Situation Analysis & Segmentation, Targeting and Positioning (STP)

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• Topics of discussion – Consumer markets and behaviours

– Segmentation and targeting

• Activities

– Customer segmentation – ‘pick of the hat’

– Customer journey mapping – jeans brand

– Case study discussion – Trust in Australian Banks

• Assignments – Situation analysis- part 2

• Check in:

– Quiz 1?

– What insights did you gain from the changes since Q1 (Market Analysis & Objectives)?

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Week Topic/Chapter(s) Activity

4 Segmentation, targeting Ch. 6 & 9

• Consumer journey maps + segmentation activities

• Quiz 2 (ch. 6 & 9) • Simulation Q2 – closes 28/3/21

5 Building brands and positioning Ch. 10 & 5

• Brand positioning, Personal branding

• Quiz 3 (ch. 5 & 10) • Simulation Q3 – closes 11/4/21

Mid-Semester Break (1-7 April) * week 5 Friday class is on 9.3.21

6 Marketing mix: Product Ch. 13

• Assignment 2 DUE (Sunday 18 April) Quiz 4 (ch. 13)

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Week Topic/Chapter(s) Activity

7 Marketing mix: Pricing Ch. 16

• Assessment discussion • Quiz 5 (ch. 16) • Simulation Q4 – closes 25/4/21

8 Promotion P1 – Managing IMC - Ch. 19 & 21

• Quiz 6 (ch. 19 & 21) • Guest speaker

9 Promotion P2 – Managing Digital/Personal Communication - Ch. 20 & 22

• Quiz 7 (based on ch. 20 & 22) • Simulation Q5 – closes 9/5/21

10 Marketing channels & services Ch. 14, 17 & 18

• Quiz 8 (ch. 14, 17 & 18) • Simulation Q6 – closes 16/5/21 • Guest speaker

11 Globalisation & responsible marketing Ch. 8 & 11

• Brand positioning, Personal branding

• Simulation Q7 – closes 19/5/21 • Simulation Q8 – closes 23/5/21

12 A holistic marketing organisation approach Ch. 23

• Assignment 3 DUE (w/c 24 May)

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• Consumer behaviour – The study of how individuals, groups, and organisations select,

buy, use, and dispose of goods, services, ideas, or experiences

to satisfy their needs and wants

– Influenced by cultural, social, and personal factors

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• Cultural factors: Each culture consists of smaller subcultures that provide more

specific identification and socialization for their members.

– Culture

– Subcultures: nationalities, religions, racial groups, and geographic regions

– Social classes: all human societies exhibit social stratification, e.g., social

classes who share similar values, interests, and behaviour.

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• Social factors

Reference groups

Cliques

Family

Roles and status

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• Personal factors:

– Age/stage in life cycle

– Occupation/

economic

circumstances

– Personality and self-

concept

– Lifestyle and values

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Key Psychological Processes

Motivation

Perception

LearningEmotions

Memory

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Basic customer journey

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Another consumer stimulus- response

model

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Consumer decision-making

model

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Freud’s Theory

Behaviour

is guided by

subconscious

motivations

Maslow’s Hierarchy

of Needs

Behaviour

is driven by

lowest,

unmet need

Herzberg’s Two-Factor

Theory

Behaviour is

guided by

dissatisfiers

and

satisfiers

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You can ask these

questions for:

▪Your own current

customers

▪Non-users (and

investigate ways in which

you can attract them to

your brand)

▪The product category as

a whole

Consumers

Who

Why

How

What

When

Where

Hooley, G. J., Piercy, N., & Nicoulaud, B. (2011). Customer analysis. In G. J. Hooley, N. Piercy and B. Nicoulaud (Eds.), Marketing strategy and competitive

positioning (pp. 87-104). New York: Pearson Financial Times/Prentice Hall.

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Influencers (peer groups,

friends, family, co-workers)

User consumer (those who

actually consume)

 Who is involved in the buying process?

 How can you characterise these people?

 Is there a difference between current and future

consumers?

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• What do they expect from the entire product category?

• What needs and wants do they have? – Think motivation?

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• In what ways do they use the product?

• What are the typical usage occasions/situations? – Useful for positioning, new product development, product strategy

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• Determining what criteria they use when they choose from

competing brands:

– Functional benefits (better quality, features, extra

services, etc.)

– Emotional benefits (brand image, perceived users,

design, intangibles)

– Price

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• What is the purchase cycle? (How frequently do they buy on

average e.g., every 5 years, once in a lifetime, everyday?)

• How much do they buy each occasion?

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• What are the outlets for buying?

– i.e., various forms of retail, discounters, direct/online, etc.

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1. What needs/desire drove you to consider

“purchasing” a university?

2. How did you search for information?

3. Which universities were in your consideration

set?

4. What criteria did you utilise to form this set?

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Involvement model

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AIDAS - A consumer behaviour

theory

- Used in marketing management,

advertising, selling

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• The easiest way to summarise consumer information by

answering 6 Qs: who, why, how, what, when, where?

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1. List companies/products that are close to providing – One-to-one marketing and

– Mass marketing.

2. What are the pros/cons of mass marketing?

3. What are the pros/cons of one-to-one marketing?

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• https://fb.watch/4kl23nYQdR/

https://fb.watch/4kl23nYQdR/

https://www.facebook.com/BBCRadioLeeds/videos/10155194944857824/

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• Marketers must avoid consumer

backlash – Labeling consumers

– Vulnerable groups

– Disadvantaged groups

– Potentially harmful products

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• Combining geographic and demographic information

can be powerful

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• The process of identifying discrete groups of

consumers

• Who are internally homogeneous and externally

heterogeneous

• Identify the value opportunity they represent for

the company or brand

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Source: http://www.sric-bi.com/vals/ustypes.shtml

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Primary distinction between B2B & B2C is that the data

sources are different

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How to Segment the Market (slide 2 of 2)

• Begin with understanding the marketplace and then gather

information on the customer’s perspective

– A segment may look desirable in terms of size and growth but may be

saturated with competitors and not consistent with firm goals

– A good time to conduct a competitor analysis

Segment must be:

1.Measurable = size, purchasing power, and characteristics of the segments

can be measure.

2.Substantial = large and profitable enough to serve. A segment should be the

largest possible homogeneous group worth going after with a

tailored marketing program.

3.Accessible = effectively reached and served.

4.Differentiable = conceptually distinguishable and respond differently to

different marketing mix elements and programs.

5.Actionable = Effective programs can be formulated for attracting and serving

the segments.

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Variable

Customer

Group 2

[name]

[insert image]

Customer

Group 2

[name]

[insert

image]

Customer

Group 3

[name]

[insert

image]

Customer

Group 4

[name]

[insert

image]

Socio - Demographic …

BEHAVIOURAL …

PSYCHOGRAPHIC

BENEFITS

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1. Pick a product.. Any product

2. Come up with 4 segments available in the market.

3. Which is most desirable/profitable and why?

1. Coles Margherita frozen pizza

2. Sanitarium: Up & Go Milk

3. Olay Skinfusion Sheet Face Mask

4. Maggie – 2 minute noodle

5. Clearblue Pregnancy Test

6. T2 – New York Breakfast tea

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• Targeting is selecting one or more market segments to pursue

• It involves evaluating the attractiveness of each market segment

• Why? It is hard to be all things to all people – And you need to design marketing programs to serve them

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“Go for it” and “avoid” are easy decisions 4

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• Targeting is important but not difficult

• Choose target by iterating between

– Corporate fit

• Utilize SWOT to help clarify corporate fit

– Segment sizing

• Use secondary data (e.g., demographics)

• Use customer survey data on attitudes and preferences and

use behavioral data to smooth out the size estimation

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For your chosen business, identify 4

segments you could divide your target

audience up into and describe them using:

Geographic, Demographic, Psychographic,

and benefits descriptors.

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• Consider: – Understanding the full customer experience

and steps required to lead to completion • Start/end; ask what happens next

– Identifying customer pain points (customer struggles)

– Identifying customer physical and digital touchpoints/ interaction opportunity/ moments for intervention

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1. How do people go get coffee?

2. How does a family go grocery shopping?

3. How does a student buy a car?

4. How does a professional go to the gym?

5. How does a newly married couple decide and go on a honeymoon destination?

Use paper & a sharpie to map out the customer’s journey. Use Play-Doh to build

a physical representation of your understanding of this journey – get creative;

do anything! From honing down on the major issues, presenting the customer,

creating a solution or disrupting traditional business processes.

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• How consumer characteristics influence buying

behaviours

• Consumers are not always rational decision makers

• How a company can divide the consumer market into

segments

• How should a company choose the most attractive

target markets

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1) Sunday 28th March 11:59pm

• Assessment 1 Quiz 2 (based on ch. 6 & 9) • Simulation Q2 decisions (based on Segmentation & Targeting)

2) Assessment 2:

• By now you should have basic points on (from last week) - PESTEL, Porter’s Five Forces, Porter’s Generic Strategies - SWOT/TOWS + strategy and objectives

+ • 4-6 Consumer segments using the Segmentation Matrix • Identified 2 target markets

• Next week*: we’ll work on creating customer journey maps and personas

* Friday tutorial:- the next time, we’ll meet on Friday 9 April!

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1. Executive summary

2. Environmental analysis a. The marketing environment:

❖ Competitive forces

❖ Economic forces

❖ Political forces

❖ Legal and regulatory forces

❖ Technological forces

❖ Sociocultural forces

b. Current Target Markets

c. Current marketing objectives and performance

3. SWOT Analysis/TOWS 1. T,O,W,S

2. Matching Strengths to opportunities/Converting weaknesses and threats

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4. Consumer segmentation: – Rationale for research around the segmentation

– 5 criteria of segmentation applied (and the information clearly relates to the category)

– 4-6 consumer segments discussed

5. Targeting:

- Primary and secondary target markets

- Consumer personas for each target

- Justification for targets

- Customer journey: based on behaviours and motivations

6. Brand positioning

- Perceptual map

- Positioning statement

7. Marketing Objectives (+ simulation KPIs)

8. Strategic Marketing Decisions

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1) Thursday 8 April @ 3:30-4:30pm (AEST)

2) Tuesday 13 April @ 3:30-4:30pm (AEST)

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