New STPD
New STPD
New STPD
Psychographic
Lifestyle or Personality
Behavioral
Occasions, Benefits,
Uses, or Attitudes
Step 1. Market Segmentation
Bases for Segmenting Business Markets
Personal
Demographics
Characteristics
Bases
Bases
for
for Segmenting
Segmenting
Situational Business
Business Operating
Factors Markets
Markets Characteristics
Purchasing
Approaches
STEPS IN SEGMENTATION
PROCESS
• NEED BASED SEGMENTATION
• SEGMENT IDENTIFICATION
• SEGMENT ATTRACTIVENESS
• SEGMENT PROFITABILITY
• SEGMENT POSITIONING
• SEGMENT “ACID TEST” ( SEGMENT STORY
BOARDS TO TEST ATTRACTIVENESS OF
EACH SEGMENTS POSITIONING
STRATEGY)
• MARKETING MIX STRATEGY
Effective Segmentation
• Size, purchasing power,
Measurable
Measurable profiles of segments can
be measured.
• Segments can be
Accessible
Accessible effectively reached and
served.
Segment
Segment11
Company
Company
Marketing Segment
Marketing Segment22
Mix
Mix
Segment
Segment33
C. Concentrated Marketing
Step 2. Market Targeting
Choosing a Market-Coverage
Company Strategy
Resources
Product
Variability
Product’s Life-Cycle
Stage
Market
Variability
Competitors’
Marketing Strategies
Positioning is
the act of
designing the
company’s
offering and
image to
occupy a
distinctive
place in the the
target market’s
TWO VIEWS OF POSITIONING
• “POSITIONING STARTS WITH A PRODUCT.
A PIECE OF MERCHANDISE, A SERVICE, A
COMPANY, AN INSTITUATION OR EVEN A
PERSON- BUT POSITIONING IS NOT WHAT
YOU DO TO A PRODUCT. IT IS WHAT YOU
DO TO THE MIND OF THE PROSPECT. THAT
IS, YOU POSITION THE PRODUCT IN THE
MIND OF THE PROSPECT” (AL RIES &JACK
TROUT)
POSITIONING FRAME WORK
• VALUE DISCIPLINES WITHIN AN
INDUSTRY A FIRM COULD ASPIRE TO BE
THE
1. PRODUCT LEADER
2. THE OPERATIONALLY EXCELLENT FIRM
3. THE CUSTOMER INTIMATE FIRM TO
SUCCEED A BUSINESS SHOULD BECOME
BEST AT ONE OF THE ABOVE, PERFORM
ADEQUATELY IN THE OTHER TWO
DESCRIPTION. CONTINUE IMPROVING TO
FEND OFF RIVALS
Positioning Strategies
• Product Attributes
• Benefits, Problem Solutions & Basic Needs
• Price & Quality
• Specific Use
• Against Other Products
• Product User
• Against a Competitor
Positioning Strategy
Bases Used Example
Brand Name Antiquity Whisky, Monte Carlo
Sweaters. orchids Cosmetics
Consumer aspiration Esteem,Cielo Cars, Raymond's Suiting
Profitable
Profitable Distinctive
Distinctive
Differences Worth
Establishing
Affordable
Affordable Superior
Superior
Preemptive
Preemptive
• Important:-the difference delivers a highly
valued benefit to a sufficient number of
buyer.
• Distinctive:-the difference is delivered in a
distinctive way.
• Superior:-the difference is superior to other
ways of obtaining the benefit
• Preemptive:-the difference cannot be easily
copied by competitors.
• Affordable:-the buyer can afford to pay for
the difference.
• Profitable:- the company will find it
profitable to introduce the difference.
DIFFERENTIATION
• Process of adding a set of meaningful and valued
differences to distinguish companies offerings
from competitors offering. For eg.South west
airlines .
Product Differentiation
Conform-
Fea- Perfor-
Form Quality ance
tures mance
Quality
Ordering
Ordering Customer
Customer
Installation
Installation
Miscellaneous
Ease
Ease Consulting
Consulting
Services
Customer Maintenance
Customer Maintenance
Delivery
Delivery Training
Training &&Repair
Repair
Image Differentiation
Media Atmosphere
Symbols
Events
Image diff.
• Buyers respond differently to company and
brand image.eg.Marlboro-(machocowboy)
Personnel diff.
• Company can gain a strong competitive
advantage through having better trained
people.eg;-Singapore airlines.
Channel diff.
• Company can achieve competitive
advantage through the way they design their
distribution channel coverage , expertise
,and performance.eg. (caterpillar)
Differentiations Variables
Product Services Personnel Channel
Form Ordering ease Competence Coverage
Features Delivery courtesy Expertise
Performance Installation Credibility Performance
Style Miscellaneous
Design
Differentiation Strategies
Parameter Example
Product Features Cielo car, IFB washing machine, Sony Trinitron
TV