Marketing (MM2, 2018/19): Session 5 Vincent Mak Reader (Associate Professor) in Marketing & Decision Sciences, CJBS [email protected]
Framework of Marketing Strategy Situation Analysis Targeting Positioning Marketing Mix Execution -Product -Price -Place -Promotion -Customer -Competition -Company -Context -Collaborator 5Cs 4Ps Session 5
Today’s Agenda Segmentation, Targeting, and Positioning (STP) I. Segmentation • Segmentation Variables • Criteria for effective segmentation II. Targeting • Evaluation of segments III. Positioning • Perceptual map
Example: Two Volvo ads • •
Segmentation : Divide the market by buyer characteristics Targeting : Choose one (or more) segment Positioning : Arrange for product to have desired image for targeted customers Why STP?
Segmentation • Dividing a market into distinct groups with different characteristics, needs, or behaviour
Segmentation Variables for Consumers (see Harvard Business School Press 1978 in major readings) Observable background characteristics Only works to the extent that it correlates with behavioural segmentation • Geographic • Demographic • Psychographic • Lifestyle Behaviour or preference Preferable if actionable • Product usage • Product benefit • Needs-based vs job(outcome)-based (see Christensen et al. 2007 in major readings) • Decision process
The VALS framework (see comments in Yankelovich and Meer 2006 in major readings)
Taxonomy at the Pump: Mobil’s Five Types of US Gasoline Buyers (% of market population in parentheses)
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- Spring '19
- Marketing, Effective Segmentation, Harvard Business School Press