2. Recap : Positioning
• A positioning statement is a clear expression of how a firm want their
products to be perceived by the customers. It is useful to develop a
clear positioning statement that captures the essence of position
which a company want to occupy in the consumer's mind
• Positioning captures the alignment between customers and value
proposition
• For the ____________(define target segment), _______________
(name the brand) is the brand of ________________ (frame of
reference) that ___________________ (point of difference) because
of __________________________ (justification)
3. Recap: Positioning Statement
For the ____________(target segment), _______________ (brand) is the brand
of ________________ (frame of reference) that _____________(point of
Difference) because of_________________ (justification)
For the females 18-49 who possess dry damaged hair (target segment), Pantene
( brand) is the brand of hair care system (frame of reference) that offers ‘hair so
healthy it shines’ (point of difference) because it ‘penetrates from root to tip
through its patented Pro-Vitamin B5 formula’ (justification) .
For the mothers (target segment), Complan (brand) is the brand of health
beverage (frame of reference) that help children grow faster (point of
difference) because of 23 vital nutrients it contains which growing children need
(justification)
4. Recap : Medimmune – Flumist Introduction
Ambitious expectations from the launch
• Big breakthrough in Bio-technology
• 25 Million advertising budget
• Collaboration with Wyeth Phrama
• Hoping to sell 6-8 million doses in first year
• Expectations of becoming a 1 Billion USD brand
However, Medimmune is a one product company (70% revenue
from Synagis)
5. Recap :Medimmune –Flumist Introduction
• Only 8,30,000 doses sold in the year of launch
• One of the spectacular new product failures
• Eventually lead to Medimmune being absorbed by Astra Zenaca
• Some possible reasons for the poor performance of Flumist
• Could be sold only to 5-49 healthy adults-market restricted to low-risk groups
• The double marketing task
• Persuading healthy people to take Flue vaccination
• Persuading them to choose Flumist
• Only incremental benefit : avoiding injection perceived as limited in value by target
customers
• Pricing too high compared to the benefits- What am I getting for what I pay?
• Resistance from health professionals
• Frozen nature of drug
• Inconvenience of storage and administration
6. Key Learnings
• Importance of using positioning to clearly articulate a product’s place in a market
• Distinction between an innovative new technology and a product that provides a benefit.
• In this case, the technology was impressive, but it provided a small benefit to
consumers
• The challenge of launching a product into an established market, especially when the
product lacks a clear point of superiority
• The importance of pricing relative to value.
• MedImmune priced FluMist as if the product provided a major new benefit when
actually, the improvement versus traditional vaccines was limited
7. • The question we need to ask in business is what is the benefit we
offer to the customer?
• Customer Value Proposition
• Marketing is an outside in perspective which may not happen
naturally or intuitively to all business people
• The question we need to ask in business is what is the benefit we
offer to the customer?
• Customer Value Proposition
• Marketing is an outside in perspective which may not happen
naturally or intuitively to all business people
9. Market Segmentation
• Identify bases for segmenting the
market
• Develop segment profiles
Target marketing
• Develop measure of segment
attractiveness
• Select target segments
Market Positioning
• Develop positioning for target
segments
• Develop a marketing mix for each
segment
10. Definitions
Market segmentation is dividing a market into smaller groups of buyers with distinct
needs, characteristics, or behaviors who might require separate products or marketing
mixes.
Target marketing is the process of evaluating each market segment’s attractiveness and
selecting one or more segments to enter.
Market positioning is the process of arranging for a product to occupy a clear, distinctive,
and desirable place relative to competing products in the mind of target consumers.
11. Segmenting consumer markets
• Geographic segmentation. Dividing a market into different geographical units.
• Demographic segmentation. Dividing a market into groups based on demographic
variables.
• Psychographic segmentation. Dividing a market into based on social class, lifestyle, or
personality characteristics.
• Behavioral segmentation. Dividing a market into based on consumer knowledge,
attitude, use, or response to a product.
12. VALS – life style classifications
Thinkers Achievers Experiencers
Strivers
Believers Makers
Principle Oriented Status Oriented Action Oriented
Low Resources Low innovation
Survivors
High innovation
Innovators
High Resources
13. Value & life-styles segmentation
Survivors – elderly, passive people who are concerned about change. Loyal to their
favorite brands.
Innovators – successful, sophisticated, active people with high self-esteem. Purchases
often reflect cultivated tastes for relatively upscale, niche-oriented products and
services.
Experiencers – young, enthusiastic, impulsive people who seek variety and excitement.
Spend a comparatively high proportion of income on fashion, entertainment, and
socializing.
Makers – practical, down-to-earth, self-sufficient people who like to work with their
hands. Favor product with a practical or functional purpose.
14. Value & life-styles segmentation
ACHIEVERS – successful goal-oriented people who focus on career and family. Favor
premium products that demonstrate success to their peers.
Strivers – trendy and fun-loving people who are resource-constrained. Favor stylish
products that emulate the purchase of those with greater material wealth.
Thinkers – mature, satisfied, and reflective people who are motivated by ideals and
value order, knowledge, and responsibility. Favor durability, functionality, and value in
products.
Believers – conservative, conventional, and traditional people with concrete beliefs.
Favor familiar products and are loyal to established brands.
15. Indonesian consumer market segments:
1. ESTABLISHED CONFIDENT (“ORANG ALIM”)
2. THE OPTIMISTIC FAMILY PERSON (IBU “PKK”)
3. THE CHANGE-EXPECTING LAD (‘ANAK NONGKRONG”)
4. CHEERFUL HUMANIST (“LEMBUT HATI”)
5. INTROVERT WALLFLOWER (“PASRAH”)
6. THE SAVVY CONQUEROR/CITY SLICKERS (“MAIN UNTUK MENANG”)
7. THE NETWORKING PLEASURE SEEKER (“GAUL-GLAM”)
8. THE SPONTANEOUS FUN-LOVING (“BINTANG PANGGUNG”)
(Source: LOWE INDONESIA)
15
16. Behavioral segmentation
Occasion segmentation. Dividing a market into groups according to occasions when
buyers get the idea to buy, actually make their purchase, or use the purchased item.
Benefit segmentation. Dividing a market into groups according to the different benefits
that consumers seek from the product.
User status. Dividing a market into groups of non-users, ex-users, potential users, first-
time users, and regular users of a product.
Usage rate. Dividing a market into light, medium, and heavy product users.
Loyalty status. Dividing a market into groups based on consumers’ degree of brand
loyalty: switchers, shifting loyalists, split loyalists, and hard-core loyalists.
19. Positioning
Differentiation
• Product & services
• Distribution
• Personnel
• Image
Competitive advantage. An advantage over competitors gained by offering consumers
greater value, either through lower prices or by providing more benefits that justify
higher prices.
• How many differences to promote?
• Which differences to promote?
20. Positioning
Competitve advantage’s criteria
Important. Delivers a highly valued benefit to target buyers.
Distinctive. Competitors to not offer the advantage.
Superior
COMMUNICABLE and VISIBLE to buyers.
Preemptive. Competitors cannot easily copy the advantage.
Affordable. Buyer can afford to pay for the advantage.
Profitable
21. Positioning
Positioning statement. A statement that summarizes company or brand positioning – it
takes this form: to (target segment and need) our (brand) is (concept) that (point-of-
difference).
“To young, active soft-drink consumers who have little time for sleep, mountain dew
is the soft drink that gives you more energy than any other brand because it has the
highest level of caffeine. With mountain dew, you can stay alert and keep going even
when you haven’t been able to get a good night’s sleep.”
Value proposition. The full positioning of a brand – the full mix of benefits upon which it
is positioned.
22. Positioning
22
Positioning
Statement
• For upscale American
families, Volvo is the
automobile that offers the
utmost in safety and
durability.
Value proposition
• Target market: upscale
American families
• Benefits offered: safety,
durability
• Price range: 20% premium
over similar cars
23. Positioning
Issues
OVER-POSITIONING when customers have too narrow an understanding of the company,
product, or brand.
Under-positioning when customers only vague ideas about the company and its products
and do not perceive anything distinctive about them.
Confused positioning when frequent changes and contradictory messages confuse
customers regarding the positioning of the brand.
Doubtful positioning when the claims made for the product or brand are not regarded as
credible by the customer.
(Cravens, d.W. & Piercy, N.F., 2006, strategic marketing, new york: mcgraw-hill/irwin, p.185)
