Transcript Market Segmentation, Positioning and the Value Proposition

Market Segmentation, Positioning
and the Value Proposition
Chapter 6 with Duane Weaver
OUTLINE
• Marketing Strategies
• Identifying Target Segments
• Prioritizing Target Segments
- SWOTs
• Positioning Strategy
• Value Proposition
• Seminar Discussion
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
Identifying Target Segments
• Market Segmentation
– Usage Segmentation
(Patterns and levels of commitment)
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Heavy Users
Non-users
Brand-loyal users
Switchers/Variety Seekers
Emergent Consumers
– Demographic Segmentation
– Psychographic Segmentation – Lifestyle Segmentation
• AIOs (activities, interests, opinions) E.g. p. 221-222
Benefit Segmentation
B2B Segmentation vs. B2C
Prioritizing Target Segments
• Use a SWOT to position yourself amongst
competitors based on your segmentations.
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
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, p. 234)
THANK YOU!
• Discussion Questions:
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P. 238
Q1 – STP factors
Q2 – Persuasion of product vs. segment
Q3 – Emergent Consumers
Q6 – Smaller is better? Segments
Q7 – Positioning Strategy Elements