This document provides information on market segmentation, brand equity, and examples of how they are applied. It defines market segmentation as dividing a market into groups based on common characteristics. The levels of segmentation range from mass marketing to niche marketing. It also outlines the segmentation process and common standards used. Brand equity is defined as the tangible and intangible value a brand provides to an organization based on consumer knowledge and experiences. A brand equity model is presented consisting of various elements like loyalty, imagery, and salience. Examples are given of how luxury brands like Rolex and Ferrari have developed strong brand equity through high quality, exclusivity, and heritage that appeal to consumer values like status and achievement.

1. ASSIGNMENT 8.1
[Segmentation& Brand Equity ]
[Viet Chinh- Minh Vu- Van Huong]

2. SEGMENTATION: DEFINITION
GENERAL DEFINITION
Market segmentation is the process of splitting potential consumer in a market into different
groups. Therefore, we can find out the most potential space where we can invest for
marketing/business purpose.
LEVEL OF SEGMENTATION
MASS MARKETING
One standardized
product for all
Example (Segment book buyers)
MARKET
SEGMENTATION
Homogenous
groups with similar
characteristics
SUB-
SEGMENTATION
Narrower groups
NICHE MARKETING
Special group
requires customized
product
All book buyers
Recreational buyers
Display buyers
Knowledge buyers
Stamp collectors
Hobbyists
Students
Workaholics

3. SEGMENTATION PROCESS AND STANDARD
PROCESS
•PHASE 1
Develop segments
•PHASE 2
Selecting segments
Step 1. Describe your market
• Defining the market
•Market mapping
Step 2. Finding decision-makers
Who specifies what
Step 3 . Segment the markets
• Why (needs of decision makers)
•Forming segments ( combining like-minded decision makers)
STANDARD
ACCESSIBILITY MEASURABILITY SUBSTANTIAL-
NESS
DURABILITY DIFFRIENTIAL
REPONSIVENESSDegree to which a
firm can reach
target segments
efficiently through
communication &
distribution
strategies
Degree to which
size and
purchasing
power of
segments can
be assessed
Degree to which
having sufficient
potential size
Stability of the
segments Degree to which can
be dishtiguishable
from other
segments

4. SEGMENTATION METHODS
GEOGRAPHICS DEMOGRAPHICS PSYCHOGRAPHICS
BUYER BEHAVIOUR BENEFIT SOUGHT END USE
•National
• Regional
• Urban/ rural
•Age
• Gender
• Culture
• Family Lifecycle
• Company size
•Purchase rates
• Loyalty
•Payment methods
• Media usage
•Low price
• Reliability
• Safety
• Convenience
• Status
•Lifestyle
• Personality
•Applications
• Product Types
We can mix these methods to find out the segmentation we want. They are supportive each other.

5. Listing all the largest growth
markets for mobile phone
Picking out most potential market for
smart phone: India, China.
Categorizing market into 4 sub-segment
By buyer behavior
( Life involvement of phone, using purpose)
Mobile
Communication as
empowerment
tool
Mobile
Communication
trend leaders
Mobile
Communication
only when
necessary
Mobile
Communication
trend followers
High Involvement
Aspirational
Low Involvement
Rational
1 2
3
SEGMENTATION EXAMPLES: Nokia S60

6. Using demographic and
psychographic to make
sub-segment of each big
one-fourth part
Mature Acceptor
Style Leader
Technology Stylist
4
SEGMENTATION EXAMPLES: Nokia S60
Analyzing sub-segments
by Benefit sought5
6
Final segmentation

7. BRAND EQUITY DEFINITION
AMA
“The value of a brand. From a consumer perspective, brand equity is based on consumer attitudes
about positive brand attributes and favorable consequences of brand use.”
David Aeker
“A set of assets and liabilities linked to a brand, its name and symbol, that adds to or subtracts
from the value provided by a product or service to a firm and/or to that firm’s customers.”
Our team
“The tangible and intangible value that a brand provides positively or
negatively to an organization, its products, its services, and its bottom-line
derived from consumer knowledge, perceptions, and experiences with the
brand.”

8. BRAND EQUITY MODEL
Reasonance
Loyalty
Attachment
Community
Engagement
Judgement
Quality
Credibility
Consideration
Superiority
Feeling
Warmth, Fun
Excitement
Security
Social Approval
Self- Respect
Performance Imagery
Primary Characteristics,
Secondary Features,
Product Reliability,
Durability, Serviceability,
Efficiency, Empathy, Style
User Profiles
Purchase and Usage
Situations
Personality and Values
History, Heritage and Experience
Salience
Category Identification
Needs Satisfied
Stage of Development Branding objective at each stage
1. Identify
Who are you?
2. Meaning
What are you?
3. Response
What about
you?
4. Relationships
What about you
and me?
Deep, broad
Brandawareness
Points of Parity
and Difference
Positive,
Accessible
reactions
Intensive, Active
loyalty
Element
Measurement

9. BRAND EQUITY EXAMPLE
1.Reasonance
2. Judgement 3. Feeling
5. Imagery4. Performance
6. Salience
1.Ultimate social status
Extremely loyal consumers. High
repeat purchase rate. Much affiliation
and attachment. Part of elite society
2.Extremely high quality
The best watches in the world.
Maximum quality, innovation and
design
3.Exclusive and Self-Rewarding
Feelings of success and high social
status. Social approval and self respect
4.True luxury product
Hand-crafted timepieces. Perpeptual
self-winding technology. Exceptional
service.
5.Classic and Achievement Image
Elite luxury image through sports and
cultural ambassadors. Status symbol.
Classic heritage
6.High Awareness
Most commonly recalled luxury
watched in the world, more depth
than breath
1.Beloging to very restraint
membership
High loyalty and high connection to
the brand
2. Luxury
High quality and great performances
3. Uniqueness
Small number of cars, long time
between order and delivering
4. Excellence and Reliability
Long history of innovation, hand
made,.
5. Heritage and Tradition
Vintage design, wood.
Three wheels.
6. Niche awareness
Low retail rate, high recognition,..
More breath than depth.