Marketing Strategy

Segmentation Targeting Positioning

S T P
 Target Marketing Requirements
1. Identify and profile distinct groups of
buyers (market segmentation).

2. Select one or more market segments to

enter (market targeting).

3. For each, establish and communicate

benefits of offering (market positioning).
Bases for Segmenting Consumers

Geographic

Demographic

Psychographic Behavioral
Geographic Segmentation
Demographic Segmentation

Age and Life-cycle Stage

Life Stage
Gender
Income
Generation
Race and Culture
Age and Life-Cycle Stage
Life Stage
Gender
Women:
Influence 80% of consumer purchases
Make 75% of new home decisions
Purchase 60% of cars
Income
Race and Culture
Psychographic Segmentation

• Personality traits
• Lifestyle
• Values
VALS Segmentation System
Behavioral Segmentation
Usage occasions
Initiator
User status
User Influencer
Usage rate

Buyer-readiness
Buyer Decider Loyalty status
Decision Roles User and Usage
Needs and Benefits
Bases for Segmenting B2B Markets

Demographic Industry, company size, location

Operating Variables Technology, user status, customer capabilities

Purchasing Approach Power structure, nature of existing relationship

Situational Factors Urgency, specific application, size of order

Personal Characteristics Buyer-seller similarity, loyalty, risk attitude

Market Targeting

Effective Segmentation Criteria

Measurable
Substantial
Accessible
Differentiable
Actionable
 Market Targeting
Porter’s Five Force
Substitute Buyer
Products Power

Supplier
New Power
Entrants
Rivals
Evaluating and Selecting Segments

Multiple segment
specialization

Full market coverage

Single-segment
concentration Individual marketing
 Levels of Segmentation

Multi Segments
• product specialization, the firm sells a certain product to several
different market segments.
• market specialization, the firm concentrates on serving many
needs of a particular customer group, such as by selling all type of
home appliances to middle income class.
 Positioning
The act of designing a company’s
offering and image to occupy a
distinctive place in the minds of the
target market.
Brand Positioning
Quality

• Customer wants and needs

Brand A
• Company capabilities
• Competitive actions
E
D Price
G

F C
B
Value Proposition
What the
What the
brand
brand is
could be
Brand
Unique design, sign, symbol, words, or a combination
of these, employed in creating an image that identifies
a product and differentiates it from its competitors.
Over time, this image becomes associated with a level
of credibility, quality, and satisfaction in the consumer's
mind

“brand name” to refer to the name signifying the

source of a product or service, and “brand” to refer to
the perception customers have about that product or
service.
Brand Positioning

Frame of Reference

Points of parity / difference

Brand mantra
Competitive Frame of Reference

Identifying Competitors
Analyzing Competitors
Points of Parity / Difference
Points of Parity
POP

Points of Difference
POD
Choosing POPs and PODs

Brand Benefits

Brand Attributes

Reasons Proof
to believe points
Difference to promote should be:

Important Distinctive Superior

Communicable Preemptive Affordable

Profitable
Hypothetical Perceptual Map
Brand Mantras
Nike – “authentic athletic performance”

Disney – “fun family entertainment”

Brand Mantra Criteria:

• Communicate
• Simplify
• Inspire
Brand Positioning Bull’s-eye
Differentiation Strategies
Competitive Advantage

Sustainable Leverageable

Customer Advantage
Means of Differentiation

Employees
Channels
Image
Services
Small Business Positioning
• Creative, low-cost research
• Focus on fewer, stronger brands
• Integrated brand elements
• Create buzz
• Build a brand community
• Secondary associations

Creativity