student ad ch6

8/11/2019 Student Ad Ch6

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2009 South-Western, a part of Cengage Learning

Chapter 6

Market Segmentation,

Positioning, and the

Value Proposition

PPT 6-1


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STP Marketing and the

Evolution of Marketing Strategy

1. Target Mark et :A sub-group of a larger market chosen asthe focal point for a marketing or advertising campaign. (NOT

illegal or unethical!)2. Pos it ion ing :Designing and representing a brand in a way

that is distinct in the consumers mind.

3. Posit io ning Strategy: Selecting key themes tocommunicate to a target market.

4. Marketing Strategy:Evolves as a result of 1-3

PPT 6-2


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Identifying Target Segments:

Market Segmentation

Demographics

Geography

Psychographics

Lifestyles

Benefits

Commitment

Levels

Usage Patterns

PPT 6-4


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The STP Marketing Process(Segmenting, Targeting, Positioning)

1. Break the broad market into smaller, more

homogenous segments

2. Specifically targetdiscrete market segments

3. Positionthe brand to appeal to the targeted

segments

PPT 6-5


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Segmenting by Usage and

Commitment

Advertising and promotion targeted to:

Heavy users

Nonusers

Brand-loyal users

Switchers/Variety seekers

Emergent Consumers

Point of entry marketing strategy

PPT 6-6


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Demographic Segmentation

Age

Gender

Race

Marital Status

Income

Education

Occupation

PPT 6-7


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How would you

describe the

demographic segmenttargeted by this

advertising campaign?

PPT 6-8

Ad in Context Example


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How about this ad?

What is the target

demographic for thisad campaign?

PPT 6-9



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Geographic Segmentation

Country

Region State

City

Neighborhood Geo-demographic

PPT 6-10


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Psychographics and

Lifestyle Segmentation

Activities

I

nterests

Opinions Lifestyle

Lifestyle segmentation

provides insight into

consumers

motivations

PPT 6-11


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Benefit Segmentation

Safety?Prestige?

Fuel Economy?PPT 6-12


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Business to Business Markets

Markets segmented by:

Usage rates

Geographic location

SIC (Standard Industrial Classification)

Code

Stage in the purchase process: first timevs. experienced buyers

Benefits desired

PPT 6-13


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STP Marketing is

used in the business-

to-business market

as well as the

consumer market.

PPT 6-14



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Prioritizing Target Segments

1. Examine your ability to deliver valueto the segments and costs of newcapabilitiesdistinct competenciesof the firm

2. Research segment size, growthpotential and usage frequency

3. Assay the competitive environment

4. Find a niche you can scratch

PPT 6-15


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Effective Positioning

Deliver on the brand promise

There is magic in consistency

Make the positioning different and simple

for consumers to understand

PPT 6-16


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Fundamental Positioning

Themes

Benefit Positioning

User Positioning

Competitive Positioning

PPT 6-17


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Do you think this ad for

Ryka shoes is

emphasizing benefit,user, or competitive

positioning?

PPT 6-18



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Repositioning

Used to revive an ailing brand or fix a

lackluster new market entry

Advertising themes and positioning

can be trendy and become outdated

The challenge: Changing perceptionsof a brand forged over years of

advertising.

PPT 6-19


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student ad ch6

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