1. Marketing for MOST Module 06 – STP Strategy 技術経営コンソーシアム 開発担当者 ： Ritsumeikan Asia Pacific University 教授 : Takamoto, Akihiro 更新日 October, 2003

2. Marketing for MOST: Module 6 – S.T.P Strategy STP Strategy 1.Segmentation, Targeting and Positioning 2.Market Segmentation 3.Market Targeting 4.Market Positioning 5.Cases 6.Practice

3. Marketing for MOST: Module 6 – S.T.P Strategy STP Strategy 1. Market Segmentation 2. Market Targeting 3. Market Positioning STP

4. Marketing for MOST: Module 6 – S.T.P Strategy Market Segmentation Dividing a Market into distinct groups of buyers on the basis of needs, characteristics or behavior who might require separate products or marketing mixes.

5. Marketing for MOST: Module 6 – S.T.P Strategy Market Segmentation A Market Segment is a group of customers who respond in a similar way to a given set of marketing efforts.

6. Marketing for MOST: Module 6 – S.T.P Strategy Market Segmentation Geographic Segmentation –Dividing the market into different geographical units such as nations, states, regions, countries, cities, or neighborhoods. (Philip Kotler)

7. Marketing for MOST: Module 6 – S.T.P Strategy Market Segmentation Demographic Segmentation –Dividing the market into groups based on demographic variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, and nationality. (Philip Kotler)

8. Marketing for MOST: Module 6 – S.T.P Strategy Market Segmentation Psychographic Segmentation –Dividing a market into different groups based on social class, lifestyle, or personality characteristics. (Philip Kotler)

9. Marketing for MOST: Module 6 – S.T.P Strategy Market Segmentation Behavioral Segmentation –Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product. (Philip Kotler)

10. Marketing for MOST: Module 6 – S.T.P Strategy Market Segmentation Occasion Segmentation –Dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item. (Philip Kotler)

11. Marketing for MOST: Module 6 – S.T.P Strategy Market Segmentation Benefit Segmentation –Dividing the market into groups according to the different benefits that consumers seek from the product. (Philip Kotler)

12. Marketing for MOST: Module 6 – S.T.P Strategy Market Segmentation Multi-Attribute Segmentation Crossing several variables to identify smaller, better defined target groups

13. Marketing for MOST: Module 6 – S.T.P Strategy Market Segmentation

14. Marketing for MOST: Module 6 – S.T.P Strategy Market Segmentation Requirements for Effective Segmentation: –Measurable –Accessible –Substantial –Differentiable –Actionable (Philip Kotler)

15. Marketing for MOST: Module 6 – S.T.P Strategy Market Targeting Market Targeting: –The process of evaluating each market segment’s attractiveness and selecting one or more segment to enter.

16. Marketing for MOST: Module 6 – S.T.P Strategy Market Targeting –A target market is a set of buyers sharing common needs or characteristics that the company decides to serve.

17. Marketing for MOST: Module 6 – S.T.P Strategy Market Targeting Evaluating and Selecting the Market Segments: Company’s Objectives And Resources Attractiveness of the Market Size Growth Profitability Scale Economies Competition Risks Synergy

18. Marketing for MOST: Module 6 – S.T.P Strategy Market Targeting –Five Patterns of Target Market Selection (by D.F. Abell) S1S2S3 P1 P2 P3 P = Products S = Market Segment Single Segment Concentration

19. Marketing for MOST: Module 6 – S.T.P Strategy Market Targeting S1S2S3 P1 P2 P3 P = Products S = Market Segment Selective Specialization –Five Patterns of Target Market Selection (by D.F. Abell)

20. Marketing for MOST: Module 6 – S.T.P Strategy Market Targeting S1S2S3 P1 P2 P3 P = Products S = Market Segment Product Specialization –Five Patterns of Target Market Selection (by D.F. Abell)

21. Marketing for MOST: Module 6 – S.T.P Strategy Market Targeting S1S2S3 P1 P2 P3 P = Products S = Market Segment Market Specialization –Five Patterns of Target Market Selection (by D.F. Abell)

22. Marketing for MOST: Module 6 – S.T.P Strategy Market Targeting S1S2S3 P1 P2 P3 P = Products S = Market Segment Full Market Coverage –Five Patterns of Target Market Selection (by D.F. Abell)

23. Marketing for MOST: Module 6 – S.T.P Strategy Market Targeting –Three Alternative Market Strategies (by Philip Kotler) Undifferentiated Marketing Company Marketing Mix The Market

24. Marketing for MOST: Module 6 – S.T.P Strategy Market Targeting Differentiated Marketing Mix 1 Mix 2 Mix3 S1 S2 S3 –Three Alternative Market Strategies (by Philip Kotler)

25. Marketing for MOST: Module 6 – S.T.P Strategy Market Targeting Concentrated Marketing S2 Company Marketing Mix –Three Alternative Market Strategies (by Philip Kotler)

26. Marketing for MOST: Module 6 – S.T.P Strategy Market Targeting –Target Market Selection by BMW AG (BMW AG acquired and then resold the Rover brand) P2 = Rover P1 = BMW M1 M2

27. Marketing for MOST: Module 6 – S.T.P Strategy Market Targeting –Target Marketing by Volkswagen Co. (Volkswagen have bought the Rolls Royce, Lambourghini and Audi Brands) P2 = Audi P1 = Bentley Rolls Royce M1 M2 P1 = Lambourghini P1 = VW M3 M4

28. Marketing for MOST: Module 6 – S.T.P Strategy Market Positioning Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. (Philip Kotler)

29. Marketing for MOST: Module 6 – S.T.P Strategy Market Positioning “Positioning” according to Ries and Trout “Positioning is what you do to the minds of the prospect. That is, you position the product in the mind of of the prospect. –(Al Ries and Jack Trout: “Positioning: The Battle for Your Mind”, NY Warner Books, 1982) Here!

30. Marketing for MOST: Module 6 – S.T.P Strategy Market Positioning “Product Position” –The Way the product is defined by Consumers on important attributes – the place the product occupies in consumers minds relative to competing products. (Philip Kotler)

31. Marketing for MOST: Module 6 – S.T.P Strategy Market Positioning Choosing a Positioning Strategy –Identifying and choosing the right competitive advantages –Differentiation (How many differences to promote? Which Differences to Promote?)

32. Marketing for MOST: Module 6 – S.T.P Strategy Market Positioning Product Differentiation –Differentiation is the act of designing a set of meaningful differences to distinguish the company’s offering from competitor’s offerings. –Q: Is only the product differentiable? (Philip Kotler)

33. Marketing for MOST: Module 6 – S.T.P Strategy Market Positioning A difference is worth establishing if it is: –Important –Distinctive –Superior –Communicable –Pre-emptive –Affordable –Profitable –Q: Any other Criteria? (Philip Kotler)

34. Marketing for MOST: Module 6 – S.T.P Strategy Market Positioning Communicating the Chosen Position –How do you differentiate your message? –How do you get your message across when most people are trying hard to dismiss it – in the midst of information overload?

35. Marketing for MOST: Module 6 – S.T.P Strategy Market Positioning Find your USP –(Unique Selling Proposition) –And stand out from the crowd! –(Reference: Find your USP )Find your USP

36. Marketing for MOST: Module 6 – S.T.P Strategy Market Positioning USP defined –The concept of "USP" is credited to Rosser Reeves, chairman of the Ted Bates & Co. advertising agency in the 1950s. He was one of the first to develop a technique for communicating in an overcrowded marketplace. His definition of what makes a USP holds true today.

37. Marketing for MOST: Module 6 – S.T.P Strategy Market Positioning USP defined All advertising must make a proposition to the customer: Buy this, and you will receive a specified benefit. The proposition must be unique; something competitors cannot claim, or have not chosen to emphasize in their promotions. The proposition must be so compelling that it motivates individuals to act.

38. Marketing for MOST: Module 6 – S.T.P Strategy Market Positioning USP References: –Ref: Your USP: Use it or lose itYour USP: Use it or lose it –Practice: What is your USP? In the class When you apply for a Job When you want to marry!

39. Marketing for MOST: Module 6 – S.T.P Strategy Cases Case 1: The USP of Budweiser Beer in Japan –This is the famous Budweiser –The “King of Beers” –World’s largest selling Beer (the Famous Budweiser ad was created under the direction of A. Takamoto in 1984)

40. Marketing for MOST: Module 6 – S.T.P Strategy Cases Case 1: The USP of Budweiser Beer in Japan

41. Marketing for MOST: Module 6 – S.T.P Strategy Cases Case 2: The Positioning of Remy Martin Cognac in Japan –“We’ll go this way another 100 years”We’ll go this way another 100 years –“Some things cannot be created just by marketing”Some things cannot be created just by marketing

42. Marketing for MOST: Module 6 – S.T.P Strategy Cases Case 2: The Positioning of Remy Martin Cognac in Japan –“We’ll go this way another 100 years”We’ll go this way another 100 years

43. Marketing for MOST: Module 6 – S.T.P Strategy Cases Case 2: The Positioning of Remy Martin Cognac in Japan –“Some things cannot be created just by marketing”Some things cannot be created just by marketing

44. Marketing for MOST: Module 6 – S.T.P Strategy Cases Case 3: The “No.2” Positioning of Avis Rent-a-Car –(reminder: You do not have to be No.1!)

45. Marketing for MOST: Module 6 – S.T.P Strategy Cases Case 4: “The Law of Leadership” And “The Law of Category” –Q1: Who was the first pilot to fly solo across the Atlantic? –Q2: Who was the second pilot to fly solo across the Atlantic? –Q3: Who was the first female pilot to fly solo across the Atlantic? –(Ref: Al ries & Jack Trout, The 22 Immutable Laws of Marketing, Harper Business, 1993)

46. Marketing for MOST: Module 6 – S.T.P Strategy Practice 1. Choose any five companies you are familiar with and figure out what are their positioning. 2. Review the students comments on positioning in the attached file and comment on their comments on positioning. –REF: Student Comments on Positioning.Student Comments on Positioning