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MARK4210 Class 6 STP Complete Spring 2021
MARK4210 Class 6 STP Complete Spring 2021
SEGMENTATION,
TARGETING &
POSITIONING
2 Course Roadmap
Fundamentals Elements of Marketing Strategy Application
Situation Analysis
(Customer, Competitor, Company)
Market Selection
- Quantitative Analysis Simulation Game
(Segmentation, Targeting, Positioning)
- Consumer Behavior PharmaSim
Segmentation
Targeting
Positioning
MARK 4210 Professor Eugene R. Raitt Spring 2021
Se g m e n ta tio n I
No n -se g m e n te d Se g m e n ta tio n II
m a rke t
Se g m e n ta tio n III
MARK 4210 Professor Eugene R. Raitt Spring 2021
5 MARKET SEGMENTATION
Why do it?
Source: A Note of Consumer Market Segmentation, Harvard Business School
MARK 4210 Professor Eugene R. Raitt Spring 2021
6 MARKET SEGMENTATION
• Stable: segment characteristics & members do not change in the short term
9
Steps in Segmentation
Steps Some Guide Questions
1. Define the • What are the marketing objectives (e.g., increase share,
purpose and increase demand, combat competition)?
scope of the • Looking for new segments, or to better satisfy existing ones?
segmentation • Use existing data or new research?
2. Analyze total • Characteristics of the total market (e.g., size, structure)?
market data • Differences between users/non-users of the product class?
• Factors that distinguish users, non-users, users of competitors?
• Current competitive position (e.g., leader, niche)?
3. Develop • What factor differentiates groups of consumers most clearly?
segment profiles • Are profiles of each segment internally consistent?
4. Evaluate • Differentiable, Identifiable, Stable, Measurable, Accessible?
segmentation • Major similarities and differences among segments?
• Should number of segments be reduced or increased?
Total Market
Male Female
Under 25 60 y.o.
25-39 y.o. 40-59 y.o.
y.o. above
19
THE STP PROCESS
Segmentation
Targeting
Positioning
MARK 4210 Professor Eugene R. Raitt Spring 2021
20 TARGETING
• What is targeting?
• The act of choosing which segment(s) to serve
and which ones to ignore.
Ta rg e t se g m e n t A
Ta rg e t se g m e n t B
Ta rg e t se g m e n t C
21 TARGETING
23 TARGETING STRATEGIES
• Range of target market
Full Market Multiple Single Individuals as
Coverage Segments Segments Segments
Mass Customization
Market
Ignoring segment differences Targeting several segments Targeting a small Tailoring products and
and appeal the whole market with different products segment with specific marketing strategies to
with one offer or one strategy and/or marketing strategies well-defined needs suit individual tastes
24
EXAMPLE: UNDIFFERENTIATED MARKETING
MARK 4210 Professor Eugene R. Raitt Spring 2021
25 EXAMPLE: DIFFERENTIATED
MARKETING
MARK 4210 Professor Eugene R. Raitt Spring 2021
26 EXAMPLE: NICHE
MARKETING
MARK 4210 Professor Eugene R. Raitt Spring 2021
27 EXAMPLE:
MICROMARKETING
MARK 4210 Professor Eugene R. Raitt Spring 2021
Segmentation
Targeting
Positioning
MARK 4210 Professor Eugene R. Raitt Spring 2021
29 POSITIONING
• What is positioning?
• The process by which marketers identify a unique
selling proposition for the product
• The goal is to occupy a clear, attractive, and distinctive
position in the minds of the target consumers.
30 POSITIONING STATEMENT
• A statement that specifies how the company/product
wants to be perceived by the target consumers
• Elements
• Target market
• Frame of reference (product category)
• Point of difference
• Reason to believe
•Common form
• To (target market), (X) is the brand of (frame of reference) that
(point of difference) because (reason to believe).
31
MARK 4210 Professor Eugene R. Raitt Spring 2021
32 POSITIONING: KEY
CONSIDERATIONS
• Competitive Frame of Reference
• Defining the target market and competition;
i.e., “category membership”
• Points of Difference (POD) => Differentiation
• Attributes or benefits consumers strongly
associate positively with a brand, and believe
they cannot find with a competitive brand
MARK 4210 Professor Eugene R. Raitt Spring 2021
33 POSITIONING: KEY
CONSIDERATIONS
• Points of Parity (POP)
• Associations by consumers that are shared with other
brands
• May not be reason to choose a brand, but absence can
be reason to drop a brand
• Important to nullify competition by matching POP’s,
e.g., late market entrants try to make competitor's POD
into a POP for the category, and then introduce a new
POD to gain leadership
MARK 4210 Professor Eugene R. Raitt Spring 2021
35
POSITIONING TOOL
• Perceptual map
• A positioning tool that helps define a brand’s
position relative to competitors
• Conveys product information on a few key
dimensions
• Represents the position of your product in
consumers’ mind relative to competitors
MARK 4210 Professor Eugene R. Raitt Spring 2021
Beverage
36 Unhealthy
Coffee Pepsi
Coke
Fanta
Ginger Ale
Natural Artificial
Milk Sprite /7-up
Water a d e)
G a tor e)
( e.g. cozad
ra g es g . L u
e v e ( e . r
t s b n k s a te
r ri w
Tea Spo cose d itamin
Juice Gl u V
Beneficial
MARK 4210 Professor Eugene R. Raitt Spring 2021
37 LOOKING AHEAD:
SEGMENTATION, TARGETING, POSITIONING