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Segmentation / Targeting / Positioning

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Brief introduction to the STP process - A marketing strategy is based on expected customer behavior in a certain market. In order to know the customer and its expected buying process of segmenting, targeting and positioning is needed.

Published in: Business
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Segmentation / Targeting / Positioning

  1. 1. Segmentation - Targeting - Positioning Maximize your marketing impact
  2. 2. Whois your product for?
  3. 3. Whois your product NOT for? ...better yet
  4. 4. Segmentation PositioningTargeting ( Make a choice ) ( Increase relevance ) ( In the consumers mind )
  5. 5. Get to knowyour customer
  6. 6. Segmentation is the process of understanding why people buy products and services like yours, which of those people you can best satisfy and what you can do to make your product simply irresistible to them
  7. 7. Demographic: ■ Age ■ Income ■ Marital Status ■ Education ■ Family Size ■ Gender ■ Geographic Location ■ Social Status ■ Occupation Segm entation Criteria
  8. 8. Psychographic: ■ Brand Preferences ■ Price Sensitivity ■ Conservative/Liberal ■ Enviro-Friendly ■ Hobbies ■ Lifestyle ■ Service Preferences ■ Spontaneity ■ Influenced by Peers ■ Relationship Importance Segm entation Criteria
  9. 9. Behavioral: ■ Purchase History ■ Where They Shop ■ Type of Store Preferences ■ Association Memberships ■ Internet Usage ■ Impulsiveness ■ Information Sources ■ Buy Based on Trends ■ Benefits sought Segm entation Criteria
  10. 10. The fundamental philosophy behind customer segmentation is that customers will be more inclined to buy something or take action when doing so addresses their specific needs
  11. 11. Example 1st. apartment moving in together buying house getting children remodeling project moving to something smaller (opportunity) (industry focus) summer cottage *(Segmentation - Targeting - Positioning) Example: Paint industry Existing focus and potential opportunities uncovered by STP*. Segmentation by - life stage + benefit sought
  12. 12. Example product $ price place promotion existing target segment indoor outdoor finish surface technical properties price driven paint retailer segment aligned
  13. 13. Example product $ price place promotion target segment (opportunity) non toxic eco friendly anti bacterial relevant added values premium related distribution (ex. baby equipment store) segment aligned
  14. 14. Predictability of consumer choice behaviour HighLow Easy&LowDifficult&highEaseandcostofmeasurement Psychological Behaviour Demographics More specific knowledge = Difficult and costly to acquire More specific knowledge = Predictable behaviour equally
  15. 15. Best to use multiple approaches in order to identify smaller, better-defined target groups. Start with a single criteria and then expand to other bases.
  16. 16. Compatibility how aligned is this market to our goals? 5 criteria that indicate whether you have selected a viable target market Size how large is this target market? Worth pursuing? Expected Growth even if the market is small, it may be profitable if there are indications that it will grow. Competitive Position low competition equals attractive market. Cost to Reach is this market accessible with our tactics? 1 2 3 4 5
  17. 17. Increase relevance
  18. 18. COMPANY your segments marketing mix a Undifferentiated targeting strategy
  19. 19. COMPANY your segmentsmarketing mix a b c d Differentiated targeting strategy
  20. 20. COMPANY your segmentsmarketing mix a UNSERVED UNSERVED UNSERVED Focused targeting strategy
  21. 21. segmentsmarketing mix ( Men ) ( 50+ ) ( Sun ) ( Women ) Example Variation in Product, Price, Promotion & Place
  22. 22. How do you want to be perceived?
  23. 23. 1. Understanding target consumers 2. Analyzing Market/Competition 3. Defining Competitive Advantage(s) 4. Identifying relevant attributes 5. Communicating and Delivering Chosen position Developing the positioning strategy 
  24. 24. The position should be different credible relevant position
  25. 25. Product / Service Promotion / Image Price / Value Place / Distribution People / Culture Differentiation Points choose one point of differentiation or a combination of many
  26. 26. Write your Positioning Statement For who the is a that unlike our product target consumer need or opportunity product name product category key benefit primary competition primary differentiation
  27. 27. public relations advertising media design distribution sales price public relations service event POS product competitions sponsorship Positionshould be supported in all touch points
  28. 28. A good positioning helps guide marketing strategy by clarifying the brand's essence, what goals it helps the consumer achieve, and how it does so in a unique way.
  29. 29. “The un-cola” “We try harder” “The fashion watch” “Safety” ( Volvo ) Great positions are unique, memorable and effective
  30. 30. Would you like to know more? Contact: Cris Anthony Hödar cris@anthonyhodar.com tel. (+45) 30 42 40 00

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