[D] Segmentation , Targeting, and Positioning (STP) Strategies

1. [D]Segmentation, Targeting, and Positioning (STP) Strategies • 參考資料： • Judy Strauss, Adel I. El-Ansary, and Raymond Frost, E-Marketing, Prentice Hall, 2006. • Chap 8: Segmentation and Targeting Strategies. • Chapter 9: Differentiation and Positioning Strategies.

2. Environment, Strategy, and Performance (ESP Model) Legal - Ethical Technology Internet E Competition Other factors Markets SWOT E- Business S Strategy/ E-Marketing Strategy Implementation Marketing Mix Model P Performance Metrics

3. Link E-Business with E-Marketing Strategy • E-marketing strategic planning occurs in two highly interrelated tiers: Targeting Differentiation Tier 1 tasks Segmentation Positioning E-Marketing Strategy Offer Tier 2 tasks Value Communication Distribution

4. 目標行銷：STP三步驟 • Marketing Segmentation市場區隔 • the process of aggregating individuals or businesses along similar characteristics that pertain (關於) to the use, consumption, or benefits of a product or service. • Targeting目標區隔選擇 • the process of selecting the market segments that are most attractive to the firm • Positioning產品定位 • 針對選定的目標市場，尋求、發展、傳達定位概念

5. Overview • Market Segmentation Bases and Variables • Geographic Segments • Demographic Segments: The MyKindaPlace Story • Psychographic Segments • Behavior Segments • Targeting Online Customers • Four Targeting Strategies • Targeting Communities on the Internet • Differentiation: The J.Peterman Story • Positioning • Bases for Positioning • Repositioning (重新定位) on the Web

6. Market Segmentation Bases and Variables • Traditional marketers can base their segmentation of consumer markets on: 地理統計變數 人口統計變數 心理統計變數 行為變數

7. 1.1 Geographic Segments • Geographic location of computers: • is not important to users accessing Web sites. • but it is very important with an Internet presence. • E.g. 靜宜大學網頁提供中、英文版本 • Most firms target specific cities, regions, states, or countries with their product offerings. • reach only customers in countries where it distributes products. • only sell to geographic areas where they can provide customer service.

8. 1.2 Demographic Segments (1) Occupation (職業) • Few years ago, the Internet = a place for the technologically- and financially-savvy. • Today = a place where U.S. residents from all professions find something of use. • Fast growing occupational groups in the U.S.: • Blue-collar workers (藍領工人) • Homemakers (家庭主婦) • service workers • salespeople

9. Demographic Segments (2) Teens and Children • In the US, 75% of 14-17 year olds + 65% of 10-13 years olds use the Internet: • Leads families into computer and ISP purchases. • Spread the news through online word of mouth (口耳相傳). • One big problem = payment. (3) Disabled (殘障者) • “The Internet’s next niche”: Spend 20 more hours a week online than other Internet users. • But this segment tends to have low incomes.

10. The MyKindaPlace Story • MyKindaPlace (http://www.mykindaplace.com) • Target to teenage (11-18 years old) girls. • The site sports bright pink, blue, and purple colors. • Age-appropriate language: link names on the site are labeled: • Showbiz (show business之略的變形) (演藝事業) • Chill in (好冷), Cringe (討厭), Agony (苦惱)…

11. The MyKindaPlace Story • Target to teenage (11-18 years old) girls. (Cont.) • Play “Virtual Boyfriend”, Take fun quizzes (惡作劇) , chat, and send e-cards to friends. • Site managers monitor chat rooms so parents don’t pull the plug (拔掉插頭). • Revenues from: • Sponsorship (贊助) • Site’s 10 channels are sponsored by brands targeting teens. • Merchandise sales • Payment: smart cards, and parents’ credit cards.

12. 1.3 Psychographic Segments • User psychographics include: • Personality, values, lifestyle, interests… • Attitudes: • Internal evaluations about people, products, and objects, • Either positive or negative, • Technographics (Attitudes Toward Technology) • Determine if a person is optimistic (樂觀) or pessimistic (悲觀恐懼) toward technology, • Measure a user’s income level, • Query users about their primary motivation for going online.

13. Motivation for Using Internet Entertainment Career Family Technology Optimists 52% High Income (>$40,000) Fast Forwards (科技急先鋒) 12% New Age Nurturers (培育者) 8% Mouse Potatoes (滑鼠狂) 9% Low Income (<$40,000) Techno-Strivers (科技奮鬥家) 7% Digital Hopefuls (低價電腦的數位希望族) 7% Gadget Grabbers (小玩意如任天堂之擷取者) 9% High Income Handshakers (握手談生意，而不用科技者) 7% Traditionalists (只看錄影帶之傳統主義者) 8% Media Junkies (電視第四台之媒體癮君子) 5% Low Income Sidelined Citizens (線外公民，科技落後者) 28% Consumer Technographic Segments and Proportion in the U.S. Technology Pessimists 48%

14. 1.4 Behavior Segments • Two behavioral segmentation variables are: • Benefit segmentation (利益區隔) : based on the benefits consumers desire from the product. • “70% of online shoppers can be segmented into two groups: Bargain hunters, and Convenience shoppers. • Product usage (產品使用) • Light, medium and heavy product usage. • Brand loyal, loyal to the competitive product, switchers (who don’t care which brand they use), and nonusers of the product.

15. 2. Targeting Online Customers • Marketers must select the best potential segments for targeting: • Consider findings from the SWOT analysis • Look for the best fit between the market environment and the firm’s expertise and resources. • To be attractive, an online segment must be accessible through the Internet, sizable, growing, and hold great potential for profit.

16. 2.1 Four Targeting Strategies (1) Mass marketing (大量行銷) • Undifferentiated targeting (無差異化行銷) • Offers one marketing mix for the entire market. (2) Multi-segment marketing (區隔化行銷) • Selects two or more segments and designs marketing mix strategies specifically for each. 市場 行銷組合 市場區隔一 行銷組合一 市場區隔二 行銷組合二 市場區隔三 行銷組合三

17. Four Targeting Strategies (3) Niche marketing (利基行銷) • Selects one segment and develops one or more marketing mixs to meet the needs of that segment. (4) Individualized targeting (個人化行銷) • The Internet’s big promise: giving individual consumers exactly what they want at the right time and place. 市場區隔一 市場區隔二 行銷組合 市場區隔三

18. 2.2 Targeting Communities on the Internet • People join communities because: • 44.8% with people who share their hobbies; • 31.5% with other professionals; • 27.2% with family members; • Targeting can be achieved by building community through: • chat rooms, discussion groups, bulletin boards, and online events. • Motivation • value received in both information and social bonding.

19. Targeting Communitieson the Internet • Web sites encourage users to return again and again and see what their cyber friends are discussing and doing online. • In discussion groups, users feel part of the site by posting their own information and responding to other users. • Amazon.com allows users to write their own book reviews and read the reviews of others.

20. 3. Differentiation • Differentiation is what a company does to the product. • The process of adding a set of meaningful and valued differences to distinguish the company’s offering from competitors’ offerings. • “A company can differentiate its market offering along five dimensions: product, services, personnel, channel, and image.”

21. Internet-Specific Differentiation Strategies

22. The J.Peterman Story • http://www.jpeterman.com

23. The J.Peterman Story • J.Peterman • A classic example of successfully combining clever differentiation with powerful positioning. • J.Peterman’s statement of philosophy: • People want things that are hard to find. • Things that have romance (羅曼蒂克), but a factual (有事實根據的) romance, about them. • Clearly, people want things that make their lives the way they with they were.

24. The J.Peterman Story • Every clothing and accessory (配件) item offered comes: • with a narrative (故事) setting the stage in the customer’s mind for romantic travel.

25. Product Example of J.Peterman I always wanted to cross the Sahara (撒哈拉沙漠), and the Gobi (戈壁), by foot. But I didn’t. I did not swim the Hellespont (海峽名). Didn’t ascend Mont Blanc (白朗峰). Didn‘t read all the books I had to read. Didn’t spend even one night at Shepheard‘s Hotel in Cairo (開羅). Not one. Shepheard‘s burned (燒毀) to the ground before I could afford to check in. That night, it became my code word for everything unobtained, undone. In case there are a few things in your life you wanted but didn‘t get, I offer as consolation(慰藉). The Impossibly-Perfect-Night-at-Shepheard's-Hotel-in-Cairo Bath robe(長袍). Shepheard‘s Hotel Robe (No. 1148), for men and women. Sizes: XS, S, M, L, XL, XXL.

26. 4. Positioning • The process of creating a desired image for a company and its products in the minds of a chosen user segment. • Concerns brands, the company itself, or individual products. • The concept is simple: To be successful, a company must: • Differentiate itself and its products from all other competitors.

27. 4.1 Bases for Positioning • Firms can position on the basis of: • Product or service attributes (“the smallest cell phone”), • High-tech image (“our cell phones handle e-mail”), • Benefits (“fits in your pocket”), • User categories (“best cell phone for college students”), • Comparison with competitors (“our phone is less expensive than the Nokia”), • Take an integrator position (“a full range of electronic products and services”).

28. 網站定位實例 • 產品定位：雄師旅遊：真正全國最大出團中心 • 使用者類別、利益定位：MOOK自遊自在旅遊網： 華文旅遊內容網 • 科技定位：任逍遙：任逍遙市民網 • 科技、使用者類別定位：夜市通：找夜市到夜市通 • 使用者類別定位：旅遊王：網路訂房旗艦 • 使用者類別定位：民宿王：最多人瀏覽的民宿網站 • 產品定位：年代售票網：最大的藝文售票系統 • 競爭者定位：元碁售票網：滿足您訂票的需要 • 整合定位：東森購物網路商城：關心你的每件事

29. 4.2 Repositioning on the Web • Is the process of creating a new or modified brand, company, or product position. • Positioning alone won't make a product successful. A company must be flexible enough to react. • Is a long-term challenge when attempting to change the way customers perceive their brands. • Example: Amazon.com • Originally Amazon was positioned as “the world’s largest bookstore”. • Today it promises the “Earth’s biggest selection” of a variety of products from music to electronics and more.