Transcript Market Segmentation, Positioning, and the Value Proposition

Marketing 3344
1.
Target Market: A sub-group of a larger market chosen as
the focal point for a marketing or advertising campaign.
(NOT illegal or unethical!)
2.
Positioning: Designing and representing a brand in a way
that is distinct in the consumer’s mind.
3.
Positioning Strategy: Selecting key themes to
communicate to a target market.
4.
Marketing Strategy: Evolves as a result of 1-3
2
1.
Reassess segmentation strategy:
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2.
Exam the current target segment to develop new and
better ways of meeting its needs.
Change the target and reposition the brand to a new
segment.
Pursue product differentiation strategy:


Emphasize or create differences in brands to
distinguish them from competitors.
Advertising plays a critical role because the
consumer will have to be convinced that the
difference is meaningful.
3
Geography
Demographics
Lifestyles
Benefits
Psychographics
Commitment
Levels
Usage Patterns
4
1.
Break the broad market into smaller, more
homogenous segments
2.
2. Specifically target discrete market
segments
3.
3. Position the brand to appeal to the
targeted segments
5
Advertising and promotion targeted to:
Heavy users
o Nonusers
o Brand-loyal users
o Switchers/Variety seekers
o Emergent Consumers
o
o
Point of entry marketing strategy
6
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Age
Gender
Race
Marital Status
Income
Education
Occupation
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Ad in Context Example
How would you describe
the demographic
segment targeted by this
advertising campaign?
Ad in Context Example
How about this ad?
What is the target
demographic for this ad
campaign?
Country
o Region
o State
o City
o Neighborhood
o Geo-demographic
o
Opinions
Activities
Interests
Lifestyle segmentation
provides insight into
consumer’s motivations
Lifestyle
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Prestige?
Safety?
Fuel Economy?
o
Markets segmented by:
Usage rates
o Geographic location
o SIC (Standard Industrial Classification)
Code (Now NAICS for NAFTA)
o Stage in the purchase process: first time
vs. experienced buyers
o Benefits desired
o
Ad in Context Example
STP Marketing is used
in the business-tobusiness market as
well as the consumer
market.
1.
Examine your ability to deliver
value to the segments and costs of
new capabilities—distinct
competencies of the firm
2.
Research segment size, growth
potential and usage frequency
3.
Assay the competitive environment
4.
Find a niche you can scratch
o
Deliver on the brand promise
o
There is magic in consistency
o
Make the positioning different and simple
for consumers to understand
Definition: A spatial representation of how target
customers perceive competing brands
Brands that are perceived to be similar are
located close to each other
 Brands that are perceived to dissimilar are
further apart

Use the perceptual map to:
Determine how target customers perceive the
product
 Identify competitors
 Select a positioning

There are four general positioning strategies:
 Head-on
 With an Idea
 For Social Accountability
 U.S.P. - Unique Selling Proposition
Product
Attribute(s)
Value
Away from
Competitors
Benefit(s)
Offered
G
H
C
A
D
Against a
Competitor
E
Product User
B
F
Product
Usage
Cultural Symbols
o
Benefit Positioning
o
User Positioning
o
Competitive Positioning
Ad in Context Example
Do you think this ad for
Ryka shoes is emphasizing
benefit, user, or
competitive positioning?
o Used to revive an ailing brand or fix a
lackluster new market entry
o Advertising themes and positioning
can be trendy and become outdated
o The challenge: Changing perceptions
of a brand forged over years of
advertising.
Functional
Emotional
Self-expressive
Benefits
V
A
L
U
E
Relative Price