Brand Management

Positioning

Steps in Market Segmentation, Targeting, and Positioning

Market Segmentation1. Identify bases for segmenting the market2. Develop segment profiles

Market Targeting3. Develop measure of segment attractiveness4. Select target segments

Market positioning5. Develop positioning for target segments6. Develop a marketing mix for each segment

Step 1. Market SegmentationDemographic 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

Step 1. Market SegmentationPsychographic Segmentation

Divides Buyers Into Different Groups Based on:

Step 1. Market SegmentationBehavioral Segmentation

• Dividing the market into groups based on variables such as:– Occasions– Benefits– User status– Usage rate– Loyalty status– Readiness stage– Attitude toward product

Benefit segmentation of the beverage marketWhich 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 +++ +

Model of Segmentation

values

needs

benefits

beliefs/evaluations

Brand attitudesChoice rulesPrice sensitivity Choice

Brand loyaltyUse levelUse situation

User differences:•Demographics•Life cycle•Lifestyle

Situation differences:•Physical•Social•Psychological

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.

Company ResourcesCompany Resources

Product VariabilityProduct Variability

Product’s Stage in the Life CycleProduct’s Stage in the Life Cycle

Market VariabilityMarket Variability

Competitor’s Marketing StrategiesCompetitor’s Marketing Strategies

Step 2. Market TargetingChoosing a Market-Coverage Strategy

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.

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

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,

Consumer Evaluation

What criteria do consumers use to make evaluations? What do consumers care about?

• Values

• Benefits

• Attributes

• Means-End Value Chains

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

Integration

• CBBE

• Consumer Information Processing Model

• Expectancy Confirmation Satisfaction Model

• Means-End Value Chains

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