week 2

what is STP

segmentation, targeting, positioning

which people are in a segmentation

similar needs

who is in a targeting process

who can be reached profitably

4 segmentation bases

geographic, demographic, psychographic, behavioural

targeting strategies

mass marketing, multisegmented, concentrated, micromarketing

advantages of mass marketing

cost saving

disadvantage of mass marketing

unimaginative, weak to competition

advantages of concentrated targeting

saves resources, can meet their needs, strong positioning

disadvantages of concentrated targeting

segments too small and changing, large competitors market better

advantages of multisegmented targeting

financial success, economies of scale in producing/marketing

disadvantages of multisegmented targeting

high costs, cannibalization

advantages of one to one targeting

customized service, customer engagement and retention, increased loyalty

disadvantages of one to one targeting

high costs

three factors to segment a market successfully

diverse, accessible, cost effective

2 phases of segmentation

segment market using basis variables, describe them

3 phases of targeting

evaluate attractiveness of each segment, select target segments, find and reach them

positioning

the place the product occupies in consumers minds relative to competing products

positioning methods

value, attributes, benefits, symbolism, competition, market leadership

differentiation vs positioning

what you do to an offering vs what you do to customers minds

how to calculate value

benefits - price