Presentation on theme: "6 Market Segmentation, Positioning, & the Value Proposition."— Presentation transcript:
16Market Segmentation, Positioning, & the Value Proposition
2Objectives Explain STP Process Segmentation Bases Target Segment CriteriaElements of Effective PositioningCreating Brand Value/Equity
3STP Marketing & 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.Positioning: Designing & representing a brand in a way that is distinct in the consumer’s mind.Positioning Strategy: Selecting key themes to communicate to a target market.Marketing Strategy: Evolves as a result of 1-3
4Beyond STP—Regular Assessment Reassess segmentation strategy: A detailed examination of the current target segment to develop new & better ways of meeting its needs, or a need to change the target & reposition the brand to a new segment.Pursue product differentiation strategy: Product differentiation is a firm’s effort to emphasize or even create differences in brands to distinguish them from competitors. Advertising plays a critical role as part of the product differentiation strategy because the consumer will have to be convinced that the difference is meaningful.
5The STP Marketing Process (Segmenting, Targeting, Positioning) Break the market into smaller, more homogenous segmentsSpecifically target discrete market segmentsPosition the brand to appeal to the targeted segments
13Passenger Safety vs speed? Benefit SegmentationPassenger Safety vs speed?Prestige?Fuel Economy?Design?
14Business to Business Markets Markets segmented by:Usage ratesGeographic locationSIC (Standard Industrial Classification) CodeStage in the purchase process: first time vs. experienced buyersBenefits desired
15SIC Codes Standard Industrial Classification (SIC)= 2,3,4-digit SIC. Enter a SIC CODE:Enter keyword(s):BEER2082 Malt Beverages2086 Bottled and Canned Soft Drinks and Carbonated Waters3411 Metal Cans3585 Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment5149 Groceries and Related Products, Not Elsewhere Classified5181 Beer and Ale5813 Drinking Places (alcoholic Beverages)5921 Liquor Stores5963 Direct Selling Establishments
16Prioritizing Target Segments Examine your ability to deliver value to the segments & costs of new capabilities—distinct competencies of the firmResearch segment size, growth potential & usage frequencyAssay the competitive environmentFind a niche you can scratch
17Effective Positioning…. …is based on substance of the brand’s values…is consistent over time…is both simple & distinctive