JOJO VITO, ADVERTISING 3

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Market Segmentation, Positioning, and the Value Proposition : 

1 Market Segmentation, Positioning, and the Value Proposition

Slide 2: 

2 Target Market A sub-group of a larger market chosen as the focal point for a marketing or advertising campaign. Positioning Designing and representing a brand in a way that is distinct in the consumer’s mind. Positioning Strategy Selecting key themes to communicate to a target market. Marketing Strategy: Evolves as a result of 1-3

The STP Marketing Process(Segmenting, Targeting, Positioning) : 

3 The STP Marketing Process(Segmenting, Targeting, Positioning) Break the market into smaller, more homogenous segments Specifically target discrete market segments Position the brand to appeal to the targeted segments

Identifying Target Segments: Market Segmentation : 

4 Identifying Target Segments: Market Segmentation Demographics Geography Psychographics Lifestyles Benefits Commitment Levels Usage Patterns

Segmenting by Usage and Commitment : 

5 Segmenting by Usage and Commitment Advertising and promotion targeted to: Heavy users Nonusers Brand-loyal users Switchers/Variety seekers Emergent Consumers

Demographic Segmentation : 

6 Demographic Segmentation Age Gender Race Marital Status Income Education Occupation

Slide 7: 

7 How would you describe the demographic segment targeted by this advertising campaign?

Slide 8: 

8 How about this ad? What is the target demographic for this ad campaign?

Geographic Segmentation : 

9 Geographic Segmentation

Psychographics and Lifestyle Segmentation : 

10 Psychographics and Lifestyle Segmentation Opinions Lifestyle Lifestyle segmentation provides insight into consumers’ motivations

Benefit Segmentation : 

11 Benefit Segmentation Passenger Safety? Prestige? Fuel Economy?

Prioritizing Target Segments : 

12 Prioritizing Target Segments Examine your ability to deliver value to the segments and costs of new capabilities—distinct competencies of the firm Research segment size, growth potential and usage frequency Assay the competitive environment Find a niche you can scratch

Effective Positioning…. : 

13 Effective Positioning…. …is based on the substance of the brand’s values. …is consistent over time. …is both simple AND distinctive.

Fundamental Positioning Themes : 

14 Fundamental Positioning Themes Benefit Positioning User Positioning Competitive Positioning

Slide 15: 

15 Do you think this ad is emphasizing benefit, user or competitive positioning?

Repositioning : 

16 Repositioning Used to revive an ailing brand or fix a lackluster new market entry The challenge: changing perceptions of a brand forged over years of advertising.

Capturing the Value Proposition : 

17 Capturing the Value Proposition Functional Emotional Self-expressive

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