1. STP PROCESS
SEGMENTATION---TARGETING---POSITIONING
2. 3C
CUSTOMERS, COMPANY, COMPETITION
3. COMMON MISTAKES IN TARGETING
• focus only on customers : miss out company and competition analyses
• lack of good segmentation : miss out on opportunities
• not anticipating competitive reactions
4. IMPORTANCE PERFORMANCE MODEL:
one approach to evaluate the attractiveness of segments based on the following assumptions:
we should target consumer segments
a. whose needs match our capabilities better than competitors
b. whom our capabilities match better than other segments
1) which benefits are valued by each segment
2) how important are benefits to each segment
3) how well does each firm satisfy benefits
4) importance * performance for each firm
5) create ability-to-satisfy-benefits score
5. positioning: the act of designing the company's offering and image to occupy a distinctive place in target market's minds
It's about differentiation and communication to convince the target segment that our product meets their needs and does it better than competitive offerings.
6. value = perceived quality/price = perceived benefits/price
(perceived attributes may be different from features)
7. decoy effect: In marketing, the decoy effect (or asymmetric dominance effect) is the phenomenon whereby consumers will tend to have a specific change in preference between two options when also presented with a third option that is asymmetrically dominated.
8. BACD Model