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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 jfrels@rhsmith.umd.edu. ?. 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

Giving Them What They WantBranding and Positioning for Your Targeted Segment

Dr. Judy K. Frels

Robert H. Smith School of Business

University of Maryland

jfrels@rhsmith.umd.edu

developing marketing strategy

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
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
Choosing the Right Customer

If

marketing means solving customers’ problems profitably,

then

exactly whose problems can wesolve profitably?

developing marketing strategy6

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

T

S

P

(Segment)

(Target)

(Position)

Choosing the Right Customer

Customer

Market Sensing

consumer segmentation options
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
Example:The VALSFramework

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

same segment
Same Segment?
  • Working Person at Home
  • Spice needs?
  • Other needs?
  • “Gourmet Chef” at Home
  • Spice needs?
  • Other needs?
different segment different offerings
Different Segment?Different Offerings…
  • Working Person at Home
  • Spice needs?
  • Other needs?
  • “Gourmet Chef” at Home
  • Spice needs?
  • Other needs?
same segment14
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
Different Segment?Different Offerings…
  • D-I-Y / “weekend warrior”
  • Heavy user?
  • Tool needs?
  • Other needs?
  • Independent contractor
  • Heavy user?
  • Tool needs?
  • Other needs?
targeting

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

what do we mean by positioning
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
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

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

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
Why Bother?
  • Different segments
  • …have different needs
  • …and will pay different prices!
quicken

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

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 segments30
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
Core Product / Service Positioned Differently for Different Segments

+

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

positioning33
Positioning
  • 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
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

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

what is a brand
A brand is a company’s 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

Essential character

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
Drivers of Brand Equity

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
Attitude Toward the Brand
  • What’s your brand personality?
    • Warm?
    • Tough?
    • Durable?
    • Friendly?
    • Caring?
    • Hip?
how high tech brands build equity

Essential character

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
Black and Decker Power Tools

Black and Decker Commercials

how do we create brand equity
How do we Create Brand Equity?

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
Product Placement & Talladega Nights

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

Except for one brand

 Which one?

sprint nextel why spend 750m on nascar
Sprint Nextel -- Why Spend $750m on NASCAR?

 What is Sprint Nextel’s motivation?

 At what level of the pyramid

does it operate?

why spend 10m on nascar
Why Spend $10m on NASCAR?

 Does it fit DeWalt’s target?

 At what level of the pyramid

does it operate?

brand partners
Brand Partners

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
Brand Partners
  • Does it fit the targeted segment
    • Apple? VW?

 At what level of the pyramid

does it operate?

clearly u2 likes the ipod brand
Clearly, U2 Likes the iPod Brand…
  • 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

T

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
…And Marketing’s Role!
  • 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
Thank You

Judy Frels

Senior Director of Custom Programs

Marketing Lecturer

jfrels@rhsmith.umd.edu