STP Marketing
1
1)
Segment - identify variables, develop profiles
2) Target - evaluate attractiveness of each segment, select
targets
3) Position - select how want consumers to perceive
product
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Reasons for
Segmenting and Targeting
2
Segmenting is grouping customers or prospects according to
common characteristics, needs, wants, and/or desires.
Targeting is analyzing, evaluating, and prioritizing those market
segments deemed most profitable to pursue.
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Effective Segmentation:
3
1)
Measurability - can you measure segment?
2) Accessibility - can segment be reached?
3) Profitability - what’s the segment’s potential?
See Table 7-8, page 263!
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Types of Market Segmentation
4
Behavioral
segments
Demographic segments
Ethnic segments
Geodemographic segments
Psychographic segments
Lifestyle segments
Life stage segments
Relationship Segments
Adopter Segments
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Types of Segmentation
5
Geographic
Regions
Population size
Climate
Retail trading area
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Types of Segmentation
6
Demographic
Age – Boomers vs. Gen X vs. Gen Y
Gender – males vs. females vs. ?????
Family size/life cycle
Income
Occupation
Education
Race
http://advertising.utexas.edu/world/index.asp
Geodemographics -- PRIZM
http://www.claritasexpress.com
http://cluster2.claritas.com/Express/Default.wjsp?ID=60
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Demographic Trends
7
1) Changing families
2)
3)
4)
5)
later marriage
fewer kids
higher divorce
working spouses
aging parents – “SANDWICH GENERATION”
Nonfamily households
Geographic shifts
Higher education
Ethnic population
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Emerging Markets
8
People
of Color
Buying power has doubled in last decade
Nearly 1 in 3 claims ethnic identity
Companies struggling to understand and develop multiethnic
awareness and advertising know-how
Toyota fiasco with RAV4!
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African Americans – demos
9
13% of total population
Growth rate slowing
Spending power: $572 billion
Geo location: TX, D.C., NY, MI, IL, PA, CA, GA, CT,
IN
Preferred media: TV, Mag, radio
Lifestyle/values: distrust corporations, value self image,
family/home, religion is cornerstone of lifestyle
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Latinos – demos
10
12.5%
of total population
Fastest growth rate – just passed African Americans
Spending power: $452 billion
Geo location: TX, FL, NY, NJ, IL, CA,
Preferred media: Spanish radio, billboards, print ads
Lifestyle/values: family and religion, value personal
interactions, work hard for financial security, sports and
family activities, many speak Spanish at home
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Asian Americans
11
3% of total population
Highest median hh income
Spending power: $253 billion
Geo location: CA, TX, NY, HI
Preferred media: Print, TV (English or native)
Lifestyle/values: value family, tradition, authority, save
money, loyal to companies who value them, price
sensitive.
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Women
12
52%
of total population
Purchase 80% of retail goods
Buy 65% cars
Own more than half of all stocks
Represent half of those online
Preferred media: Magazine, radio, time permitting!
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Gay and Lesbian Markets
13
16 million estimated (accuracy issues)
Spending power: $445 billion
Geo location: Major urban areas with growth in smaller
towns
GM: San francisco, Atlanta, Austin, Seattle
LF: Albuquerque, Iowa City, Santa Fe
Lifestyle/values: Trendsetters, more discretionary income,
travel.
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Types of Segmentation
14
Psychographic:
VALS
Personality
“GeoVALS”
McGraw-Hill/Irwin
http://www.sric-bi.com/VALS/geovals.shtml
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Exhibit 5-4
See Page
155
VALS 2 Typology
Abundant resources
15
Actualizers
Principle
oriented
Status
oriented
Action
oriented
Fulfilled
Achievers
Experiencers
Believers
Strivers
Makers
Strugglers
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Slide 26
Minimal resources
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Types of Segmentation
16
Behavioristic
How segments use product:
Purchase Occasion
Usage rate
Benefits sought
Relationship
segmentation
Degree of Loyalty: None Brand Advocate
See Table 7-4!
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Descriptive Model of
Segmenting and Targeting
17
Figure 7-6,
p.258
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How Targeting Works
18
Targeting
is done by using profile characteristics of
segments to draw boundaries around a particular group of
customer or prospects that are projected to respond well
to a brand and its marketing communication.
Then, marketers estimate the group’s size.
The next step is to prioritize the segments.
A company then develops message strategies and media
plans for select segments.
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Finally, Positioning!
19
It’s
not what you do to the product, but what you do to the
mind!
How do you want consumer to perceive your product?
i.e. It’s not delivery, its Dijorno….
Get the feeling…..
Remember….its
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all PERCEPTIONS!
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Positioning Strategy
20
1.
Who’s the target market? Research!
2. Choice criteria – what product attributes are important
to target?
3. Identify competitors – strengths vs. weaknesses
4. Determine competitors’ position – based on attributes
5.
6.
Perceptual map
Determine unique offering
How is our brand different from competition?
Select a position -- Must consider laws of positioning
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Positioning Laws
21
1. Law of leadership
It’s
better to be first than it is to be better
2. Law of category
If
you can’t be first, set up a new category.
People are interested in what’s new, not what’s better.
3. Law of the mind
It’s
better to be first in mind than first in marketplace.
Modified law of leadership – have an easy name!
4. Law of perception
Marketing
is not a battle of products, it’s a battle of
perceptions.
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Positioning laws
22
5. Law of focus
6. Law of exclusivity
The most powerful concept in marketing is owning a word in
the prospects mind.
Must be simple and benefit oriented.
Two companies cannot own the same word in a prospect’s
mind.
Burger king cannot own “fastfood”
7. Law of the ladder
The strategy to use depends on which rung you occupy on the
ladder.
Avis, we try harder.
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Laws cont’d
23
8.
Law of Duality –
In the long run, it’s a 2 horse race.
Coke vs. pepsi
Listerine vs. scope
9.
Law of the opposite
Determine second place based directly on leader
Burger King – broiled, not fried.
10.
Law of division – a category will ultimately divide
Vans vs. minivans vs. SUV vs. stationwagons
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