Market Segmentation, Positioning and the Value Proposition

1
Market Segmentation, Positioning and the Value
Proposition

• Chapter 6 with Duane Weaver

2
OUTLINE

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

3
Marketing Strategies

• Target Segment
• subgroup chosen as focal point for the marketing
  program and advertising campaign
• Positioning
• Process of designing and representing ones
  product or service so that it will occupy a
  distinct and valued place in the target
  consumers 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

4
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
• B2B Segmentation vs. B2C

5
Prioritizing Target Segments

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

6
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

7
Value Proposition

• A brands 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.
• (OGuinn, Allen, Semenik 4E, p. 234)

8
THANK YOU!

• Discussion Questions
• P. 238
• Q1 STP factors
• Q2 Persuasion of product vs. segment
• Q3 Emergent Consumers
• Q6 Smaller is better? Segments
• Q7 Positioning Strategy Elements