STP-I STP-2 · 12/11/2019 · STP-I STP-2 . Title: Mobile Created Date: 12/11/2019 10:07:54 AM
Session 2 STP
-
Upload
sanjoli-jain -
Category
Documents
-
view
216 -
download
0
Transcript of Session 2 STP
-
7/27/2019 Session 2 STP
1/52
A key marketing strategy decision making : How to
divide up markets into meaningful customer
groups (Market Segmentation), choose which
customer groups to serve (Target Marketing), andcreate marketing offers that best serve targeted
customers (Positioning)
-
7/27/2019 Session 2 STP
2/52
Segmentation
Identifyingmeaningfullydifferent groups of
customers
Targeting
Selecting whichsegment(s) to serve
Positioning
Implementing
chosen imageand appeal to
the chosensegment
-
7/27/2019 Session 2 STP
3/52
Dividing a Market into distinct groups ofbuyers, according to similar needs,characteristics or behaviors, who mightrequire separate products or marketing
mixes. The objective of Market Segmentation is to
determine the differences between buyersor buyer groups.
A heterogeneous Market may be sub-divided into a number of more or lesshomogeneous Market segments.
-
7/27/2019 Session 2 STP
4/52
Not all buyers are alikethe days of
one size fits all are over !
Sub-groups are smaller and more
homogeneous in natureIt is easier to
satisfy the needs and demands of smaller
groups
-
7/27/2019 Session 2 STP
5/52
1. Undifferentiated or Mass Marketing -> One
Product , One Marketing Mix
-
7/27/2019 Session 2 STP
6/52
2. Differentiated (Segment) Marketing ->
Different segments, Different Marketing Mixes
-
7/27/2019 Session 2 STP
7/52
3. Niche or Concentrated Marketing
A niche is a subset of the Market Segment on which aspecific product is focusing. The marketers focus is on one
segment, although the product could appeal to others aswell.
In an attractive niche, the customers have a distinct set ofneeds; they will pay a premium to the firm that best satisfies
them. The niche is fairly small, but has size, profit and growthpotential and is unlikely to attract many other competitors inthe short run.
-
7/27/2019 Session 2 STP
8/52
3. Niche or Concentrated Marketing
-
7/27/2019 Session 2 STP
9/52
4. Micro Marketing -> Newest, narrowest
approach of segmentation
Local Marketing
-
7/27/2019 Session 2 STP
10/52
4. Micro Marketing -> Newest, narrowest approach of segmentation
Individual Marketing
-
7/27/2019 Session 2 STP
11/52
1. Geographic Segmentation : Region-wise
-
7/27/2019 Session 2 STP
12/52
1. Geographic Segmentation : City-wise
Class I Population: 1,00,000 and above
Class II Population : 50,000 to 99,999Class III Population : 20,000 to 49,999
Class IV Population : 10,000 to 19,999
Class V Population : 5,000 to 9,999
Class VI Population : Less than 5,000
50,00,000 : Megacity 6 Cities classified as X
10.00,000 to 4,999,999 : Metropolis 53 cities classified as Y
5,00,000 to 9,99,999 : Sub-Metropolis Other cities classified as Z
53 urban agglomerations in India with population of 1 million or more
Source:
Census Data 2011
City Classification
as recommended by
Sixth Central Pay
Commission in 2008
(X, Y and Z)
-
7/27/2019 Session 2 STP
13/52
1. Geographic Segmentation : Rural, Urban and Semi-urban
-
7/27/2019 Session 2 STP
14/52
2. Demographic Segmentation :
Family Size
Age
GenderOccupation
Income
Education
Generation
-
7/27/2019 Session 2 STP
15/52
3. Psychographic Segmentation : SEC Classification
Occupation Education
Illiterate School upto 4
years or
Literate but no
formal
schooling
School
(5-9
years)
HSC/SSC Some
college, but
not graduate
Graduate
or Post-
Graduate
(Gen)
Graduate or
Post-
Graduate
(Prof)
Unskilled
Workers
E2 E2 E1 D D D D
Skilled Workers E2 E1 D C C B2 B2
Petty Traders E2 D D C C B2 B2
Shop Owners D D C B2 B1 A2 A2
Businessmen/
Industrialist
No. of
Employees
None
1-9
10 plus
D C B2 B1 A2 A2 A1
C B2 B2 B1 A2 A1 A1
B1 B1 A2 A2 A1 A1 A1
-
7/27/2019 Session 2 STP
16/52
3. Psychographic Segmentation : SEC Classification (Contd)
Occupation Education
Illiterate School upto 4
years or
Literate but no
formalschooling
School
(5-9
years)
HSC/SSC Some
college, but
not graduate
Graduate
or Post-
Graduate
(Gen)
Graduate or
Post-
Graduate
(Prof)
Self-employed
Professionals
D D D B2 B1 A2 A1
Clerical/Sales
men
D D D C B2 B1 B1
Supervisorylevel
D D C C B2 B1 A2
Officers/Execut
ives (Junior)
C C C B2 B1 A2 A2
Officers/Execut
ives (Senior)
B1 B1 B1 B1 A2 A1 A1
-
7/27/2019 Session 2 STP
17/52
3. Psychographic Segmentation : SEC Classification (Contd.)
Education Type of House
Pucca Semi-
pucca
Kuccha
Illiterate R4A R4A R4B
Below SSC R3A R3B R4A
SSC/HSC R2 R3A R3B
Some College Education, Not
Graduate
R1 R2 R3B
Graduate/Post-graduate (General) R1 R2 R3A
Graduate/Post-graduate
(Professional)
R1 R2 R3A
-
7/27/2019 Session 2 STP
18/52
3. Psychographic Segmentation : SEC Classification (Contd.)
Urban % of
Households
A1 1%
A2 1.8%
B1 2.5%
B2 2.4%
C 6.1%
D 6.6%
E1 3%
E2 5%
Rural % of
Households
R1 2.6%R2 1.8%
R3 26.7%
R4 34.%
Urban : 28.4 %
Rural : 71.6%
Source : Marketing Whitebook,
2005, based on IRS 2003-2004
-
7/27/2019 Session 2 STP
19/52
3. Psychographic Segmentation : VALS Framework
-
7/27/2019 Session 2 STP
20/52
3. Psychographic Segmentation : VALS Framework
Value and Lifestyle Survey (VALS) is one of the most popularly
used systems for psychographic measurements.
Adults are classified into different groups based on theirresponses to a questionnaire containing questions based on
demographics and attitude.
In the USA, adults are classified into eight primary groups and the
main dimensions of the segmentation framework are consumermotivation (X-axis) and consumer resources (Y-axis).
Similarly, in Japan, society is divided into 10 consumer segments
based on two key concepts : life orientation and attitudes to social
change.
-
7/27/2019 Session 2 STP
21/52
3. Psychographic Segmentation : VALS Framework (USA)
The four groups with higher resources:
Innovators AchieversThinkers Experiencers
Successful,
sophisticated,
active, people
with high self-esteem -> Buy
upscale, niche-
oriented
products and
services
Mature, satisfied,
motivated by
ideals, value
knowledge andresponsibility ->
Look for durability,
functionality and
value in their
products
Successful, Goal-
oriented people
who focus on
careers and family-> Buy premium
products that
demonstrate
success to their
peers
Young,
enthusiastic,
impulsive people
who seek varietyand excitement -
> Spend on
fashion,
entertainment
and socializing
-
7/27/2019 Session 2 STP
22/52
3. Psychographic Segmentation : VALS Framework (USA)
The four groups with lower resources:
Believers MakersStrivers Survivors
Conservative,
conventional and
traditional
people -> Preferfamiliar products
and are loyal to
established
brands
Trendy, fun-loving
people who are
resource
constrained -> Buystylish products
and try to emulate
the purchases
made by people
with greater wealth
Practical, down-to-
earth, self-
sufficient people ->
Seek products witha practical or
functional purpose
Elderly, passive
people who are
concerned about
change ->Extremely loyal
to their favourite
brands !
-
7/27/2019 Session 2 STP
23/52
3. Psychographic Segmentation : Gert HoffstedesCultural Model
Individualism Vs. Collectivism : The relationship between
the individual and the group in society
Power Distance: Expectations regarding equality amongpeople
Masculinity: Gender Roles
Uncertainty Avoidance : Expectation and reaction to whatis different and dangerous
Long- term orientation : Viewing of time
-
7/27/2019 Session 2 STP
24/52
4. Behavioral Segmentation : Occasions
-
7/27/2019 Session 2 STP
25/52
4. Behavioral Segmentation : Benefits
-
7/27/2019 Session 2 STP
26/52
4. Behavioral Segmentation : User status
Ex-users
Non-usersRegular Users
Potential Users First-time Users
-
7/27/2019 Session 2 STP
27/52
4. Behavioral Segmentation : Usage Rate
Light
Medium
Heavy
-
7/27/2019 Session 2 STP
28/52
4. Behavioral Segmentation : Loyalty Status
Hard-core loyals
Shifting loyals
Split loyals
Switchers
-
7/27/2019 Session 2 STP
29/52
4. Behavioral Segmentation : Attitude towards product
Enthusiastic
HostileNegative
Indifferent
Positive
-
7/27/2019 Session 2 STP
30/52
4. Behavioral Segmentation :Buyer Readiness
Aware
ActionDesire
Interest
-
7/27/2019 Session 2 STP
31/52
Step 1: Needs-based Segmentation -> Group
customers into segments based on similar needs and
benefits for solving a particular customer problem.
Step 2: Segment Identification -> For each needs-
based segment, determine what makes the segment
distinct and identifiable.
Step 3: Segment Attractiveness-> Determine the
overall attractiveness of the segment.
Step 4 : Segment Profitability
-
7/27/2019 Session 2 STP
32/52
Step 5 : Segment Positioning -> Create a value
proposition for each segment and product-price
positioning strategy based on the segment.
Step 6: Segment Acid test-> Create a storyboard
to test the segmentation positioning strategy.
Step 7: Marketing- Mix Strategy: The 4 Ps !!!!
-
7/27/2019 Session 2 STP
33/52
SegmentAttractiveness
Identifiable
Reachable
ResponsiveProfitable
Substantial
-
7/27/2019 Session 2 STP
34/52
M1 M2 M3
P1
P2
P3
Single-segment Concentration
-
7/27/2019 Session 2 STP
35/52
M1 M2 M3
P1
P2
P3
Selective Specialization
-
7/27/2019 Session 2 STP
36/52
M1 M2 M3
P1
P2
P3
Product Specialization
-
7/27/2019 Session 2 STP
37/52
M1 M2 M3
P1
P2
P3
Market Specialization
-
7/27/2019 Session 2 STP
38/52
M1 M2 M3
P1
P2
P3
Full Market Coverage
-
7/27/2019 Session 2 STP
39/52
Positioning is the act of designing the
companys offering and image to occupy adistinctive place in the mind of the targetmarket.
Key terms : Target Customers,
Benefits, Value Proposition and
the law of the Word !
-
7/27/2019 Session 2 STP
40/52
Attribute Positioning -> Specific
Product feature
-
7/27/2019 Session 2 STP
41/52
Benefit Positioning :
-
7/27/2019 Session 2 STP
42/52
Use/Application Positioning :
-
7/27/2019 Session 2 STP
43/52
User Positioning :
-
7/27/2019 Session 2 STP
44/52
Competitor Positioning :
-
7/27/2019 Session 2 STP
45/52
Product Category Positioning :
-
7/27/2019 Session 2 STP
46/52
Quality/Price Positioning :
-
7/27/2019 Session 2 STP
47/52
Most People think I must drink at least 10 cups ofcoffee to be so perky in the morning. But the truthis, I like skim milk first thing. It has all the samenutrients as whole milk without all the fat. Andbesides, my husband got the coffee maker.
MILK: What a Surprise
-
7/27/2019 Session 2 STP
48/52
Most People think I must drink at least 10 cups ofcoffee Competitor Positioningto be so perky Benefit Positioninginthe morning. But the truth is, I drink Use/applicationsPositioningskim milk first thing. It has all the samenutrientsAttribute Positioning of whole milk without all thefat Product category Positioning. And besides, my husband gotthe coffee maker.
MILK: What a Surprise
User Positioning
-
7/27/2019 Session 2 STP
49/52
Points-of-Difference -> Attributes/Benefits associated with a brand
which is unique to it, not found in the competitors (Recall the examples of
Dominos, Apple and BMW)
Points-of-Parity-> Attributes that are not necessarily unique to the
brand, may be shared by others
(i) Category POP : Necessary, but not sufficient condition for brand choice
(ii) Competitive POP : Designed to negate the competitors POD
-
7/27/2019 Session 2 STP
50/52
Sometimes, it is important to inform the customer
about the brands category membership. This
becomes important, especially in case of new
product launches.
Sometimes, it becomes important because the brand
image is too strongly associated with a particular
category ! Example :
-
7/27/2019 Session 2 STP
51/52
Brand Values
Brand Benefits
BrandAttributes
More
Attractive
Softer Skin
One Quarter
cleansing
milk
-
7/27/2019 Session 2 STP
52/52
Remember : A positioning statement is nota tagline !!!
The tagline is a "translation" of the position statement into words that
will have maximum effect on the customer.
Structure : To (target group and need), our (brand) is (the concept/category
membership) that (what the point-of-difference is or does) because (reason).
Example :
To 16-25 year old males, who embrace excitement,adventure and fun, Mountain Dew is the great tasting
carbonated soft drink that exhilarates like no other
because it is energizing, thirst quenching, and has a one of
a kind citrus flavor.