ASSIGNMENT 4: SEGMENTATION STRATEGY, KEY TARGET MARKET PROFILE, BRAND EQUITY & VALUE POSITIONING (STP): Marketing Management 15th Edition

Audience for Assignment: The CMO and your boss, a director-level person who relies on your evidence-supported reports to make the best decisions in a minimum amount of time. Assignment Objective: This assignment creates and explains the marketing strategy that is aligned with your marketing goals. Create the segmentation strategy and key target market profile for your product/service. This assignment relates to: Course Learning Objective 2: Segment the market, targeting the appropriate segments and positioning the product in the mind of the target customer; Course Learning Objective 3: Successfully define and offer effective solutions to marketing problems; Course Learning Objective 4: Write a complete Marketing Plan using ethical reasoning and critical thinking; and Course Learning Objective 5: Communicate effectively in contemporary forms, to business audiences including colleagues, supervisors and clients, in appropriate ways about business issues. Procedure: Create your segmentation strategy and develop your key target market profile following the instructions below. Then discuss how your brand develops Customer-Based Brand Equity (CBBE) following the instructions below. The marketing strategy section of your plan includes the segmentation strategy and results, the key target market, as well as the development of brand equity and positioning. Provide a few sentences as an introduction to this section, which will serve as a road map to the section. Segmentation Strategy To provide data on which to segment the market (all people or organizations with the desire and ability to buy your product/service), you should use the secondary data referenced in the MBA@Denver Research Guide, optionally followed by primary data collection to obtain the information you need, which is not provided in the secondary data search. Primary data collection may include consumer behavior interviews and/or a short survey to obtain more information on the target market(s). Market segmentation divides markets into well-defined slices. (see chapter 9 in KK). Create market segment profiles for 2 or more segments for your product or service. Examples of segmentation bases include: B2C: customer preferred benefits, demographic segmentation (KK 249), psychographic segmentation (KK 258), behavioral segmentation, product adopter trends, growth of segments, and others that would more directly apply to your product/service. B2B-geographics, industry, firm size (in revenue or employees), type of seller (manufacturing, wholesale, retail) Key Target Market-Choose Only One to Use in the Plan Completely describe your selected segment which is the key target market for your plan. Your profile should include important characteristics that you will use to develop the tactics in your marketing plan. Use general information from secondary data, as well as possibly more specific information about the segment from your consumer interviews and/or survey to construct the segment profiles. (If you decide to administer a survey, please read Tips About Survey Development, which can be found in the HBSP course pack and use those tips when developing your one-page survey.) Be sure to find information about the product/service preferred by the target market, the maximum price the target market is willing to pay, where the target market will purchase the product/service and how the target market learns about similar products/services. If you use interviews or a survey, please include the interview questions or survey and the results in an appendix. Key Target Market Profile Include a few sentences introducing the benefits important to the target market, citing your sources, and then describe each benefit in detail. Effective key target segments should be: Measurable in terms of sales or market size Substantial in terms of spending power Stable in terms of the likelihood that it will not disperse or change substantially within a year or two Accessible in terms of whether the segment(s) can be reached both physically and with the promotional plan, given the firms strengths and weaknesses. Actionable in terms of its characteristics providing supporting data for a marketing approach, with easily identifiable outcomes. Differentiable in terms of being homogeneous within the segment and heterogeneous between segments. Differences should be clearly defined to assure the promotional mix is specific to each segment. Key Target Benefits (beyond the features of the product or service) Benefit 1 Benefit 2 Benefit n Customer-Based Brand Equity (CBBE) See KK p. 302 for definition of CBBE. Apply Figure 11.4, The Brand Resonance Pyramid, (KK p. 308) to your brand. Include The Brand Resonance Pyramid for your brand in an appendix. Be sure to reference it in this section. In this section, explain how your product/service provides brand salience, performance, imagery, judgments, feelings, and resonance. If the brand does not provide all of the above, provide a plan in this section for achieving high performance at each level. A graphic, a table, chart or info graphic would be very appropriate to conveying this information. Describe how you plan to build brand equity for your product/service using the marketing mix, described in the next major sections. Reference brand equity as you describe the marketing tactics you will use. How will the use of each tactic add to brand equity? Positioning in the Mind of the Key Target Market See KK Chapter 10 for additional information. Be sure to explicitly define the value proposition for your chosen target market. (KK pp. 275-276) Describe how your product/service compares to your direct competitor(s) and your product/services points of difference. (KK p. 278-282) Explain your brands competitive advantage. (KK p.282) Explain how you will use your points of difference (POD) to position the brand in the mind of your target audience. (KK p.278-285) A graphic, a table, chart or info graphic would be very appropriate to conveying this information. Describe your brand mantra and the way it communicates, simplifies, and inspires the target audience. (KK p. 285-286) Grading Rubric Expected Below Average Unacceptable Segmentation Strategy Secondary data is used and cited; the basis of segmentation is correct based upon your evidence; the segment is effective as defined in the assignment; the connection between the basis of segmentation and your marketing tactics is clearly made; if greater than one segment is chosen, the segment differentiation is clear (20 points) The segmentation strategy does not include two of the following: Secondary data is used and cited the basis of segmentation is correct based upon your evidence the segment is effective as defined in the assignment instructions the connection between the basis of segmentation and your marketing tactics is clearly made if greater than one segment is chosen, the segment differentiation is clear (16 points) The segmentation strategy does not include more than two of the following: Secondary data is used and cited the basis of segmentation is correct based upon your evidence the segment is effective as defined in the assignment instructions the connection between the basis of segmentation and your marketing tactics is clearly made if greater than one segment is chosen, the segment differentiation is clear (13 points) Key Target Market Description Target market is completely described including those characteristics that will be used to develop the tactics described in your marketing plan; the description is taken from primary or secondary evidence, which is cited; evidence is provided on the benefits preferred; the maximum price the The target market description does not include one of the following: Target market is completely described including those characteristics that will be used to develop the tactics described in your marketing plan The target market description does not include more than one of the following: Target market is completely described including those characteristics that will be used to develop the tactics described in your marketing plan target market is willing to pay, where the target market will purchase the product/service and how the target market learns about similar products/services. (15 points) the description is taken from primary or secondary evidence, which is cited evidence is provided on the benefits preferred the maximum price the target market is willing to pay where the target market will purchase the product/service how the target market learns about similar products/services. (13 points) the description is taken from primary or secondary evidence, which is cited evidence is provided on the benefits preferred the maximum price the target market is willing to pay where the target market will purchase the product/service how the target market learns about similar products/services. (10 points) CBBE Brand resonance pyramid used to fully describe how your brand provides CBBE. Brand Resonance Pyramid for your brand is in an appendix and referenced. Briefly described building brand equity for product/service. Explained how the use of marketing tactics adds to brand equity (10 points) The CBBE analysis does not include one of the following: Brand resonance pyramid used to fully describe how your brand provides CBBE. Brand Resonance Pyramid for your brand is in an appendix and referenced. Briefly described building brand equity for product/service. Explained how the use of marketing tactics adds to brand equity (8 points) The CBBE analysis does not include more than one of the following: Brand resonance pyramid used to fully describe how your brand provides CBBE. Brand Resonance Pyramid for your brand is in an appendix and referenced. Briefly described building brand equity for product/service. Explained how the use of marketing tactics adds to brand equity (6 points) Positioning Value prop for target market explicitly defined. Thorough analysis of difference from competitors and POD. Complete explanation of brands competitive advantage. Full explanation of using points of differentiation to position the brand in the mind of the target audience Brand mantra and the way it communicates, simplifies, and inspires the target audience fully described. (5 points) The positioning analysis does not include one of the following: Value prop for target market explicitly defined. Thorough analysis of difference from competitors and POD. Complete explanation of brands competitive advantage. Full explanation of using points of differentiation to position the brand in the mind of the target audience. Brand mantra and the way it communicates, simplifies, and inspires the target audience fully described. (3 points) The positioning analysis does not include more than one of the following: Value prop for target market explicitly defined. Thorough analysis of difference from competitors and POD. Complete explanation of brands competitive advantage. Full explanation of using points of differentiation to position the brand in the mind of the target audience Brand mantra and the way it communicates, simplifies, and inspires the target described