Description
Attached is the information for the assignment. It is a group activity I am responsible for the targeting portion of it only . So you only need to respond and answer the targeting prompt. I have attached the protocol, an example, and also lecture notes.
Our Product is as follows:The Hayward market presents an opportunity for our product, a car security device that sends
alerts in case of break-ins or window shattering. Hayward, California, has a high rate of car
break-ins, making our product highly relevant. The demographic makeup of Hayward includes a
diverse population, predominantly young professionals, and families. Market competition
includes traditional car alarm companies and emerging smart car security startups. Related
policies and regulations must comply with California state laws regarding vehicle security
devices and data privacy.
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Team Assignment #3
Marketing Principles
Segmentation, Targeting, and Positioning (STP)
This assignment is designed to help students develop the marketing plan they need for the product they
selected in team assignment 1. As a team, conduct the following to complete this assignment and submit
this STP assignment by the due noted in the syllabus.
Note: Students are suggested to read the file, “Illustration of STP for Assignment 3,” posted
together with this assignment on the course website before completing this assignment. In
addition, you must use the same product in team assignment 1 unless you are asked to change it.
1. First, read the STP lecture note and watch the STP lecture video before working on this
assignment.
2. Determine your segmentation method(s) from the available segmentation methods,
considering your product. You may use one or multiple segmentation methods if necessary.
3. Identify and provide all the possible, diverse market segments in the Hayward market under
“Segmentation” (see the next page). This is your Segmentation.
4. Next, select your target segments from the segments you identified and listed in the
“Segmentation” section. Provide the selected segments in the “Targeting” section (see next
page) and also discuss any supporting reasons briefly (i.e., why should they be considered
your targets?). You will lose points if you do not provide the reasons. This is your Targeting.
5. Lastly, describe briefly how you plan to position your product in the market for the target
segments. You must develop and provide your positioning strategies in terms of product,
price, place, promotion, etc., in comparison with the competition. The strategies must help
you make your product different from and better than the competition and attractive to the
target segments. Provide your supporting reasons briefly. You will lose points if you do not
provide the reasons. This is your Positioning.
Submission requirements:
• 12-point font size
• Times New Roman only
• MS-Word only
• No more than 4 pages excluding a cover page, if any.
• Single spaced
• 1-inch margin on all sides
• Should be professional – no typos/grammar mistakes
• You will lose up to 50 percent of the points assigned if you do not follow these
requirements.
Turn to the next page to complete this assignment. Submit the next page only.
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Team Assignment #3
STP Assignment
Marketing Principles
Product:
Team:
You must read the assignment instruction noted on the previous page to complete the following.
•
Segmentation:
•
Targeting:
•
Positioning:
2
Lecture 7.
Segmentation, Targeting, and Positioning
Marketing Principles
Chapter
nine
Segmentation
Targeting
Positioning
Learning Objectives
LO1 Identify the five steps in the
segmentation, targeting and positioning
process.
LO2 Outline the different methods of
segmenting a market.
LO3 Describe how firms determine whether a
segment is attractive and therefore worth
pursuing.
LO4 Articulate the difference among targeting
strategies: undifferentiated,
differentiated, concentrated, or
micromarketing.
3
Comstock Images/Almay
Ryan McVay/Getty Images
Planning
Implementi
ng
Getty Images/Digital Vision
Three Phases of a Strategic Plan
Controlling
4
Marketing Plan
5
Segmentation, Targeting, Positioning
Process – The Five Steps (LO1)
The steps to identify the Target Markets we will serve.
Previous chapters addressed how to plan marketing
strategy; this chapter focuses on how firms use
that strategy to identify the target markets
they will serve.
6
Step 1: Strategy or Objectives
Establish Overall Strategy or Objectives
Check Yourself
Derived from
mission and
current state
SWOT
7
Step 2: Segmentation Methods (LO2)
Segmentation Methods
Exhibit 9.2
8
Step 2: Segmentation Methods
Good when you are expanding the
business in more local areas as
well as international territories.
Geographic Segmentation
Understanding regional preferences can define
a company’s success —- or failure!
Example: New England Clam Chowder for Texas
franchises
Northeastern consumer
Texas consumers
9
Step 2: Segmentation Methods
Demographic Segmentation
Most common
segmentation
strategy
High end Buyers
Earning
©Stockbyte/Getty Images
U.S. Census Bureau
Website
10
Step 2: Segmentation Methods
Psychographic
Segmentation:
Psychographic segmentation, or
psychographics, allows people to
describe themselves using
characteristics that help them
choose how they occupy their
time (behavior) and what
underlying psychological
reasons determine
these
VALSTM Framework
choices.
VALS (“Values, Attitudes and Lifestyles”)
is a proprietary research methodology
used for psychographic market
segmentation.
VALS Website
11
VALS – My Style
Innovator/Achiever
The VALS Framework
Your primary VALS™ type is
Innovator, and your secondary
type is Achiever.
The primary VALS type
represents your dominant
approach to life.
The secondary classification
represents a particular
emphasis you give to your
dominant approach.
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Step 2: Segmentation Methods
suburban,
upscale,
Geodemographic
married
Segmentation:
couples with
uses a combination of
children,
typically within
geographic, demographic, and
lifestyle characteristics to classify recently built
subdivisions.
consumers.
Benefit Segmentation:
the grouping of consumers on the
basis of the benefits they derive
from products or services
Behavioral
Segmentation:
divides customers into groups
based on how they use the
product or service: occasion
and loyalty
13
Step 3: Evaluate Segment
Attractiveness (LO3)
“ISRRP”
: Descriptive (qualitative) criteria
Unique enough?
$$$ enough?
Big enough?
Accessible enough?
Positive enough?
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Step 3: Evaluate Segment
Attractiveness
Segment Profitability
•
•
•
•
* Segment Profitability = (Segment size x Segment
adoption percentage x Purchase behavior x Profit margin
percentage) – Fixed costs
Segment size =
number of people in the
segment
Segment adoption
percentage =
Percentage of customers
in the segment who are
likely to adopt the
product
Purchase behavior =
Purchase price x Number
of times the customer
would buy the
product/service during a
given time period.
Profit margin
percentage = ((selling
Exhibit
15
Step 3: Evaluate Segment
Attractiveness
Segment Profitability
©Comstock/PunchStock
Is this segment profitable?
• Segment size = 60
million (
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