Lecture 5 STP process Flashcards
(12 cards)
Wjat is segementation and why we do segmentation?
is dividing the market into smaller segments like different characteristics, needs and behaviours:
WHY: - different customers want different products
- willing to pay different prices
- shop in different places
What are types of segmentation?
- Geographic segmentation: nations, provincres, cities
- Demographic segmentation: age, gender, family size, income
Advantage: easy to measure/observe
Disadvantage: can be too overly simplistic - behavioral segmentation: attitudes, consumer knowledge, responses
- Psychographic segmentation: social class, personality triats, lifestyle
How to know you have an effective segmentation?
MASDA:
measureable: size and purchasing power
accesible: can be reached and treated effectively
sustainable: large and profitable enough
differentiable: disitint and respond differently to marketing efforts
actionable: effective programs can be developed
What is targeting and what factors influence targeting?
Targeting is evaluating market segments attractiveness and and selecting which segments to serve.
factors that influence targeting:
- segment size and growth
- structural attractiveness (competitors, substitutes)
- company’s objectives and resources
What are the four targeting strategies?
- Undifferentiated strategy: coverage strategy that covers the whole market with one strategy.
- differentiated strategy: coverage strategy that covers several;l market segments with different offers
- COncentrated marketing: coverage strategy that covers large share or one of the segments
- Micromarketing: tailori ng products and marketing programs to individual consumers
What is positioning and value proposition?
positioning is arranging for a product to occpy distinct, a desirable position in the minds of the target customers.
value proposition: is sa et of values and benefits a company promises to its customers
What is the positioning analysis?
Need to identidy:
- target consumers and needs
- Main competitors
- How is the brand/product similar to competitors (point of parity POP)
- how is the brand/ prdocut similar to competitors (point of difference POD)
What are differences between POP and PODs and give an example?
POP (point of parity)
- shared brand associations
- communicate relevance
reason why should not buy
POD (point of difference)
- unique brand associations
- communicate differentiation
Ex; LITE beer
POP: great taste
POD: less filling
What are 6 things to keep in mind when choosing PODS?
they are:
1. Important
2. Distinctive
3. Superior
4. Communicable
5. Affordable
6. Profitable
What are the steps to create perception positioning maps?
- Identify the categories
- Identify top competitors
- List relevant attributes
- Rate brand/product based on attributes
- Select two key attributes
- Plot brand/product
What does the perceptual positioning map help show you?
- who and where the competitors is
- places to introduce a new brand/product
- how to adjust your marketing strategy for existing brand/product
What is the format of positioning statements?
To ____ (target segment), who _______ (need, reason to buy), _________ (product, brand ) is the __________ (POP, concept - product category), that _________ (unique POD, claim that differentiates us from competitors)
