Brand mgmt positioning
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The document outlines the steps in market segmentation, targeting, and positioning. It discusses 1) identifying bases for segmenting the market through demographic, psychographic, and behavioral variables, 2) developing segment profiles and measuring segment attractiveness to select target segments, and 3) developing positioning and marketing mixes tailored for each target segment.
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Brand mgmt positioning
- 2. Steps in Market Segmentation, Targeting, and Positioning Market Segmentation 1. Identify bases for segmenting the market 2. Develop segment profiles Market Targeting 3. Develop measure of segment attractiveness 4. Select target segments Market positioning 5. Develop positioning for target segments 6. Develop a marketing mix for each segment
- 3. Step 1. Market Segmentation Demographic Segmentation • Dividing the market into groups based on variables such as: – Age – Gender – Family size or life cycle – Income – Occupation – Education – Religion – Race – Generation – Nationality
- 4. Step 1. Market Segmentation Psychographic Segmentation Divides Buyers Into Different Groups Based on:
- 5. Step 1. Market Segmentation Behavioral Segmentation • Dividing the market into groups based on variables such as: – Occasions – Benefits – User status – Usage rate – Loyalty status – Readiness stage – Attitude toward product
- 6. Benefit segmentation of the beverage market Which product would you choose for which benefit? coffee tea milk beer cola un-cola Relieve throat irritation +++ Settle upset stomach +++ ++ Provide energy and pep ++ +++ Help relax, unwind + +++ Provide nutrition +++ Good taste + +++ Quench thirst +++ +
- 7. Model of Segmentation values needs benefits beliefs/evaluations Brand attitudes Choice rules Price sensitivity Choice Brand loyalty Use level Use situation User differences: •Demographics •Life cycle •Lifestyle Situation differences: •Physical •Social •Psychological
- 8. Step 2. Market Targeting • Segment Size and Growth – Analyze current sales, growth rates and expected profitability for various segments. • Segment Structural Attractiveness – Consider effects of: competitors, availability of substitute products and, the power of buyers & suppliers. • Company Objectives and Resources – Company skills & resources needed to succeed in that segment(s). – Look for Competitive Advantages.
- 9. Step 2. Market Targeting Choosing a Market-Coverage Strategy CCoommppaannyy RReessoouurrcceess PPrroodduucctt VVaarriaiabbiliiltityy PPrroodduucctt’s’s SSttaaggee inin tthhee LLififee CCyycclele MMaarrkkeett VVaarriaiabbiliiltityy CCoommppeettititoorr’s’s MMaarrkkeettiningg SSttrraatteeggieiess
- 10. Step 3. Positioning Strategy • Product’s Position - the way the product is defined by consumers on important attributes - the place the product occupies in consumers’ minds relative to competing products. • Marketers must: – Plan positions to give their products the greatest advantage in selected target markets, – Design marketing mixes to create these planned positions.
- 11. Step 3. Choosing a Positioning Strategy Step 1. Identifying Possible Competitive Advantages Step 2. Selecting the Right Competitive Advantage Step 3. Communicating and Delivering the Chosen Position
- 12. Identifying Possible Competitive Advantages • Key to winning and keeping customers is to understand their needs and buying processes better than competitors do and deliver more value. • Competitive advantage is an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits, that justify competitive advantage,
- 13. Consumer Evaluation What criteria do consumers use to make evaluations? What do consumers care about? • Values • Benefits • Attributes • Means-End Value Chains
- 14. Means-End Value Chains •Power •Status •Self esteem •$$ security •Family •Environment •Peer admiration •Speed •Exclusivity •Protection •Value •Reliability •Low emissions •Horse power •Prestige brand •Styling •Extras •Air bags •High mpg •Price/resale •Japanese •BMW •Lexus •Mercedes •Honda •Toyota •Nissan
- 15. Integration • CBBE • Consumer Information Processing Model • Expectancy Confirmation Satisfaction Model • Means-End Value Chains
- 16. CBBE Information Processing Model Expectancy- Disconfirmation Satisfaction Model Means-End Value Chains identity exposure/attention consideration set attributes meaning comprehension expectancies vs. experience consequences response yielding relationship retention/behavior delight/enthusiasm values Weak effects Strong effects