Marketing Strategy and New Product

Marketing Strategy and New ProductConcepts of Segmenting, Targeting, and Positioning

Main Takeaway① Recalling some fundamental concepts in

marketing

② Practicing and thinking how to connect marketing knowledge with new product development and new product launch

Agenda① The Concept of STP

① Segmenting

② Targeting

③ Positioning

② Job-to-be-done Segmenting (Reading #1)

③ Group Discussion

What’s Segmenting?

Massmarket(unsegmented)

Agglomera3on

Idiosyncra3cmarket(Unsegmented)

Differen3a3on

Segmentedmarket

© 2014 Alexander Chernev

Why should marketers do marketing segmentation?

Are those brands implementing market segmentation?

How to Classify Market Segments?

Value-based Segmentation

Profile-based Segmentation

Job-to-be-done Segmentation

Value-based Segmentation

Profile-based Segmentation

Key Segmentation Principle 1: Relevance

Correct (relevant)

Incorrect(irrelevant)

© 2014 Alexander Chernev

Key Segmentation Principle 2: Similarity

© 2014 Alexander Chernev

Correct (homogeneous)

Incorrect(heterogeneous)

Key Segmentation Principle 3: Exclusivity

© 2014 Alexander Chernev

Correct (mutuallyexclusive)

Incorrect(non-exclusive)

Key Segmentation Principle 4: Comprehensiveness

© 2014 Alexander Chernev

Correct (collec3velyexhaus3ve)

Incorrect(notexhaus3ve)

What’s Targeting?

SegmentA(target)

SegmentB(nontarget)

SegmentC(nontarget)

Unsegmentedmarket Segment-basedtargetiden3fica3on

The Key Targeting Principles

The Resource Advantage Principle

Linking Customer Value and Profile

Customerneeds

Customer resources

Targetcompa3bility

Company goals

Companyresources

TargetaFrac3veness

Companyanalysis Customeranalysis

ImportantUnobservableNotac3onable

ObservableAc3onable

Lessimportant

Targetcompa3bility

TargetaFrac3veness

Value

Profile

Iden3fica3on (linkingvalue&profile)

Behavioralfactors

Demographicfactors

Strategictarge3ng

Tac3caltarge3ng

Value-basediden3fica3on

Profile-basediden3fica3on

Targetcustomers

What’s Positioning?

Value

Developingavalueproposi3on

Iden3fyingtargetcustomers Posi3oning

Primarybenefit

All-In-One vs. Master-of-OneA. Preventing Cavities

B. Whitening Teeth

C. All-in-one

Entertainment

Outdoor

Safety

Job-To-Be-Done SegmentationValue- or Profile-based Segmentation

as function or price

age, gender, education, or income level

Unfortunately, neither way works very well, according to Harvard Business School professor Clayton Christensen, who notes that each year 30,000 new consumer products are launched—and 95 percent of them fail.

Job-To-Be-Done SegmentationThe job done by the milkshake

In-class Discussion: Please help NTUMBA program to develop its new marketing plan.

① What kinds of jobs do prospective students desire to complete by getting a NTUMBA degree? (job-to-be-done analysis) ② Who are and who are not its target customers? (segmenting and targeting) ③ What kinds of values should it provide? Please provide a new design of the program accordingly. (positioning)