Market – Driven Segmentation
“Market segmentation is the process of
placing the buyers in a product – market
into sub – groups so that the members of
each segment display similar
responsiveness to a particular positioning
Loyalty Status Segmentation
The place a product occupies in
consumers’ minds relative to competing
Identifying and establishing points of parity
and points of difference to establish the
right brand identity and brand image.
Points of parity: associations that are not
unique to the brand but may be shared with
Points of difference: attributes or benefits that
consumers strongly associate with a brand
and they believe that they could not find from a
competitive brand (Mercedeez Benz – Quality
Principles of Positioning
Positioning is the act of designing the company’s
offering and image so that they occupy a
meaningful and distinct competitive position in
the target customers’ minds (Kotler, 1997)
Some of the well-positioned brands are:
Raymonds: The Complete Man
Fair and lovely: Fairness
Key Components of a Positioning
A competitive frame of reference in terms of
the target market and nature of competition
Points-of-difference in terms of
strong, favorable, and unique brand
Points-of-parity in terms of brand associations
that negate any existing or potential points-ofdifference by competitors
Brand mantra that summarizes the essence of
the brand and key points-of-difference
For women aged 25-55, Loreal
Revitalift Anti-wrinkle and
firming cream reduces facial
wrinkles and firms your skin.
eBay’s positioning: No
matter what “it” is, you
can find “it” on eBay!
Principles of Effective
Relevance: Positioning of brand must focus on benefits
that are important to people or reflect the character of the
Clarity: Brand should be positioned in such a way that it
is easy to communicate and quick to comprehend.
Distinctiveness: In current market situation there are
reasonably good number of players vying for a share in
the market, forcing them to compete on the basis of price
Coherence: A brand should speak with one voice through
all the elements of the marketing mix.
Principles of Effective Positioning
Commitment: Management should be committed to
the position it has adopted. Once a position is
adopted, it takes commitment to see it through.
Patience: Patience plays an important role in the
success of brand as branding is not a one-day
wonder – it takes years to position a brand in
Courage: Adopting a strong brand position requires
courage as it is much easier to defend an appeal
rather than generate sales pitch.
Leveraging on Existing Brands' Strategy leverage on the names of the firm's existing
and established brands for extending the
product line or venturing into another product
Corporate Brand Positioning Strategy uses his company name/identity for brand
Product Features and Benefits Positioning
Strategy - Differentiating the brand on the basis
of its features and benefits offered (USP).
Ariel offers a specific benefit of cleaning even the
dirtiest of clothes because of the micro cleaning
system in the product.
Colgate offers benefits of preventing cavity and
Maruti Suzuki offers benefits of maximum fuel
efficiency and safety over its competitors.
Price-Quality Positioning Strategy
The product is positioned in a way that
the super quality of the product justifies
its high price (quality).
Positioning is done by focusing on the
affordable/low price of the product and its
Consumer experiences a feel good factor
since he's obtaining a quality product at
an economical price (price).
Competitive Positioning Strategy - Effective
offensive strategy where the marketer seeks to
persuade the consumer that his brand is
superior or at par with an established
Product Category Positioning Strategy:
Existing product category is too congested and
the new brand is positioned as belonging to
another product category.
Example – Cadbury Dairy Milk
User Positioning Strategy: Products can be
positioned according to their user bases
Under positioning: Failing to present a strong
central benefit or reason to buy the product.
Over positioning: This happens when a brand is
positioned at a very narrow customer base that
most of the potential customers will overlook the
Confused Positioning: By claiming two are more
benefits that contradict each other.
Doubtful Positioning: Claiming a benefit that
customers will doubt that the brand can actually