bus7450 strategic marketing management week 5 dr. jenne meyer

BUS7450Strategic Marketing Management

Week 5Dr. Jenne Meyer

BUS7500 Article reviews

8Identifying Market Segments and Targets

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-4

Effective Targeting Requires…

Identify and profile distinct groups of buyers who differ in their needs and preferences

Select one or more market segments to enter Establish and communicate the distinctive

benefits of the market offering


What is a Market Segment?

A market segment consists of a group of customers who share a similar set of

needs and wants.


Segmenting Consumer Markets

Geographic

Demographic

Psychographic

Behavioral


Demographic Segmentation

Age and life cycle Life stage Gender Income Generation Social class Race and Culture

Age and Lifecycle Stage


Gender and Income


Generational Influences


Psychographic Segmentation and The VALS Framework



Behavioral Segmentation: Decision Roles

Initiator

Influencer

Decider

Buyer

User

Behavioral Segmentation: Behavioral Variables

Occasions Benefits User Status Usage Rate

Buyer-Readiness Loyalty Status Attitude



Loyalty Status

Hard-core Split loyals Shifting loyals Switchers

Figure 8.3 Behavioral Segmentation Breakdown



Segmenting for Business Markets

Demographic Operating variable Purchasing approaches Situational factors Personal characteristics


Steps in Segmentation Process

Need-based segmentation Segment identification Segment attractiveness Segment profitability Segment positioning Segment acid test Market mix strategy


Effective Segmentation Criteria

Measurable Substantial Accessible Differentiable Actionable

9Creating Brand Equity


Steps in Strategic Brand Management

Identifying and establishing brand positioning

Planning and implementing brand marketing

Measuring and interpreting brand performance

Growing and sustaining brand value


What is a Brand?

A brand is a name, term, sign, symbol or design, or a combination of them, intended

to identify the goods or services of one seller or group of sellers and to differentiate them

from those of competitors.


The Role of Brands

Identify the maker Simplify product handling Organize accounting Offer legal protection Signify quality Create barriers to entry Serve as a competitive advantage Secure price premium


What is Brand Equity?

Brand equity is the added value endowed on products and services, which may be

reflected in the way consumers, think, feel, and act with respect to the brand.

Advantages of Strong Brands

Improved perceptions of product performance

Greater loyalty Less vulnerability to

competitive marketing actions

Less vulnerability to crises

Larger margins More inelastic

consumer response Greater trade

cooperation Increased marketing

communications effectiveness

Possible licensing opportunities


Virgin Atlantic’s Brand Promise



What is a Brand Promise?

A brand promise is the marketer’s vision of what the brand must be and do for

consumers.


Brand Equity Models

Brand Asset Valuator (BAV)

Brandz

Brand Resonance


Figure 9.1 BAV Model

Figure 9.2 Universe of Brand Performance


Figure 9.3 Brand Dynamics Pyramid


Figure 9.4 Brand Resonance Pyramid


Brand Building Blocks



Brand Elements

Brand names Slogans Characters

Symbols Logos URLs

Brand Element Choice Criteria


Memorable

Meaningful

Likeable

Transferable

Adaptable

Protectable

Slogans

Like a good neighbor, State Farm is there Just do it Nothing runs like a Deere Save 15% or more in 15 minutes or less

We try harder We’ll pick you up Nextel – Done Zoom Zoom I’m lovin’ it Innovation at work This Bud’s for you Always low prices


Figure 9.5 Secondary Sources of Brand Knowledge


Table 9.4 The 10 Most Valuable Brands



Devising a Branding Strategy

Develop new brand elements Apply existing brand elements Use a combination of old and new

Branding Terms

Brand line Brand mix Brand extension Sub-brand Parent brand Family brand

Line extension Category extension Branded variants Licensed product


Reasons for Brand Portfolios



Brand Roles in a Brand Portfolio

Flankers Cash cows Low-end, entry-level High-end prestige

Brand Extensions


10Crafting the Brand Positioning

What is Positioning?



Value Propositions

Perdue Chicken More tender golden chicken at a moderate

premium price Domino’s

A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price

Competitive Frame of Reference


Table 10.2 Customer Ratings of Competitors



Defining Associations

Points-of-difference

Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand

Points-of-parity

Associations that are not necessarily unique to the brand but may be shared with other brands

Point-of-Difference Criteria


Desirable

Deliverable

Differentiating

Figure 10.1a Perceptual Map: Current Perceptions


Figure 10.1b Perceptual Map: Possibilities


Designing a Brand Mantra


Communicate

Simplify

Inspire

Constructing a Brand Positioning Bull’s-Eye



Conveying Category Membership

Announcing category benefits Comparing to exemplars Relying on the product descriptor

Examples of Negatively Correlated Attributes and Benefits

Low-price vs. High quality

Taste vs. Low calories

Nutritious vs. Good tasting

Efficacious vs. Mild

Powerful vs. Safe Strong vs. Refined Ubiquitous vs.

Exclusive Varied vs. Simple


Differentiation Strategies


Means of Differentiation


Employee

Channel

Image

Services

Emotional Branding


Strong culture

Communication style

Emotional hook

Brand Narratives and Storytelling


Class wrap up

What is due for next week

bus7450 strategic marketing management week 5 dr. jenne meyer

Documents

pearson education

prentice hall

culture slide

brand equity slide

income copyright

sustaining brand value

jenne meyer slide

lifecycle stage copyright