Salman Azhar & Friends in 2018 STP Segmentation Targeting Positioning “Let yourself be silently drawn by the strange pull of what you really love.” ~Rumi Salman Azhar & Friends in 2018

S T P Segmentation, Targeting, Positioning Identify bases for segmenting market Develop profiles of these segments Develop measures of target segment attractiveness Select target segments Develop positioning for each segment Develop marketing mix to support positioning for each segment T P Salman Azhar & Friends in 2018

What are the segments for Apple? Segmentation Bases Customers can be segmented by? Geographic Nations, States, Regions, Cities, Urban-Rural Demographic Age, Gender, Family size, Life cycle, Income Psychographic Social class, Lifestyle, Personality, Interests Behavioral Occasions, Benefits, Uses, Habits, Responses iPhone 8 vs X? iPhone 8 vs 8 plus? Others? What are the segments for Apple? Salman Azhar: I&E 710

Assessing Segment Attractiveness Assess segment attractiveness by: Size Niche, Mass, Multiple, Volume Potential Profitability ROI, PIE, Margins, Relative to others Growth Stage of the PLC Equilibrium Stable? Fluctuating? Volatile? Accessibility Infrastructure, marketing, and operational reach Competition Level Blue (uncontested) or Red (contested) Ocean? Do the customers have unmet needs? Can we better satisfy the customers needs vs competition? Do we have the required collaborators? Salman Azhar: I&E 710

Salman Azhar & Friends in 2018 Positioning Proposition To (our customers/prospects), Our brand is the brand within this category (frame of reference) that promises (relevant superiority, differentiation) based on (rational and/or emotional, compelling proof points). Salman Azhar & Friends in 2018

Salman Azhar & Friends in 2018 Positioning Map Salman Azhar & Friends in 2018

Salman Azhar & Friends in 2018 Optimal Strategy Create Follow Build (offense) Hold (defense) Harvest (retreat) Salman Azhar & Friends in 2018

Optimal Strategy Create Follow Tesla Faraday Salman Azhar: I&E 710 By Candy Red Tesla Model 3.jpg: Steve Jurvetson derivative work: Smnt [CC BY-SA 4.0 (http://creativecommons.org/licenses/by-sa/4.0)], via Wikimedia Commons By Sent - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=55277367 Salman Azhar: I&E 710

Optimal Strategy Build (offense) Hold (defense) Harvest (retreat) Core product (frontal) GE on IBM mainframes Weakness (flank) Tesla on Big 3 (GM, Ford, Chrysler) Hold (defense) Create an Ecosystem Google, Apple Barriers to entry Patents, Regulations Harvest (retreat) Generic competition after patent expires [[File:IBM system 360-50 console - MfK Bern.jpg|IBM system 360-50 console - MfK Bern]] http://www.findmyfills.org/qas/pictures-for-white-elliptical-oval-pill-imprint-pd-158-80/ Salman Azhar: I&E 710

Positioning Brand and Product Levels Apple (brand) and iPhone, iPad, Mac, Watch, TV (products) Salman Azhar: I&E 710

Positioning Roles of Brands and Products Synergies Differentiation Portfolio Brand Position reflects the customer perception of: Key attributes versus competition and/or Brand promise is to the costumer Product Position reflects products role within its own product portfolio versus competitive products Salman Azhar: I&E 710

Factors Affecting the New Technology Adoption Comparative Advantage Compatibility Observability Trialability Complexity Perceived Risk Salman Azhar: I&E 710

Factors Affecting the New Technology Adoption Comparative Advantage: What are the benefits of the innovation relative to existing alternatives? Compatibility: Does the innovation fit with existing procedures and behavior patterns of the target customer segment? Observability: Can the features and/or benefits of the innovation be easily communicated or observed? Trialability: Can the innovation be tried initially on a limited commitment basis? Divisibility – trial of a subset of a product Salman Azhar: I&E 710

Factors Affecting the New Technology Adoption Complexity: Level of difficulty: Does the customer have an understanding of implementing the innovation? Perceived Risk: What are the physical, financial, and social risks associated with adopting the innovation? Salman Azhar: I&E 710

S T P Segmentation, Targeting, Positioning Recap Identify bases for segmenting market Develop profiles of these segments Develop measures of target segment attractiveness Select target segments Develop positioning for each segment Develop marketing mix to support positioning for each segment T P Salman Azhar & Friends in 2018

Salman Azhar & Friends in 2018 Segmentation, Targeting, Positioning Recap Customers can be segmented by? Demographics; Psychographics; Lifestyle; Decision Making; … Segmentation and Targeting Create (Tesla) Follow (Faraday) Build (offense): Core product (frontal); Weakness (flank) Hold (defense): Create an Ecosystem; Barriers to entry Harvest (retreat): Generic competition after patent expires Salman Azhar & Friends in 2018

Salman Azhar & Friends in 2018 Segmentation, Targeting, Positioning Recap Positioning Roles of Brands and Products Synergies; Differentiation; Portfolio Brand Position reflects the customer perception of: Key attributes versus competition and/or Brand promise is to the customer Product Position reflects products role within its own product portfolio and/or versus competitive products Factors Affecting the New Technology Adoption Positive (Comparative Advantage; Compatibility; Observability; Trialability) Negative (Complexity; Perceived Risk) Salman Azhar & Friends in 2018