Positioning, Repo (segmentation)

Question 1

What is market segmentation?

Answer 1

The process of dividing a broad market into smaller, more defined segments that share similar characteristics or needs.
Example: Netflix segments users by viewing habits to recommend personalized content.

Question 2

What are the key steps in market segmentation?

Answer 2

1. Identify segmentation variables. 2. Develop profiles of resulting segments.
   Example: Coca-Cola profiles Diet Coke drinkers as health-conscious and Coca-Cola Zero drinkers as young men avoiding sugar.

Question 3

What are the benefits of market segmentation?

Answer 3

Enables customer analysis, identifies untapped opportunities, allows targeted strategies, and reduces resource wastage

Question 4

What are the criteria for effective segmentation

Answer 4

Measurable, 2. Substantial, 3. Accessible, 4. Differentiable, 5. Actionable.
Example: Facebook uses analytics to measure user behavior (Measurable).

Question 5

What is positioning?

Answer 5

The process of designing a brand’s image and value proposition to occupy a distinctive place in the minds of the target market.
Example: Tesla is positioned as a luxury, eco-friendly car brand.

Question 6

What are the steps in positioning?

Answer 6

1. Identify possible positioning concepts. 2. Develop and communicate the chosen concept.
   Example: Apple emphasizes premium quality and innovation in its messaging.

Question 7

What are effective positioning strategies?

Answer 7

Benefit-oriented, 2. Price-quality relationship, 3. Use/application, 4. Competitor-based.
Examples:
Benefit-oriented: Colgate focuses on dental health.
Price-quality: Zara offers fashion at affordable prices.
Use/application: GoPro markets to adventure enthusiasts.
Competitor-based: Pepsi is portrayed as youthful, contrasting Coca-Cola.

Question 8

What is repositioning?

Answer 8

Changing a brand’s existing image to adapt to evolving market demands, consumer preferences, or competitive pressures.
Example: Old Spice shifted focus from older men to a humorous brand appealing to younger consumers.

Question 9

What are common reasons for repositioning a brand?

Answer 9

Shifts in market trends, sales decline, strong competition, and attracting new segments.

Example: McDonald’s moved towards healthier menu options to appeal to health-conscious consumers.

Question 10

What are the challenges of repositioning?

Answer 10

Risk of alienating existing customers, difficulty altering brand perceptions, and high marketing costs.
Examples:
Gap’s failed logo change led to backlash.
Kodak struggled to reposition as a digital leader.