Client - Kellogg’s
The strategic marketing planning process flows from a mission and vision statement to a selection of target markets, and the formation of a specific marketing mix and positioning objective for each product an organisation will offer. Leading authors like Kotler present the organisation as a value creation and delivery sequence. In its first phrase, choosing the value, the strategist “proceeds to segment the market, select the appropriate market target, and develop the offer’s value positioning. The formula – segmentation, targeting, positioning (STP) – is the essence of strategic marketing.” 1
|SEGMENTATION 2 | |Consider the basis on which to segment the market | |Look at the profile of people and how they break into groups | |Confirm the groups are valid segments | |TARGETING | |Decide on a target strategy | |Decide on which segments should be targeted and why | |POSITIONING | |Understand consumer perceptions | |Position products in the mind of the consumer | |Design an appropriate marketing mix to meet customer requirements |
Table 1: The process of segmentation
Traditional ways of segmenting markets were significant when mass marketing was important. Companies wanted to reach as many potential consumers as possible with their product and look to identify broad groups of consumers that shared similar, typically demographic characteristics. At the present time it has been realised that there are huge differences within these groups but similarities across groups when one considers segmenting them in a different way such as by lifestyle, values and behavioural attitudes. In this article we will offer an explanation of new and different bases of segmenting the consumer market contrasting against the old methods. 3
Psychographic segmentation, groups consumers based on lifestyle, personality, and values. Segments include the following: 4 • Lifestyle - Straights, swingers, longhairs.
• Personality - Compulsive, gregarious, authoritarian, ambitious.
Geometric shapes prove useful in describing distinct psychographic segments, as illustrated in the table below: 5
|Boxes - Neat, organized, highly structured (accountants, computer|Triangles - Self-assured, respected leaders (executives, | |programmers). |entrepreneurs, politicians). | |Rectangles - Unpredictable, going through life changes (college |Circles - Concerned with good interpersonal relations (nurses, | |graduates, new employees). |secretaries). | |Squiggles - Creative idea-people, not detail-oriented (artists, | | |scientists). | |
Table 2: Psychographic Segments
The following example depicts how Subway modifies and advertises its products for distinctive psychographic segments - illustrating a value proposition compelling to several lifestyles. 6, 7
|[pic] |Subway products cater to a number of psychographic segments with similar lifestyle choices. Its |...