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Segmentation, Targeting and Positioning

Small presentation about identifying and evaluating opportunities using STP. Prepared for English for Marketing Lecture at Berlin School of Economics and Law, WS 13/14. Reference: Marketing (2008) by Dhruv Grewal and Michael Levy; McGraw-Hill Irwin
by

Jens Lehmann

on 14 January 2015

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Transcript of Segmentation, Targeting and Positioning

Step 1
Create a position for the brand that
distinguishes
it from its competition
registered trademarks
Focuses on the
product attributes
that are
most important
to the
target market
Value
/
price
relationship

Establish Strategy / Objectives
Describe
Segments

Evaluate Segments Attractiveness
Select Target Market
Identify and Develop Positioning Strategy
S
egmentation

T
argeting

P
ositioning

STP
Undifferenciated / Mass Marketing
Differenciated
Concentrated
Single primary market
and a specific product to fit that market´s needs
Focusing all energies on
one segment
and employing them efficiently
Micro Marketing / One to One
Specific product or service to suit an
individual customer´s
wants or needs
Divide market into
segments
with different needs, wants and characteristics

Loyalty
Demographic
Geographic
By
where
they live (Country, Region, State, City, Village)
Satisfy needs that
vary by region
Benefits
Psychographic
Geodemographic
Loyal customers are the
most profitable
in the long term
Investing in retention and loyalty programs to
retain
loyal customers
Identify
attributes of loyal customers
Birds of a feather flock
together
Combination
of geographic, demographic and lifestyle characteristics
Same neighborhood -> Same products -> Same type of retailers
Using geodemographic segmentation systems like
PRIZM
E.g. Boomtown Singles, Hispanic Mix, Gray Power
By the benefit they
derive
from products or services
E.g. Convenience, Economy, Health, Prestige, Hedonic, Educational, Individual
Define Mission and Vision
Situational Analysis
STP
Evaluate Performance
Marketing Mix and Resources
Mission and Vision
Planning
Implementing
Controlling
S
egmentation
T
argeting
P
ositioning
Evaluate segments attractiveness and decide which to
target

Decide how to
position
to best meet the needs and wants of chosen targets
Marketing strategy
must be consistent and derived from the firms mission and vision, as well as the current situation
All persons
are potential customers
Provide the
same benefits
to everyone
Fast moving
consumer goods
Different beliefs
find value in the same product
Several market segments with a
different offering
for each
Helps to obtain a
bigger share
of the market
Depends on the desired
balance
between the perceived customer value and its costs

Understand
the profile of the customers in each segment, the similarities within a segment and dissimilarities across segments
According to
easily measureable
characteristics
E.g. Age, Gender, Income, Education
Combine
these unique methods to...
...Identify
and target marketing communication to customers
...Design
product/service and substance of marketing message
Identifying and Evaluating Opportunities using...


Substantial
The
size
of target markets matters
Small segments are
unprofitable
Reachable
Reaching
the target customers through
communication
and product
distribution
Responsive
Positive
reaction to firm's offerings
Value proposition
Profitable
market
growth
/ market
competitiveness
/ market
access


Segment
Profitability
A B
= (Segment size 75.000 1.000
x Segment adoption percentage 1% 20%
x Purchase behavior $100x12 $500x20
x Profit margin percentage) 60% 80%
- Fixed costs $400.000 $1.000.000
Segment Profit
$140.000
$600.000
Identifiable
Who
is within the market?
Are segments
distinct
from one another?
Positioning Strategies
Position of products and services according to value, salient attributes and symbols and against competition.
Value
Salient attributes
Symbols
Competition
Firms can position their products and services
against a competitor
or an entire product classification
Positioning Steps
Determine
consumer perception
and evaluation of the product / service in relation to
competitors
Step 2
Identify
competitors' positions
Step 3
Determine
consumer preferences
Step 4
Select the
position
Step 5
Monitor
the
positioning strategy
Determine whether the segment is
worth
pursuing
How consumers describe
themselves
Self-values, Self-concepts and Lifestyles of a
Goal for Life

Using VALS Framework
Attractiveness
of the target market
Own
competencies
SWOT analysis
Full transcript