MKTG 350 1st Edition Lecture 9 Current LectureSegmentation, Targeting, and Positioning STP Process1. Strategy or objectives- derived from mission statement and current state, check yourself a. SWOT 2. Segmentation marketsa. Geographic- neighborhood, countries, state (not in delivery area)i. GIS (geographic information systems- takes geography and overlays who lives there)b. Demographic- age, gender, income (not always the best way to segment) – apple computer- girls and boys use c. Psychographic- life style (How you live- activities, interest, opinions) bowls 2, self concept (how you view yourself) , self values ( what we think is important) – sustainability d. Benefits- what do you want out of the product? Toothpaste- fluoride, whitening, fresh breath- beer- thickness, light, cheap, good time, higher alcohol content, lower calories - convenience, economy, prestigee. Behavioral- occasion- what is driving you to buy the product (gift), loyaltyf. Geo-demographic- when we have the people who live together have similar purchasing habits and people who live in the same neighborhood have similar demographics. i. Prizm- potential rating index by zip market – 66 different clusters of people3. Evaluate segment attractivenessa. Substantial- too small and insignificant or too big and might need its own store—gap body is not big enough for own store so they kept it with in gap- does it have enough buying power? b. Reachable- know the product exists understand what it can do recognize how to buy i. Place- can they see the product – reachability promotion- are they seeing the advertisements (no delivery pizza in Alaska) ii. College market is hard to reach- poor, watch Netflix instead of television, don’t read the newspaper, Pandora- downloaded music, elderly and disabled are also hard to reach These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.c. Responsive- are they going to respond positively to my firms offerings move toward firms products/services accept the firm’s value proposition d. Profitable – can we make enough money over a long period of time e. Identifiable – who is their market? Are the segments unique? Does each segmentrequire a unique marketing mix? 4. Select target market- based on core competencies a. conde nast has more than 20 niche magazines focused on different aspects of life5. Identify and develop positioning – place the product occupied in the mind of the consumer a. Positioning methods-i. Value- more for you money Wal-Mart,ii. Salient attributes- important characteristics – safety, whitening, speed iii. Symbol- Merrill Lynch- bull, Prudential- rock, iv. Competition- compare themselves to the competition- Pepsi/Coke, Sprint/Verizon, Progressive, Cleaning products, Mac/PC, Avis says they are#2 and its okay- they try harder 6. Segmentation strategya. Undifferentiated or mass market- there is only one market- product provides the same benefits for everybody- gasoline- used to work for basic commodities, salt, sugar, etc. b. Differentiated- recognize that there are different target markets that want different things out of the product. Our strategy is to appeal to the different markets by making multiple products. i. Can get a larger market share and more customers but this can be more expensive c. Concentrated- we know there are different segments but only focus on one of those segments d. Micromarketing or one-to-one – mass customization – you make a product for each individual customer – monograms, engagement rings, 3D printing, frozen yogurt, Nike, custom suits, Positioning Steps 1. Determine consumer perceptions and evaluation in relation to competitors 2. Identify the market’s ideal points and sixe3. Identify competitors’ positions4. Determine consumer preferences5. Select the position6. Monitor positioning strategy. Reposition- (rebranding) they bring new life to the product – Belk, armon hammer baking soda-originally for cooking, now backing soda is used to whiten teeth, carpet freshener, in fridge( change once a month), in laundry, volcanoes in science