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module 5

1 pages98 viewsSummer 2011

Course Code
MKT 100
Paul Finlayson

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Module 5: Segmentation, Targeting and Positioning (STP)
Customer Focus and Positioning
attract, serve and retain certain customers
Focusing on profitable customers, superior analysis of their needs and fitting
your offering to their needs and benefits sought = competitive thinking and
changing customer preferences changes demand changes seller supply 
changes consumer preferences and demand = market decisions.
Segmentation Variables for Consumer Markets
oGeographic: World region, climate zone, local weather, trading block,
country, country region, state, province, county, city, suburb, city block,
town, village
oDemographic: Genetics, body type, physical handicaps, height,
weight, age, life-stage, cohort generation, family size, education,
intelligence, language, income, wealth, occupation, ethnicity,
nationality, tribal identity, family identity, heritage, religion, political
party membership
oPsychographic: Lifestyle, interests, hobbies, personality, sociability,
social class, values
oBehavioural: Product consumption, channel usage, channel loyalty,
features used, product benefits sought, brand loyalty, early adopter,
usage occasion characteristics
Focusing on Customer Profitability
Step 1: customer focus - identify the direct determinants (drivers) of customer profit ability:
ocustomer purchases of high margin products and services
othe sheer quantity of purchases made per year (size of the customer)
olow selling costs to the customer, low delivery costs and low aft er-sales service costs
oless direct new profit able business a very satisfied customer brings to the company through refer rals,
recommendations and casual and explicit endorsements of your products and services.
Step 2: positioning - firm deploys or invests its resources in what it believes to be the key
drivers of customer profitability so as to develop profitable competences and competitive advantage
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