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Chapter 06

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155 views

Chapter 06

Uploaded by

Piyush Seth
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Chapter 6

Market Segmentation,
Positioning, and the
Value Proposition

PPT 6-1 1
© 2009 South-Western, a part of Cengage Learning
STP Marketing and the
Evolution of Marketing Strategy

1. Target Market: A sub-group of a larger market chosen as


the focal point for a marketing or advertising campaign. (NOT
illegal or unethical!)
2. Positioning: Designing and representing a brand in a way
that is distinct in the consumer’s mind.
3. Positioning Strategy: Selecting key themes to
communicate to a target market.
4. Marketing Strategy: Evolves as a result of 1-3

PPT 6-2 2
Beyond STP—Regular
Assessment

1. Reassess segmentation strategy:


 Exam the current target segment to develop new and
better ways of meeting its needs.
 Change the target and reposition the brand to a new
segment.

2. Pursue product differentiation strategy:


 Emphasize or create differences in brands to
distinguish them from competitors.
 Advertising plays a critical role because the consumer
will have to be convinced that the difference is
meaningful.

PPT 6-3 3
Identifying Target Segments:
Market Segmentation

Geography

Demographics Psychographics

Lifestyles Commitment
Levels
Benefits
Usage Patterns

PPT 6-4 4
The STP Marketing Process
(Segmenting, Targeting, Positioning)

1. Break the broad market into smaller, more


homogenous segments

2. Specifically target discrete market segments

3. Position the brand to appeal to the targeted


segments

PPT 6-5 5
Segmenting by Usage and
Commitment

Advertising and promotion targeted to:


 Heavy users
 Nonusers
 Brand-loyal users
 Switchers/Variety seekers
 Emergent Consumers
– Point of entry marketing strategy

PPT 6-6 6
Demographic Segmentation

 Age
 Gender
 Race
 Marital Status
 Income
 Education
 Occupation
PPT 6-7 7
Ad in Context Example

How
How would
would you
you
describe
describe the
the
demographic
demographic segment
segment
targeted
targeted by
by this
this
advertising
advertising campaign?
campaign?

PPT 6-8 8
Ad in Context Example

How
How about
about this
this ad?
ad?
What
What is
is the
the target
target
demographic
demographic for for this
this
ad
ad campaign?
campaign?

PPT 6-9 9
Geographic Segmentation

 Country
 Region
 State
 City
 Neighborhood
 Geo-demographic

PPT 6-10 10
Psychographics and
Lifestyle Segmentation

Lifestyle
Opinions Activities

Interests
Lifestyle segmentation
provides insight into
consumer’s
motivations
PPT 6-11 11
Benefit Segmentation

Prestige? Safety?

Fuel Economy? 12
PPT 6-12
Business to Business Markets

Markets segmented by:


 Usage rates
 Geographic location
 SIC (Standard Industrial Classification)
Code
 Stage in the purchase process: first time
vs. experienced buyers
 Benefits desired

PPT 6-13 13
Ad in Context Example

STP
STP Marketing
Marketing is is
used
used inin the
the business-
business-
to-business
to-business market
market
as
as well
well as
as the
the
consumer
consumer market.
market.

14
PPT 6-14
Prioritizing Target Segments

1. Examine your ability to deliver value to the


segments and costs of new capabilities—
distinct competencies of the firm

2. Research segment size, growth potential


and usage frequency

3. Assay the competitive environment

4. Find a niche you can scratch

PPT 6-15 15
Effective Positioning

 Deliver on the brand promise

 There is magic in consistency

 Make the positioning different and simple


for consumers to understand

PPT 6-16 16
Fundamental Positioning
Themes

 Benefit Positioning

 User Positioning

 Competitive Positioning

PPT 6-17 17
Ad in Context Example

Do
Do you
you think
think this
this ad
ad for
for
Ryka
Ryka shoes
shoes is is
emphasizing
emphasizing benefit,
benefit,
user,
user, or
or competitive
competitive
positioning?
positioning?

PPT 6-18 18
Repositioning

 Used to revive an ailing brand or fix a


lackluster new market entry
 Advertising themes and positioning can
be trendy and become outdated

 The challenge: Changing perceptions of


a brand forged over years of advertising.

PPT 6-19 19
Capturing the Value Proposition

Functional V
Emotional A
Self-expressive L Relative Price
Benefits U
E

PPT 6-20 20

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