Session 5

Question 1

Target marketing strategies:

Answer 1

1. Undifferentiated (mass) marketing – ignores segmentation opportunities
2. Differentiated (targeted) marketing – targets several segments and develop marketing plans for each
3. Concentrated (niche) marketing – targets one or more small segments
4. Micromarketing – local or individual marketing (McDonald’s billboard on the road, leaflet for a new restaurant)

Question 2

Behavioral attitudes segmentation:

Answer 2

1. Occasion consumption (during the weekend, during the holidays)
2. Benefit sought (inside the same product category: comfort, technical performance, image)
3. User status (nonusers, exusers, first time users)
4. Usage rate status (light, medium, heavy)
5. Loyalty status

Question 3

Brand positioning -

Answer 3

the place in the consumers’ mind you want to own. We define our “niche” for a product/service by having customers to think about our brand with respect to Competitors.

Question 4

The Brand Positioning Statement:

Answer 4

1. Target: description of the consumers you want to sell to
2. Market/category you play in
3. Brand Promise (emotional or rational benefit): USP – UNIQUENESS – Point of Difference (POD)
4. The Reason to Believe (RTB) the brand promise: the most compelling evidence that your brand delivers on its brand promise

Question 5

Criteria to define an effective point of difference (POD):

Answer 5

1. Relevance: do targeted consumers find the POD personally relevant and important?
2. Distinctiveness: do targeted consumers find the POD distinctive & superior?
3. Credibility: is the POD credible in the eyes of consumers?
4. Feasibility: can we indeed create the POD?
5. Communicability: the POD can be easily communicated to the target?
6. Sustainability: can we “own” the POD for a long period do time (enough to justify investments)?