Segmentation, Targeting and Segmentation (STP).

  • Please read the chapter 7 regarding Segmentation, Targeting and Segmentation (STP).
  • You can choose any product/service that you want to analyze.
  • We will take a look at the 4Ps later on, you can either work with your current choice or change it after you study the product/ service.

Part 1

  1. Segmentation

In addition to needs, marketer’s use one or more segmentation variables to segment consumer markets.  Segmentation variables can be defined as dimensions that divide the total market into fairly homogeneous groups, each with different needs and preferences. Imagine you have been hired by your project company as a marketing consultant. How do you describe their market? Please use segmentation variables which are classified as demographic, psychographic, or behavioral in nature, as shown in Figure 7.2.

  • Develop Segement Profiles

After segments are identified, marketers should develop profiles or descriptions of the typical customers within a segment. Please provide a detailed description of the typical customer in terms of key demographic, ifestyle, geographic an product use bevaiors.

  • Targeting Strategy

Targeting is to choose a target strategy to follow. A fundamental decision must be made as to whether the firm will pursue a single large segment or focus on meeting the needs of multiple, smaller markets.  Choose one targeting strategy from 4 types below and support your decision.

  1. In an undifferentiated targeting strategy, the marketer assumes that people have similar needs, and an attempt is made to appeal to a broad spectrum of people.  An example of a firm that follows a somewhat undifferentiated targeting strategy is Wal-Mart. Efficiency occurs because of enhanced economies of scale.  But in today’s day and age, following a purely undifferentiated strategy is risky; markets are fragmenting and for most products, needs are not similar enough to justify this technique.
  2. Instead, the more common practice is to follow a differentiated targeting strategy in which the firm develops one or more products (and marketing strategies) for each of several customer groups.  A differentiated strategy might also involve marketing a single product differently to different segments, by changing marketing communications to appeal to each targeted group.
  3. Firms that focus their efforts on a single segment use to follow a concentrated targeting strategy. One or more products may be promoted to the segment.
  4. Finally, a firm may choose to follow a custom marketing strategy which is explained in more detail on the following slide. : Tailoring specific products to individual customers.
  •  Positioning statement

Positioning statements typically include the segment(s) to which the product is targeted, the most important claim (differentiator) to be attributed to the product for the targeted. segment(s), and the most important piece of evidence that supports the claim made about the product. Please write your project company’s positioning statement.

Part 2.

Based on Competitive Analysis tool, please answer the following questions.

  1. What is the desired position for our brand?
    1. What is our current perceived position among consumers?
    1. Can you deliver a solution that is different from and better than your competitors? Get specific by describing how your value uniquely helps customers to improve their business in very clear-cut terms. If possible, have a quantifiable outcome – expressed in dollars or a percentage. Indicate your short term and long term direction in perceptual map. Say why your decisions are better than they can get with your competition.
  • What are the real costs to the user of not acting now and sticking with what they are doing today? Include the pain points you address and any risks to them that you mitigate. Consider all of the hard and soft costs your customer might avoid by using your product or service – support, training, additional personnel, space in the building, disruption to their business operations, financing, extra batteries, and so on. Show them how your value outweighs these in terms of money, time, or simply a painful problem solved;
  • Can we communicate our unique brand position in a way that is understandable and compelling to our consumers?
  • Do we have the resources to overcome the similar brands and establish a strong position?
  • Does our position have long term viability based on things within our control?

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