Module 3 Flashcards
Positioning means
identifying and establishing ‘points of parity’ and ‘points of difference’ to establish the right brand identity and brand image.
__ __ is at the heart of marketing strategy.
Brand Positioning
Who said: “act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s minds.”
Philip Kotler
finding the proper “location” in the minds of a group of consumers or market segment, so that they think about a product or service in the “right” or desired way to maximize potential benefit to the firm.
positioning
According to the CBBE model, deciding on a positioning requires
determining a frame of reference (by identifying the target market and the nature of competition) and the ideal points of parity and points of difference brand associations.
Marketers need to know:
- Who the target consumer is
- Who the main competitors are
- How the brand is similar to these competitors
- How the brand is different from them
market
the set of all actual and potential buyers who have sufficient interest in, income for, and access to a product.
Market segmentation
divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior, and who thus require similar marketing mixes.
Market segmentation requires making
tradeoffs between costs and benefits.
Segment Bases for Consumer Markets
Psychographic
Behavioral
Demographic
Geographic
Psychographic
Values Opinions Attitudes Activities Lifestyle
Behavioral
Brand Loyalty Benefits Sought Usage Occasion Usage Rate User Status
Demographic
Income Age Sex Race Family
Geographic
Regional
International
The ’conversion model’ segments users of a brand into
four groups based on strength of psychological commitment between brands and consumers and their openness to change
’conversion model’ segments
- Convertible
- Shallow
- Average
- Entrenched
Convertible:
On the threshold of change; highly likely to switch brands
Shallow:
Not ready to switch, but may be considering alternatives
Average:
Comfortable with their choice; unlikely to switch in the future
Entrenched:
Staunchly loyal; unlikely to change in the foreseeable future
The ’conversion model’ model also classifies nonusers of a brand into four other groups based on
Their openness to trying the brand, from low to high
The ’conversion model’ model classifications on openess from low to high
- Strongly Unavailable
- Weakly Unavailable
- Ambivalent
- Available
Strongly Unavailable:
Strongly prefer their current brand
Weakly Unavailable:
Prefer their current brand, although not strongly