Week 6 - STP

Question 1

What is segmentation and why should marketers care about it?

Answer 1

What: Segmenting consumers based on the opportunity value they represent the company
Why:
- Reduce market waste through targeting
- Markets are getting more fragmented

Question 2

What are the key objectives of segmentation?

Answer 2

1. Identify homogenius segments
2. Specify characteristics that define these segments
3. Determine size and potential

Question 3

Describe two levels of segmentation

Answer 3

High Level: the macro outlook, based on industry subdivisions or consumer category use
Low Level: the micro, most profitable customers within segments to get the most opportunity value

Question 4

Break down the 3 types of low level segments

Answer 4

1. A ‘Priori’ (From Before)
   - Identified through secondary research
   - based on socioeconomic/geodemographic and personality
2. Posthoc (After this)
   - Identified after primary research
   - Use 4Ws framework (Who, What, Where, Why)
3. Data Mining
   - Among existing customers and data mined on usage behaviour

Question 5

Describe Targeting and the 3 types strategic marketers would use

Answer 5

Targeting helps marketers focus on the most valuable segments after segmentation is completed

Marketing Mix: 4ps (Product, price, place, promotion)

1. Undifferentiated (No segmentation)
   - Single marketing mix for everyone
2. Differentiated (Segmentation no targeting)
   - 2 or more segments
   - marketing mix for each segment
3. Concentrated (Segmentation + Targeting)
   - 1 segment 1 marketing mix

Question 6

What is positioning and what are the 4 steps to setup a brand positioning strategy?

Answer 6

Positioning is both a unique place, product or brand occupies in a customers mind. To own a word in the customer’s mind is the goal.

Developing a brand positioning strategy
1. Determine current position
2. Determine ideal point
3. Determine whether to continue or modify
4. Develop brand positioning based on core values

Question 7

Name 5 key positioning concepts for consumer and 2 for organisations

Answer 7

Consumer and cultural systems
1. Brand Image
2. Brand Communication
3. Brand Associations
4. Brand Meaning
5. Brand Position

Organisation
1. Brand Identity
2. Brand Personality

Question 8

Draw the positioning 3 Cs and identify where the POD and POS are. Furthermore describe what POD means to strategic marketers

Answer 8

1. Company benefits
2. Customer Needs
3. Competitor Benefits

Draw Diagram

POD
- Attributes or benefits that consumers strongly associate with a brand.

“A preserved Difference”

Question 9

Name the two decision making aids that help marketers with positioning

Answer 9

1. Perceptual Maps
   - Attribute rate method
   - Overall similarity method
2. Conjoint Analysis
   - Number of attributes are identified and then sorted into bundles of two or more
   - Respondents rank or rate their preferences on these joint

Question 10

Name the 2 positioning approaches that help marketers with positioning

Answer 10

1. Positioning statement
   - Identifies the target market
   - States unique benefits to the product

Generic format for positioning statements: For (target market),
(brand) is the (product category) that (benefit offered)

2. Value Proposition
   - Similar to PS
   - But includes information about pricing

Generic format for value propositions:
- Target market
- Benefits offered (and sometimes not offered)
- Price range (relative to competitors)

Both approaches reflect the USP of the product

Question 11

Describe the 3 types of positioning

Answer 11

1. Functional
   - Solve Problems
   - Provide tangible benefits
2. symbolic
   - Status
   - Self-definition
3. Experiential
   - Sensory / sensual stimulus
   - Cognitive stimulation