Powerpoint 3: STP Flashcards
STP
Segmentation, Targeting, Positioning
STP example
Snapchat is making deeper links more targeted for app installs based on previous knowledge
- deal with Nielson - data offline like in stores
Mass marketing
one-for-all:
Same product and marketing mix for everyone.
Simple and efficient from the supply side
Segmentation
Process of dividing markets into distinct subsets of consumers with common needs and characteristics.
- segment then position
hotel example
holiday inn did families and marmot found space in the market where they could excel
- business people!
profile
(1) demographic
(2) Geographic
(3) psychographic
(4) attitudinal
(5) behavioral
for individuals and businesses
criteria for good segmentation
(1) homogenous within
(2) heterogenous between
(3) MECE mutually exclusive and collectively exhaustive - comprehensive
(4) relevance
(5) operational - measurable, accessible, actionable
methods
(1) factor analysis
(2) cluster analysis
- qualitative insight
Nielson PRIZM
segmentation by geo-demographic
SBI VALS
segmentation
VALS - values and lifestyles
psychographic demographic segmentation
CRM
customer relationship management systems gives qualitative insight
- but gotta do something with this data.
- Creating and maintaining a relationship with an individual customer to build lifetime value
- Identify, Differentiate, Interact, Customize
components in targetin
(1) attractiveness Segment Size, Growth, Value, Stabiliy (2) compatibility Ease of Entry•Ability to Reach and Serve Segment (3) competitors •Number and strength•Ease of entry
Positioning
what does it do
Influences how a particular segment perceives an offering in comparisonto the competition
positioning
Internal statement that outlines essence of the strategy
- Uses the Marketing Mix (4Ps)
positioning statement
To ( t a r g e t s e g m e n t a n d n e e d ) o u r ( b r a n d ) i s t h e ( c o n c e p t ) t h a t (point to difference and reasons to believe).
- Critical elements: Target/need, concept/frame of reference, point of differentiation/reason to believe
For upscale American families,Volvois the family automobile that offers maximum safety.
Volvo
Vanguard group example
-Virtual –No physical branches and limited advice
-uses tools to turn away certain customers on purpose (Minimal investments in advertising)
Vanguard sh u n s players a n d o th er h ig h co st cu sto m ers.
-Focused on value, performance, low cost, and long term discipline
Their revenue approach:
- low management costs,
Reduce turnover and redemption, increase customer wallet share, retain assets long term
How vanguard shuns players and high cost customers
•Do not offer services for them•Targeted fees to dissuade churn•Slow execution to dissuade market timing
their new ad is baby
Market Driven Organization
•Organized to understand, attract, and retain the most valuable customers•Clear positioning and clear customer target segment
•Deliver Customer Value
Focused on tur ning data and insights into client satisfaction•Focused innovation•Crew (employee) incentives based on delivering value to customers
how to be a sophisticated marketer
(1) market driven organization
(2) deliver customer value
Customer centricity
is aligning an entire company’s development and delivery of products and services with the current and future needs of a selectgroup of customers in order to maximize their long-term financial valueto the firm.
types of strategic value
(1) product line value
(2) scale value
(3) communication value
(4) information value
vertical collaborator network
collaborators are in company supply chain suppliers and distributors
Synergistic offerings
example. Windows operating system can be viewed as a strategic asset for Microsoft because it ensures product compatibility, thus facilitating customer adoption of related software offerings.
horizontal collaborator network
horizontal networks - not in supply chain but collaborate on developing offering (R&D, manufacturing, promotion)
company makes offerings that match competitors even in absence of customer need. Same mistakes.
competitive wasteland
what makes a good segment
(1) relevance (related to factors that underlie the company’s targeting strategy) otherwise wasteful
(2) similarity
(3) exclusivity (heterogenous from other segments)
(4) comprehensiveness collectively exhaustive - (they should include all potential customers in a given market, such that each customer is assigned to a segment.)
customer equity includes:
(1) by directly generating revenues (and profits) for the company through purchase of the company’s products and services (direct value)
(2) by promoting the company’s products and services to other buyers (communication value),
(3) by providing the company with information that can help increase the effectiveness and efficiency of its operations (information value).
think strategic vs monetary
User-Based Targeting vs Occasion-Based Targeting
user based is like the profile of the person
occasion-based targeting focuses on` usage occasions rather than on individual customers. like buying wine for drinking, cooking, etc.
Positioning Statement vs Positioning
An offering’s positioning identifies the key aspect of the offering’s value proposition.
While the positioning statement incorporates the offering’s positioning, it is broader in scope than the positioning and includes the offering’s target customers
Positioning Statement vs. Slogan
The positioning statement is an internal company document aimed at company employees, stakeholders, and collaborators;
positioning statement also identifies the offering’s target customers—
unlike the brand slogan and the communication tagline, which capture only the offering value proposition.
Slogan shorter. P-statement is a sentence
three types of positioning statements:
customer-focused positioning statement
collaborator-focused positioning statement
company-focused positioning statement
customer-focused positioning statement
Template: For [target customers] who seek [key benefit], [offering] is an excellent [product category] because [justification of the benefit].
Example: For the tradesman who uses power tools to make a living , DeWalt offers dependable professional tools that are engineered to be tough and are backed by a guarantee of repair or replacement within 48 hours.
EXAMPLE D. This example illustrates a positioning statement in which customers’ needs serve as a reference point. This format is similar to that in the previous example except for using customer needs rather than the product category as the reference point.
Noncomparative Positioning:
Template: [Offering] is an excellent choice for [target customers] because [the primary reason to choose the offering].
Example: Gatorade is a smart choice for athletes because it rehydrates, replenishes, and refuels.
category-focused positioning statement
EXAMPLE B. This example illustrates a positioning statement that articulates the offering’s key benefit and justifies its ability to deliver this benefit. The format is similar to that in the first example except for the organization of the positioning statement.
Noncomparative Positioning:
Template: [Offering] is the [product category] that gives [target customers] [key benefit] because [justification of the benefit].
Example: Mountain Dew is the soft drink that gives young, active consumers who have little time for sleep the energy they need because it has a very high level of caffeine.
EXAMPLE C. This example illustrates a positioning statement in which the product category serves as a reference point.
Noncomparative Positioning:
Template: [Offering] is an excellent [product category] for [target customers] because [the primary reason to choose the offering].
Example: Aquafina is an excellent bottled water for health-conscious consumers because it is pure.
Collaborator-Focused Positioning Statement
EXAMPLE E. This positioning statement is similar to the one shown in Example C, with the key difference that it articulates the value for collaborators rather than for
target customers.
Noncomparative Positioning:
Template: [Offering] is an excellent choice for [collaborators] because [the primary reason to choose the offering].
Example: DeWalt power tools are a great choice for retailers because they are profitable.
Comparative Positioning:
EXAMPLE F. This positioning statement is very similar to the one shown in Example A, with the key difference that it articulates the value for collaborators rather than for target customers.
Noncomparative Positioning:
Template: For [collaborators] who seek [key benefit], [offering] is an excellent [product category] because [justification of the benefit].
Example: For mass-market retailers who seek to grow profits, Gillette Fusion offers a consumer staple that will generate high profit margins.
Comparative Positioning:
EXAMPLE H. This positioning statement is very similar to the ones shown in Examples A and F, with the key difference that it articulates the value for the company rather than for target customers or collaborators.
Noncomparative Positioning:
Template: [Offering] is an excellent choice for [company] because [the primary benefit derived from the offering].
Example: Fusion is an excellent option for Gillette because it will assert Gillette’s
position as the leader in the wet-shaving market and will ensure high profit margins.
Comparative Positioning:
Collaborator-Focused Positioning Statement
EXAMPLE E. This positioning statement is similar to the one shown in Example C, with the key difference that it articulates the value for collaborators rather than for
target customers.
Noncomparative Positioning:
Template: [Offering] is an excellent choice for [collaborators] because [the primary reason to choose the offering].
Example: DeWalt power tools are a great choice for retailers because they are profitable.
Comparative Positioning:
EXAMPLE F. This positioning statement is very similar to the one shown in Example A, with the key difference that it articulates the value for collaborators rather than for target customers.
Noncomparative Positioning:
Template: For [collaborators] who seek [key benefit], [offering] is an excellent [product category] because [justification of the benefit].
Example: For mass-market retailers who seek to grow profits, Gillette Fusion offers a consumer staple that will generate high profit margins.
Comparative Positioning:
EXAMPLE H. This positioning statement is very similar to the ones shown in Examples A and F, with the key difference that it articulates the value for the company rather than for target customers or collaborators.
Noncomparative Positioning:
Template: [Offering] is an excellent choice for [company] because [the primary benefit derived from the offering].
Example: Fusion is an excellent option for Gillette because it will assert Gillette’s
position as the leader in the wet-shaving market and will ensure high profit margins.
Comparative Positioning:
why are people no longer product-centric?
competition (1) technology (2) global competition (3) customer power - super informed you gotta do something different - worked for Jeff Bezos - customer centric kindle people didnt want to read online
why focus on the customer
source of revenue and profit
post purchase things
(1) equity social exchange theory
(2) disconfirmation - like southwest standards are low so they always exceed standards
(3) loyalty - net promotion
net promotion
how likely to refer product to others
