Segmentation, Targeting, and Positioning (STP) are the crucial intermediate steps needed to transform strategic planning into real-world tactics (marketing mix). There should be a natural flow from the choice of strategy as a result of the situation analysis to the selection of one or more target markets to implement the strategy.
In this memo, the goals are:
1. To create a customer profile of the target market segment to demonstrate a deep understanding of the customer;
2. To generate a perceptual map to aid in creating a unique position for the focal firm's brand or product, and
3. To write a positioning statement to coordinate all marketing mix development.
Target Market Profile
Create a customer profile of the target market that represents a growth opportunity and help you implement your growth strategy.
· Identify the characteristics of the market your product/brand competes in, and the market segments that currently exists.
· If your target market is in the US, use the PRIZM or Tapestry to develop a descriptive profile. If the target market is non-US, create the profile with particular emphasis on geographical and cultural details.
· Discuss demographic, geographic, psychographic, benefits sought, situational and behavioral factors as relevant.
· You should attempt to estimate the total number of customers that fit the profile.
· Evaluate the factors the make this an attractive target market based on the criteria in the text. Document sources and any assumptions made.
Get "into" the target market's minds and make some assumptions about how the target market perceives the brand/product, and use this unique position to write a positioning statement.
· How would you describe your product/brand's competitive positioning? Use tag lines or promotional themes to illustrate the clarity of this positioning.
· Use a perceptual map to reflect the positioning (or repositioning).
· Create a positioning statement for the position (or reposition) using Geoff Moore's Positioning Mad Lib.
Important note: Analysis, responses, and conclusions must provide greater insight into the questions or problem. Refrain from general statements.
The Business Memo format is a little like an email, but it incorporates a crucial concept: BLUF – Bottom Line Up Front.
Unlike traditional composition, creating a nice introduction, developing 2-3 arguments, and ending with a grand conclusion does not work in business (and other domains). Instead, in business, we need to get to the bottom line right away. If the person is interested in the analysis or exposition, they can continue reading the remainder of the memo.
· The diagram provides a "structural" view of the memo using the BLUF format.
· The first paragraph should state the problem or situation, provide evidence or support for the problem or situation, offer a strategy or solution or action needed, and a projection of the likely outcome or result.
· The rest of the memo provides analysis, support, evidence, etc.
· If supplementary materials are too extensive to fit into the memo, include them as appendices.
Busy executives do not have a lot of time to wade through a lot of discussion and development, BLUF provides them a general overview, and if they are interested, they can read further. Otherwise, they need as much information as they can in the first paragraph.
· Follow the memo format
· Use formal business language
· Write primarily in the third person
· Writing is to be concise and professional
· Do not redefine terms defined in the text
· Use and apply terminology, jargon, concepts, and tools accurately
· Include proper citation and reference
· Few or free of basic grammatical issues