Download - Brand mgmt positioning
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