market segmentation, positioning, and the value proposition
DESCRIPTION
Chapter 6. Market Segmentation, Positioning, and the Value Proposition. STP Marketing and the Evolution of Marketing Strategy. Target Market : A sub-group of a larger market chosen as the focal point for a marketing or advertising campaign. - PowerPoint PPT PresentationTRANSCRIPT
Market Segmentation, Positioning, and the Value Proposition
Chapter 6
Ch 6: Segmenting Markets 2
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.
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.
Ch 6: Segmenting Markets 3
The STP Marketing Process(Segmenting, Targeting, Positioning)
1. Break the market into smaller, more homogenous segments
2. Specifically target the discrete market segments
3. Position the product or service to appeal to the targeted segments
How would you describe the
demographic segment targeted by this
advertising campaign?
How would you describe the
demographic segment targeted by this
advertising campaign?
How about this ad? What is the target
demographic for this ad campaign?
How about this ad? What is the target
demographic for this ad campaign?
Identifying Target Segments: Market Segmentation
Demographics
Geography
Psychographics
Lifestyles
Benefits
Commitment Levels
Usage Patterns
Ch 6: Segmenting Markets 6
Segmenting by Usage and Commitment
• Advertising targeted to:– Heavy users– Nonusers– Brand-loyal users– Switchers/Variety seekers– Emergent Consumers
Ch 6: Segmenting Markets 7
Demographic Segmentation
1. Age
2. Gender
3. Race
4. Marital Status
5. Income
6. Education
7. Occupation
Ch 6: Segmenting Markets 8
Geographic Segmentation
Ch 6: Segmenting Markets 9
Psychographics and Lifestyle Segmentation
Ch 6: Segmenting Markets 10
Activities
Interests
OpinionsLifestyle
Lifestyle segmentation provides insight into consumer’s motivations
Benefit Segmentation
Ch 6: Segmenting Markets 11
Passenger Safety?
Prestige?
Fuel Economy?
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
Ch 6: Segmenting Markets 12
STP Marketing is used in the business-to-business
market as well as the consumer market
STP Marketing is used in the business-to-business
market as well as the consumer market
Prioritizing Target Segments
Examine your ability to deliver value to the segments and costs of new capabilities
Research segment size, growth potential and usage frequency
Assay the competitive environment
Find a niche you can scratch
Ch 6: Segmenting Markets 14
Effective Positioning
• Is based on substance of the brand’s values
• Reflects internal values and structure of the firm’s market orientation
• Is consistent over time
• Is both memorable AND distinctive
Ch 6: Segmenting Markets 15
Fundamental Positioning Themes
• Benefit Positioning
• User Positioning
• Competitive Positioning
Ch 6: Segmenting Markets 16
Do you think this ad for Ryka shoes is
emphasizing benefit, user or competitive
positioning?
Do you think this ad for Ryka shoes is
emphasizing benefit, user or competitive
positioning?
Repositioning
Ch 6: Segmenting Markets 18
• Used to revive an ailing brand or fix a lackluster new market entry
• The challenge: Changing perceptions of a brand forged over years of advertising.
Capturing the Value Proposition
Ch 6: Segmenting Markets 19
VVAALLUUEE
BenefitsBenefits
Relative PriceRelative Price
FunctionalEmotional
Self-expressive