Marketing Management, Segmentation, and Brand Positioning Strategies

Marketing Management

The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

Items that are marketed

1. Goods 2. Services 3. Events 4. Persons 5. Places 6. Properties 7. Organizations 8. Information 9. Experiences 10. Ideas.

Demand States

1. Negative 2. Nonexistent 3. Declining 4. Irregular 5. Unwholesome 6. Indifferent 7. Total.

Needs

The basic human requirements such as for air, food, water, clothing, and shelter.

Wants

Specific objects that might satisfy the need.

Demands

Wants for specific products backed by an ability to pay.

Types of Needs

1. Stated: the customer wants an inexpensive car. 2. Real: the customer wants a car whose operating cost, not initial price, is low. 3. Unstated: the customer expects good service from the dealer. 4. Delight: the customer would like the dealer to include an onboard GPS system. 5. Secret: the customer wants friends to see him or her as a savvy consumer.

Target

Which market you have chosen to reach.

Positioning

Market offering that it positions in target buyers' minds as delivering some key benefits.

Segmentation

Identify distinct segments of buyers by identifying demographic, psychographic, behavioral differences.

Components of a Marketing Plan

1. Executive Summary: 'elevator pitch'. 2. Situation Analysis: Overview of the situation in which the company operates. 3. Marketing Strategy: Objectives, target, positioning. 4. Marketing Tactics: Outline key attributes of the market offering. 5. Financial Projections. 6. Implementation Controls: Measures the success of the company's activities over time.

SWOT Components

1. Strengths: Area of buyer need interest that a company has a high probability of satisfying. 2. Weaknesses: Facts that challenge posed by an unfavorable trend or development. 3. Opportunities: Relevant opportunities in the market. 4. Threats: Unfavorable trends that could lead to lower sales or profit.

Disintermediation

Intervening in the traditional flow of goods going to online only, taking away the middle man.

Reintermediation

Going from online only to bricks/mortar, adding a middle man.

Value Delivery Process

1. Choosing the value: STP - Segment the market, Select Appropriate Target, Develop the value/brand Positioning. 2. Providing the value: Identify specific product features, benefits, prices, and distribution.

Core Competency

Source of competitive advantage that makes a significant contribution to perceived customer benefit.

Intensive Growth

Current product growth through new users, increasing market penetration, and increasing frequency of use.

Integrative Growth

Business can increase sales and profits through backward, forward, or horizontal integration within its industry.

Entry Point Marketing

Understanding consumer insight linked to personal factors, used when consumers are in the correct need state to be receptive to a brand's marketing idea.

Maslow's Hierarchy of Needs

1. Physiological needs - food, water, shelter; 2. Safety needs - security, protection; 3. Social needs - sense of belonging, love; 4. Esteem needs - self-esteem, recognition, status; 5. Self-actualization needs - self-development realization.

Selective Attention

We screen out most stimuli related to current needs.

Selective Distortion

We interpret information in a way that meets our perceptions.

Selective Retention

We remember information that supports our attitudes and beliefs.

Subliminal Perception

Consumers aren't consciously aware of them.

Stages of the Buying Decision Process

1. Problem recognition; 2. Information search; 3. Evaluation of alternatives; 4. Purchase decision; 5. Post-purchase behavior.

Functional Risk

Product performs to expectation.

Physical Risk

Product poses a physical threat to consumer.

Time Risk

Time to find another product that works.

Financial Risk

Product is not worth the price.

Psychological Risk

Product impacts the emotional well-being of the user.

Social Risk

Product results in embarrassment in front of others.

Low Involvement Consumer Decision Making

A decision-making process where consumers are less engaged and the perceived risk is lower.

Variety Seeking Buying Behavior

Use advertising to trigger strong emotions for low involvement products, leading to significant brand differences and brand switching for the sake of variety.

Perceived Risk

A consumer decision to purchase is influenced by various types of risk.

Market Segment

A group of consumers who share the same set of needs and wants.

Consumer Market Segmentation Variables

Factors used to categorize consumers into segments, including geographic, demographic, psychographic, and behavioral variables.

Geographic Region

Categories based on location such as Pacific, Mountain, and various Central and Atlantic regions.

City or Metro Size

Population size categories: Under 5,000; 5,000-20,000; 20,000-50,000; 50,000-100,000; 100,000-250,000; 250,000-500,000; 500,000-1,000,000; 1,000,000-4,000,000; 4,000,000+.

Density

Classification based on population density: Urban, suburban, rural.

Demographic Age

Age categories: Under 6, 6-11, 12-17, 18-34, 35-49, 50-64, 64+.

Family Size

Categories based on number of family members: 1-2, 3-4, 5+.

Family Life Cycle

Stages of family development: Young, single; young, married, no children; young, married, youngest child under 6; young, married, youngest child 6 or older; older, married, with children; older, married, no children under 18; older, single; other.

Gender

Classification based on sex: Male, female.

Income

Income categories: Under $10,000; $10,000-$15,000; $15,000-$20,000; $20,000-$30,000; $30,000-$50,000; $50,000-$100,000; $100,000+.

Occupation

Categories based on job type: Professional and technical; managers, officials, and proprietors; clerical sales; craftspeople; forepersons; operatives; farmers; retired; students; homemakers; unemployed.

Education

Education levels: Grade school or less; some high school; high school graduate; some college; college graduate; post college.

Religion

Categories based on religious affiliation: Catholic, Protestant, Jewish, Muslim, Hindu, Other.

Race

Categories based on ethnicity: White, Black, Asian, Hispanic, Other.

Generation

Generational categories: Silent Generation, Baby Boomers, Gen X, Millennials (Gen Y).

Nationality

Categories based on nationality: North American, Latin American, British, French, German, Italian, Chinese, Indian, Japanese.

Social Class

Categories based on economic status: Lower lowers, upper lowers, working class, middle class, upper middles, lower uppers, upper uppers.

Psychographic Lifestyle

Classification based on lifestyle orientation: Culture-oriented, sports-oriented, outdoor-oriented.

Personality

Personality traits: Compulsive, gregarious, authoritarian, ambitious.

Behavioral Occasions

Categories based on usage occasions: Regular occasion, special occasion.

Benefits

Factors that consumers seek: Quality, service, economy, speed.

User Status

Categories based on user experience: Nonuser, ex-user, potential user, first-time user, regular user.

Usage Rate

Classification based on frequency of use: Light user, medium user, heavy user.

Loyalty Status

Categories based on brand loyalty: None, medium, strong, absolute.

Readiness Stage

Stages of consumer readiness: Unaware, aware, informed, interested, desirous, intending to buy.

Attitude Toward Product

Consumer attitudes: Enthusiastic, positive, indifferent, negative, hostile.

Loyalty Status Groups

Four groups based on brand loyalty status: 1. Hard-core loyal - consumers who buy only one brand at a time. 2. Split loyal - consumers who are loyal to two or more brands. 3. Shifting loyal - consumers who shift loyalty from one brand to another. 4. Switchers - consumers who show no loyalty to any brand.

Needs-Based Segmentation

Group customers into segments based on similar needs and benefits sought by customers in solving a particular consumption problem.

Segment Identification

For each needs-based segment, determine which demographics, lifestyles, and usage behaviors make the segment distinct and identifiable (actionable).

Segment Attractiveness

Using predetermined segment attractiveness criteria (such as market growth, competitive intensity, and market access), determine the overall attractiveness of each segment.

Segment Profitability

Determine segment profitability.

Segment Positioning

For each segment, create a 'value proposition' and product-price positioning strategy based on that segment's unique customer needs and characteristics.

Segment 'Acid Test'

Create 'segment storyboard' to test the attractiveness of each segment's positioning strategy.

Marketing-Mix Strategy

Expand segment positioning strategy to include all aspects of the marketing mix: product, price, promotion, and place.

Effective Segmentation Criteria

Measurable, Substantial, Accessible, Differentiable, Actionable.

Point of Difference

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

Point of Parity

Attributes / benefit associations that are not necessarily unique to the brand but may in fact be shared with other brands.

Competitive Frame of Reference

Defines which other brands a brand competes with and which should thus be the focus of competitive analysis.

Brand Mantra

3-S word articulation of the heart and soul of the brand.

Roles for a Brand (for Consumers)

Set + fulfill expectations, reduce risk, simplify decision making, take on personal meaning, become part of identity.

Roles of Brands for a Company

Recognize inventory accounting, offer legal protection, create brand loyalty, stature competitive advantage.

Marketing Advantages of Strong Brands

Improved perceptions of product performance, greater loyalty, less vulnerability to competitive marketing actions, larger margins.

Branding Strategy Options

Brand extension, sub-brand, parent brand, line extension, category extension, brand line, brand mix, branded variants, licensed product.

Brand Portfolio

The set of all brands and brand lines in a particular firm offers for sale in a particular category or market segment.