consumer profiles. stp process (market segmentation, target market & positioning strategy) 1....
TRANSCRIPT
CONSUMER PROFILES
STP Process (Market Segmentation,
Target Market & Positioning Strategy)
1. Segment the Consumer
Market
2. Select a Target Market
3. Determine the Market
Positioning Strategy
Step One: Market Segmentation
Segmentation
Geographic
Demographic Psychographic
Behavioral
Geographic Segmentation
Segmented according to:
Region (continent, country, province, city or even neighbourhood)
Population (size and density of population, e.g., urban, suburban or rural)
Climate (weather patterns common to certain geographic regions)
Demographic SegmentationSegmented according to:
AgeGenderFamily life cycle (living with parents, single, married with/without children, divorced, widowed, etc.)Generation (Baby Boomer, Generation X, etc.)Income LevelOccupationEducation LevelEthnicity/Nationality/ReligionSocial class (upper, middle, lower)
Psychographic Segmentation
Segmented according to:
Activities Interests Opinions Attitudes Values Beliefs
Behavioral Segmentation Segmented according to
specific customer purchasing behavior in terms of:
Benefits sought Usage rate Brand loyalty User status (potential, first
time, regular, etc.) Readiness to buy Occasions (holidays and
other events that stimulate purchasing behaviour)
Behavioural Segmentation: Characteristics Affecting Consumer Behaviour
Cultural• Culture
• Subculture• Social status
Social• Reference groups
• Family roles• Gender roles
Personal• Age
• Occupation• Financial situation
• Lifestyle• Personality
Psychological• Motivation• Perception• Learning
• Beliefs and attitudes
Behavioural Segmentation: The Buying Process
Step Two: Target Market
After the consumer market has been separated into segments, the marketer will select either a single segment or a series of segments and then proceed to “target” the segment(s).
A target market is a group of buyers sharing common needs, wants or characteristics which the producer attempts to serve.
Target Market: Methods of Targeting
The marketer may elect to target a single product towards a single segment in a market with many segments.
For example, British Airway's Concorde was a high value product aimed specifically at business people and tourists willing to pay more for speed and luxury.
Target Market:Methods of Targeting
Alternatively, the marketer may simply ignore the differences amongst the various market segments and elect to target a single product towards all segments, i.e., the entire market.
This is typical in “mass marketing” where product differentiation is less important than cost considerations.
Target Market:Methods of Targeting
Alternatively, in a multi-segment approach the marketer may target a variety of different segments using a series of differentiated products.
Target Market: Push vs Pull Promotional Strategy
A push strategy directs marketing efforts such as sales and trade promotions towards channel members including wholesalers, retailers, agents and/or importers in order to create consumer demand for goods and services
A push strategy is so named because it attempts to “push” demand down the distribution chain by taking the product directly to the consumer
A pull strategy directs marketing efforts such as advertising and consumer promotions towards consumers in order to build consumer demand for goods and services
A pull strategy is so named because it attempts to “pull” demand up the distribution chain by encouraging the consumer to seek out the product
Step Three: Positioning Strategy
Positioning is one of the simplest and most useful tools of marketers. After segmenting a market and then targeting a particular consumer, marketers must proceed to position their product within that market.
Positioning Map Marketers must decide upon a competitive
position which enables them to distinguish their products from the offerings of competitors, hence the term positioning strategy. A positioning map may aid in this process.
Positioning Map When using a positioning map, marketers must
ensure that (i) each axis represents a single product dimension or consumer dimension and (ii) the terms at each end of each axis are true opposites.
Younger buyer
Sporty-looking product
Plain-looking product
Older buyer
Positioning Map A variety of competing product brands may be mapped
together on a positioning map which allows them to be compared and contrasted to one another. This process allows marketers to determine their closest competitors and encourages them to look for ways to distinguish their products from those of the competition.
Younger buyer
Sporty-looking product (X) Brand A
(X) Brand B
(X) Brand C (X) Brand D Plain-looking product
Older buyer
Direct Competition Direct competitors are businesses that sell similar
goods or services within the same market, e.g., Toyota and Honda within the automotive market.
This definition includes companies located within the same geographic region as well as companies (such as mail order or Internet-based firms) who are able to reach one’s potential customers.
Indirect Competition
Indirect competitors are businesses that sell goods or services which satisfy the same basic consumer wants or needs as one’s own firm.
This much broader definition includes companies that, for example, each attempt to attract consumers’ discretionary income, e.g., restaurants, hotels, theatres, etc.
Marketing Strategies: Centralized Marketing Strategy
This strategy focuses on the production, marketing and sale of goods and services in one country which are then exported to other countries
“Think local, act global” Advantages include brand building, combined synergies
and cost savings due to avoidance of duplication
Marketing Strategies: Decentralized Marketing Strategy
This strategy takes advantage of local production facilities, distribution centres, advertising agencies, market research firms and/or retail partnerships in foreign countries in order to target specific overseas markets
Companies that employ decentralized strategies may leave all advertising, sales and promotional decisions to local sales and marketing representatives
“Think global, act local” Advantages include flexibility, cultural sensitivity and shipping cost savings
given proximity to foreign markets