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 Positioning Positioning Strategy 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

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

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 4E, p. 234)

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