Segmentation and Targeting STP (Segmentation,

Transcript:Segmentation and Targeting STP (Segmentation,:
Segmentation and Targeting STP (Segmentation, Targeting, and Positioning) Needs-based segmentation Cluster Analysis Discriminant Analysis Market Segmentation Market segmentation is the subdividing of a market into distinct subsets of customers. Segments Members are different between segments but similar within. STP is a Core Business Process STP - (Segmentation, Targeting, Positioning) is a Decision Process To identify and select groups of potential customers... Organizations, Buying Centers, Individuals Whose needs within-groups are similar and whose needs between-groups are different (S) Who can be reached profitably (T) With a focused marketing program (P) How STP Creates Value Segmentation Identify segments Targeting Select segments Positioning Create competitive advantage Marketing resources are focused to better meet customers needs and deliver more value to them Customers develop preference for brands that better meet their needs and deliver more value Customers become brand/supplier loyal, repeat purchase, communicate favorable experiences Brand/supplier loyalty leads to increased market share and creates a barrier to competition Fewer marketing resources needed over time to maintain share due to brand or supplier loyalty Profitability (value to the firm) increases How Many Different Groups of Cards Are Here? The Many Uses of Segmentation Short term segmentation applications: Salesforce allocation/call planning Channel assignment Communication program Pricing Today’s competitors and my current relative advantage to the customer The Many Uses of Segmentation Longer term: Emerging needs New and evolving market segments to serve Planning for segment development/growth Not in kind competition/threats (satisfying customer needs in different ways) Lead user identification and management Market driving (vs. customer focused) Managing segmentation Define segmentation problem Identify data needs Conduct market research Build segmentation database Define market segments Describe market segments Implement results Business Understanding Data Understanding Data Data Preparation Modeling Evaluation Deployment 1. Define segmentation problem Internal assessment and planning Objective(s) of segmentation? (critical step!) Resources? Constraints? … Database review Primary data available? Secondary data available? … 2. Identify data needs What kind of data is most suited to answer your business problem? Socio-demographic? Firmographic? Past behavior? Purchase data? Scanner data? Deep needs? Benefits sought? Perceptions? 2. Identify data needs Do you have the data you need, readily available? Collect data, do segmentation analysis on a small (random) sample of customers, but leverage the insights across the entire market/customer base Understand how my brand is perceived by different segments I in the market. Use the available data, usually behavioral Identify shopping habits among my existing customers (e.g., big spenders, promotion-driven