MARK101 Week 5 - Segmentation, Targeting, and Positioning

What is STP?

  • STP stands for Segmentation, Targeting, and Positioning.

Lecture Outline

  • The lecture covers the following topics:

    • What is STP?

    • Segmentation Methods

    • Market Targeting Strategies

    • Positioning

    • Key Takeaways

What is Market Segmentation?

Segmentation, Targeting, and Positioning Process

  • Segmentation: Divide the total market into smaller segments.

  • Targeting: Select the segment or segments to enter.

  • Differentiation: Differentiate the market offering to create superior customer value.

  • Positioning: Position the market offering in the minds of target customers.

Geographic Segmentation

Demographic Segmentation - Age

  • Examples:

    • LEGO Architecture (12+ years)

Demographic Segmentation - Age

  • Examples:

    • Huggies Snug & Dry (size 4).

    • Depend Underwear (XL).

Demographic Segmentation - Income

Income Segmentation

  • Marriott uses income segmentation with hotels ranging from luxurious (The Towers/Ritz Carlton) to value-for-money (Aloft Hotel).

Demographic Segmentation - Lifecycle

  • Example: Holidays for singles.

Psychographic Segmentation

  • Examples:

    • Patagonia appeals to those with an outdoorsy lifestyle.

Psychographic Segmentation

  • Examples:

    • iPod - "I WAS A PC" ad campaign targeted users who were anti-PC.

Behavioural Segmentation

  • Includes:

    • Occasions

    • Benefits sought

    • User status

    • Usage rate

    • Loyalty status

Occasion Segmentation

  • Valentine's Day in Japan: Women give chocolate gifts to men based on their relationships. Men reciprocate on White Day (March 14).

Benefit Segmentation

  • Fitbit: Offers different health and activity tracking devices for various segments, from basic fitness to performance tracking for athletes.

Segmentation, Targeting, and Positioning Process

  • Segmentation: Divide the total market into smaller segments.

  • Targeting: Select the segment or segments to enter.

  • Differentiation: Differentiate the market offering to create superior customer value.

  • Positioning: Position the market offering in the minds of target customers.

Market Targeting Strategies

  • Undifferentiated (Mass) Marketing: Targeting broadly.

  • Differentiated (Segmented) Marketing

  • Concentrated (Niche) Marketing

  • Micromarketing (Local or Individual Marketing): Targeting narrowly.

Examples

  • Nike By You: Unique product promotion, personalization strategy.

Differentiation and Positioning

  • Value Proposition: How will you create value for targeted segments, and what place do you want to occupy in consumers’ minds?

Positioning Tasks

  • Identify the points of difference (POD).

  • Choose the right competitive advantages.

  • Select an overall positioning strategy.


Possible Value Propositions

  • A table illustrating different value propositions based on benefits and price:

    • More for more.

    • More for the same.

    • More for less.

    • The same for more.

    • The same for the same.

    • The same for less.

    • Less for much less.

Key Takeaways

  • STP (Segmentation, Targeting, Positioning).

  • Segmentation Methods.

  • Market Targeting Strategies.

  • What is Positioning?

  • Marketing Objectives.