STP marketing strategy-Segmenting,

targeting, positioning-2nd class

Associate Professor
Madalina Moraru Ph.D.
 Roles of advertising
1. The marketing role means satisfying
consumer needs and wants to provide goods and
services.
• Products are also identified in terms of product
category. By category we mean the classification
to which the product is assigned.
• 2. the communication role
• As a form of mass communication, it transmits
product information to connect buyers and
sellers in the market place. Advertising
transforms a product by creating its brand
image.
• David Ogilvy explained his view of advertising as
conversation.

• I always pretend that I’m sitting beside a

woman at a dinner party, and she asks me
for advice about which product she should
buy. So then I write down what I would say
to her. I give her the facts, facts, facts. I
try to make it interesting, fascinating, if
possible, and personal-I don’t write to the
crowd. I try to write from one human being
to another…And I try not to bore the poor
woman to the death and I try to make it as
real and personal as possible.
• 3. the economic role
• Advertising’s economic contributions come from its
advantage as a mass-marketing tool.
• This role is achieved by 2 techniques:
• A. hard -sell approaches that use reasons to
persuade consumers.
• B. soft-sell approaches that build an image for a
brand and appeal to consumers’ emotions.

• 4. the social role

• Advertising helps us:
to shape an image of ourselves by setting up role
models which we can identify with.
To integrate into social groups.
 The strengths of advertising
Strengths Examples

1.Can reach a large 1.Super Bowl commercials

audience 2.The “1984” commercial for the Apple
2.Introduces products and Macintosh sold out everything in
brands . one single day.
3. The success of the launch iPod
3.Builds awareness of
4. The success of the new VW Beetle.
products and brands.
5. Ivory Soap has been advertised
4.Creates brand image.
since 1881.
6.7. Nike campaigns, with the “Just do
5.Provides information. it” increased the sales by 300
6.Reminds and reinforces percent during the 1990s.
7.Persuades. http://www.youtube.com/watch?v=L8
v2XepYk3g
Ivory-1911 and 1918
 Market segmentation
Breaking down diverse markets into manageable segments

Targeting
Choosing specific segments as the focal l point for marketing
efforts

Positioning
Aligning the marketing mix to yield distinctive appeal for the
target segment
Segmentation vs. positioning
• While markets are segmented, products are
positioned
• Target segment-is the subgroup of the larger
market chosen as the core of an advertising
campaign.
• Positioning is the process of designing and
representing one’s product or service so that it
will occupy a distinct and valued place in the
target consumer’s mind.
• The best way to sale is to create brand
extensions dedicated to different market
segment.
Nina Ricci
 Identifying target segments
• Advertisers need to identify a segment with
common characteristics that will lead the
members of that segment to distinctively
respond to a marketing program. They should be
able to draw a build of that segment, in terms of
media segmentation as well.
• Classifying consumers according to different
criteria is called market segmentation.
• The criteria are: demographic dimension, the
geographic one, behavioral criterion and psycho
graphical dimension.
The demographic criterion
• It refers to specific data regarding age, gender,
education, religion, income, race.
• There are product categories very well promoted
according to the gender, for example Marlboro and
Virginia Slims.
• http://www.iqads.ro/ad_21580/marlboro_cowboy.html

• http://www.iqads.ro/ad_969/johnnie_walker_human.html

• Feminist movement encouraged very much the gender

differentiation.
• Income is important for high prices and niche products
such as cars, fragrance, cloths.
• The best sold products are still those that promoted
femininity and sexuality.
 Demographic segmentation
• It includes descriptors such as age, gender, race,
marital status, income, education and occupation.
• Choosing suitable media depends on demographic
segmentation.
• Roles:
• Demographic segmentation has 2 applications:
• a. it is used to describe a profile segment on the
market.
• b. demographic categories are used frequently as
the starting point in market segmentation.
 Behavioral criterion
• Consumers’ usage provides very well determined
commitment levels: heavy users, light users, ex-
users, potential users, non-users, medium users,
switchers (variety seekers), emergent
consumers.
• This criterion describes relationships between
consumers and product.
• It is very important to establish the loyalty level
as well, by analyzing consumer and buyer
behavior.
• Heavy users-primary target segment.
• Light users-clients buy and consume the product in
lower quantities. But the level of brand loyalty is still
high.
• Medium users-the consumer is medium.
• Non users-they have never used the product and
they did not develop any kind of loyalty.
• Potential users-they may be interested in the
products and campaigns should constantly appeal to
them.
• Switchers-they buy what is on sale or choose brands
that offer discounts.
• Emergent consumers-offer the organization an
important business opportunity. Emergent
consumers are motivated by many different factors.
Their brand preference s are still under
development.
 Geographic segmentation
• GS may be conducted within a country by
region, by state or province, by city, climate, or
even by neighborhood.
• Climate and topographic features create
differences in consumption by region for
products such as snow tires and surfboards.
• Geography should be correlated with other
differences: eating and food preparation habits,
entertainment preferences, aspects of lifestyle.
• Geo-demographic segmentation identifies
neighborhoods (By zip codes) around the
country that share common demographic
categories.
 Psychographics and Lifestyle
Segmentation
1. Psychographics –the term is created in 1960s and refer to
a form of research that emphasizes the understanding of
consumers’ activities, interests and opinions. (cf. Michael
R. Solomon, Consumer Behaviour, 2004)
2. Lifestyle segmentation generated best insights and create
specific profiles and lifestyles.
3. Values and Life-Styles (VALS) was elaborated by Stanford
Research Institute in 1978 and includes the following
profiles:
A. belongers=traditionalist, conservative, patriots and
very loyal.
B. survivors= very old, affrighted of challenges, very poor.
C. sustainers= living in the streets, making money illegally,
and expressing daily resentments.
 D.emulators=young people, ambitious, ostensive;
they try to integrate into a social group.
• E. I-me-mine- very young, selfish, involved in
different kind of experiences, exhibitionist.
• F. experiential- looking for direct experiences,
artists, focused on themselves, on their internal
development.
• G. societally conscious -mature, successful,
responsible, leaders and good managers;
• H. integrated-very adaptable to changes, stabile
from the psychological viewpoint, open- minded.
• I. achievers-middle age, rich, building “the
American dreams”.
 In 1989 Stanford Research Institute
launched the second model of Vals.
First model (1978) Second model (1989)

Inner-directed (who lead Principle oriented –people who

themselves relying on their respect principles.
psychological background)

Outer-directed (they are based Status oriented-interested in

on external authority) achieving a social status.

Action-oriented-involved in
action
 Benefit segmentation
• Different consumers want different benefits from one specific
products.
• Examples:
Bicycle1 benefits: comfort, fancy, excitement, prestige, price,
speed, glamour.
Bycicle2 benefits: shape, color, speed, capacity, usage (city,
mountains).
SEGMENTING BUSINESS TO BUSINESS MARKETS
Consumer markets are the markets for products and services purchased
by individuals or house hold to satisfy their specific needs.

Consumer marketing is often compared and contrasted with business –to-

business marketing.

Business markets are the institutional buyers who purchase items to be

used in other products and services or to be resold to other business or
house holds.
Assignment 2.:
• Please, describe the profile of consumers for 2
different brands belonging to the same category
of products, based on 2 prints/OOH . Create a
persona (an example of consumer) according to
demographic, geographic, behavioral,
psychographic (lifestyle) criteria. Indicate the
year of the campaign, the agency, the market
(the country).