stp

1. Market Segmentation, Positioning
and the Value Proposition

2. OUTLINE
• Marketing Strategies
• Identifying Target Segments
• Prioritizing Target Segments
- SWOTs
• Positioning Strategy
• Value Proposition
• Seminar Discussion

3. Marketing Strategies
• Target Segment
– subgroup chosen as focal point for the marketing program and
advertising campaign
• Positioning
– Process of designing and representing one’s product or service so
that it will occupy a distinct and valued place in the target
consumer’s mind
• Positioning Strategy
– Selection of key themes or concepts the organization will feature
when communicating distinctiveness to a particular target market
segment.
• STP marketing
– Segmenting
– Targeting
– Positioning

4. Identifying Target Segments
• Market Segmentation
– Usage Segmentation
(Patterns and levels of commitment)
• Heavy Users
• Non-users
• Brand-loyal users
• Switchers/Variety Seekers
• Emergent Consumers
– Demographic Segmentation
– Geographic Segmentation
– Behavioural Segmentation
– Psychographic Segmentation – Lifestyle Segmentation
• AIOs (activities, interests, opinions)
Benefit Segmentation
B2B Segmentation vs. B2C

5. Prioritizing Target Segments
• Use a SWOTS to position yourself amongst
competitors based on your segmentations.

6. Positioning Strategy
• Committed to creating substantive value
• Must be consistent internally and consistent over
time
• Simplicity and Distinctiveness
• Ability must match message (promise) strategy
• Positioning Schemes (which is best and why?)
– Benefit positioning
– User positioning
– Competitive positioning
• Repositioning

7. Value Proposition
“A brand’s value proposition is a statement of the
functional, emotional, and self-expressive benefits
delivered by the brand that provide value to
customers in the target segment. A balanced value
proposition is the basis for brand choice and
customer loyalty, and is critical to the ongoing
success of a firm.”
(O’Guinn, Allen, Semenik 4E, 2006, p. 234)

8. THANK YOU!