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 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

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
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 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)

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