STPMarketStrategy(Segmentation,Targeting,andPositioning)

https://www.businessoffashion.com/articles/basics/the-basics-part-8-marketing

http://www.actyourage.eu/uploads/files/clothing_identity_and_the_embodiment_of_age.pdf

http://www.businessoffashion.com/articles/news-analysis/four-reasons-why-aeropostale-has-lost-its-cool-with-shoppers

http://www.strategicbusinessinsights.com/vals/presurvey.shtml

http://www.marketwired.com/press-release/experian-simmons-reveals-new-insights-on-mobile-consumers-1164520.htm

http://www.adweek.com/brandshare/6-dangerously-inaccurate-assumptions-you-re-making-about-millennials-172399#!/

http://www.mckinsey.com/global-themes/employment-and-growth/poorer-than-their-parents-a-new-perspective-on-income-inequality

MarketSegmentation=divideamarketintosmaller,morefocusedsectors.(i.e.product

type,marketlevel)

CustomerSegmentation=researchandanalysistechniqueusedtodefinegroups.Itcategorizesconsumersintermsofage,attitudes,behaviors,needs,etc.(Posner)

Demographic• Gender• Age• Generation• Ethnicity• MaritalStatus• LifeStage• Occupation• Education• Income• SocialGradeClassification

Dangeroustoover-generalizeorstereotype.

Genderhttps://bakerretail.wharton.upenn.edu/wp-content/uploads/2015/04/He_Buys_She_Shops_fall_2007_exec_summary.pdf

Butisittrue?

Age

Thetermcohorteffect isusedinsocialsciencetodescribevariationsinthecharacteristicsofanareaofstudy(suchastheincidenceofacharacteristicortheageatonset)overtimeamongindividualswhoaredefinedbysomesharedtemporalexperienceorcommonlifeexperience,suchasyearofbirth,oryearofexposuretoradiation.

There’smore!(Butyou’llhavetowaituntilwereachourlessononconsumerbehavior.)

Targeting =practiceofdevelopingproductsandservicesspecificallyaimedtoappealtoaparticularcustomersegment.(Posner)

Towhatcustomersegmentisthisclothingmarketed?

AndmadeinU.S.A.

Positioning

http://bavconsulting.com/has-michael-kors-lost-its-edge/

PositioningProcess:1.Definethemarketforcompetition.2.Decidewheretopositionwithinmarket.3.Determinewhethertocompetedirectlyagainstacompetitorordifferentiate.

4.Understandhowconsumersunderstandcurrentposition.

5.Determineifrepositioningisnecessary.

-Posner

GroupWork:

1. List10brands(canbeallretailers)withwhichyouare(mostly)familiar

2. Placethemonapositioningmapwherethexaxisisdegreeofaccessibilityandtheyaxisisdegreeofaffordability.

3. Focusononebrand(uponwhichallcanagree)anddecideastrategyforthebrandtore-positionitselftoanotherpointonthemap.

4. Beabletoexplainwhythisre-positioningwouldbegoodforthecompany/brand.(Istherecompetitiveadvantage?)

MichaelKors

PeopleperceiveMichaelKorstobeinthe“sweetspot”betweenexclusivityandaccessibility.ThebrandisnotbeingperceivedasunapproachableorprestigiouslikeGucciorVersaceand,atthesametime,itisnotasaccessibleasCalvinKlein.–BAVConsulting

MichaelKors’LeveragabilitychartagainstKateSpade,CoachandRalphLauren,USAalladults,annualhouseholdincomeofover$75,000,2014

Thebrandhastransitionedfromthenichequadranttotheleadershipquadrant.However,itsbrandstrength,aleadingindicatorofabrand’smomentum,istrendingdownwardin2014.Thisshowsthatthebrandhaslostitsmomentum,suggestingapotentialdeclineinbrandstaturegoingforward.

http://www.cnbc.com/2016/06/01/michael-kors-sharpens-its-department-store-strategy-.html

Differentiation:

Image,products,packaging,retailenvironment,promotion,advertising,website,socialmediastrategy(IntegratedMarketingCommunications(IMC)strategy)

Differentiationasaresultofbrandpositioninghelpstogiveitacompetitiveadvantage.

CompetitiveAdvantage

CriteriaforCompetitiveness:• Cost• Speed• Fashionability• Convenience• Interactivity• Connectivity

Whohastheedge?

ASOS =Exampleofsettingthebarhighforcompetitionandexampleofclear-to-seeUSP