STP marketing mix and how we make it strategy

mohamedsafwat23816 72 views 123 slides May 26, 2024
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About This Presentation

Marketing can be understood as the big picture of how a business connects with its customers. It goes beyond just selling a product or service. Here's a breakdown of what marketing entails:

Understanding Customer Needs: Marketing starts with figuring out who your ideal customer is and what the...


Slide Content

CHAPTER SEVEN:
Customer-Driven Marketing Strategy:
Segmentation, Targeting & Positioning
Lecturer: Dr. Nermin A. Daniel
1

Topic Outline
7.1Customer-Driven Marketing Strategy
7.2Market Segmentation
7.3Market Targeting
7.4Differentiation and Positioning
https://clevertap.com/blog/behavioral-segmentation/
2 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Segmentation, Targeting, And
Positioning
Segmentation,TargetingandPositioning
(STP)isafamiliarstrategicapproachin
ModernMarketing.Itisoneofthemost
commonly appliedmarketingmodelsin
practice.
TheSTPmodelisusefulwhencreating
marketingcommunicationsplans
3 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Segmentation, Targeting, And
Positioning
4https://www.smartinsights.com/digital-marketing-strategy/customer-segmentation-targeting/segmentation-targeting-and-
positioning/
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

Segmentation, Targeting, And
Positioning
5
Thisisanaudienceratherthanproductfocused
approachtocommunicationswhichhelps
delivermorerelevantmessagesto
commerciallyappealingaudiences
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

Target Markets,
Positioning & Segmentation

7
Segmentation, Targeting, And
Positioning
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

Oxford University Press8
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

Marketing management, Presented By Dr. Nermin A. Daniel, DBA

10 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Marketing management, Presented By Dr. Nermin A. Daniel, DBA
Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Segmentation and Targeting
Market segmentation is the process that companies use to
dividelarge heterogeneous markets into small markets that can
be reached more efficiently and effectively with products and
services that match their unique needs.
Market targeting (targeting) is the process of evaluating
each market segment’s attractiveness and selecting one or more
segments to enter.
12 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Segmentation
13 Oxford University Press
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

Case study of “McDonalds” segmenting
https://www.youtube.com/watch?v=tKOITmV0NfU
Oxford University Press14
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

Targeting
15 Oxford University Press
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

Marketing management, Presented By Dr. Nermin A. Daniel, DBA

Segmentation and Targeting
Market segmentation is the process that companies use to
divide large heterogeneous markets into small markets that can
be reached more efficiently and effectively with products and
services that match their unique needs.
Market targeting (targeting) is the process of evaluating
each market segment’s attractiveness and selectingone or more
segments to enter.
17 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Positioning
18 Oxford University Press
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

Marketing management, Presented By Dr. Nermin A. Daniel, DBA

Market Differentiation and Positioning
Differentiationinvolves actually differentiatingthe market
offering to create superior customer value.
Positioningconsists of arranging for a market offering to
occupy a clear, distinctive, and desirable place relative to
competing products in the minds of target consumers.
21 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Market Differentiation and Positioning
Differentiationinvolves actually differentiating the market
offering to create superior customer value.
Positioningconsists of arranging for a market offering to
occupya clear, distinctive, and desirable place relative to
competing products in the minds of target consumers.
22 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Marketing management, Presented By Dr. Nermin A. Daniel, DBA

I. Market Segmentation
Segmenting Consumer Markets
Geographic
segmentation
Demographic
segmentation
Psychographic
segmentation
Behavioral
segmentation
24 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Geography
Demographic
Psychographic
Behaviouristic
Marketing management, Presented By Dr. Nermin A. Daniel, DBA
25 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

1. Geographic segmentation divides the market
into different geographical units such as nations,
regions, cities, or even neighborhoods.
26 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

2. Demographic segmentation divides the market
into groups based on variables such as age, gender,
family size, family life cycle, income, occupation,
education, religion, race, generation, and nationality
27 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Demographic
•Using a series of demographic variables
–Gender
–Age
–Cohorts of society
•Moments and events in late adolescence / early adulthood (17-23
yrs)
•This may not work globally
–Level of Education
–Level of Income
–Occupation
–Religion
–Ethnicity (see Table 5.1)
–Family size
–Family life cycle stage
•Life conditions that have a potential impact of product/service
purchase decision
Criteria for identifying segments
28
Marketing management, Presented By Dr. Nermin A. Daniel, DBA
Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

2.a) Age segmentation is the process of offering
different products or using different marketing
approaches for different age groups.
29 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

2.b) Gendersegmentation divides the market based
on gender(male or female).
30 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

2.c)Incomesegmentation divides the market into
affluent or low-income consumers.
31 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

3. Psychographic Segmentation
32 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

3. Psychographicsegmentation divides buyers into
different groups based on social class, lifestyle, or
personality characteristics.
33 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

4. Behavioralsegmentation divides buyers into groups
based on their knowledge, attitudes, uses, or responses
to a product.
4.a) Occasions
34 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

4.b) Benefits sought
35 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

36 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

4.c) Usage rate
Purchasing and Usage Behavior
•Let’suseyourride-sharingappofchoiceasanexample.Aworking
professionalusestheservicetocommutetoandfromtheoffice
MondaythroughFriday.Onweekends,however,theuserhastheextra
timeneededtodrive,park,andwalktotheirdestination,sotheynever
usetheservicethen.
•Understandingthebehaviorofthisuser,theride-sharingservicecould
targetdiscountsontheweekendstoincentivizeusageondaysthey
otherwisewouldn’tusetheapp.
•Mostcompaniesrecognizethepoweroftrackingthepurchase,usage,
andconsumptionoftheirproductasameansofforecastingdemand.
Segmentingcustomersbasedontheirpurchasebehaviorisessentialto
understandingwhenyourmarketingwillbemosteffective.
37 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

4.d) User status
4.e) Loyalty status
38 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

CustomerloyaltyRate:
–Loyaltylevel
•Brandinsistence,
•Brandloyalty,
•Splitloyalty,
•Shiftingloyalty,
•Noloyalty
Criteriaforidentifyingsegments
39
Marketing management, Presented By Dr. Nermin A. Daniel, DBA
Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Behavioral Segmentation

–Purchase behavior
–Occasion and timing
–Benefits sought
–Customer loyalty
40 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

41 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

42 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Is it better to use one segmentation basis or more ???
43 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Multiple segmentation is used to identify smaller,
better-defined target groups.
44 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Requirements for Effective Segmentation
To be useful, market segments must be:
Measurable
Accessible
Substantial
Differentiable
Actionable
45 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Case study of “McDonalds” segmenting
https://www.youtube.com/watch?v=tKOITmV0NfU
46
Marketing management, Presented By Dr. Nermin A. Daniel, DBA
Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Targeting
47
Marketing management, Presented By Dr. Nermin A. Daniel, DBA
Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Marketing management, Presented By Dr. Nermin A. Daniel, DBA
Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

II. Market Targeting
Target Market: consists of a set of buyers who share
common needs or characteristics that the company
decides to serve.
49 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

50 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

51

1.Undifferentiatedmarketingtargets the whole
market with oneoffer.
(1 product for the whole population)
52 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

2. Differentiatedmarketingtargets several different
market segmentsand designs separate offers for each.
(different products to different segments)
53 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

54 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

55 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

56 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

3. Concentratedmarketingtargets a large share of
oneor a few smaller segments or niches.
( 1 product for 1 segment)
57 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

4. Micromarketingis the practice of tailoringproducts
and marketing programs to suit the tastes of specific
individuals and locations.
4.a) Local marketing
4.b) Individual marketing
58 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

4.a) Localmarketinginvolves tailoringbrands and
promotion to the needs and wants of localcustomer
groups
59 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

4.b) Individualmarketinginvolves tailoringproducts and
marketing programs to the needs and preferences of individual
customers.
60 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Choosing a Targeting Strategy depends on:
•Company resources
•Competitor’s marketing strategies
•Product Life cycle
61 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Positioning
62 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

•Perceptualpositionwithinthemindoftheconsumer
•Targetconsumerhasaclear&distinctiveimagein
mind
•Keepthebrandnameatthetopofthechoice
•AlReisandJackTrout-ladderinsideevery
consumersheadforeachandeveryproduct&
service
•Gettothetoprung
•Beingonthetopoftheladderallowsthefirmto
enjoyconsumerfranchise
Positioning
63Oxford University Press
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

Consumer Franchise
•Theabilityforthefirmtokeepits
product/brand/company nameforemost
inthemindofthetargetconsumer.
•Itisconsideredasbankableasset
•Consumerfranchisehastwocomponents
–Attitudinal
–Behavioral
64Oxford University Press
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

The Positioning Statement
•The positioning statement serves as the
foundation for all of the positioning
efforts.
•The three key components:
–(1) the audience and context
–(2) the value proposition, and
–(3) the action components that will be used by
the company to deliver the value proposition to
the audience in the context identified.
65Oxford University Press
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

The Marketing Mix: Four P’s
66 Marketing Management, presented by Dr. Nermin A. Daniel

67 Marketing Management, presented by Dr. Nermin A. Daniel
The Marketing Mix: Four P’s

4 Ps corresponding to customer 4 Cs
RobertLauterbornsuggestedthatthesellers’
fourPscorrespondtothecustomers’fourCs.
FourPs FourCs
Product Customersolution
Price Customercost
Place Convenience
Promotion Communication
Winningcompaniesarethosethatmeetcustomer
needseconomicallyandconvenientlyandwith
effectivecommunication.
68 Marketing Management, presented by Dr. Nermin A. Daniel

A complementary breakdown of marketing activities has
been proposed that centers on customers. Its four
dimensions (SIVA) and the corresponding customer
questions these are designed to answer are:
◆Solution: how can I solve my problem?
◆Information: where can I learn more about it?
◆Value: what is my total sacrifice to get this solution?
◆Access: where can I find it?
Two key themes are that (1) many different marketing
activities can create, communicate, and deliver value and
(2) marketers should design and implement any one
marketing activity with all other activities in mind.
For example: using an integrated communication strategy
means choosing communication options that reinforce and
complement each other.
69 Marketing Management, presented by Dr. Nermin A. Daniel

The 7Ps Marketing Mix
https://www.smartinsights.com/marketing-planning/marketing-models/how-to-use-the-7ps-marketing-
mix/
70
Marketing Management, presented by Dr. Nermin A. Daniel

71 Marketing Management, presented by Dr. Nermin A. Daniel

III. Differentiation and Positioning
Productpositionis the way the product is defined by
consumers on important attributes—the place the product
occupies in consumers’ mindsrelative to competing products
72 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Competitiveadvantageis an advantageover competitors
gained by offering consumers greater value, either through
lower prices or by providing more benefits that justify higher
prices.
73 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Identifying a set of possible competitive advantages to build a
position by providing superior value from:
Product differentiation
Service differentiation
Channel differentiation
People differentiation
Image differentiation
74 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Positioning Strategies
75 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

1. MoreBenefits for MorePrice
76 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

2. MoreBenefits for The SamePrice
77 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

3. MoreBenefits For LessPrice
78 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

4. SameBenefits For LessPrice
79 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

5. LessBenefits for LessPrice
80 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

Developing a Positioning Statement
To (target segment and need) our (brand) is (concept) that
(point of difference).
81 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

To (youth of age groups between 25-35 who wants to
take good care of their health) (Select Cookie) is (a tasty
low fat cookie) that (gives you the best tasting yet guilt
free pleasure so you can stay in control of your weight
and health)
82 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel

83
Figure 5.3 -The 4 C‘s of
Positioning
•Clarity:intermsoftargetmarketanddifferential
advantage
•Consistency:maintainaconsistentmessage
•Credibility:inthemindsofthetargetcustomer-
theymustbelievetheclaim
•Competitiveness:thedifferentialadvantage
shouldofferthecustomersomethingofvalue
competitorscannotprovide(competitorsshould
benamedifpossible)
83 Oxford University Press
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

84
Figure 5.4 -Examples of Positioning
Statements
Appleoffers …. the best
personal computing experience
to students, educators, creative
professionals and consumers
around the world through its
innovative hardware, software
and Internet offerings.
The Chrysler PT Cruiser is an
inexpensive, small car, that is
versatile, fun to drive, and will
appeal to active singles and
young couples with children
who otherwise would have
bought an SUV or a minivan.
84 Oxford University Press
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

85
Figure 5.4 -Examples of Positioning
Statements
Appleoffers …. the best
personal computing experience
to students, educators, creative
professionals and consumers
around the world through its
innovative hardware, software
and Internet offerings.
85 Oxford University Press
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

86
Figure 5.4 -Examples of Positioning
Statements
The Chrysler PT Cruiser is an
inexpensive, small car, that is
versatile, fun to drive, and will
appeal to active singles and
young couples with children
who otherwise would have
bought an SUV or a minivan.
86 Oxford University Press
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

Oxford University Press87

Perceptual Mapping
88 Oxford University Press
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

PerceptualMapping
•Itisthevisualrepresentationofthedifferent
competitivebrandofferings/objectsofinterestin
perceptualspace
•Itrepresentsamapofvariousofferingswithinthe
mindsofthetargetconsumers
•“Perceptionequalsreality”
89 OxfordUniversityPress
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

Figure 5.5 -Perceptual Mapping: Mars
90 Oxford University Press
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

91 Oxford University Press
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

92

1. Red -bull among competition
P & G STP strategy for its product line
Marketing Strategy “STP”
Case Studies
Marketing management, Presented By Dr. Nermin A. Daniel,
DBA
93

Marketing Strategy “STP”
Case Study
Marketing management, Presented By Dr. Nermin A. Daniel, DBA94
Red Bull case study
•Who is the target market of each product?
Redbull.. Coca Cola Energy .. Sting
3 Different Brands of Energy Product

Marketing Strategy “STP”
Case Study
Marketing management, Presented By Dr. Nermin A. Daniel, DBA95
Red Bull case study
-Every company of these three brands makes
a different marketing plan, targeting a
different target market.

Marketing Strategy “STP”
Case Study
Marketing management, Presented By Dr. Nermin A. Daniel, DBA96
Red Bull case study
-Here we are going to demonstrate the
marketing plan in simple brief way and we will
see the different marketing mix of the three
companies.

Marketing Strategy “STP”
Case Study
Marketing management, Presented By Dr. Nermin A. Daniel, DBA97
Red Bull case study
Target Market:
•Redbull: Athlete sportive youth, A and B+
•Energy: Young people class B and B+
•Sting: Class B-and C

Marketing Strategy “STP”
Case Study
Marketing management, Presented By Dr. Nermin A. Daniel,
DBA
98
Red Bull case study
1. Product:
•Thethreebrandsofferproductswithsimilar
ingredientsofcarb,sugarandcaffeine
•ButRedbullcontainsTaurine,anaturalsubstancein
humanbody.

Marketing Strategy “STP”
Case Study
Marketing management, Presented By Dr. Nermin A. Daniel, DBA99
Red Bull case study
2. Price:
•Redbull, 250 ml is for 25 LE
•Coca Cola Energy, 250 ml is for 10 LE
•Sting, 250 ml is for 5 LE

Marketing Strategy “STP”
Case Study
Marketing management, Presented By Dr. Nermin A. Daniel, DBA100
Red Bull case study:
3. Place: “Channel Of Distribution “
•Distribution place of every product differs from the rest
of the brands:
•Redbull:Hybermarkets such as Carefour, on the
run and bonjour
•Energy: Hybermarkets and super markets, greater
Cairo general locations.
•Sting: small kiosks and in remote areas

Marketing Strategy “STP”
Case Study
Marketing management, Presented By Dr. Nermin A. Daniel, DBA101
Red Bull case study
4. Promotion:“communication channel”
•Redbull:
-Sponsoring sportive events and clubs, raceways and
some concerts.
•Energy:
-Sales promotion to dealers network and retailers, beside
Coca-colabrand name and its dealers network.
•Sting:
-TV, radio and internet advertising having Mohamed
Ramadan as a convenient celebrity presenting product
to the targeted segment.

Marketing Strategy “STP”
Case Study
Marketing management, Presented By Dr. Nermin A. Daniel,
DBA
102
RedBullcasestudy
Conclusion:
-Tobeabletomaketherightmarketingplanweneed
tosetandchoosetherighttargetmarket,itsvalue
andtheprofitabilitythecompanywillgetfromthethis
targetmarket.

Red -bull among competition
2. P&G STP strategy for its product line
Marketing Strategy “STP”
Case Studies
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Marketing Strategy “STP”
P&G
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https://prezi.com/uuhekbom-jc1/segmentation-targeting-positionig/
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Marketing Strategy “STP”
P&G
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Marketing Strategy “STP”
P&G
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Marketing Strategy “STP”
P&G
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Marketing Strategy “STP”
P&G
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Marketing Strategy “STP”
P&G
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Marketing Strategy “STP”
P&G
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Marketing Strategy “STP”
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Marketing Strategy “STP”
P&G
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

Marketing management, Presented By Dr.
Nermin A. Daniel, DBA
119
Marketing Strategy “STP”
P&G
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

Marketing
Management
120
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

Marketing management, Presented By Dr. Nermin A. Daniel, DBA
121
Marketing Strategy “STP”
P&G

Conclusion
•Companies thatapproach theprocessof
segmentation,processingandpositioningasa
seriesoflogicalsteps,enhancetheirchanceof
success.
•Thecompany mustfindappropriatetarget
consumers,understandthem,effectivelyreach
themandgrabapositioninsidetheirheads.
•Thecompanymustalsoavoidthelureofchange
forthesakeofchangeandfocusonconsistency.
•Thisrequireskeepingupwiththeperceptionsof
consumersandcontinuingtobuildandmaintain
consumerfranchise.
122OxfordUniversityPress
Marketing management, Presented By Dr. Nermin A. Daniel, DBA

Thank you
123 Customer Driven Marketing Strategy .STP. BY Dr. Nermin A. Daniel