Process of identifying distinct, relevant,

market needs that can be best served

separately than through a generic strategy
Brand Market Analysis and
Strategic Segmentation Process
More commonly known as STP
Segmentation Targeting and
Positioning
What is the definition of
segmentation
Process of dividing the market in fragments or
parts that have similar needs
These segments are deemed to be better served
separately rather than by one product or strategy
The Marketing Management Process
Assessment ends and where Segmentation
begins for new products getting into the new
category
For old products, a review of the current market
and an assessment of the product range that
covers each relevant segment. (conduct the usual
market audit)
Demystifying all the myths about this
process
How does segmentation REALLY
EVOLVE
Once upon a time in LaLa Land
The guru discovered, during a hot summer
day, that by placing dark colored cellophane in
his eyes, it made his eyes.
So he went back to his lab and tinkered and
placed colored cellophane on his glasses.
And viola!!!! Sunglasses!!!!

Am I a genius or what. =) - Guru
Business person yata si guru
He made one model and sold the model to
everyone in the market.
Everybody loved the product and everybody
bought the new GURU shades (me tagline pa.
To be a guru, you have to look like one =P
naks!)


The sales were brisk and Guru made
a fortune
Next time makita nyo si Guru palibre kayo. =D
But there were greedy people from the LaLa Land
and is envious of Guru Shades.
One of them is Mr.Clean
Mr. Clean was studying carefully
I have two options
To come up with a better designed pair of shades
Or to come up with a shades that is cheaper.

He went up to 5
th
floor library for two years and
thought about his idea.
But lo and behold
Fairy Godmother Ming was joyfully flying
through the halls of LaLa Land and saw Mr.
Clean, problematic, pragmatic and in deep
thought.
FGM landed and asked MC what his problem
is.
FGM simply said that in a market with a new
product, there would always be space for
everyone.
MC is now enlightened
BLING!
MC decided to attack
Target the same market as Guru shades but I
would price my product a bit lower.
This would enable MC to capture market share

Naks low price strategy si MC me lahing
Chinese din pala
Guru Shades is left with
65%
MC did earn his share. He is the
owner of 35% the market
And the plot thickens
MC is aggressive
Guru is upset . (umuusok ang ilong at umiitim
ulit ang buhok)
And more people are looking into the category as
the summer heats up!!!

New player comes in with lots of cash to
dispense and lots of wits..
How did Sister Shades got the idea?
Sister Shades!!!!!!
Simple
Guru Shades and Clean Shades looks the same.
With minimal marketing strategy know how, they
thought one product could fit all
Sister Shades tried the Guru shades and Clean
shades and she was disappointed. Hindi sya
beauty sa shades na yun. =P

CheCheng!!!
Idea came from her own that there is a space in
the market that would appreciate better looking
shades and this would be the female market
Mas kikay
Mas beauty
And then there were others
Shades for the elite
Shades for the yuppies
Shades for babies
Shades for oldies (mataas ang grado at baduy)
wehehehe

Gurus share is now only 2% and the
shades market is cluttered by as much as
500 market players
The end of it all.
Segmentation Process EXISTING
PRODUCTS
Integrate ideas in Consumer Behavior Analysis.
Draw out market sizing and existing competitor
profile in each segment
Formulate a SWOT analysis based on the
relevant market segments
Three Approaches in Market driven
strategy
Mass Marketing
Cater to all
Target Marketing
Select segment or group of segments that has the
same needs and wants
Niche Marketing
Select one segment and choose to compete
strongly (usually a very small segment)
Corned Beef Example
Argentina caters to the mass market
Class A, B, C and D
The product and the brand appeals to a very
broad range of consumers
Marketing efforts are concentrated in appealing to
the masses
And below the line efforts are used to target
specific segments
Niche Marketing
Choosing a segment and specializing in it
Kink Cakes chose to specialize on special
event pastries
Goldilocks and Red Ribbon competes for the
mass market specifically A, B and C
Jonis goes for the C and D
Julias Bakeshop targets and lower C and D
Profiling
Process of identifying market segment user
characteristics
User segment can be DESCRIBED IN 3 WAYS
DEMOGRAPHIC
BEHAVIORAL
PSYCHOGRAPHIC
Demographic
Segmentation based on their personal statistics
Age
Gender
Social economic class
Occupation


Example
Gun market
Hunters
Police
Hobbyists
Hobbyist could further be segmented into the
following
Young
Old
Rich
Richer
Behavioral Segments
How the consumers use the product or the rate
they use it.

Rate of usage
User state
Place of usage
Type of industry

Example
SmokerDrinkers
Heavy drinkers
Social drinkers
Non drinkers
Smokers
Chain smokers
Social smokers
Pretending to be smokers
Psychographic
What they think of themselves when they use the
product
What are they thinking prior to purchase
What they think of themselves in relation to the
product
Examples
Weight conscious
Health conscious
Critical
In
Discriminate taste

Example of a Market Driven
Segmentation Approach
Entry level
drinkers
Teenagers Adventurous,
individuality
search
Advanced
drinkers
Yuppies More money to
spend, pre
disposed to try.
Social Drinker
Sophisticated Executives Care about
image.
Ego
Health Drinkers Retirees Want to enjoy life
with good health
through healthy
lifestyle
Market Segmentation Process for
NEW PRODUCTS
Find the most dominant segmentation base
drivers
Cars = Socio economic segmentation
Clothes = demographics -> economic
Description of segments through other brand
segmentation bases
Demographic => Behavioral / Psychographic
Step #2: SWOT for each
Analyze the segments by formulating a SWOT
analysis for each segment
Implement a CPM for each segment

Brand
A
B
C
Next Steps
Choose the segments where you would have the
best chance of winning
Target that segment for the following reasons
Best chance to win
Most profitable
Most strategic
Stop gap measure
Targeting is a decision.
Market Targeting is a process of allocation of
company effort and resources towards a
certain market segment.
Targeting is a match between the companys
products and services and the inherent
NEEDS AND WANTS characteristics of the
target segment
WRONG TARGET. LOW PROBABILITY OF
SUCCESS.
Types of target market
Multiple segments
Especially if the needs are homogenous
Single segment
Primary target market (PTM)
Main focal point of all marketing programs
Secondary target market (STM)
Used only as a consideration for marketing
programs
After Targeting..
POSITIONING!!!!!!!!!!!!
Positioning Preface
Conjoint Analysis
Measurement of importance attributes relative to
category
Competitive Importance Attributes Analysis
Drawing of perceptual map per product attribute
analysis
Positioning
Conjoint Analysis Example
Ballpens
Attributes deemed as important
Point sharpness
Smoothness in writing
Ink color how dark is the ink
Barrel and design

Positioning should be based on an attribute that is
solely your brands

Main strategic point of the marketing
management process
Positioning
Promil? Gifted
Colgate = Flouride
Polo = Mint with a hole
KFC = Chicken
Volvo = Safety

Own a word in the consumers
mind
How is positioning done
After choosing the target segment
Evaluate competition
Choose a USP (Unique Selling Proposition) - the
difference you choose to communicate to your
market.
Missing word is Sustainable
Coin this into a positioning statement
Generate a slogan (work of the ad agency)
Why is Positioning important?
Create a distinction between our brand and its
competitors
Reason for buying
Serves as a guide for marketing mix execution
Examples:
Flouride and healthy teeth for the family
White teeth, fresh breath for the young
Cheap
Global brand
What happens if you are not
differentiated?
What happens if you are too
differentiated?
Not mass market
Differentiated and focused market
What is Positioning?
Creating a distinct and relevant differentiation
between the brand and its competitors
Key words
Distinct being different
Relevant difference being important
Distinct
Does not resemble another brands position
Based on actual product or corporate
differentiation and core competence
Advantage should be sustainable and cannot be
copied by competitors
Advantage means that the company can do it
best.NO OTHER BRAND CAN DO IT BETTER
Not based on a basic product promise
Lasang Orange Talaga tagline for Orange juice
Natural -- BETTER!


RELEVANCE
The advantage / positioning should be:
Important to the target market
Wanted by your target market
It is would be bought by your target segment due to
this positioning
Intention to buy is important

Positioning alternatives
Price We are cheaper
Product attribute What the product has or
what they can do (Colgate with 2 flouride)
Product category Were a different animal
Product Source coming from a place where
it is known (Pampanga Tocino)
User Segment we belong to a different
market (Gatorade Sports Drink)
Benefit what they can get from the product
Against competition
Cheaper Positioning
Not necessarily cheaper but best value for money
Product Attribute
At first it was differentiated
according to the beer having less
calories
Then all the brands followed.

Product Category
Now it is differentiated as a whole new category

But within this category, they still have to position
among themselves
Product Source
Or you brands that gloats
with New Zealand Milk,
American made, German
sausages, Batangas beef etc

The Philippines has a very
strong Ice Cream equity
User Segment
Where celebrities work out
For the people who know.
Sa mga nag tagumpay
Can be used as a snob appeal
Benefit
Whiter Skin



Younger Skin
Mintee
Mint Candy (obvious ba)
Last for 16 hours in your mouth
Dries fast (recyclable)
No sugar
Good for your teeth dental supplement
attributes
Slogan making contest
Samples
Its mint to be
Pwedeng ibulsa hanggang bukas
Mintee Ngayon at Bukas

Slogan winning entries
G. Alfaro and J. Santos
Laquian and Carandang
Cabrera and Ong Sexy, Fresh, Have it All
Huang and Eia Santos, Impossible to be Real
Dator and Javier Sinless Mint

Complete with justification and rationale
Not the correctness of the positioning but the
route towards the correct slogan
The right positioning route
Segment the market y studying consumers
extensively
Analyze the competition and the environment
Choose a position that is unique and valued by
competition
Communicate this differentiation
Top 5 answers are on the board
Each pertains to the brand with various
associations
Based on a survey conducted on 100 people
Here are the results
SPRITE
Clear 54
Sweet 39
Fun 17

Sunsilk
Girl 52
Power / Success 35
Affordale / Cheap 10
Black / Colored 7

Assumption / Assumptionista
Sosyal / rich 27
English Speaking
25
Smart / Intimidating
20
Party / Fun
15
Fashionista / Pretty
13
Products:
Turon
Bibingka
Puto
Etc
Case: Assumption Natives
Consumer Segments and description
College
Looks sosyal and snobish
Age range from 17 to 23
Budget is not a concern
Good taste and patronizes the products that taste
good rather than the brand
Price conscious

High school
Impulse buyers
Rich kids
Brand conscious
Limited time to go to canteen and eat
Used to grand lifestyle
Fun loving
Quite proud of being Assumptionistas
Grade School
Limited budget
Limited time
Rich kids
Product loyal and brand loyal
Friends are the best influencers

Task..
Provide the target market and positioning of this
product
Name your product - Brand
Make a product description of your brand
Study the competitors of your target segment
Make a positioning proposal