Professional Documents
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Target market
A market is set of all actual and potential buyers who have interest in, income for, and access to a product. Market segmentation divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior, and so they require similar marketing mixes. Segmentation bases: behavioral: user status, usage rate, usage occasion, brand loyalty, benefits sought Demographic: income, age, sex, race, family Psychographic: values, opinions and attitudes; activities and lifestyles Geographic: international, regional Business to business segmentation bases: Nature of goods: type, where used, type of buy Buying condition: purchase location, who buys, type of buy Demographic: industry code, no. of employees, sales, no. of establishments
Behavioral segmentation bases are most valuable in understanding branding issues because they have clear strategic implications. For ex. Toothpaste market, there are 4 main segments:
1. 2. 3. 4. Seeking flavor and product look Brightness of teeth Decay protection Low price
Marketing program can be put to attract one or more of these segment Ex. Segments based on brand loyalty:
1. 2. 3. 4. Consumers highly likely to change brands Consumers considering alternatives Comfortable with their choice Extremely loyal
Main advantages of demographic segmentation bases is that demographics of traditional media vehicles are generally well known, and so it is easier to buy media on that basis.
Criteria
Identifiability: can we easily identify the segment? Size: is there adequate sales potential in that segment? Accessibility: Are distribution outlets and communication media available to reach the segment? Responsiveness: how favorably will the segment respond to a tailored marketing program Remember the overriding consideration in defining segments is profitability
Nature of competition
Other firms in the industry may also target the segment in past/ future, and consumers look to other brands in their purchase decisions Competition also takes place on other base as well like, distribution channel Define competition broadly, like at the benefit level rather than at product attribute level Arriving at proper positioning requires establishing the correct points of difference and points of parity associations
Positioning guidelines
There are two key issues:
1. Defining and communicating the competitive frame of reference 2. Choosing and establishing points of parity and points of difference
A cake mix might attain membership in the cake category by claiming great taste and might support this benefit claim by possessing high quality ingredients (performance) and by showing users delighting in its consumption (imagery). Exemplars well known brands in the a category can also be used to specify a brands category membership. The product descriptors that follows the brand name is often a compact means of conveying category origin. Eg. Kellogg's Corn Flakes
Consumer need to find the pod desirable and believe the firm has the capability to deliver it Desirability criteria:
1. 2. 3. Relevance Distinctiveness Believability
Relevance: target consumers must find the POD personally relevant and important Distinctiveness: target consumers must find POD distinctive and superior Believability: a brand must offer a compelling and credible reason for choosing it over other options Following 3 deliverability criteria are satisfied, the positioning has the potential to be enduring.
1. 2. 3. Feasibility Communicability sustainability
Updating positioning over time: with established brands, competitive forces often dictate shifts in positioning strategy over time, Eg. BJP
Internal Branding
Internal branding is making sure that members of the organization are properly aligned with the brand and what it represents For services companies, it is critical that all employees have up-to-date and deep understanding of the brand
Brand Audit
To learn what consumers know about brands/ products so that the company can make informed strategic positioning decision, marketers should first conduct a brand audit to profile consumer knowledge structures. Brand audit is comprehensive examination of a brand to discover its sources of brand equity Brand audit can set strategic direction for the brand Are the current sources of brand equity satisfactory? Do certain brand associations need to be strengthened? Does the brand lack uniqueness? What brand opportunities/ potential challenges exist? Brand audit consists 2 steps:
1. Brand inventory 2. Brand exploratory
Brand Inventory
Provides current/ comprehensive profile of how all products/ services sold by a company are marketed/ branded Requires to catalogue names, logos, symbols, characters, packaging, slogans, trademarks, product attributes, pricing, communications, distribution and any other relevant marketing activity related to the brand in visual and written form It helps to suggest what consumers current perceptions may be based on A thorough brand inventory should be able to reveal the extent of brand consistency Brand inventory may help to uncover undesirable overlap that could lead to consumer/ retailer confusion
Brand Exploratory
Brand exploratory is research directed to understanding what consumers think/ feel about the brand A number of prior research studies may exist in company archives and be relevant It is also useful to interview internal personal to gain an understanding of their beliefs about consumer perceptions for the brand and competitive brands Finally, qualitative research is suggestive, but a more definitive assessment of the depth/ breadth of brand awareness and the strength/ favorability/ uniqueness of brand associations often requires a quantitative phase of research.
The challenge in achieving the ideal positioning for a brand as being able to achieve congruence among what customers currently believe about the brand (and thus find credible), what consumers will value in the brand, what the firm is currently saying about the brand, and where the firm would like to take the brand. - John Roberts, marketing academician, Australia
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