MARKET STP

1st step market segmentation

• identify bases for segmenting the market

• develop segment profiles

market targeting

• develop measure of segment attractiveness

• select target segments

market positioning

• develop positioning for target segments

• develop a marketing mix for

mass producing

same product to all costumers

niche marketing

• focuses on subgroups within segments

• a more narrowly defined group

• attract only one or a few competitors

• customers willingly pay for a premium price

micromarketing

Tailoring products and marketing programs to specific individuals and locations

Tailoring brands and promotions to the needs of local customer groups (cities, neighborhoods, stores)

individual marketing (one-on-one marketing)

Tailoring products and programs to the needs of individual customers

mass customization

_ is a modified approach to individual marketing

geographic

Dividing the market based on location (e.g., region, city size, climate)

demographic

Dividing the market based on demographic variables (e.g., age, gender, income, occupation, education, religion, ethnicity, generation)

psychographic

Dividing the market based on lifestyle, social class, or personality characteristics

behavioral

Dividing the market based on consumer knowledge, attitudes, uses, or responses to a product

business market

Organizations that buy goods or services to use in their organizations, to resell, or to make other products

effective

Not all segmentations are

measurable

The size and purchasing power of the segment can be measured

accesible

The segment can be reached and served

substantial

The segment is sufficiently large or profitable

differentiable

The segment can be conceptually distinguished and responds differently to marketing programs

actionable

Effective programs can be designed for attracting and serving the segment

target market

is the set of buyers who share common needs or characteristics that the company decides to serve

three factors

Marketers evaluate segments based on

size and growth

Analyze current sales, projected growth, and profit margins

segment structural attractiveness

Assess factors that affect long-run attractiveness, such as the threat of competitors, substitute products, and the power of buyers and suppliers

company objectives and resources

The segment must align with the company's long-run objectives and the company must possess the skills and resources to offer superior value

these are the ones affected  by segment structural attractiveness

• current and potential competitors

• threat of substitute buyers

• relative power of buyers

• relative power of supplies

indifferentiated marketing

Ignoring segment differences and targeting the entire market with one offer

indifferentiated marketing

Focuses on common consumer needs

differentiated marketing

Targeting several market segments and designing separate offers for each

concentrated marketing

Targeting a large share of one or a few segments or niches

undifferentiated marketing

this relies on mass advertising and mass distribution

differentiated marketing

this creates more total sales and stronger position

concentrated marketing

it’s great for small business and provides a strong market position

company resources

is the most sensible as it concerned budget and limited resources favor concentrated marketing

product variablity

Uniform products suit undifferentiated marketing, variable products suit differentiation or concentration

product life cycle stage

New products benefit from undifferentiated or concentrated marketing, mature products may require differentiated marketing

low variability

Low variability favors undifferentiated marketing, high variability requires differentiation

competitor’s marketing strategy

If competitors use concentrated or differentiated marketing, undifferentiated marketing can be risky

products position

is the way it is defined by consumers on important attributes, the place it occupies in consumers' minds relative to competing products

identify competitive advantages

Offering greater value through lower prices or more benefits

product differentiation

Features, performance, style, or design

service differentiation

Superior customer service

channel differentiation

Channel coverage and expertise

people differentiation

Hiring and training better employees

image differentiation

Establishing differentiating images using symbols

choose the right competitive advantages

Selecting which advantages to promote

underpositioning

Failing to position the company at all

overpositioning

Giving too narrow a picture of the brand

confused postiioning

Leaving a mixed image

selecting an overall postitioning strategy

Defining the brand's value proposition

3 positioning process

• underpositioning

• overpositioning

• confused positioning

more for more

Offering the highest quality product at a high price

more for the same

Offering comparable quality and benefits at a lower price

the same for less

Offering equivalent quality at deep discounts

less for much less

Offering lower performance and fewer features at a much lower price

more for less

Offering superior quality at a low price (difficult to sustain)