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STP Marketing

STP Marketing. 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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STP Marketing

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  1. STP Marketing 1) Segment - identify variables, develop profiles 2) Target - evaluate attractiveness of each segment, select targets 3) Position - select how want consumers to perceive product

  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. Reasons forSegmenting and Targeting

  3. Effective Segmentation: 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!

  4. Types of Market Segmentation • Behavioral segments • Demographic segments • Ethnic segments • Geodemographic segments • Psychographic segments • Lifestyle segments • Life stage segments • Relationship Segments • Adopter Segments

  5. Types of Segmentation • Geographic • Regions • Population size • Climate • Retail trading area

  6. Types of Segmentation • 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

  7. Demographic Trends • 1) Changing families • later marriage • fewer kids • higher divorce • working spouses • aging parents – “SANDWICH GENERATION” • 2) Nonfamily households • 3) Geographic shifts • 4) Higher education • 5) Ethnic population

  8. Emerging Markets • 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!

  9. African Americans – demos • 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

  10. Latinos – demos • 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

  11. Asian Americans • 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.

  12. Women • 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!

  13. Gay and Lesbian Markets • 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.

  14. Types of Segmentation Psychographic: VALS Personality “GeoVALS” • http://www.sric-bi.com/VALS/geovals.shtml

  15. Abundant resources Actualizers Action oriented Principle oriented Status oriented Fulfilled Achievers Experiencers Makers Strivers Believers Strugglers Minimal resources VALS 2 Typology • Exhibit 5-4 • See Page 155 Slide 26

  16. Types of Segmentation • Behavioristic • How segments use product: • Purchase Occasion • Usage rate • Benefits sought • Relationship segmentation • Degree of Loyalty: None  Brand Advocate • See Table 7-4!

  17. Figure 7-6, p.258 Descriptive Model ofSegmenting and Targeting

  18. How Targeting Works • 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.

  19. Finally, Positioning! • 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 all PERCEPTIONS!

  20. Positioning Strategy • 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 • Perceptual map • 5. Determine unique offering • How is our brand different from competition? • 6. Select a position -- Must consider laws of positioning

  21. Positioning Laws • 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.

  22. Positioning laws • 5. Law of focus • The most powerful concept in marketing is owning a word in the prospects mind. • Must be simple and benefit oriented. • 6. Law of exclusivity • 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.

  23. Laws cont’d • 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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