Segmentation, Targeting, & Positioning (STP), Part...

Segmentation, Targeting,& Positioning (STP), Part I

COMM 296

Agenda1. Early feedback2. Introduction to STP3. Segmentation bases and variables4. Choosing a target segment

Part 1 Part 2

STP

Nike’s markets?

Common Segmentation Bases

GeographicDemographicPsychographicBehavioural

*Each segmentation basehas many segmentation variables

More practical, powerful, and meaningful

*

City, region, country...Urban, rural...Climate, topography, 

geography...

Geographic

Demographic AgeGenderIncomeReligionEthnicity

EducationOccupationFamily Stage

Marital StatusHousehold Size...

Curly

Psychographic

Self‐valuesSelf‐conceptLifestylesNeeds and motivesPerceptionsAttitudes, beliefs

BehaviouralBenefitsLoyaltyUsage rateOccasion

Image source: gianteagle.com

Segment Descriptions (“Profiles”)

Image source: getsatisfaction.com

CostCost BenefitBenefit

Segment Attractiveness

Substantial?Reachable?

Responsive? Profitable?

Identifiable?

Practice: Selecting a target marketAs marketing manager for a denim company, you need to choose a target market for a new line of jeans.

How do you choose which one to target? (Hint: analyze segment attractiveness)

15

RemindersSpecial assignment office hours 

will be outlined next class

Situation Analysis & SWOT due by 6 pm on Sunday

Sample exam questions and study hints will be posted this weekend

Image source: imgarcade.com