1. Salman Azhar & Friends in 2018
STP
Segmentation
Targeting
Positioning
“Let yourself be silently drawn by the strange pull of what you really love.” ~Rumi
Salman Azhar & Friends in 2018

2. S T P Segmentation, Targeting, Positioning
Identify bases for segmenting market
Develop profiles of these segments
Develop measures of target segment attractiveness
Select target segments
Develop positioning for each segment
Develop marketing mix to support positioning for each segment T P
Salman Azhar & Friends in 2018

3. What are the segments for Apple?
Segmentation Bases
Customers can be segmented by?
Geographic
Nations, States, Regions, Cities, Urban-Rural
Demographic
Age, Gender, Family size, Life cycle, Income
Psychographic
Social class, Lifestyle, Personality, Interests
Behavioral
Occasions, Benefits, Uses, Habits, Responses
iPhone 8 vs X?
iPhone 8 vs 8 plus?
Others?
What are the segments for Apple?
Salman Azhar: I&E 710

4. Assessing Segment Attractiveness
Assess segment attractiveness by:
Size
Niche, Mass, Multiple, Volume Potential
Profitability
ROI, PIE, Margins, Relative to others
Growth
Stage of the PLC
Equilibrium
Stable? Fluctuating? Volatile?
Accessibility
Infrastructure, marketing, and operational reach
Competition Level
Blue (uncontested) or Red (contested) Ocean?
Do the customers have unmet needs?
Can we better satisfy the customers needs vs competition?
Do we have the required collaborators?
Salman Azhar: I&E 710

5. Salman Azhar & Friends in 2018
Positioning Proposition
To (our customers/prospects),
Our brand is the brand within this category (frame of reference)
that promises (relevant superiority, differentiation)
based on (rational and/or emotional, compelling proof points).
Salman Azhar & Friends in 2018

6. Salman Azhar & Friends in 2018
Positioning Map
Salman Azhar & Friends in 2018

7. Salman Azhar & Friends in 2018
Optimal Strategy
Create
Follow
Build (offense)
Hold (defense)
Harvest (retreat)
Salman Azhar & Friends in 2018

8. Optimal Strategy Create Follow Tesla Faraday Salman Azhar: I&E 710
By Candy Red Tesla Model 3.jpg: Steve Jurvetson derivative work: Smnt [CC BY-SA 4.0 ( via Wikimedia Commons
By Sent - Own work, CC BY-SA 4.0,
Salman Azhar: I&E 710

9. Optimal Strategy Build (offense) Hold (defense) Harvest (retreat)
Core product (frontal)
GE on IBM mainframes
Weakness (flank)
Tesla on Big 3 (GM, Ford, Chrysler)
Hold (defense)
Create an Ecosystem
Google, Apple
Barriers to entry
Patents, Regulations
Harvest (retreat)
Generic competition after patent expires
[[File:IBM system console - MfK Bern.jpg|IBM system console - MfK Bern]]
Salman Azhar: I&E 710

10. Positioning Brand and Product Levels Apple (brand) and
iPhone, iPad, Mac, Watch, TV (products)
Salman Azhar: I&E 710

11. Positioning Roles of Brands and Products
Synergies
Differentiation
Portfolio
Brand Position reflects the customer perception of:
Key attributes versus competition
and/or
Brand promise is to the costumer
Product Position reflects products role
within its own product portfolio
versus competitive products
Salman Azhar: I&E 710

12. Factors Affecting the New Technology Adoption
Comparative Advantage
Compatibility
Observability
Trialability
Complexity
Perceived Risk
Salman Azhar: I&E 710

13. Factors Affecting the New Technology Adoption
Comparative Advantage:
What are the benefits of the innovation relative to existing alternatives?
Compatibility:
Does the innovation fit with existing procedures and behavior patterns of the target customer segment?
Observability:
Can the features and/or benefits of the innovation be easily communicated or observed?
Trialability:
Can the innovation be tried initially on a limited commitment basis?
Divisibility – trial of a subset of a product
Salman Azhar: I&E 710

14. Factors Affecting the New Technology Adoption
Complexity:
Level of difficulty: Does the customer have an understanding of implementing the innovation?
Perceived Risk:
What are the physical, financial, and social risks associated with adopting the innovation?
Salman Azhar: I&E 710

15. S T P Segmentation, Targeting, Positioning Recap
Identify bases for segmenting market
Develop profiles of these segments
Develop measures of target segment attractiveness
Select target segments
Develop positioning for each segment
Develop marketing mix to support positioning for each segment T P
Salman Azhar & Friends in 2018

16. Salman Azhar & Friends in 2018
Segmentation, Targeting, Positioning Recap
Customers can be segmented by?
Demographics; Psychographics; Lifestyle; Decision Making; …
Segmentation and Targeting
Create (Tesla)
Follow (Faraday)
Build (offense): Core product (frontal); Weakness (flank)
Hold (defense): Create an Ecosystem; Barriers to entry
Harvest (retreat): Generic competition after patent expires
Salman Azhar & Friends in 2018

17. Salman Azhar & Friends in 2018
Segmentation, Targeting, Positioning Recap
Positioning
Roles of Brands and Products
Synergies; Differentiation; Portfolio
Brand Position reflects the customer perception of:
Key attributes versus competition and/or
Brand promise is to the customer
Product Position reflects products role
within its own product portfolio and/or
versus competitive products
Factors Affecting the New Technology Adoption
Positive (Comparative Advantage; Compatibility; Observability; Trialability)
Negative (Complexity; Perceived Risk)
Salman Azhar & Friends in 2018