Chapter 03 Segmentation, Targeting & Positioning...
Transcript of Chapter 03 Segmentation, Targeting & Positioning...
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Chapter 03
Segmentation, Targeting & Positioning
(STP)
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MATHISHA HEWAVITHARANA
MBA (Col),BBA Sp.Mktng (Col), PPG DIP. In Mktng (UK), MCIM (UK), Chartered
Marketer (UK), Practicing Marketer (SL), ACMA, CGMA CIMA (UK), DBF (IBSL),
AIB (IBSL), MSLIM(SL),
Head of Leasing & Loans - Siyapatha Finance PLC
Resource Person
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Chapter Contents
• Segmentation & Segmentation Variables
• Targeting Strategy
• Positioning Strategy
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What is Segmentation ?
A market segment consists of a group of customers
who share a similar set of needs and wants.
Segmentation is….
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Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral
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Segmentation variables in Consumer Markets
o Geographic Segmentation
Geographic segmentation divides the market into
geographical units such as nations, states, regions,
counties, cities, or neighbourhoods.
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Segmentation variables in Consumer Marketso Demographic Segmentation
Demographic segmentation divides the market
based on a number of demographical factors.
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Demographic Segmentation
• Age and life cycle
• Life stage
• Gender
• Income
• Generation
• Social class
• Race and Culture
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Segmentation variables in Consumer Marketso Psychographic Segmentation
Psychographic segmentation divides the market based on
psychological factors such as Personality, Lifestyle or
Values & people with in the same demographic group can
exhibit different psychographic profiles.
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Segmentation variables in Consumer Marketso Behavioral Segmentation
In behavioral segmentation, marketers divide buyers into
groups on the basis of their knowledge of, attitude toward,
use of, or response to a product..
▪Needs and Benefits
▪Decision Roles – Initiator / Influencer / Decider / Buyer / User
▪User and Usage – Occasions / user status / User rate / User readiness
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o Behavioral Segmentation
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Segmenting a Business Market
• Demographic (Industry / Company size / Location)
• Operating variable (Technology / Capacity)
• Purchasing approaches (Purchasing Policies / Criteria)
• Situational factors (Urgency / Size of order)
• Personal characteristics (Risk Appetite / Loyalty)
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Effective Segmentation Criteria
• Measurable
• Substantial
• Accessible
• Differentiable
• Actionable
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What is Targeting ?
Targeting is the rational identification of segments
to be focused in business.
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Targeting
Targeting includes following;
▪ Ranking the market segments according to the
market potential
▪ Selecting the target segments accordingly
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Targeting
Targeting decision will be basically taken after
considering the following two dimensions.
✓Market attractiveness – profitability, market growth
rate, entry costs, economies of scale, price
competition etc.
✓Business strength – relative market share, company
image, learning curve effect, product quality, R&D,
financial strength, patent rights etc.
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Targeting Strategies
▪ Undifferentiated Targeting
(One product to the Entire market)
▪ Concentrated Targeting
(One product to One segment)
▪ Differentiated Targeting
(Different products to Different segments)
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What is Positioning ?
Positioning is ……
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Positioning process
o Identifying Competitors
o Analyzing Competitors
o Defining POP & POD
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Points of Difference (POD)
“ Attributes or Benefits that Consumers Strongly
Associated with a Brand by Believing that they Could not
Find the Same in a Competitive Brand”
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Points of Parities (POP)
“ Attributes Which Are not Necessarily Unique to the
Brand, But May In fact Similar to Other Brands”
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Perceptual Maps / Positioning Maps
“ Visual Representation of Consumer Perceptions and
Preferences”
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Positioning Approaches
- Rational Approach / Informational Appeal
(Functional Aspects of the Brand will be
Highlighted – product performance / USP’s / benefits etc.)
- Emotional Approach
( Emotional Selling Points – ESP’s)
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Positioning Brand Mantra
“ Three to Five word
Articulation of the Heart
& Soul of
The Brand which goes
par to Brand Essence or
Core
Brand Promise”
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Re-positioning
Re-positioning is ……
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Review
• Segmentation & Segmentation Variables
• Targeting Strategy
• Positioning Strategy