STP

Segmentation , Targeting & Positioning

If You Try To Serve Everyone

In Your Business, You'll
Serve No One Well.
Mohamed Ragab
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 How to think
about
What’s our Marketing ??
a strategy is a coordinated and
winning integrated set of choices
aspirations?
Where To
What are our Play?
measurable
objectives How To
• What is the
right playing Win?
field?
• Where we will
What
compete • What’s our Capabilities
Must be in
ITRATIVE value
proposition? Place?
• Competitive
PROCESS advantage • What’s our
Activities?
• What’s our
configuration?

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Crucial Marketing Concepts…..

1 Concentrate on Selected Audiences and Behaviors

1
Segmentation
Market Map
Targeting

Define the Relevant Value of Brands to Selected

2 Audiences 2
Positioning Statement Positioning

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To compete more effectively…..
2

1 3

TARGETING).
Select one or more market
segments to focus on

SEGMENTATION). POSITIONING

Identify and profile distinct groups For each target segment, establish,
of customer who differ in their communicate, and deliver the right
needs and wants benefit(s) for the company’s market
offering (market).

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SEGMENTATION

• Benefits of segmenting potential customers:

– Finding under or un-served segments
• Mass marketing often fails to meet the needs effectively of certain sub-groups
– Efficient and effective
• More efficient and effective use of resources. Right message to right people with optimal
level of resource.

• Challenge
– To find the scenario (i.e., number and definition of segments) that maximizes value to both
target customers and the business

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Market segmentation
A market segment consists of a group of customers who share a similar set of needs and
wants.
Descriptive characteristics Behavioral considerations
Actual consumer behavior
 Geographic:  Usage-Related Variables:
 Regions, countries, cities.  User Status: nonusers, ex-users, potential, first-time, regular.
 Usage Rate: light, medium, and heavy users.
 Demographic:  Attitude: enthusiastic, positive, indifferent, negative, hostile.
 Age, family size, gender, income.
 occupation, education, religion, and social class
 Needs and Benefits
 Consumer responses to benefits.
 Psychographic
 Psychological/personality traits or
 Lifestyle as self-confidence, novelty seeking,  Decision Roles:
innovativeness, impulsiveness, leadership.
 People play five roles in a buying decision: Initiator, Influencer,
Decider, Buyer, and User

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APPROACHES TO SEGMENTATION

Approaches to segmentation - Pharmaceutical context

Behaviour
Behaviour
•• High/Low
High/Low use
use
•• Stages of Adoption
Stages of Adoption
• The first step is to understand the
structure of the market and identify
Increasing
Increasing Difficulty

the Patient and Physician

situations that exist so that you
Clinical
Clinical Focus
Focus can use it to drive your
Difficulty

•• Customer
Customer type
type segmentation
•• Speciality
Speciality
•• GPs
GPs with
with interest
interest areas
areas
•• Disease types (Severity/Comorbidity)
Disease types (Severity/Comorbidity)
•• Patient
Patient profiles
profiles

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SEGMENTATION

Clinical Focus

Treatment of infection

Hospitals Pharmacy PVT Clinics

GP Specialist

LRTI URTI UTI Skin

Bronchitis Pneumonia

Chronic Acute

High impact Low impact

Children Adult Elderly

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SEGMENTATION
Treatment of depression - clinical focus

Treatment of depression

Psychiatrists General practitioners

Normal function moderately Normal function seriously

Functioning normally
impaired impaired

Low mood withdrawn

Simple depression Anxious depression
depression

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MARKET MAP
Treatment of depression - prescriber focus

Treatment of depression

Psychiatrists General practitioners

Interested + comfortable in treating Not interested + not comfortable in

depression treating depression

Treat causes Treat symptoms

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SEGMENTATION
• Next step is to pull these sub-markets into meaningful segments

Segmentation based on needs:

Treatment of infection

Hospitals Pharmacy Community

GP Specialist

Needs
LRTI URTI UTI Skin Segment 1 Segment 2

Bronchitis Pneumonia

Segment 3 Segment 4
Chronic Acute

High impact Low impact

Children Adult Elderly

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What do we want to achieve

Situation
Characteristics Disease type
Severity
Customer
Patient Profile.
Characteristics

that differentiate the

behavior of this customer
type?
Purpose
, Identification and prioritization of segments that offer the best chance to achieve our
Behavioral Objective

What will it help you to do

, Identify the most strategic segments to pursue
, Identify where you will "play" and "not play''
, Identify those areas where you will focus your promotional resources

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What do we want to achieve
New Pts (Not on AHA)
Existing Pts

With comorbidity No Comorbidity

Met Met
not
Preferred Preferred
Severe Moderate Severe Moderate

The horizontal axis captures patient

High
situations , Disease types.
GPs
Low Describe the situation the physician is
facing
High
Endo/Diab

Low

High
The vertical axis captures
CARD
physician characteristics that
Low
differentiate behavior)

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Customer and Situation characteristics

Customer characteristics can include: Situation characteristics can include:

 Examples for physicians:  Examples for physicians:

Prescribing behavior / potential relative to therapy area (High/Low) Severity of the patient's disease
Prescribingbehavior / potential relative to competition (High/Low) Previous treatment status of the patient

 Examples for pharmacists:

 Examples for pharmacists:  Patient's ability to pay
 Chain vs. independent  Generic substitution availability
 Participation in discount programs

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How to Create a Target Map

Identify meaningful and actionable segmentation

1
variables

2 Create a target map frame

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What Does Meaningful and Actionable Mean?

1 2
Meaningful Actionable

• Will this variable describe distinct treatment • Can this variable be

and motivational behavior that can be measured/quantified?
impacted by a specific marketing mix? • Easy to identify and reach
• Directly relates to the achievement of of the through currently available
behavioral objective. channels using resendable
• The segments are conceptually amount of resources
distinguishable and respond differently to
different marketing mix

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What Does Meaningful and Actionable Mean?

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Steps to Determine Meaningful and Actionable Variables

• Analyze all knowledge collected from the situational analysis and

customer knowledge
• Make a list of all possible segmentation variables
• For each variable, ask yourself:
– Will this variable describe distinct treatment and motivational behavior that you
can take targeted action via a marketing mix?
– Can this variable be measured/quantified?
• Select the variables that will fulfill the two questions above. These are
your meaningful and actionable variables

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How to Create a Target Map

Identify meaningful and actionable segmentation

1
variables

2 Create a target map frame

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Physician Characteristics
New Pts (Not on AHA)
Existing Pts

With comorbidity No Comorbidity

Met Met
not
Preferred Preferred
Severe Moderate Severe Moderate

High Variable:
GPs
Specialty
Low

High
Endo/Diab
Variable:
Prescribing Potential
Low

High

CARD

Low

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Patient Situation
New Pts (Not on AHA)
Existing Pts

With comorbidity No Comorbidity

Met Met
not
Preferred Preferred
Severe Moderate Severe Moderate

High
Variable:
GPs
Patient Low Variable:
Diagnosis Con-comitant Disease
•New to
•Yes
High
Therapy •No
Endo/Diab
•Existing Variable:
Low Severity
Level
•Moderate
High
•Severe
CARD

Low

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HCP Dimensions Contraception examples

Country
Dimension Categories Group
Relevance*
OB/Gyn, FP/GP, NP/PAs, High
Specialty
Focus
All
Midwifes, Pharmacists Priority
Contraceptive Rx volume High, Low All Dimensions
Demographic Capabilitie

Dispense product(s) Orals, NuvaRing, Implanon Some D, E

High Volume Contraceptive Rx

s

Trained to insert LARC Yes, No A

Socio-economic composition Private-Insured, Private--

D, E
of practice Uninsured, Public, NGO OB/GYN
s

Gender Male, Female All

Years in practice 1-10, 11-20, 21+ All

Willingness to discuss
High, Low D, E
Attitudes

contraception

Contraceptive
Low Volume
Approach to consumer Advocate, Guide, Partner,
All OB/GYN
interaction Attendant

Rx
Personal use of product Yes, No All
GP

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Consumer Dimensions

Dimension Categories
Risk factors / contraindications Breast Feeding, Relative, Absolute

Medical
Factors
No, Yes – Cyclic Control, Dysmenorrhea, PMS/PMDD,
Desire secondary benefits Highest Priority
Skin, Weight Neutrality
Hormonal contraceptives experience Dimensions
First Time User, Experienced
Side effects Yes, No
Young Adults/Single, Family Building, Family Complete,
Life Stage
Demographics

Premenopausal
Age Teens, 20s, 30s, 40+
Education Some High School, High school, College +
Socio-economic status High, Low
Channels Private, Public, NGO
Channels of Influence Media, family, friends, physicians
Lifestyle

Lifestyle Busy, Idle

Ability / willingness to comply High, Low
Desired time to next child 0-2 years, 3-4 years, 5+ years
Desire for control over life High, Low
Comfort level with body High, Low
Attitudes

Side effects, frequency of administration, complexity of

Dissatisfaction with current solution
administration

Concern with pregnancy High, Low

Cultural and/or religious attitudes towards sexuality and contraception Conservative, Moderate, Progressive

Concern with STDs High, Low

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Segment validation questions

• Is the segmentation meaningful?

– Does it represent real doctor/patient situations in the market?
– Can it explain critical differences in needs, motivations and behaviour in the market?

• Is it actionable?
– Can the sales force understand and relate to the identified segments? Will they be able to identify
customers by segment?

• Does it give you a competitive edge?

– Does it meet the strategic marketing challenge?
• Are you simply re-creating what your competitors do?

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TARGETING
2

1 3

TARGETING).
Select one or more market
segments to enter

SEGMENTATION). POSITIONING

Identify and profile distinct groups For each target segment, establish,
of customer who differ in their communicate, and deliver the right
needs and wants benefit(s) for the company’s market
offering (market).

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Questions for Segment Selection

• How should we begin to prioritize segments for targeting?

– What is the estimated size of each segment?
– Which physician type is the best target for each opportunity?
– Where is our product value proposition strongest? What elements
of the value proposition are compelling to each segment?
– What are the competitive dynamics within each segment?
– What messages are connected across all of the segments? Which
segments require unique messaging?

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Porter’s Five Forces
Potential
Entrants
Threat of New Entrants

Bargaining Power of Industry Bargaining Power of

Suppliers Buyers
Competitors
Suppliers Buyers
Rivalry among
existing firms
Threat of Substitute
Products

Substitutes

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Evaluating and Selecting the Market Segments

Two factors:
1-The segment’s overall attractiveness. (size, growth, profitability, scale
economies, and low risk?
2- Company’s objectives and resources.

We need to ask our selves an important question:

 Does investing in it make sense given the company objectives, competencies, and
resources?
Some attractive segments may not mesh with the company’s long-run objectives, or the
company may lack one or more competencies necessary to offer superior value.

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Additional Consideration
 Ease of achieving Behavioral Objective based on market
understanding
 Opportunity to reach segment through a multitude of
channels beyond just face-to-face promotion

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Creating Segments

New Pts (Not on AHA)

Existing Pts

With comorbidity No Comorbidity

Met
Met
not
Preferred Preferred
Severe Moderate Severe Moderate

High 1
GPs
Low Source of Business #1:
 Behavioral Objective:

High
– Prescribe our product instead of alternative competitor for all
Endo/Diab new mild/moderate patients

Low

High

CARD

Low

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Creating Segments

New Pts (Not on AHA)

Existing Pts

With comorbidity No Comorbidity

Met
Met
not
Preferred Preferred
Severe Moderate Severe Moderate

High 1
GPs
Low

High
Source of Business #2:
Endo/Diab
Behavioral Objective:
Low –Switch to our product from previous competitor

High 2
CARD

Low

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Target Map — Key Takeaways

• Key steps in the target map process include:

[Link] meaningful and actionable segmentation
variables
[Link] a target map frame
[Link] segments and quantify the value of each
segment
[Link] and select target segments.
[Link] may develop more than one Scenario

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TARGETING
2

1 3

TARGETING).
Select one or more market
segments to enter

SEGMENTATION). POSITIONING

Identify and profile distinct groups For each target segment, establish,
of customer who differ in their communicate, and deliver the right
needs and wants benefit(s) for the company’s market
offering (market).

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 Positioning

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Definition of Positioning

• Positioning is the act of designing a company’s offering and image to occupy a distinctive place in
the minds of the target market.
• The goal is to locate the brand in the minds of consumers to maximize the potential benefit.

• To create a specific image or perception of a product in the minds of target customers to drive
business
– Relative to the competition
– Target audience, not whole market
– Believable, credible, and unique/something competitors can’t say

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A good brand Statement:

 The Positioning Statement is a framework used to

articulate customer benefits and supporting product
attributes that are distinct, sustainable, and most
compelling to a specific Target Customer/Segment.

 It identifies distinct, compelling reasons for the Target

Customer/Segment to choose your product over the
competition, and provides the foundation for your
promotion strategy
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To Be Effective, a Brand’s Positioning Needs to Meet Several Important Criteria:

“CUBIST”
Positioning needs to be aligned with the brand broader
C Consistent strategy.

U Unique Brand offers a unique benefit relative to other options

Brand benefits are believable given the product attributes

B Believable and evidence

Clearly conveys how the brand meets an important

I Inspiring customer need

S Sustainable Can be defended and maintained over time

Truthful Brand’s performance lives up to the promise

T
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Is This Positioning Statement CUBIST?

Brand
Brand QQ is
is the
the inhaled
inhaled corticosteroid
corticosteroid you’d
you’d feel
feel
confident
confident giving
giving toto your
your elder
elder patient
patient

 What is the differentiating benefit?

 Who is the target customer? Elder patient?
 Why should I believe it? What am I supposed to believe in?

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Is This Positioning Statement CUBIST?

Brand
Brand Y,
Y, aa novel
novel therapy
therapy that
that provides
provides the
the most
most safe,
safe, tolerable,
tolerable,
and
and convenient
convenient means
means of
of delivering
delivering powerful
powerful first-line
first-line relief
relief in
in all
all
of
of your
your migraine
migraine patients
patients

 What is the one distinct reason to use this

product? Safety? Tolerability? Convenience?

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Is This Positioning Statement CUBIST?

For
For patients
patients with
with active
active rheumatoid
rheumatoid arthritis,
arthritis, Brand
Brand ZZ is
is the
the
disease
disease modifying
modifying agent
agent that
that provides
provides outstanding
outstanding
improvement
improvement in in physical
physical function,
function, enabling
enabling patients
patients to
to regain
regain
control
control of
of their
their lives,
lives, because
because itit blocks
blocks the
the key
key cytokine
cytokine
responsible
responsible for
for the
the inflammatory
inflammatory process.
process.

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 Steps for Developing Positioning Statement

The Benefit Ladder Shows What Customers Buy and Why They Buy It
Hierarchy of Benefits

Why Emotional
They Benefits How the brand makes the user feel
Buy

Functional
Benefits What the product does

What
They
Buy Product
Attributes An aspect of the product

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Benefit Ladder

Positioning

Feelings produced by • Benefits captured here convey “how the customer would feel” by having
Emotional association with, or use a product available to them with these end-use and functional benefits
Benefits of, this product
• These benefits are linked to the rest of the ladder

What the product does • These benefits linked to the product attributes
Functional for the customer; Differentiated
Benefits outcomes from the • Benefits captured here convey “value” to the customer
functional benefits Core Benefit

Specific measurable, • All of the product’s attributes are captured. Should not be limited to
Product individual functional/ those attributes you believe are important
Attributes technical characteristics
of product • Other elements (e.g., cost, manufacturer, etc.) can also be placed here

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Benefit Ladder for Gonal-F
I/my patient am/is confident that she is using a
Core product with a strong heritage and history of
Benefit success that can be used regardless of
treatment/protocol
 I/my patient am/is confident because she is using a tried and true recombinant
product with excellent efficacy
Why Emotional  I/my patient am/is secure because Gonal works in all patients (IVF, ICSI, OI/IUI) and
They Benefits
protocols
Buy  I/my patient feel/feels in control using the Gonal pen because it has more dosing
flexibility and is easy to use

 Recombinant FSH
Functional  Consistently high ongoing pregnancy rates
Benefits  Excellent pregnancy rates regardless of endogenous LH levels

What
They
Buy
 Strong heritage for quality and innovation
 Can be used with all patients and protocols
Product  Optimal dosing flexibility from 25IU to 450IU with small dose increment (25IU)
Attributes  Gonal pen requires less instruction and fewer calls for help
 Easy to use delivery device

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Cera Benefit Ladder

Core
Benefit A clear conscience

Reassurance in making the right contraceptive choice

Emotional (don’t worry about efficacy, side effects, or long-term
Benefits health effects for self or child)

Reliable Intake Safe Ease of None

contra- Flexibility Suitable use
ception for breast Fewer
Functional feeding withdrawal
Benefits
No EE side symptoms
effects

Ovulation 12-hour POP Oral Unpredictable

Product inhibition window regimen bleeding
Attributes

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Repeat process to create ladders for key competitors

Our Product Competitor 1 Competitor 2

Why Emotional Why Why Emotional

They Emotional They
Benefits They Benefits Benefits
Buy Buy Buy

Functional Functional Functional

Benefits Benefits Benefits

What What What

They They They
Buy Product Product Buy Product
Buy
Attributes Attributes Attributes

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 Differentiating Core Benefit

• Based on the outcome of the benefit ladder, what Core Benefit will differentiate you from your
competitors?

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Positioning Statement
 FOR:
• Focused on a Target Customer/Segment identified
as a priority
• Includes a complete description of the Target
Customer/Segment as identified in the Market Map

 (Product) IS
• A concise summary of how you want your Target
Customer/Segment to think of your product

 THAT WILL
 • The Distinct Advantages of our product, versus the
competition, at the end-use and/or emotional benefits
level as shown in our Benefit Ladder, that are
meaningful to your Target Customer/Segment


 BECAUSE

• The Functional Benefits and Product Attributes that
 are linked to the Distinct Advantages captured in the
“That Will” section above



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Positioning — Key Takeaways

• Positioning means to create a specific image or perception of a

product in the minds of target customers to drive business
• A positioning statement must be CUBIST
• Customer Insight Tools help to create a positioning statement
– Benefit Ladder
• A positioning statement drives message development to create the
actual positioning

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Moh_ragab1977@[Link]

Mohamed Ragab

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