Prof.
Sunyee Yoon
The STP process
Marketing Mix
-Product
-Price
-Place
-Promotion
Segmentation
The process of dividing a
market into groups of
customers with similar
needs or similar
characteristics
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STP-Example
: Segmentation & Targeting
Paint Industry
moving to
moving in buying getting remodeling summer smaller
fist
house children project
apartment together cottage apartment
x x x x x x x
Industry Focus
Opportunity
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STP-Example
: Positioning
• Insights (probably from consumer research):
“Safety” is the number one factor they
consider.
Parents are willing to pay a higher price when
they buy something for their expecting babies.
Thinking about how to decorate a nursery is
very exciting and fun!
Positioning Statement
“A paint company that provides caring, baby-
expecting parents eco-friendly solutions for
creating safe and beautiful places for babies”
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Positioning Statement
• A written description of the objective of a specific strategy.
It defines how a product or a brand distinguishes itself
from the competition, explains how the benefits from the
product or brand will help the client, and how these
benefits will be communicated to the prospective
customers.
• 4 elements: Target market, category, differentiation, the
end benefit
• Zipcar: To urban-dwelling, educated techno-savvy
consumers, when you use Zipcar car-sharing service
instead of owning a car, you save money while reducing
your carbon footprint.
• Patagonia: an outdoor clothing and gear company that
provides adventure enthusiasts top-tier solutions for
enjoying wild and beautiful places through
environmentally responsible products Slide 5 of 35
STP-Example
: Marketing plans (4Ps)
Other paints UB paint
Technological Properties Product Non toxic, eco-friendly, anti
bacterial
Price driven Price Premium
Paint retailers Related distribution
Place (e.g., baby equipment store)
• Communication focusing Magazines about pregnancy &
price and discounts Promotion baby
• Catalogs of retailers Advertorial: Communication
focusing on nursery design
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Advertorial
A newspaper or magazine advertisement giving information about a product in
the style of an editorial or objective journalistic article
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I. Market Segmentation
• Dividing a market into distinct groups with
distinct needs, characteristics, or behaviors
who might require separate products or
marketing mixes.
• Don’t try to “appeal to everyone.”
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I. Market Segmentation
• Demographics (age, gender, marital status,
household income, household type / size, and
geographical location)
• Personality traits
• Lifestyles
• Benefit consumers seek from
products/services
• Usage rate (i.e., Based on whether a group of
consumers are heavy, medium, light, or
nonusers of a product)
• Usage occasion (i.e., when a given product is
used or purchased)
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II. Targeting
• Identifiable: Marketers must be able to see or
find the consumers they have chosen.
• Sizeable: The market must be large enough to
be profitable.
• Accessible: Marketers must be able to reach
consumers in an affordable way.
• Congruent with the company’s objectives and
resources.
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II. Targeting (common
mistake)
• “Popular kid target”:
targeting the largest group
using the category or the
group most willing to spend in
the category
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III. Positioning
The process by which a company creates a
distinct image and identity for its products,
services, or brands in consumers’ minds
In a crowded marketplace, fitting in is a failure. In a busy
marketplace, not standing out is the same as being invisible
- Seth Godin
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III. Positioning
Healthy,
sustainable,
but badass
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In-Class Exercise
Visit each brand’s website. Check the characteristics of each
brand’s offerings, serving sizes, menu, price, etc. :
Hello Fresh, Sunbasket, Baketivity, BistroMD, Silver Cuisine
1) Discuss what segmentation bases are being used in
the meal-kit service market. There are multiple bases. List
all.
2) Guess each brand’s target audience. Be specific.
3) You are about to launch a new meal-kit service. Identify
specific market segments that are currently
underserved, but sizable enough. Choose your target
segment. Create a positioning statement that includes four
elements.
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Perceptual Map (Positioning
Map)
• Constructing a map-like diagram
representing consumers’ perception of
competing brands along relevant product
attributes.
• Showing marketers how consumer perceive
their brands in relation to competition.
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Classic
For smaller space For bigger space
Modern Slide 16 of 35
Classic
For smaller space For bigger space
Modern Slide 17 of 35
Classic
For smaller space For bigger space
Modern Slide 18 of 35
Classic
• Older population
• People who recently moved to
smaller houses/townhouses
• People who do not want to spend
too much money on furniture
For smaller space For bigger space
Modern Slide 19 of 35
Common mistake 1
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Common mistake 2
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