STP Segment, Target, Position 1. Identify desirable market segments 2. Target your product for that segment 3.

. Position your brand to segments desires

Segmentation: How its done In what ways do companies segment their markets? Demogr

Demographic segmentation Age Gender Ethnicity Marital Status Occupation Family Income Number of Kids City State Region Country

Geographic segmentation

Psychographic segmentation Social Class Upper new and old money Lower Working Blue collar White collar Gen y/x, baby boomers Lifestyle Thrill seeker Soccer Moms Workaholics Family Centered Gothic Behavior

Smoker/non-smoker

Church goer/non-church Opinions

Liberal/Conservative Pro-Choice/Pro-Life Values Morality Ethics Behavioral Segmentation Benefit Sought Place hang out Fast service High quality Product Usage Rates

Use just email

Use all day Brand Loyalty

High Brand Loyalty No Loyalty Product end use Baking Soda Ex Readiness-to-buy

Aware Interested Desire Want buy Action

Apple Desktop Computer Demographic Segments College Educated 18-29 y/o $50,000+ High Disposable income 50+ y/o

Psychographic Segments Social Class College students Middle-upper class New money Gen Y Spoiled kids Lifestyle Artistic Prep Tech-nut Entrepreneur Bohemian Behavior Starbucks

Socializers Fashion Conscious Image Opinions Liberal Environmental Apple cant do wrong Cultural Values Trust in brand Comfort Simplicity

Behavioral Segments Benefit Sought Peace of mind Simple Use No Viruses Interconnectivity Coolness Space Savings Product Usage Rates Part of life Couple times of week Brand Loyalty Very Brand Loyal Product end use

Internet Creative/Art Purpose Business Readiness-to-buy

Form 4 teams 1 Each team will be given a brand and product line 2 List the demographic, psychographic, and behavioral segments that brand appeals to 3 Identify a specific market segment from your list that is described by 1 demographic characteristic, 1 psychographic characteristic, and 1 behavioral characteristic Example 18-29 y/o, new upper class, frequent users 4 Try to identify a specific product by that brand that targets chosen segment

BMW Four door cars 25-40, new money, driving enthusiast Car magazines WSJ, Fortune, Business Week, Travel Magazines News Network CNBC Golf, Soccer, Tennis Performance Conspicuous Consumption Young, Out of college, Rising in world, White collar, Small 2 income family 3-Series Apple MP3 players (no iPhone)

15-21 y/o, Free Spirited, Use as accessory Internet MySpace AIM MTV Pop Culture Magazines Tech Simplicity Store Music Coolness Social Acceptable Product School Live Parent/ Parents provide money iPod Nano

McDonalds Fast Food 30-40, Soccer Mom, Health Conscious Oprahs Magazine and the like Celebrity Conscious Radio Women Entertainment E! Access Hollywood Desperate Housewives Speed Service Healthy Option Kids Option Kids, on the go, little time, stressed, pressure, a lot are bad cookers,

Grilled Chicken on Wheat Nintendo Game Consoles Male, Escapists, Habitual Users Internet Gaming Magazines MySpace Cartoon Network Adult Swim Spike TV Shot attention span, Zelda Mario, Nostalgia, Mario, New gadget Free time, slackers,

Nintendo Wii

Targeting Choosing a segment that fits your company

Characteristics of a good segment: 1. Large

2. Reachable

3. Attainable

4. Homogeneous

Example 18-29 y/o, College Student, frequent users Is this: Large enough? Reachable? Facebook MTV Youtube Heroes

Attainable? Reliable Finals Dont Crash Lasting Self Expression

Media Homogeneous? Little money/but all disposable Liberal Free thinking Classes Homework Presentation Music, Video

In Teams: Look at your chosen market segment Identify if it is: Large enough? If not, change it so it is. Reachable? If it is, identify what specific advertising avenues you would use to reach the segment (TV, Radio, Magazines, Internet). Be specific. Attainable? Is this market receptive to the companys message? Is there a felt need in the marketplace or will we have to generate the felt need? Identify specifically why segment is attainable. Homogeneous? Does the segment share similar characteristics? What are they?

Positioning Consumer Perception Perception = Reality Positioning is creating perceptions of a brand/product that is aligned with target segments desires. Consumers have mental list of what they should look for when purchasing specific products. These are product attributes. Different consumers value attributes differently. Companies must position their product to the attributes desired by target

Desktop Computers: What attributes do consumers use to evaluate different desktop computers? Software Built in Speed Capacity Customer Support Graphics Size of machine Operating System Price Economy Appeal of Computer

Teams: Go through and identify the attributes important to your product categories. Try and develop at least eight different attributes: 4 Door Cars MP3 Players Fast Food Video Game Consoles

Desktop Computers Important Attributes

Segment 18-29 y/o, College Student, Frequent user

Rating Speed Customer Support Price Economy Software Built in 4 4 1 4

Apple iMac Desktop Computer Attribute Speed Customer Support Price Economy Software Built in Rating 4 5 2 4

Competing Product: Dell Desktop Attribute Speed Customer Support Price Economy Software Built in Rating 3 2 5 3

Now Map It!

Teams: Do the same 1. Rate each attributes importance to your chosen segment (1-5) 2. Rate your product/brand for each attribute 3. Rate one of your competitors on each attribute 4. Map the results Competitors to use: Audi Microsoft Zune Wendys Sony Playstation

Homework: Choose your own company/brand and repeat this exercise. Will be looking for well thought out responses