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Giving Them What They Want Branding and Positioning for Your Targeted Segment. Dr. Judy K. Frels Robert H. Smith School of Business University of Maryland [email protected] ?. What do you think of when you think of marketing?. Not exactly…. T. S. P. ( Segment ). ( Target).

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Giving them what they want branding and positioning for your targeted segment l.jpg

Giving Them What They WantBranding and Positioning for Your Targeted Segment

Dr. Judy K. Frels

Robert H. Smith School of Business

University of Maryland

[email protected]


What do you think of when you think of marketing l.jpg

?

What do you think of when you think of marketing?

Not exactly…


Developing marketing strategy l.jpg

T

S

P

(Segment)

(Target)

(Position)

Developing Marketing Strategy

5 C’s

Context

Collaborators

Customer

Competitor

Company

Market Sensing

4 P’s

Product

Price

Place

Promotion


Why do we do marketing l.jpg
Why do We do “Marketing”?

  • The purpose of marketing is to make selling superfluous. Peter Drucker, 1973

  • There is only one valid definition of business purpose: to create a customer. Peter Drucker

  • Marketing means solving customers’ problems profitably.Randall G. Chapman, PhD


Choosing the right customer l.jpg
Choosing the Right Customer

If

marketing means solving customers’ problems profitably,

then

exactly whose problems can wesolve profitably?


Developing marketing strategy6 l.jpg

T

S

P

(Segment)

(Target)

(Position)

Developing Marketing Strategy

5 C’s

Context

Collaborators

Customer

Competitor

Company

Market Sensing

4 P’s

Product

Price

Place

Promotion


Choosing the right customer7 l.jpg

T

S

P

(Segment)

(Target)

(Position)

Choosing the Right Customer

Customer

Market Sensing


Consumer segmentation options l.jpg

Demographic

Age, Life-cycle

Income, Occupation

Gender

Education

Psychographic

Social Class

Lifestyle

Behavioral

Benefits

Usage Rate

Usage Occasion

Buyer Readiness

Loyalty

Attitudes

Geographic

National / International

Regional

Consumer Segmentation Options


Example the vals framework l.jpg
Example:The VALSFramework

http://www.sric-bi.com/



Same segment l.jpg
Same Segment?

  • Working Person at Home

  • Spice needs?

  • Other needs?

  • “Gourmet Chef” at Home

  • Spice needs?

  • Other needs?


Different segment different offerings l.jpg
Different Segment?Different Offerings…

  • Working Person at Home

  • Spice needs?

  • Other needs?

  • “Gourmet Chef” at Home

  • Spice needs?

  • Other needs?



Same segment14 l.jpg
Same Segment?

  • D-I-Y / “weekend warrior”

  • Heavy user?

  • Tool needs?

  • Other needs?

  • Independent contractor

  • Heavy user?

  • Tool needs?

  • Other needs?


Different segment different offerings15 l.jpg
Different Segment?Different Offerings…

  • D-I-Y / “weekend warrior”

  • Heavy user?

  • Tool needs?

  • Other needs?

  • Independent contractor

  • Heavy user?

  • Tool needs?

  • Other needs?


Targeting l.jpg

M1 M2 M3

P1

P2

P3

Targeting

  • Select segments likely to be profitable

  • Select segment(s) whose needs can be better met by your company than by competitors

    • Segments for which you have

      a competitive advantage



Who are they targeting18 l.jpg

$ Purchase Per Use

Frequency of Use

Who are They Targeting?


Positioning the core of marketing l.jpg

PositioningThe Core of Marketing


What do we mean by positioning l.jpg
What do we mean by positioning?

Creating distinct and valued physical and perceptual differences between one’s product and its competitors, as perceived by the target customer.


What do we mean by positioning21 l.jpg
What do we mean by positioning?

Creating distinct and valuedphysical and perceptual differencesbetween one’s product and its competitors, as perceived by the target customer.


Positioning l.jpg

4 P’s

Product

Price

Place

Promotion

P

(Position)

Positioning

  • What is your Value Proposition?

  • How do you Position yourself vis-à-vis your competitors

  • What is your Promise and how will you Deliver?



Different segments warrant different positions l.jpg

  • Quicken Basic

  • Is the easiest system to get up and running

  • Among all personal finance programs

  • Because it has the most intuitive interface and offers 24/7 support for three months.

  • Quicken Deluxe

  • Is the most advanced and integrated

  • Among all personal finance programs

  • Because it has the sophisticated financial tools, integrated features, and is web-enabled.

Different Segments Warrant Different Positions

Otherwise, they’re probably not different segments!

M1 M2 M3

P1

P2

P3


Why bother l.jpg
Why Bother?

  • Different segments

  • …have different needs

  • …and will pay different prices!


Quicken l.jpg

60

50

40

30

20

10

0

Price

60

50

40

30

20

10

0

Price

60

50

40

30

20

10

0

Price

1 2 3

Quantity

1 2 3

Quantity

1 2 3

Quantity

Use Quicken to its limits

Value its many features

Use checkbook feature only

Different products,

Different prices 

Maximize profit

Quicken

High, Low, and Differential Pricing

From Varian and Shapiro, 1999, p. 38


Another way to approach it l.jpg

  • Quicken Basic

  • Is the easiest system to get up and running

  • Among all personal finance programs

  • Because it has the most intuitive interface and offers 24/7 support for three months.

  • Microsoft Money

  • Is the most advanced and integrated

  • Among all personal finance programs

  • Because it has the sophisticated financial tools, integrated features, and is web-enabled.

Another Way to Approach It?

Tell Microsoft you’ll take the two million low-end customers

and they can have the 1m high-demand folks…less work,

more focused marketing!

M1 M2 M3

P1

P2

P3

What’s the Legal Issue Here?



Core product service positioned differently for different segments29 l.jpg

Purchase products Segmentsfrom REALTOR VIP® Alliance Partners and leverage NAR's group buying power.

Core Product / Service Positioned Differently for Different Segments

+


Core product service positioned differently for different segments30 l.jpg
Core Product / Service Positioned Differently for Different Segments

  • News alerts

  • Monitor qualifying laps

  • Download NASCAR’s new theme song

  • NASCAR wallpaper

  • Monitor radio conversations between driver and crew chief

  • Streaming video of driver behind the wheel

+



Core product service positioned differently for different segments32 l.jpg
Core Product / Service Positioned Differently for Different Segments

+

http://www.boostmobile.com/blounge_media_commercial_party_wm_hi.html


Positioning33 l.jpg
Positioning Segments

  • Creating distinct and valuedphysical and perceptualdifferences between one’s product and its competitors, as perceived by the target customer.


What s positioning s role once a product s positioning has been determined l.jpg
What’s positioning’s role, once a product’s positioning has been determined?

It is the

foundation from which all

marketing mix decisions are made.


Developing marketing strategy35 l.jpg

T positioning has been determined?

S

P

(Segment)

(Target)

(Position)

Developing Marketing Strategy

5 C’s

Context

Collaborators

Customer

Competitor

Company

Market Sensing

4 P’s

Product

Price

Place

Promotion


What is a brand l.jpg

A brand is a company’s positioning has been determined?promise to its customers.

Brands are not about logic and reason; they are about emotion, feeling, and perception.

What is a Brand?

More and more, that promise is about an experience.


How high tech brands build equity and not a bad model for other industries l.jpg

Essential character positioning has been determined?

of brand

“Value” for typical

loyal customer

Psychological, emotional rewards; feelings

Benefits to the customer; solutions

Tangible, verifiable, objective, measurable characteristics

How High-Tech Brands Build Equityand not a bad model for other industries…

© Ward, Light, Goldstine 1999


Drivers of brand equity l.jpg
Drivers of Brand Equity positioning has been determined?

Do potential customers know who you are?

Customer Brand

Awareness

What do they think about you?

Brand

Equity

Customer Attitude

Toward The Brand

Microsoft?

Google?

Martha Stewart?

Customer Perception

Of Brand Ethics

© Rust, Zeithaml, Lemon 2000


Attitude toward the brand l.jpg
Attitude Toward the Brand positioning has been determined?

  • What’s your brand personality?

    • Warm?

    • Tough?

    • Durable?

    • Friendly?

    • Caring?

    • Hip?


What is the personality of these brands l.jpg
What is the Personality positioning has been determined?of These Brands?


But dell is working on it l.jpg
…but Dell is Working on It positioning has been determined?


How high tech brands build equity l.jpg

Essential character positioning has been determined?

of brand

“Value” for typical

loyal customer

Psychological, emotional rewards; feelings

Benefits to the customer; solutions

Tangible, verifiable, objective, measurable characteristics

How High-Tech Brands Build Equity

Brand

Competition

Product

Competition

© Ward, Light, Goldstine 1999


Black and decker power tools l.jpg
Black and Decker Power Tools positioning has been determined?

Black and Decker Commercials



Contrast that with this from dewalt s web site l.jpg
Contrast that with this from DeWalt’s Web Site positioning has been determined?



How do we create brand equity l.jpg
How do we Create Brand Equity? positioning has been determined?

Communications Mix

Media

Message

Customer Brand

Awareness

Communications Msg

Special Events

Brand Extensions

Brand Partners

Product Placement

& Celebrity Endorse

Not

Just

Advertising!

Customer Attitude

Toward The Brand

Community Events

Privacy Policy

Environmental Record

Hiring Practices

Guarantees

Customer Perception

Of Brand Ethics


Product placement talladega nights l.jpg
Product Placement & Talladega Nights positioning has been determined?

Sony sold the rights to be in the movie...

Except for one brand

 Which one?


What s wrong today with this type of celebrity endorsement l.jpg
What’s Wrong (Today) with positioning has been determined?This Type of Celebrity Endorsement?


Sprint nextel why spend 750m on nascar l.jpg
Sprint Nextel -- Why Spend $750m on NASCAR? positioning has been determined?

 What is Sprint Nextel’s motivation?

 At what level of the pyramid

does it operate?


Dewalt why spend 10m on nascar l.jpg
DeWALT positioning has been determined?Why Spend $10m on NASCAR?


Why spend 10m on nascar l.jpg
Why Spend $10m on NASCAR? positioning has been determined?

 Does it fit DeWalt’s target?

 At what level of the pyramid

does it operate?


Brand partners l.jpg
Brand Partners positioning has been determined?

Buy a New Beetle. Get a new iPod.It was inevitable, really. When two groups of people have so much in common, eventually they find each other. Volkswagen and Apple. Buy a New Beetle. Get a new iPod. And the kit that brings them together (plus a lot of other cool stuff like free music and a $100 Apple Store coupon). Learn more about this special deal.


Brand partners54 l.jpg
Brand Partners positioning has been determined?

  • Does it fit the targeted segment

    • Apple? VW?

 At what level of the pyramid

does it operate?


Clearly u2 likes the ipod brand l.jpg
Clearly, U2 Likes the iPod Brand… positioning has been determined?

  • No charge for being in the ad (compare to $23m)

  • Bono says “iconic value” of iPod benefits U2

  • Royalties are paid on the U2 edition of the iPod.


Components of marketing strategy l.jpg

T positioning has been determined?

S

P

(Segment)

(Target)

(Position)

Components of Marketing Strategy…

5 C’s

Context

Collaborators

Customer

Competitor

Company

Market Sensing

4 P’s

Product

Price

Place

Promotion


And marketing s role l.jpg
…And Marketing’s Role! positioning has been determined?

  • The purpose of marketing is to make selling superfluous. Peter Drucker, 1973

  • There is only one valid definition of business purpose: to create a customer. Peter Drucker

  • Marketing means solving customers’ problems profitably.Randall G. Chapman, PhD


Thank you l.jpg
Thank You positioning has been determined?

Judy Frels

Senior Director of Custom Programs

Marketing Lecturer

[email protected]


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