Marketing Strategy Flashcards
Marketing strategy
STP:
- Segmentation
- Targeting
- Positioning
Segmentation
Identifying customer segments based on similarities and differences. Customers within a segment likely respond similarly to a company’s product offering.
Segmentation variables
- Geographic: nations, states, regions, counties, cities, neighbourhoods…
- Demographic: age, life stage, generation, gender, ethnicity, income…
- Psycographic: lifestyle, values, personality traits…
- Behavioral: consumption occasion, benefits sought, CDJ, usage rate…
Targeting
Selecting the segments that present the greatest opportunities. Possible selection criteria: size, attractiveness, strategic fit.
Segment size
Estimated market demand and growth of a segment.
Segment’s attractiveness
Amount of value that can be created and captured from a segment.
Segment’s strategic fit
Degree to which a segment is alligned with the firm’s objectives, resources and skills.
Positioning
The design offering to ocupy a distinctive place in the customer’s mind.
Positioning statement structure
For [target], [brand] is the [frame of reference] that [points of difference], because [reasons to believe].
Brand
Name, term, sign, symbol, design, or some combination of these elements, intended to identify the products of one firm and to differentiate them from those of competitors.
Brand differences
- Functional, rational or tangible: related to product performance
- Symbolic, emotional or intangible: related to the meaning of the brand in an abstract sense
Brand equity
Added value endowed to products with consumers due to the differential effect brand knowledge has on consumer response to the marketing of that brand.
Frame of reference
Competitive frame of reference defines which other brands a brand competes with and which should thus be the focus of competitive analysis.
Points of difference (PODs)
Associations that consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand.
Reasons to believe
Attributes that provide factual or demonstrable support for PODs.