STP

Question 1

What’s marketing most important insight?

Answer 1

Not all customers are the same

Question 2

Different groups of customer desire…

Answer 2

different groups of benefits

Question 3

Mass market strategy:

Answer 3

Very efficient, but not effective

Question 4

Customized strategy:

Answer 4

Very effective but not always efficient

Question 5

Segmentation:

Answer 5

Balance between effectiveness and efficiency

Question 6

Why segment?

Answer 6

Competing Organizations
Difficult to satisfy with one product
Aggregation
Limited Resources

Question 7

What is Customization Long Tail

Answer 7

Long range of products but in small quantity that is eventually as profitable than other selling a specified product in large quantity.

Question 8

Vertical Segmentation?

Answer 8

By quality

Question 9

Horizontal Segmentation

Answer 9

By taste

Question 10

Both Horizontal and Vertical

Answer 10

Steve jobs with personal and professional for vertical and desktop or portable for horizontal.

Question 11

Ideal segmentation is…

Answer 11

mutually exclusive and collective exhaustive

Question 12

What are the typical segmentation criteria?

Answer 12

Geographic
Demographic
Purchasing
Situational
Beliefs, Attitudes…
Needs

Question 13

Geographic example of segmentation?

Answer 13

KitKat

Question 14

Demographic example of segmentation?

Answer 14

Coca-Cola

Question 15

When should we segment?

Answer 15

when incremental value for customizing outweighs costs of developing separate offerings for each segment

Question 16

What is targeting?

Answer 16

The process of evaluating one or more segments the focus of marketing mix offerings.

Question 17

The “Importance-Performance” Model

Answer 17

Should target people who (may) want to buy your product

Question 18

Targeting Strategies?

Answer 18

Undifferentiated Marketing Strategies
Differentiated Marketing Strategies
Customized Marketing

Question 19

Determine Segments Attractiveness

Answer 19

Get rid of all segments for which your ability to satisfy benefits score is lower than the competition (or change your 4Ps to improve your score)
Determine general attractiveness of remaining segments in terms of factor not (implicitly) already covered earlier in our model

Question 20

How to minimize cannibalization?

Answer 20

Multiple Target Approach

Question 21

Targeting Takeaways

Answer 21

Can’t market to all customer
How do we select the most appealing segments to target?
Do they want us?
Importance Performance Model
Do we want them?
Think about segment attractiveness
Consider impact on other segments, cannibalization and synergy

Question 22

Positioning?

Answer 22

The act of designing the company’s offering so it occupies a meaningful and distinct position in the target consumer mind.
Effective positioning is the act of linking products and services to the solutions that consumers seek.

Question 23

What is Developing a Positioning Strategy

Answer 23

It’s Deciding What position to occupy

Question 24

(Positioning)The Customers

Answer 24

What attributes matter to them?

Question 25

(Positioning) The Company

Answer 25

Unique and sustainable attributes

Question 26

(Positioning) The Competitors

Answer 26

A differential advantage that ideally cannot be easily matched.

Question 27

Some current beliefs/feelings that we might want to address?

Answer 27

Confusion about what category we are in Doubts about the quality of our goods The main/dynamic variable we dominate is not important

Question 28

How to Position?

Answer 28

Through the marketing mix: 4Ps

Question 29

What is the most useful tool to position a company on the market?

Answer 29

The Perceptual Map Multiple Attributes Perceptual Map

Question 30

Traditional Positioning Statement Structure?

Answer 30

To (target audience), our (brand) is (the concept) that provides (what the main/dynamic variable is or does) because (reason). (Brand Character)

Question 31

Positioning Statements =/=...

Answer 31

Taglines

Question 32

Hard to move beliefs

Answer 32

Held beliefs are difficult to change, even when you provide the evidence that the belief is false. Once you know something, hard to un-know it. Related phenomena Belief Perseverance Curse of knowledge

Question 33

STP Recap

Answer 33

Segmentation Involves identifying and understanding different groups of consumers Mutually exclusive and collectively exhaustive segments Targeting involves selecting segments to pursue and considering targeted consumers’ perspective Positioning: What do we need to say to induce the desired beliefs among our target audience?