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MKTG Designed by Amy McGuire, B-books, Ltd. Prepared by Dana Freeman, B-books, Ltd. Lamb, Hair, McDaniel 2009-2010 8 CHAPTER Segmenting and Targeting Markets

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Page 1: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

MKTG

Designed by

Amy McGuire, B-books, Ltd.

Prepared by

Dana Freeman, B-books, Ltd.

Lamb, Hair, McDaniel 2009-2010

8CHAPTER

Segmenting and Targeting Markets

Page 2: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Describe the

characteristics

of markets and

market segments

Page 3: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

A marketing strategy which involves

dividing a broad target market into

subsets of consumers, or businesses,

that have, common needs, interests,

and priorities, and then designing and

implementing a marketing mix to target

them.

Page 4: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
Page 5: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Male and female

Ages 13 – 25

Active

Lifestyle brand

Working middle class ($60,000 – $80,000)

Do some type of sport

Seeking quality clothing at competitive price

Urban youth: comfort, durability & style

Fashion Statement

Male and female

Ages 15 – 40

Athletes/Sportsmen

Middle/Upper class ($80 - $125,000)

Sports performance brand

Athletic teams, college’s athletic teams,

for product sponsorship and eventual

promotion to the members of these teams.

Elite athletes who demands quality,

innovation and performance apparel.

Page 6: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

A younger demographic (20 – 35-year olds)

Customers have a flair for technology

Able to find their way around a tablet-like device

More likely to embrace changes and advances in technology

More educated people.

o College and Graduate

Working professionals

o Income $100,000+

Major metropolitan cities and suburbs

Enjoy reading

Page 7: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

What do the images suggest?

Are the people old/young? White,

African American, Hispanic, Asian?

Where are they, e.g. at home, on

holiday?

What are they wearing? Nice

clothes, business, casual, grunge?

Does it look like they are in a city,

suburbs, small town,

international?

Are they at home, work, office,

remote location?

Are they using technology? iPads,

smart phones?

Page 8: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Until 1960’s marketers did not

practice segmentation

o Sloppy effort

o One size, fits all

o Either buy it, or go without

o Little competition

Today, marketers must segment the

market to survive

o Not everybody is your target market

• My 85 year old mother is not going to buy

your headphones

Page 9: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Substantial

Identifiableand Measurable

Accessible

Responsive

The market segment should be large enough, in terms of sales and profitability, to warrant

the firm’s possible attention

Segments must be identifiable and their size measurable.

Members of targeted segments must be reachable with marketing mix.

Each market segment should respond better to a distinct marketing mix, rather than a

generic offering

Page 10: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
Page 11: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Kombucha is a fun and tasty way to feed your gut those important probiotics, and Health-Ade is about to make it even more enjoyable with their new line of summer-inspired flavors.

Health-Ade just announced the release of six new kombucha varieties to hit retailers nationwide this year, and with names like Strawberry Lemonade and Passionfruit-Tangerine we know we’ll be sipping on these all summer. The other flavors to be released are Grapefruit, Tropical Punch, Cherry Berry, and Peach-Mango.

Page 12: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
Page 13: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
Page 14: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
Page 15: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Useful

segment?

Substantial

Identifiable and measurable

Accessible

Responsive

Then, yes: Useful segmentation scheme

Successful Market Segmentation

Page 16: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Describe the bases

commonly used

to segment

consumer markets

Page 17: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Segmentation

VariablesMarketers use segmentation

bases (variables)

Characteristics of

individuals, groups, or

organizations used to divide

a total market into segments.

Page 18: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

There are a variety of ways of segmenting the market for cars.

Remember that market segmentation should be focused on consumer groups and their needs, not on the class of car.

Classifying different types of cars (such as sedans, people movers, convertibles, and so on) is NOT an acceptable approach to market segmentation.

These types of cars are product solutions designed to meet the needs of specific consumer segments.

Page 19: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

•Industry: What industries should we serve?

•Company size: What size companies should we serve?

•Location: What geographical areas should we serve?

Demographic

•Technology: What customer technologies should we focus on?

•User or nonuser status: Should we serve heavy users, medium users, light users, or nonusers?

•Customer capabilities: Should we serve customers needing many or few services

Operating Variables

•Urgency: Should we target companies that need quick and sudden delivery or service

•Specific application: should we focus on a certain application or product

•Size and order: Should we focus on large or small orders

Situational Factors:

•Buyer-Seller Similarity: Should we focus on business whose people and values are similar to ours

•Attitude toward risk: Should we serve risk taking or risk avoiding customers

•Loyalty: Should we serve businesses that show a high degree of loyalty to their suppliers

Personal Characteristics

The business market consists of four segments: producers, resellers, government, and institutions

Page 20: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Usage Rate

Benefits Sought

Psychographics

Demographics

Geography

Page 21: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
Page 22: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

A process of grouping customers based on

where they live. Companies segment their

target market geographically when needed

to focus on a specific area.

Page 23: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Targeting according to age, race, religion, gender,

family size, ethnicity, income, and education.

Advantages of demographic segmentation is that

the information you need is readily available for

you. (census data)

Most popular because customer wants are closely

linked to variables such as income and age.

o Also, for practical reasons, there is often much more data

available to help with the demographic segmentation

process.

Page 24: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

There are about 20 million tweens (ages 9-12) in the U.S. This group spends

over $20 billion per year. Retailers such as Limited Too and Lululemon Ivivva

brand serve this market.

Page 25: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Segmenting your market based

on consumer age

Page 26: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
Page 27: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Tweens (8 – 12)

o Big influence over family

purchases

o Retailers serve clothing imitates

teenagers and young adults

o Adult technology for kids

Teens

o Technology savvy

o Grown-up tastes and preferences

o Learn quickly from social media

Page 28: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
Page 29: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Born between 1980 and 2003

o Grew-up on personal computers, cell

phones, and video game systems

o Know how to use a tablets,

smartphones, and apps.

o Entrepreneurial

o Engage in peer to peer marketing on

youtube.

Page 30: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Born 1966 – 1976

Tend to be disloyal to brands

Skeptical of big business

Many are parents, make purchasing decisions with input from family

Desire an experience, NOT a product

Page 31: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Boon between 1946 – 1964

Represent ½ of all the spending in the US

Make up 49% of affluent households

Spend lots of money on travel, electronics, and cars

Page 32: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Women make 70 percent of

consumers goods purchases

annually

Many marketers of male-dominated

arenas are targeting women

Increasing numbers of marketers in

female dominated categories are

targeting men.

o Russell Simmons Yoga Line

o Jenny Craig & Weight Watchers

Page 33: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
Page 34: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Segmenting the market based on a

consumer's income and

expenditure patternso Upper High Class

o High Class

o Upper Middle Class

o Middle Class

o Lower Middle Class

o Lower Class

Low-income (Walmart)

High-income (Saks Fifth Avenue)

Both (Costco, Target)

Page 35: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Recognizing the special

strengths or needs of

an ethnic community in offering

it appropriate products and

services using an appropriate

marketing approach.

Three largest ethnic segments

o Hispanics

o African Americans

o Asians

Kmart teaming up with Hispanic

celebrities to produce line of

clothing targeting this segment

Page 37: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

A method for separating the aspects of the family market at different stages of life.

The marketing technique takes the size of a person's family into consideration, along with a potential customer's age and professional status.

Single young adults• Clothing.

• Beauty.

• Accessories.

• Personal vehicles.

• Entertainment.

• Travel.

• Basic furniture.

• Basic appliances

• Pet expenses.

• Studies.

Page 38: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
Page 39: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Social media has enabled custom audiences and precise

targeting.

Marketers to start using signals to target and schedule

media, not predictions based on surveys and panels

Real signals activated by customers to identify where they

are on their individual journey to purchase

o Logging onto the brand website

o Searching for a brand name

o Talking about brand on social media

o Installed the brands app on their cell phone

o Starting a Pinterest board

Age, income, where they went to school, or ethnicity don’t

matter

Page 40: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Location data merged with credit card data provides great signals.

Data from Pinterest, downloaded apps, twitter, amazon searches, Instagram

following, etc. can tell us

o We need to reach customers as they are demonstrating intent

Are they talking about you on twitter? Are they watching a product demonstration

on Youtube, Are they sharing an Instagram post for your product?

Page 41: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Sometimes referred to as behavioral

segmentation.

Dividing your market into segments based

upon different personality traits, values,

attitudes, interests, and lifestyles of

consumers.

This segmentation is advantageous because it

allows you to engage in product design and

marketing in a focused manner.

o If these are known, products and marketing campaigns

can be customized so that they appeal more

specifically to customer motivations.

• Hard working• Dog lover• TV binge watcher• Scary film lover• Baseball fan• Environmentally aware• Thrill seeker• Loves Italian food• Morning person• Plays computer games• Tech savvy• Fashionista• Republican/Democrat• Gardening• LGBTQ activist• Starbucks every morning• Spender/Saver/in-debt

Page 42: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

PersonalityTraits, attitudes, and habits, opinions, interests and hobbies

MotivesLove, compassion, acceptance, security

LifestylesValues, beliefs, opinions, and interests

GeodemographicsCombining demographics, psychographics and geography

Page 43: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
Page 44: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
Page 45: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
Page 46: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

http://www.wordst

ream.com/blog/w

s/2016/06/27/fa

cebook-ad-

targeting-options-

infographic

Page 47: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
Page 48: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
Page 49: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
Page 50: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Segmenting potential

customers into

neighborhood lifestyle

categories.

Combines geographic,

demographic, and lifestyle

segmentation.

Geodemographic

Segmentation

Page 51: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

The process of grouping

customers into market segments

according to the benefits they

seek from the product.

Benefit

Segmentation

Page 52: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
Page 53: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
Page 54: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Consumers are divided into groups of non-users and light, medium, and heavy product

users, and companies often seek to target one heavy user rather than several light users.

Page 55: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

List the steps

involved in

segmenting

markets

Page 56: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Target

Market

A group of people or

organizations for which an

organization designs,

implements, and maintains a

marketing mix intended to

meet the needs of that group,

resulting in mutually

satisfying exchanges.

Page 57: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

ConcentratedStrategy

UndifferentiatedStrategy

MultisegmentStrategy

Page 58: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Undifferentiated

Targeting

Strategy

A marketing approach that

views the market as one big

market with no individual

segments and thus

requires a single

marketing mix.

Undifferentiated Targeting Strategy

Page 59: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

All consumers have similar needs for

a specific kind of product.

Single marketing mix

o Pricing strategy

o Promotional program aimed at

everybody

o Type of product with little/no

variation

o Distribution system aimed at entire

market

The elements of the marketing mix

do not change for different

consumers, all elements are

developed for all consumers.

Page 60: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
Page 61: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Concentrated

Targeting Strategy

A strategy used to select one

segment of a market for

targeting marketing efforts.

NicheOne segment of

a market.

Page 62: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

• A single market segment with one

marketing mix (niche)

• It allows a firm to specialize

• Can focus all energies on satisfying

one group's needs

• A firm with limited resources can

compete with larger organizations.

Only one marketing mix is developed.

Manufacturer of Rolex watches has

chosen to concentrate on the luxury

segment of the watch market.

Page 63: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Multisegment

Targeting

Strategy

A strategy that chooses

two or more well-defined

market segments and

develops a distinct

marketing

mix for each.

Multi-segment Targeting Strategy

Page 65: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Situation that occurs when

sales of a new product cut into

sales of a firm’s existing

products.

Cannibalization

Cannibalization

Page 66: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Explain how and why

firms implement

positioning strategies

and how product

differentiation

plays a role

Page 67: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Arranging for a product or brand to occupy

a clear, desirable and distinctive place

relative to the competition in the minds of

the target customers.

A process which influences customers

overall perception of the brand.

Page 68: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
Page 69: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Attribute

Price and Quality

Use or Application

Product User

Product Class

Competitor

Emotion

Page 70: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Association of a product with a product

feature, an attribute, or customer benefit.

Rice Krispies

o Snap, crackle, pop - Simply highlighting the attribute

of noise that this cereal makes, which adds a fun

benefit to the product

KFC

o Finger Linkin’ good - Focuses on the enjoyable taste

of the product

M&M’s

o Melts in your mouth – Connects product feature

directly to the benefits

Page 71: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

High price as a symbol of quality, or low price as an indicator of value may be used to position a product.

Association of a product with price,

value, quality

Page 72: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

American Express

o Don’t leave home without it – states that

the product is vital when traveling

Arm & Hammer

o Fruit and vegetable wash – for clean and

healthy vegetables

Vicks VapoRub

o For use on chest and back to suppress

cough and cold

Association of a product with some type of use or application

Page 73: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Positioning base focuses on a personality or type of user.

Page 74: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Subway

o Eat Fresh – positioned against other

food products

Federal Express

o When it absolutely , positively has to be

there overnight – states there is no

competitive alternative when you want

promptness

Activia Yogurt

o Breakfast blend – states can eat on the

go as breakfast meal

Product is positioned as associated with a particular

category of products.

Page 75: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Burger King

o Have it you way – Highlights the flexibility of their menu choices, implied against McDonald’s

offerings

Avis Rent-a-Car

o We try harder - Targets the market leader (Hertz), by implying that they are lazy and

complacent, particularly in the area of customer service

Apple Computer

o I’m a Mac, I’m a PC – Highlights the young progressive user against the competition

Positioning against competitors

Page 76: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing
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Positioning using emotion focuses on how the product makes customers feel.

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Page 80: MKTG 2009-2010 8 - ccsfmarketing.com · Male and female Ages 13 –25 Active Lifestyle brand Working middle class ($60,000 –$80,000) Do some type of sport Seeking quality clothing

Changing consumers’

perceptions of a brand in

relation to competing brands.

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