Session 9 STP **

Question 1

We use STP to:

Answer 1

Developing Marketing Strategy

Question 2

SEGMENTATION

Answer 2

• Identify segmentation bases and segment the market

* Develop profiles of segments

Question 3

TARGETING

Answer 3

• Evaluate segment attractiveness

* Select target segments

Question 4

POSITIONING

Answer 4

• Develop positioning concepts for each target segment

* Select, develop, communicate the chosen concept

Question 5

How to measure segments similarity and dissimilarity

Answer 5

Q1: Which two segments seem to be the most similar? Least similar?

Fearful Typist vs. Power Users = (3-9)2 + (8-2)2 + (9-2)2 = 36+36+49 = 121
Fearful Typist vs. Prof. Special. = (3-7)2 + (8-5)2 + (9-6)2 = 16+9+9 = 34
Power Users vs. Prof. Special. = (9-7)2 + (2-5)2 + (2-6)2 = 4+9+16 = 29
Most Similar = Least Distance = 29 => Power Users & Prof. Specialists
Least Similar = Most Distance = 121 => Fearful Typists & Power Users

Question 6

 Characteristics of a Good Segmentation

Answer 6

Good Characteristics of segmentation:SLID
 Stable
 Large Enough
 Identifiable- “spiritual people” not identifiable
 Distinctive

Question 7

 Techniques for Segmentating the Market

Answer 7

3 classifications: PBS

1. Personal characteristics of consumer
   - demographics seg (gender, age, enthnicity, income)
   - psychographics/lifestyle seg (VALS dimensions)
   - geographic segmentation (regional, neighborhood)
2. Benefits sought by the consumer
   - focus is on benefits ppl are seeking in consuming a given product or service
   (attempts to measure consumer value system, and consumers perception of various brands in product class)
3. Systematic, product related behaviors of consumer
   - focus is on Brand Loyalty, Brand usage
   (purchase frequency ie. does target know youre pregnant based on habits?)

Question 8

VALS dimensions

Answer 8

pg. 122
Innovators:
thinkers- achievers- experiencers
believes- strivers- makers

Primary motivation

• determines what about the self or the world governs ones activities
  
  1. ideals
  2. achievements
  3. self-expression

Question 9

What are the techniques for Segmentation?

Answer 9

How are they different from “Bases for segmentation”

Question 10

Target Market Selection

Answer 10

1. Market Opportunities for Profit:
2. Company “Fit”
3. Competitive Intensity

Question 11

Product Lines & Segmentation (MAP)

Answer 11

where company fits relative to (y) age and (x) income

Question 12

Product Positioning: The products position and the company’s positioning

Answer 12

Positioning:
The act of framing the companyʼs image and
offer in the target consumersʼ minds, so it
occupies a distinct and valued place in relation
to competitors.

The Product’s Position:
The actual image/perception of the product in the minds of consumers, relative to the competition.

Question 13

Positioning Statement

Answer 13

 To customers who are (target summary)

 Our product offers (state what the product
does from the consumersʼ point of view)

 Relative to (competitive alternatives)

Question 14

Positioning Strategies

Answer 14

By Attribute (Baking soda toothpaste)
By Benefit (Effidac “24 hour relief”)
By Price/Quality (Nordstrom; K-mart)
By Use/Occasion (Tylenol PM)
By Product User (Gerber Graduates)

With respect to Product Class (7-Up “Un-Cola”)
With respect to Competitor (Avis vs. Hertz) By Emotion (Got Milk?

OR By lifestyle or by product benefit (L’Oreal case)

Question 15

Example of a Perceptual Map: Mapping a Store’s Personality

Answer 15

Look to session 9 last page