3.Marketing strategy-STP in BtoB_
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Marketing Strategy in BtoC Markets
Key Concepts
Segmentation: The process of dividing the market into distinct subsets of consumers with common needs or characteristics.
Targeting: Selecting the most valuable segment(s) to pursue.
Positioning: Creating a perception in the consumer's mind about the brand relative to competitors.
Macro-segmentation
Reference Market
Definition: All consumers who could potentially buy the product, excluding those who cannot due to objective reasons (such as age, gender, geographical location).
Examples:
Car Brands: Targeting consumers aged 18+ who have a driver’s license.
Beer Brands: Targeting consumers aged 16+ (legal restrictions apply).
Tampon Brands: Targeting women aged 12-50.
Shaving Products: Targeting men starting at puberty.
Note: It is crucial to differentiate between the marketing target (who the product is aimed at) and the communication target (who the message is directed towards). For shaving products, the marketing target is males; however, the communication target might include wives or friends.
Segmentation, Targeting, and Positioning Framework
Model Description
Z: Attractiveness to target audience.
(target audience): The specific group identified.
(brand): The brand in consideration.
(category frame): The category the brand competes in.
60% of reference: This denotes market share or reference point.
(benefit): The key advantage provided to the consumer.
(reason why): Evidence supporting the claim.
(reason to believe): Further justification for the consumer.
Steps for Effective Positioning
Divide the total market into manageable segments that offer the best chance of success.
Identify which groups best meet the consumers' needs.
Build the brand around those identified needs.
Targeting
Choice of Segments
Evaluate and choose the most valuable segment(s) from the identified markets.
Potential strategies:
Undifferentiated Targeting: Targeting the whole market with one offer.
Differentiated Targeting: Offering several different products targeting different segments.
Concentrated Targeting: Focusing on one or a few segments.
Micromarketing: Localized or individual marketing strategies targeting specific communities or individuals.
Positioning Strategy
Long-term Thinking
Positioning requires a strategic approach focusing on product characteristics, unique customer needs, market competition, and continuous adaptation.
Essential components include:
Assessment of product marketing characteristics.
Conducting comparative analysis and identifying unique positioning opportunities.
Example: Nikon Positioning Statement
For creative professionals with an eye for capturing and sharing beauty, Nikon is the brand of digital point and shoot cameras that delivers a window to their world so they can experience deeper connections through a shared perspective. This is due to Nikon's 100-year history of developing new technologies that allow you to capture and share your experiences in their purest form, as if you were there.
Unique Selling Proposition (USP)
Definition and Importance
The Unique Selling Proposition is the intersection of what your brand does well and what the consumer needs, effectively creating a 'Winning Zone'.
Poor definition leads to a 'Losing Zone' where competitors outperform you.
Always seek to innovate and execute superiorly in your messaging and product offers.
Positioning Mapping - Examples
Automotive Brands
Sporty Brands:
Porsche 911
SEAT Leon Cupra
Mini Cooper
Peugeot 308 GTi
Luxury Brands:
Bentley Mulsanne
Lexus IS
Economy Brands:
VW Golf
Honda Civic
Toyota Aygo
Vauxhall Insignia
BMW Tourer
Volvo V60
Gap in the Market
Identifying opportunities where existing products do not sufficiently meet consumer desires, providing room for new entrants or strategic positioning.