Banach Segmentation Targeting & Positioning

STP The processes of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits.

Segmentation
1. Establish Strategy or Objectives
2. Describe Segments

Targeting
3. Evaluate Segment Attractiveness
4. Select Target Market

Positioning
5. Identify & Develop positioning strategy

Define Strategy or Objectives

Must match Firms Vision, Mission, Value Proposition

4 Basic Segmentation Typess: 

Mass Marketing

- Not a differentiated Market

- All Persons are potential users

- Fast Moving Consumer Goods

Differentiated Segmentation Strategy

- Firms Taget several Markets

- Different Product offerings for each Market

- Expensive!

Concentrated Segmentation Strategy

- Single primary Target Market Segmentation

- Specific Product to fit market need

- Efficient use of Limited Recources!

Micromarketing Segmentation (One-to-One Marketing)

- individual customer want or need

- Product is specifically tailored to single User

- Costs more Time & Money than ready made offerings!

Geographic

- Groups People where they live (Country, Region, ZIP Codes etc.) assisted by Geographic Information System (GIS) 

Demographic

- Groups people by: Age, Gender, Income, Education
- Most common Segmentation Method / easy to identify and to reach

Psychografic

- VALS Value and Lifestyle Survey: Allows people to describe themselves

- self-values  (goals for life)

- self-concept  (image of themselves)

- lifestyles  (the way we live).

Benefits HHEEPCI

- Hedonic

- Health

- Economy

- Educational

- Prestige

- Convenience

- Individuality

Geodemographic BEEURR

- Bohemians

- Established

- Exurbans

- Urbans

- Rural

- Retiree Community

Loyalty

- Loyal Customers

- Somewhat Loyal Customers 

- Customers without Loyalty 

PISRR

Profitable

Profitability Calculations

Identifiable

- It can be clearly defined who is in the Market 

- Segments are distinct from another

- Every Segment requires unique Marketing Mix

Substatial

- Size Matters

- Small Markets are Unprofitable

Reachable

- Communication

- Distribution

Responsive

- Positive reaktion to firms Offering

- Will accept the Firms Value Proposition

Select Target Market (using SWOT Analysis)

Positioning Strategy

Involves defining Marketing Mix

- Price & Value relationship

- Salient Attributes

- Symbols (Brand Identity)

- Competition (Copy, Substitute, Replacement)

1. Consumer perceptions of the product in relation to competitors

2. Identify competitor positions

3. Identify consumer preferences

4. Identify desired position of brand based on research

5. Monitor and evaluate positioning efforts