Segmentation, Target and Positioning

Module Leadership: Module 08

Daniel Contreras11667527

Agenda● What is STP?● Variables for Segmentation ● VALS Profiles● Segmentation Strategies● Perception and Reality Maps● Introduction to Google Analytics

What is STP?Segmentation: Grouping customers by specific criteriaTargeting: Select the most attractive customers for the businessPositioning: Customize value proposition for target segments

What is STP?One of the most used marketing models in modern marketing.Helps identify and prioritise value propositions to personalize and deliver relevant content to specific markets.

What is STP?STP can be applied to traditional and digital marketing.Its effectiveness relies on selecting the most valuable segments, target them and deliver the products as they best prefer.

Variables for SegmentationDemographic: Geographic

● Age ● Region

● Gender ● City Size

● Race ● Climate

● Age Bracket ● Latitude

● User Type ● Longitude

Variables for SegmentationBehavioristic: Psychographics

● Volume Usage ● Attitudes

● End Use ● Interests

● Loyalty ● Opinions

● Session Count ● Interest Affinity

● Days Since Last Session ● Interest in Market

VALS ProfilesValues, Attitudes, And LifestylesFramework to better understand consumers’ characteristics and behavior● Get ‘into’ consumers head● Create enhanced customer profiles● Customize experiences for specific targets

VALS ProfilesSurvivors:● Lowest income, oldest and most loyal audience● Focus on memories, safety and security

Believers:● Modest income, conservative and predictable behavior.● Focus on family, traditions and religion

VALS ProfilesStrivers:● Few resources, style and emulating other people is important● Focus on impulsive behavior, sense of belonging and stability

Makers:● Practical and self-sufficient. Not impressed by material

possessions● Focus on family, work and physical recreation

VALS ProfilesThinkers:● Mature responsible and well-educated professionals● Focus on being informed, smart shopping and openness

Achievers:● Successful, work and family oriented, demonstrate status● Focus on recognition, acceptance, material possessions and rules

VALS ProfilesExperiencers:● Youngest segment, environment-aware, energized and social● Focus on social media, entertainment and purchasing

Innovators:● Highest income and self-esteem, diverse and fine interests● Focus on rewarding experiences, challenges and authenticity

VALS Summary

Segmentation StrategiesUndifferentiated Strategy

● Homogeneous group● Single approach● Massive reach

Segmentation StrategiesDifferentiated Strategy

● Customer research● Multiple promotions● Specific benefits

Segmentation StrategiesConcentrated Strategy

● Analysis intensive● Specific message● Single target

Segmentation StrategiesSegment of One Strategy

● Single customer behavior● Ultimate customization● Detailed information

Perception and Reality Maps

Graphic representation of market players rated on valued attributes

● How customers perceive products● How products actually are

Introduction to Google Analytics

● Free web analytics service● Helps in SEO (Search Engine Optimization)● Optimize digital marketing strategies● Allows for market segmentation by:

● Demographics ● Custom Segments

● Psychographic ● Traffic Sources

● Behavioristic ● Social Interactions

Summary● Formal process to segmentation helps business achieve goals● Segmentation can be done in many ways by different variables● VALS framework helps businesses better understand customers● Marketing can benefit from multiple segmentation strategies● Depending on the business, different segmentation strategies pose

advantages and disadvantages● Graphic representation of markets helps position products● Web tools such as Google Analytics help digital marketers

Referenceshttp://www.strategicbusinessinsights.com/vals/ustypes.shtmlhttp://www.smartinsights.com/digital-marketing-strategy/customer-segmentation-targeting/segmentation-targeting-and-positioning/https://developers.google.com/analytics/devguides/reporting/core/dimsmets#view=detail&group=audiencehttp://www.strategicbusinessinsights.com/vals/http://smallbusiness.chron.com/undifferentiated-marketing-20797.htmlhttp://www.globalspec.com/reference/47105/203279/undifferentiated-concentrated-and-differentiated-targeting-strategieshttps://www.bcgperspectives.com/content/Classics/strategy_segment_of_one_marketing/http://searchbusinessanalytics.techtarget.com/definition/Google-Analytics