Brand Management Positioning
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
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 Most Popular Bases & Easiest to Measure
Step 1. Market SegmentationPsychographic Segmentation Divides Buyers Into Different Groups Based on: Social Class Lifestyle Personality
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 market Which product would you choose for which benefit?
values • User differences: • Demographics • Life cycle • Lifestyle needs benefits • Situation differences: • Physical • Social • Psychological beliefs/evaluations Brand attitudes Choice rules Price sensitivity Choice Brand loyalty Use level Use situation Model of Segmentation
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.
Step 2. Market TargetingChoosing a Market-Coverage Strategy Company Resources Product Variability Product’s Stage in the Life Cycle Market Variability Competitor’s Marketing Strategies
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
Power • Status • Self esteem • $$ security • Family • Environment • Protection • Value • Reliability • Low emissions • Peer admiration • Speed • Exclusivity • Horse power • Prestige brand • Styling • Extras • Air bags • High mpg • Price/resale • Japanese • Honda • Toyota • Nissan • BMW • Lexus • Mercedes Means-End Value Chains
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