Marketing Segmentation, Targeting, & Positioning

An overview on how to segment, target, and position a company for success.

1. Marketing Segmentation, Targeting, & Positioning By: Lou Klingensmith

2. What is a STP Analysis? The segmentation, targeting, and position process is a five-step process that helps companies' home in on their ideal consumer base and how to position their offerings in a way customers understand why it meets their needs better than the competitions.

3. Articulate the vision or or objectives of companies marketing strategy Harmonious with and developed from the company's mission, objectives, and current SWOT analysis Step One: Establish the Overall Strategy or Objectives

4. SWOT Analysis STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

5. Step Two: Use Segmentation Methods Choosing one or more segmentation methods for dividing the market Develop descriptions for each segment Determines similarities among each segment Shows dissimilarities across segments

6. Segmentation Types Geographic Country Region Areas within a region Demographic Age Gender Income Education Psychographic Self-values Self-concept Lifestyles Benefit Benefits derived from products/services Behavioral Occasion Loyalty

7. Identifiable: Identify who is within their market in order to design products/services to meet their needs Substantial: Determine market size ensuring its large enough and possesses enough buying power Reachable: Must be able to reach target market through persuasive communication and product distribution Responsive: Consumer react similarly and positively to company offerings Profitable: Current and future profitability of segment base on market growth, market competitiveness, and market access Step Three: Evaluate Segment Attractiveness

8. What is a STP Analysis? The segmentation, targeting, and position process is a five-step process that helps companies' home in on their ideal consumer base and how to position their offerings in a way customers understand why it meets their needs better than the competitions.

9. Step Four: Select a Target Market Undifferentiated Targeting Strategy (Mass Marketing) Customer similarity focused Perceived to provided similar benefits to majority of consumers No need for separate strategy development Micromarketing (One-to-One) Taylors product/service to individual wants & needs Differential Targeting Strategy Target several marketing segments with offers tailored to each segment Helps diversify business & reduce risk Concentrated Targeting Strategy Single, primary target market Focuses all energy on providing a product to meet their target markets needs

10. Define the marketing mix variables so the target market has a clear, distinctive, desirable, understanding of the product/services compared to the competition's offerings Helps communicate value proposition Value Proposition: Communicates benefits to be received from product/service Step Five: Identify & Develop Positioning Strategy