Strategic management

1. Rector of Eurasian Management and Administration School (EMAS Business
School)
STRATEGIC MANAGEMENT.
DETERMINING MARKET
SEGMENTS. DETERMINING
MARKET POSITION. BRANDING
AND BRAND MANAGEMENT
ANDREY KOLYADA

2. TARGET POSITION
ON THE MARKET.
BRANDING

3. TARGET POSITION ON THE MARKET. BRANDING
Main types of marketing policies:
Mass marketing
Product differentiation marketing
Target marketing

4. 3 steps for determining the market position / creating a
brand:
 Clustering the target market and choosing the
target cluster(s)
 Segmenting the target cluster(s) and choosing
the target segment(s)
 Development of positioning in the target
segment(s)
2-step
Segmentation
© Andrey Kolyada, EMAS
TARGET POSITION ON THE MARKET. BRANDING

5. Clustering the target market
and choosing the target
cluster(s)
© Andrey Kolyada, EMAS
TARGET POSITION ON THE MARKET. BRANDING

6. TARGET POSITION ON THE MARKET. BRANDING

7. Sign No.4 – You understand that the resources are scarce.
A good strategy is a strategy of the most effective use of the
scarce resources and of the maximum outcome of the most scarce of
them.
WHAT MAKES A GOOD STRATEGY DIFFERENT FROM A BAD ONE?
11½ SIGNS OF A GOOD STRATEGY

8. Segmenting the target
cluster(s) and choosing the
target segment(s)
TARGET POSITION ON THE MARKET. BRANDING

9. Cluster segmentation criteria
Most common:
by socio-demographic characteristics (B2C)
by physical, operational, situational and other characteristics
(B2B)
by psychographic characteristics (B2C and B2B)
Rare:
by specifics of consumer buying behavior etc.
CLUSTER SEGMENTATION
TARGET POSITION ON THE MARKET. BRANDING

10. • Age
• Sex
• Family size
• Family life-cycle stage
• Income level
• Occupation
• Education
• Social class
Socio-demographic characteristics (B2С – Consumer market)
CLUSTER SEGMENTATION
TARGET POSITION ON THE MARKET. BRANDING

11. PHYSICAL VARIABLES:
• Field of the company
• Size of the company
• Location
• Form of incorporation
• Age of the company
• Financial indicators
DECISION-MAKING SCHEME,
PROCUREMENT SCHEME:
• Degree of centralization
• Procurement policy
OPERATIONAL VARIABLES:
• The company’s needs
• The company’s demands
SITUATIONAL FACTORS:
• Speed of the delivery
• Size of the order
PERSONAL CHARACTERISTICS:
• Values
• Nationality
• The company’s orientation
Physical, operational, situational and other characteristics (B2B –
Corporate market)
CLUSTER SEGMENTATION
TARGET POSITION ON THE MARKET. BRANDING

12. CLUSTER SEGMENTATION
TARGET POSITION ON THE MARKET. BRANDING
2 elements:
1. Natural + Consumer motive(s) – WHAT a client wants
2. Mindset = Psychotype – HOW a client makes a decision
Psychographic characteristics (B2C and B2B)
Demand for the
product
Natural motive
Consumer motive(s)
Mindset = Psychotype

13. CLUSTER SEGMENTATION
TARGET POSITION ON THE MARKET. BRANDING
Example of consumer motives
of a person making a decision
(B2B)
© Andrey Kolyada, EMAS
Increased
convenience /
Ease of
operation
Bribe
Lower price /
Bonuses
Extended
warranty period
Quick response
to the problems

14. CLUSTER SEGMENTATION
TARGET POSITION ON THE MARKET. BRANDING
Health benefits
(preventive
healthcare,
treatment)
Extended shelf
life
Lower price /
Bonuses
Local
manufacturer
Help to others
by means of
buying the
product
Example of consumer motives
of a private consumer (B2C)
© Andrey Kolyada, EMAS

15. CLUSTER SEGMENTATION
TARGET POSITION ON THE MARKET. BRANDING
Example of distribution of European population of Russia
according to the psychotypes – EMAS research* (%)
Type 1; 11.3
Type 2; 12.8
Type 3; 8.4
Type 4; 6.6
Type 5; 4.2
Type 6; 9.5
Type 7; 26.2
Type 8; 14.8
Type 9; 6.2
1. Reformer
2. Assistant
3. Striving for success
4. Individualist
5. Thinker
6. Loyalist
7. Enthusiast
8. Confronter
9. Peacemaker
* To be clarified for each region

16. CLUSTER SEGMENTATION
TARGET POSITION ON THE MARKET. BRANDING
TRANSPORTATION SERVICES
Cluster: Medium prices, Regular shipments not less than twice a week
Segment # Dominant consumer motive Segment profile Number of clients
Volume,
$/year
1 Pick-up time
Industrial enterprises,
revenue > $200 mln/year
2,500 $2 bln
2 Lower price
Wholesale business,
importers, revenue >
$5 mln/year
1,500 $800 mln
3 Client-focused approach 2,000 $1.5 bln
Cluster TOTAL 6,000 $4.3 bln

17. POSITIONING
Positioning in the target
segment(s)
TARGET POSITION ON THE MARKET. BRANDING

18. POSITIONING
TARGET POSITION ON THE MARKET. BRANDING
POSITIONING – a statement on your product (company) being the
best choice according to:
[1] Natural motive and
[2] Consumer motive(s) that are dominant for the target
segment.
Positioning can be applied both to the product and the company in
general
© Andrey Kolyada, EMAS

19. POSITIONING
TARGET POSITION ON THE MARKET. BRANDING
ABC Transportation Company offers medium-priced transportation
services of the highest quality with the shortest pick-up time.
TRANSPORTATION SERVICES
Cluster: Medium prices, Regular shipments not less than twice a week
Segment # Dominant consumer motive Segment profile Number of clients
Volume,
$/year
1 Pick-up time
Big industrial enterprises,
revenue > $200 mln/year
2,500 $2 bln
Example
Positioning is conveyed to the target segment by means of:
[1] Sales,
[2] Marketing communications.
It’s only now that the CREATIVITY starts!

20. POSITIONING
TARGET POSITION ON THE MARKET. BRANDING
METHODS TO DELIVER POSITIONING:
 Based on the distinctive feature of the product
 Based on the benefits and or on the solution of the problem
 Based on the special method of using
 Based on the focus on some certain category of consumers or
some case of consumption
 Based on the interaction with the competitive brand
 Based on the difference with some certain category of
products
 Based on the worldview

21. POSITIONING
TARGET POSITION ON THE MARKET. BRANDING
 Under-positioning – not enough characteristics, positioning
goes beyond the target segment
 Over-positioning – too many characteristics, positioning is too
narrow for the target segment
 Vague positioning – positioning criteria are too vague and have
nothing to do with the motives of the target cluster
 Doubtful positioning – credibility of the positioning criteria is
doubtful for the target segment
4 groups of mistakes made while developing / conveying
the positioning

22. POSITIONING
TARGET POSITION ON THE MARKET. BRANDING
• Emphasis on the properties that have nothing to do with the
natural and / or consumer motive(s) (for instance, too much
“creativity”)
• Desire to be a brand for everyone
• Positioning on a low price only
Specific types of mistakes made while developing /
conveying the positioning

23. POSITIONING
TARGET POSITION ON THE MARKET. BRANDING
• Non-compliance of positioning with the target segment image
of the product category with which the brand is already
associated
• Reaching another target segment with natural and / or
consumer motive(s) that don’t match
• Dissipation of the marketing budget
Specific types of mistakes made while developing /
conveying the positioning

24. POSITIONING
TARGET POSITION ON THE MARKET. BRANDING
• Attempt to deliver numerous messages at the same time
• Negligent design
Specific types of mistakes made while developing /
conveying the positioning

25. TARGET POSITION ON THE MARKET. BRANDING

26. STRATEGIC
FORMULATION

27. Strategic Formulation is an in-depth description of the essence of the
company’s strategic intent = HOW the Goals will be achieved = BRIEF
DESCRIPTION OF THE COMPANY’S STRATEGY.
STRATEGIC FORMULATION
Strategic Formulation of EMAS (old version):
We put major focus on the local market constantly stepping up our presence.
We do it by getting the status of the top expert in strategic management (the
strategy of the company, strategic marketing, corporate culture and leadership),
production management, business analytics and HR management implementing the
projects and participating in image events in the relevant spheres for that. Our MBA
programs have open an corporate formats. We implement both general and specific
MBA programs.
Target market segment – business owners and managers of all levels requiring
100% implementation expert knowledge in business; average price cluster.
In order to acquire the best practices, contacts and competences EMAS has
become a member of prestigious local and international associations in business
education. We maintain strategic partnership with foreign business schools.

28. MARKETING
MANAGEMENT.
MARKETING
COMPLEX.
MARKETING MIX

29. Marketing Management is carried out based on the model called
Marketing Complex (Marketing Mix).
Marketing
Management
1. Product
2. Place
3. Price
4. Promotion
5. People
6. Processes
7. Physical
Evidence
4 P – for the goods
7 P – for the services
(and goods as well)
MARKETING MANAGEMENT. MARKETING MIX

30. UNIQUE SELLING
PROPOSITION
(USP)

31. Unique Selling Proposition (USP) is a real superiority over the
competitors in characteristics important for the target segment
within its natural and consumer motive(s).
USP is created based on the logic of CSI - Customer Satisfaction
Index:
• USP for the product (based on CSI of the product in the
narrow sense),
• USP for the processes (based on CSI of the related processes),
• USP for the personnel (based on CSI of the personnel).
Creating USP, i.e. obtaining superiority, is the essence of your
company’s strategy
UNIQUE SELLING PROPOSITION

35. THANK YOU FOR YOUR TIME!