Market Segmentation Positioning and the Value Proposition Chapter

OUTLINE • Marketing Strategies • Identifying Target Segments • Prioritizing Target Segments - SWOTs

Marketing Strategies • Target Segment – subgroup chosen as focal point for the marketing

Identifying Target Segments • Market Segmentation – Usage Segmentation (Patterns and levels of commitment)

Prioritizing Target Segments • Use a SWOT to position yourself amongst competitors based on

Positioning Strategy • Committed to creating substantive value • Must be consistent internally and

THANK YOU! • Discussion Questions: – P. 238 – Q 1 – STP factors

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Market Segmentation, Positioning and the Value Proposition Chapter 6 with Duane Weaver

OUTLINE • Marketing Strategies • Identifying Target Segments • Prioritizing Target Segments - SWOTs • Positioning Strategy • Value Proposition • Seminar Discussion

Marketing Strategies • Target Segment – subgroup chosen as focal point for the marketing program and advertising campaign • Positioning – Process of designing and representing one’s product or service so that it will occupy a distinct and valued place in the target consumer’s mind • Positioning Strategy – Selection of key themes or concepts the organization will feature when communicating distinctiveness to a particular target market segment. • STP marketing – Segmenting – Targeting – Positioning

Identifying Target Segments • Market Segmentation – Usage Segmentation (Patterns and levels of commitment) • • • Heavy Users Non-users Brand-loyal users Switchers/Variety Seekers Emergent Consumers – Demographic Segmentation – Psychographic Segmentation – Lifestyle Segmentation • AIOs (activities, interests, opinions) E. g. p. 221 -222 Benefit Segmentation B 2 B Segmentation vs. B 2 C

Prioritizing Target Segments • Use a SWOT to position yourself amongst competitors based on your segmentations.

Positioning Strategy • Committed to creating substantive value • Must be consistent internally and consistent over time • Simplicity and Distinctiveness • Ability must match message (promise) strategy • Positioning Schemes (which is best and why? ) – Benefit positioning – User positioning – Competitive positioning • Repositioning

Value Proposition “A brand’s value proposition is a statement of the functional, emotional, and self-expressive benefits delivered by the brand that provide value to customers in the target segment. A balanced value proposition is the basis for brand choice and customer loyalty, and is critical to the ongoing success of a firm. ” (O’Guinn, Allen, Semenik 4 E, p. 234)

THANK YOU! • Discussion Questions: – P. 238 – Q 1 – STP factors – Q 2 – Persuasion of product vs. segment – Q 3 – Emergent Consumers – Q 6 – Smaller is better? Segments – Q 7 – Positioning Strategy Elements