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Segmentation Targeting Positioning

STP

By Jane and Nee (IM)

Market Segmentation
Dividing a market into smaller groups with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes, and there are 4 market segmentation.

Market Segmentation
1.Geographic segmentation -Region : -Nation :

-City :

Market Segmentation
2. Demographic segmentation
Such as

-Age :

-Gender :

Market Segmentation
3. Psychographic segmentation
Such as

-Lifestyle :

-Social class :

Market Segmentation
4. Behavioral segmentation
Such as

-Occasion :

-Benefit :

Market Segmentation
4. Behavioral segmentation -User status :

Market Segmentation
Intermarket segmentation:
Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries. Examples:

Coca-Cola:Worlds teen

IKEA: global middle class Benz: global elite

Market Targeting
A set of buyers sharing common needs or characteristics that the company decides to serve.

Market Targeting
Evaluating Market Segment by 3 factors - Segment size and growth - Segment structural attractiveness - Company objectives and resources

Market Targeting
Selecting Target Market Segments There are 4 strategies. -Undifferentiated marketing -Differentiated marketing -Concentrated marketing -Micromarketing

Target Selection Strategies


Undifferentiated Marketing:
Focuses on what is common in the needs of consumers for examples:

Salt

Sugar

Water

Target Selection Strategies


Differentiated Marketing:
a firm decides to target several market segments.

for running

basketball

fashion

Target Selection Strategies


Concentrated Marketing:
a firms achieves a strong market position because of its greater knowledge of consumer needs in the niche it serves and special reputation it acquires.

Target Selection Strategies


marketing programs to the needs and wants of specific individuals of the target.

Micromarketing:

Target Selection Strategies


There are 2 types of micromarketing. - Local Marketing - Individual Marketing

Micromarketing
Local Marketing:
Tailoring brands and promotions to the needs and wants of local customer groups.

Tom Yum Kung Pizza Kao Yum Kai Zab

Micromarketing
Individual Marketing: marketing programs
to the needs and preferences of individual customers.

Market Positioning and Differentiation


Product Positioning Products are created in the factory, but brands are created in mind
- Plan position - Design marketing mixes (4Ps)
Price, Product, Place, Promotion

Product Positioning
Example
Nissan March : economy

Mercedes : luxury

Product Positioning
Example
BMW : performance

Volvo : safety

Market Positioning and Differentiation


Positioning Maps - Important buying dimension :
Price Quality Service Environment/location Choice of product/services Etc.

Choosing a Differentiation and Positioning Strategy


3 steps of differentiation and Position task: 1. Identifying Possible Value Differences and Competitive Advantage. 2. Choosing the right competitive advantage. 3. Selecting an overall positioning strategy.

Identifying Possible Value Differences and Competitive Advantage


Competitive Advantage

There are 5 differentiation of product, services, channels, people and image.

Identifying Possible Value Differences and Competitive Advantage


1. Product Differentiation
Feature Style

Identifying Possible Value Differences and Competitive Advantage


2. Service Differentiation
Convenient

Identifying Possible Value Differences and Competitive Advantage


3. Channel Differentiation

Expertise Performance

Identifying Possible Value Differences and Competitive Advantage


4. People Differentiation
Train best flight attendants Service

Identifying Possible Value Differences and Competitive Advantage


5. Image Differentiation

Choosing the right competitive advantage


Which differences to promote? Important Distinctive Superior Communicable Preemptive Affordable Profitable

Selecting an Overall Positioning Strategy


Value proposition : It is the answer to the customers question that why should they buy our brand? Example Nokias value proposition : The best mobile phone that is durable so this brand can make customer trust their good quality.

Video

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