1. 7-1 Chapter Objectives LO1 Describe the STP process LO2 Describe the bases marketers use to segment a market LO3 Discuss the criteria for determining the attractiveness of a segment and whether it is worth pursuing (targeting) LO4 Explain how a firm decides what type of segmentation strategy to use: undifferentiated, differentiated, concentrated, or micromarketing LO5 Explain what positioning is and describe how do firms do it LEARNING OBJECTIVES

2. 7-2 Step 5: Identify and Develop Positioning Strategy Value Product Attributes Benefits & Symbolism Competition Market Leadership Positioning Methods LO5

3. 7-3 Value The relationship of price to quality Different consumers = different value Meet Grandpa Tony, now retired: He knows the price of everything he has ever bought. He clips the newspaper coupons. He goes to multiple stores to get the best price. He is willing to pay more for quality. He trusts brand names. LO5

4. 7-4 Product Attributes Focus on the attributes that are most important Vary by target market Meet Selia, first year student. Reasons for her college choice: Close to home. Good academic reputation. Good financial aid package. Did we mention cute guys? LO5

5. 7-5 Benefits and Symbolism LO5

6. 7-6 Competition Position against an entire product classification Position against a specific competitor LO5

7. 7-7 Positioning Steps 1. Determine consumers’ perceptions and evaluations in relation to competitors’. 2. Identify competitors’ positions.3. Determine consumer preferences.4. Select the position.5. Monitor the positioning strategy. LO5

8. 7-8 Perceptual Maps LO5

9. 7-9 Repositioning Whirlpool: New design Surf detergent: New message Elizabeth Arden: New faces YM: New audience Gallo: New image Aqua Velva: New packaging Arm & Hammer: New uses LO5