – coverage strategy in which a firm goes after a large share of one or a few submarkets Selecting target market segments • Micromarketing – a form of target marketing in which companies tailor their marketing programs to the needs and wants of narrowly defined geographic – Local marketing – Individual marketing Choosing a targeting strategy • Factors concerning a market targeting strategy – Company resources – Product variability – Product’s life – cycle – Market variability Differentiation & positioning Company Logo Product’s position • • Value proposition – how company will create differentiated value for targeted segments and what positions it wants to occupy in those segments Product’s position – the way the product is defined by consumers on important attributes – the place the product occupies in consumers’ minds relative to competing products Positioning maps • Perceptual positioning maps, which show consumer perceptions of their brands versus competing products on important buying dimensions Differentiation & Positioning Identify Identify possible possible value value Choosing Choosing the the right right Selecting Selecting an an overall overall Developing Developing aa positioning positioning Communicating Communicating the the chosen chosen differences differences competitive competitive advantages advantages positioning positioning strategy strategy statement statement position position Identifying possible value differences • Think through the customer’s entire experience with the company’s product or service • Differentiate along the lines of – Product – Services – Channels – People or image Choosing the right com-advan • How many differences to promote • Which differences to promote – A company should develop USP for each brand and stick to it – Important: the difference deliver higher value – Distinctive: competitor not offer the difference – Communicable: – Pre-emptive: competitor can not copy – Affordable: buyer can afford to pay – Profitable: company can capture different profitability Not all brands differences are meaningful or worthwhile Selecting an overall positioning strategy PRICE BENEFITS More More The same Less More for more More for the same More for less The same The same for less Less Less for less BLUE OCEAN STRATEGY BLUE OCEAN STRATEGY Summary • • • Why demographic elements could be used to segment marketplace? Find an example of POSITIONING A PRODUCT Find an example of niche marketing Questions? [...]... segments • Concentrated marketing (niche marketing) a market – coverage strategy in which a firm goes after a large share of one or a few submarkets Selecting target market segments • Micromarketing – a form of target marketing in which companies tailor their marketing programs to the needs and wants of narrowly defined geographic – Local marketing – Individual marketing Choosing a targeting strategy •... – Services – Channels – People or image Choosing the right com-advan • How many differences to promote • Which differences to promote – A company should develop USP for each brand and stick to it – Important: the difference deliver higher value – Distinctive: competitor do not offer the difference – Communicable: – Pre-emptive: competitor can not copy – Affordable: buyer can afford to pay – Profitable:... Demographic segmentation • Dividing the market into groups based on demographic variables: – Age and life-cycle stage – Gender – Income Psychographic segmentation • Deviding a market into different groups based on social class, lifestyle or personality characteristics – AIO – VALS Behavioral segmentation • Dividing a market into groups based on consumer knowledge, attitude, use or response to a product – Occasions... their purchase or use the purchased item – User status (potential user, first-time user, regular user) – Usage rate (light, medium, heavy) – Loyalty status (macolyte – Mac Zealot) Using multiple segmentation bases • Geodemographics – the study of the relationship between geographical location and demographic (CACI Market Analysis Group – ACORN) Requirements for segmentation • • • • • Measureable: size,... strategy • Factors concerning a market targeting strategy – Company resources – Product variability – Product’s life – cycle – Market variability Differentiation & positioning Company Logo Product’s position • • Value proposition – how company will create differentiated value for targeted segments and what positions it wants to occupy in those segments Product’s position – the way the product is defined... Mass Mass marketing marketing Targeting broadly Targeting narrowly Selecting target market segments • Target market – a set of buyers sharing common needs or characteristics that the company decides to serve • Undifferentiated marketing (mass): market coverage strategy which a firm go after the whole market with one offer Selecting target market segments • Differentiated marketing – segmented marketing, ... Market targeting Company Logo Evaluate market segments • • • Segment size and growth • The largest, fastest-growing segments are not always the most attractive ones for every company Segment structural attractiveness Company objectives and resources Selecting target market segments Local/individual Local/individual marketing marketing Niche Niche marketing marketing Segmented Segmented marketing marketing... aa positioning positioning Communicating Communicating the the chosen chosen differences differences competitive competitive advantages advantages positioning positioning strategy strategy statement statement position position Identifying possible value differences • Think through the customer’s entire experience with the company’s product or service • Differentiate along the lines of – Product – Services...Market Segmentation • Divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs • Segmenting: consumer markets, business markets, international markets Segmenting consumer markets Geographic segmentation Demographic segmentation Psychographic segmentation Multiple segmentation bases Geographic segmentation. .. position – the way the product is defined by consumers on important attributes – the place the product occupies in consumers’ minds relative to competing products Positioning maps • Perceptual positioning maps, which show consumer perceptions of their brands versus competing products on important buying dimensions Differentiation & Positioning Identify Identify possible possible value value Choosing Choosing