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    Approaches towardsSegmentation, Targeting

    and Positioning

    Presented by

    Rahim Jabbar

    Jakarta, 21 May 2002

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    INTRODUCTION

    What is Business

    What is in the mind of Businessman/Marketer?What is the Essence/Nature of Transaction Process?

    The Essence of Values that are Derived from Consumption

    So, What is Marketing?

    MARKETING AND THE S.T.P. PROCESS

    Basic Marketing Questions for Business

    General Stages of Segmentation, Targeting and Positioning

    SEGMENTATION

    General Principles of Segmentation

    Types of Variables for Consumer Segmentation

    The Process of Segmentation

    SEGMENTATION : THE CONSUMERS

    How Do Human Beings Behave?The Adaptive Filter for Human Behavior

    The Forces that Shape Human Behaviors

    The Implementation of Human Behaviour

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    SEGMENTATION : AN APPROACH BASED ON PERSONALITY TYPOLOGY

    Psycho Social Typology of Consumers

    An Example : Five Types of Indonesian Urban Consumers

    Type-1 - Their Personality ProfileType-2 - Their Personality Profile

    Type-3 - Their Personality Profile

    Type-4 - Their Personality Profile

    Type-5 - Their Personality Profile

    Type-1 - Their Values

    Type-2 - Their Values

    Type-3 - Their Values

    Type-4 - Their Values

    Type-5 - Their Values

    An Example: Summary of the Five Types of the Indonesian Consumers

    TARGETING

    Criteria for Targeting A Particular Market Segment

    THE BRAND

    Components of A Brand

    The Brand : Product/Service as the Basis

    The Brand : Name as the Identifier/Relater

    The Brand : Packaging as the Presenter

    The Brand : Communication & Advertising as the Purveyor

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    THE POSITIONING

    The Understanding of the Concept

    Positioning, Brand Development and Target Segment

    The Process of Brand Development for Specific Position.

    Brand Communication to Nurture a Certain Position

    Basic Questions to Develop the Communication Strategy

    THE RESEARCH ASPECT :

    Conceptual Relationship Among Relevant Dimensions

    The Dimensions of Integrated Segmentation & Positioning Research

    An Approach Towards the Analysis of The Positioning ResearchLeverage Analysis for Each Brand

    Analysis to Understand the Components of Brand Image

    Analysis to Understand the Components of Loyalty to the Brand

    Analysis of Brand Positioning Elements

    THE REFERENCES

    The Value Chain Model

    Core Business Processes

    The Three Kinds of Business in Commercial Organizations

    The Twelve Business Capabilities

    Psychological Archetypes

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    Approaches towardsSegmentation, Targeting and Positioning

    What is Business?

    Segmentation

    A definition

    The Businessmans

    Minds

    Three kinds of Business

    Business Transaction,

    Consumption &

    Marketing

    The nature of

    transaction process

    The Consumption

    Experience

    A definition of

    Marketing

    Basic Marketing

    Questions for the

    Business

    General Stages of

    Segmentation

    Targeting and

    Positioning

    Targeting Positioning

    General Principles

    Types of variables

    The Process ofsegmentation

    Examples ofPychographic

    Segmentation

    Criteria for targeting

    specific segment

    The Brands

    The Positioning

    The process ofpositioningdevelopment

    Basic questions

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    INTRODUCTION

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    WHAT IS BUSINESS ?

    TheOwners of

    Capital/

    Resources

    The

    FirmsINPUTS

    INVEST

    THROUGHPUTS TARGETMARKET

    The Business Processes

    THERETURNS

    OUTPUTS

    The

    TransactionRETURN

    On

    INVEST-

    MENT

    Copyright Rahim Jabbar /2002

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    What is the ESSENCE/NATURE of

    TRANSACTION PROCESS?

    THE

    FIRM

    CONSUMERS/

    CUSTOMERS

    PRODUCT

    /

    SERVIC

    E

    THAT PROVIDES VALUES TO THE

    THE

    OFFER

    SATISFACTION

    THE

    MONEY

    TRANSACTION

    INCOME/

    EARNING

    THE EXCHANGE

    PROCESS

    Copyright Rahim Jabbar/1999

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    THE ESSENCE OF VALUES

    THAT ARE DERIVED FROM CONSUMPTION

    GOODS

    IDEAS

    SERVICE

    S

    EVENT

    S

    ENTITIES

    THE

    OFFE

    R

    USED

    DISPOSED

    THE

    ENVIRONMENT

    C

    ON

    S

    U

    M

    E

    R

    GOALS

    WANTS

    NEEDS

    ACHIEVED

    SATISFIED

    FULFILLED

    VALUES

    VALUES : SPECIAL MEANINGS

    ATTACHED TO SPECIFIC

    CONSUMPTION OCCASIONS/EVENTS

    VALUES

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    SO, WHAT IS MARKETING THEN ?

    IT IS A SOCIO-CULTURAL ENGINEERING PROCESS

    CONSUMER(S)/

    CUSTOMERS

    CLIENTS

    Transformed

    into

    To consumecertain PRODUCT/

    to choose a

    specific BRAND

    Being

    ENGINEEREDHUMAN

    BEINGS

    GOALS

    WANTS

    NEEDS

    INDI-

    VIDUAL

    SPECIFICITY

    PARTICULAR

    SOCIO-CULTURAL

    MILLIEU

    UNIVERSAL

    HUMAN

    NATURE

    Copyright Rahim Jabbar/1999

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    How canthe

    Company

    improve the

    returns on

    investments

    ?

    Decrease

    COSTS !

    Increase

    NET

    INCOME!

    Increase

    PRICE !

    Increase

    SALES

    VOLUME

    IncreasePENETRATION

    IncreaseCONSUMPTION

    IncreaseDISTRIBUTION

    IncreaseSALES PEROUTLETS

    Make it more

    attractive

    Create

    NEW USAGE

    Decrease

    FIXED

    COSTS !

    Decrease

    VARIABL

    E

    COSTS !

    Cheaper

    substitutes

    Automation,Rentals,

    sharing,etc.

    INDUCING

    MORE

    TRANSACTION

    AND/ORCREATING

    MORE

    CONSUMERS/

    CUSTOMERS

    What is in the MIND of

    MARKETEERS/BUSINESSMEN ?

    BUSINESSMEN/

    MARKETEERS

    INDUCING MORE

    TRANSACTIONS

    CREATING MORECUSTOMERS/CONSUMERS

    ???

    Copyright Rahim Jabbar /1999

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    MARKETING ANDTHE S.T.P. PROCESS

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    1. Where are we now?

    Consumer/

    CustomersCompetitor

    s

    P.E.S.T.

    2. Why are we where we are now?

    S.W.O.T

    Company

    Vision

    3. What do we want to be ? Where do we want to go ?

    Mission

    S.T.P.

    Segmentation

    Targeting

    Positioning

    Portfolio

    Strategy

    5. Which way is the best ?

    Basic Marketing Questions for the Business

    4. How can we go there ? Is there any other alternatives ?How many alternatives do we have ?

    Development of strategic

    options

    6.How do we implement the selected strategy ?

    Evaluation of strategic options

    Mixing and matching the Marketing Mix

    Elements

    Creation

    Development

    Activation7.How do we ensure our reaching the selected destination ?

    Control of implementation

    Market Share ProfitabilityBrand Health

    Copyright Rahim Jabbar/2002

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    1. How is our current situation?

    Constraint

    s

    Current Position

    2. What is (are) our objective(s)?

    Marketing Vision/Mission

    Capabilitie

    s

    Identify segment

    variables

    4. How many segments are there? How is the profile of each one ?

    Segment the marketsProfile each major Segment

    6. What positions ara available for each target segment? (Gap analysis)

    General Stages of Segmentation, Targeting, Positioning

    5. What specific segment(s) do we want to target? Why ?

    Potentiality

    Map the market & identify

    the positions of current offers

    7.How do we fill the selected position ?

    Create & develop

    alternative positioning concepts

    Copyright Rahim Jabbar/2002

    AttractivenessTarget selection

    Identify alternative

    developable positions

    Select the most

    appropriate concepts

    Clear

    Correc

    t

    Competitive8.How do we make it known to the target ?

    Create & develop

    brand & its communication

    3. What is the level of variability of our target markets ? Can we group them into a number of segments?

    High variability ->segments Low variability -> segmentation not neededSTOP

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    SEGMENTATION

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    Basic Questions before Segmentation

    To segment or not to segment ?

    Segmentation

    Specific benefits can be fully delivered

    to specific target

    Splintered small groups

    -> quite costly to cover

    Aggregation

    Economies of scale

    Not all needs of all consumers

    in all places can be

    fully satisfied

    Option

    Advantages

    Disadvantages

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    General Principles of Segmentation

    Practicality/Applicability

    Distinctive

    Manageable

    Distinctive

    Measurable/quantifiable

    Ability of interrelationship/inter-linkage

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    Types of Variables for Consumer Segmentation

    Demographics (Socio-economic Status, Age, etc)

    Psycho-graphics/Lifestyles

    Behavioral dimensions

    Usage characteristics (Light, Medium, Heavy)

    Areas of Benefits

    Geographic (Urban, Rural, Major cities, secondary cities)

    Th P f S i

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    The Process of Segmentation

    1.

    Are the benefits soughtby the customers

    understood?

    2.Are the customers

    perceptions of

    relative importance

    understood?

    3.

    Are there

    differences among

    customers in

    importance of

    benefits?

    6.

    Are the groupsof appropriate size

    to consider?

    5.

    Are the groups

    measurable?

    4.

    Are there significant

    differences among

    groups in

    segmentation

    attempt?

    No

    Try different groupingsSTOP

    Conduct

    Market

    Research

    Combine or

    divide

    groups

    Yes

    Yes

    No

    Yes

    Yes

    Yes

    No

    No No

    No

    START Targeting decisions

    Source: Copon & Hulbert,

    Marketing Management forthe 21st Century, 2001

    Try different groupings

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    SEGMENTATION:THE CONSUMERS

    THE CONSUMERS

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    THE CONSUMERS:How Do Human Beings Behave?

    Affective

    expressions

    of behavior

    Explicit

    Behavior

    Cognitive

    expressions

    of behavior

    Feelings

    Images

    Beliefs

    Values

    Opinions

    JustificationRationalizations

    Preference

    Purchase

    Consumption

    Adaptive

    Filter

    Conscious, expressive, outer world

    Sub-conscious, dynamic infra-structure

    Tension

    Biological Forces

    (Drives, Instincts, Needs)

    Social & Cultural

    Forces

    Human behavior:

    are the results of the interaction between the Biological and the Social/Cultural Forces

    through the intermediary of the Adaptive Filter.

    Source Heylen, et.al. , 1990

    THE CONSUMERS:

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    Adaptive

    Filter

    Conscious, expressive, outer world

    Sub-conscious, dynamic infra-structure, the inner world

    modified intodecoded by

    projecting

    MEANINGS

    INTERNAL

    BIO-GENETIC

    FORCES

    OBJECTS/

    EXPRESSION/

    AMBIANCE/

    SOCIALLYACCEPTABLE

    BEHAVIOURS

    Facilitates:understanding

    ability to adapt

    -> a number of potential strategies

    The Adaptive Filter

    functions both to modify the internal bio-genetic forces into socially & culturally acceptable

    behavior and to decode the external objects/expression/ambiance by projecting meanings.

    THE CONSUMERS:How Do Human Beings Behave?

    Source Heylen, et.al. , 1990

    THE CONSUMERS:

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    SPACE WITHIN WHICH

    POTENTIAL BEHAVIORAL

    STRATEGIES

    TO ACCOMMODATE THE

    THE TWO FORCES ARE

    IMPLEMENTED

    Human behavior:

    Human being constantly strives to satisfy both biological and social needs.

    Actual/expressed behavior/actions are the resulting effects of resolving the

    tensions between the bio-dynamic inner-world and the socio-cultural outer world.

    The forces that shape human behaviour

    Biological drives

    (nature)

    Social drives(nurture)

    THE CONSUMERS:How Do Human Beings Behave?

    Source Heylen, et.al. , 1990

    THE CONSUMERS:

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    SPACE WITHIN WHICH

    POTENTIAL BEHAVIORAL

    STRATEGIES

    TO ACCOMMODATE THE

    THE TWO FORCES ARE

    IMPLEMENTED

    Human behavior:

    Human being constantly strives to satisfy both biological and social needs.

    Actual/expressed behavior/actions are the resulting effects of resolving the

    tensions between the bio-dynamic inner-world and the socio-cultural outer world.

    The forces that shape human behaviour

    Social drives(nurture)

    THE CONSUMERS:How Do Human Beings Behave?

    Source Heylen, et.al. , 1990

    TENSIONS OF

    EXISTENTIAL

    ANXIETY

    Individualization

    axis

    Social

    interaction

    axis

    THE CONSUMERS:

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    SPACE WITHIN WHICH

    POTENTIAL

    BEHAVIORAL STRATEGIES

    TO ACCOMMODATE

    THE TWO FORCES ARE

    IMPLEMENTED

    Biological drives can either be:

    released, expressed -->extroverted ways

    (usually when he/she can trust to the milieu)

    suppressed --> introverted ways

    (usually when he/she has doubt about the

    milieu)

    The ways that human behaviours are acted outBiological drives

    Released = Extroverted

    Social drives:Releasing/repressing the

    the energy through the passive/

    receptive, socially affiliative

    mode

    Biological drives

    Suppressed = Introverted

    Along the social continuum, there are

    TWO MODES, in which the bio-dynamic

    energy be outwardly expressed or inwardly

    repressed:

    the active, ego-assertive mode

    the passive, receptive, socially affiliative

    mode, in which he/she

    Social drives:Releasing/repressing the

    the energy through the active/

    ego-assertive mode

    THE CONSUMERS:How Do Human Beings Behave?

    Source Heylen, et.al. , 1990

    THE CONSUMERS:

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    Psycho-social typology of consumers

    Active

    Lively

    Independent

    Conforming

    Caring

    Sharing

    Group Orientated

    Quiet

    Reserved

    Introspective

    Egocentric

    Assertive

    Competent

    Successful

    Confident

    Ego AssertivenessSocial Affiliation

    Repression / Introversion

    Expression / Extroversion

    Source Heylen, et.al. , 1990

    THE CONSUMERS:How Do Human Beings Differs? Can We Typify Them ?

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    SEGMENTATION:An Approach Based on

    Personality Typology

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    Type I of the Indonesian Urban Consumers - 40%

    Ego AssertivenessSocial Affiliation

    Repression / Introversion

    Expression / Extroversion

    Source: A Survey conducted in 2001/2002

    SEGMENTATION: An Approach Based on Personality Typology

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    Type II of the Indonesian Urban Consumers - 23%

    Ego AssertivenessSocial Affiliation

    Repression / Introversion

    Expression / Extroversion

    Source:

    SEGMENTATION: An Approach Based on Personality Typology

    Source: A Survey conducted in 2001/2002

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    Type III of the Indonesian Urban Consumers - 19%

    Ego AssertivenessSocial Affiliation

    Repression / Introversion

    Expression / Extroversion

    Source:

    SEGMENTATION: An Approach Based on Personality Typology

    Source: A Survey conducted in 2001/2002

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    Type IV of the Indonesian Urban

    Consumers - 15%

    Ego AssertivenessSocial Affiliation

    Repression / Introversion

    Expression / Extroversion

    Source:

    SEGMENTATION: An Approach Based on Personality Typology

    Source: A Survey conducted in 2001/2002

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    Type V of the Indonesian Urban

    Consumers - 3%

    Ego AssertivenessSocial Affiliation

    Repression / Introversion

    Expression / Extroversion

    Source:

    SEGMENTATION: An Approach Based on Personality Typology

    Source: A Survey conducted in 2001/2002

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    Values of Type I Consumers - 40%

    Ego AssertivenessSocial Affiliation

    Repression / Introversion

    Expression / Extroversion

    Source:

    Family Orientated/

    Indoors preference

    Loyal

    Traditional

    Dogmatic

    Chauvinistic

    SEGMENTATION: An Approach Based on Personality Typology

    Source: A Survey conducted in 2001/2002

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    Values of Type II Consumers- 23%

    Ego AssertivenessSocial Affiliation

    Repression / Introversion

    Expression / Extroversion

    Source:

    Modern/western

    orientated

    Hedonistic/

    indulgent

    Exterior/visible

    SEGMENTATION: An Approach Based on Personality Typology

    Source: A Survey conducted in 2001/2002

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    Values of Type III Consumers - 19%

    Ego AssertivenessSocial Affiliation

    Repression / Introversion

    Expression / Extroversion

    Source:

    Family Orientated/Indoors preference

    Loyal

    SEGMENTATION: An Approach Based on Personality Typology

    Source: A Survey conducted in 2001/2002

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    Values of Type IV Consumers - 15%

    Ego AssertivenessSocial Affiliation

    Repression / Introversion

    Expression / Extroversion

    Quality of life

    Traditional

    SEGMENTATION: An Approach Based on Personality Typology

    Source: A Survey conducted in 2001/2002

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    Values of Type V Consumers - 3%

    Ego AssertivenessSocial Affiliation

    Repression / Introversion

    Expression / Extroversion

    Source:

    Exterior/Outer

    orientated

    Meaningless

    SEGMENTATION: An Approach Based on Personality Typology

    Source: A Survey conducted in 2001/2002

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    Extroverted

    Introverted

    AffiliativeAssertive

    SubduedCool

    EnergeticWarm

    Extroverted

    Introverted

    AffiliativeAssertive

    SubduedCool

    EnergeticWarm

    Extroverted

    Introverted

    AffiliativeAssertive

    SubduedCool

    EnergeticWarm

    Extroverted

    Introverted

    AffiliativeAssertive

    SubduedCool

    EnergeticWarm

    Extroverted

    Introverted

    AffiliativeAssertive

    SubduedCool

    EnergeticWarm

    SEGMENTATION: An Approach Based on Personality Typology

    II

    I

    III

    IVV

    Traditional

    Mainstream

    (40%)

    Indulgent

    Modern

    (23%)

    Modern

    Pioneer

    (3%)

    Enlightened

    Traditional

    (19%)

    Ersatz progressive

    Traditional(15%)

    Affiliative/subdued

    Family oriented

    Traditional/dogmatic

    Male domination oriented

    Social/group oriented activities

    Traditional music/arts/culture

    Energetic/assertive/extroverted

    Modern/western oriented

    Hedonistic/indulgent

    Exterior oriented

    Popular/Light Music/arts/culture

    Technology inclined

    Subdued/introverted/cool/affiliative

    Family oriented/indoor preference

    Loyal

    Technology inclined (Computer)

    Introverted/cool/subdued

    Family oriented/indoor preference

    Loyal

    Quality of life

    Meaningless/shallow

    Assertive/energetic

    Exterior orientedMeaningless/shallow

    Healthy foods/activities/life

    Alternative/different

    TO INDULGE AND TO SHOW

    TO BUY, TO CONSUMEAND TO SHOW

    TO PRESERVE

    AND TO SHARE

    TO BE ANDTO SHARE

    TO HAVE AND

    TO DEFEND

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    SEGMENTATION: An Approach Based on Personality Typology

    Size Personality Values & (Basic Orientation) Lifestyles Name

    Type-1 40% *Affiliat ive *Family oriented *Soc ial/group-oriented act ivities Tradit ional Mainst ream

    *Subdued *Loyal *Traditional music/arts/culture

    *Traditional

    *Dogmatic

    *Male-domination oriented

    (To preserve and to share)

    Type-2 23% *Energetic *Modern/"western oriented" *Popular/"Light" music/arts/culture Indulgent Modern

    *Assertive *Hedonistic/indulgent *Technology inclined (hi-fi , video, etc)

    *Extroverted *Visible/"Exterior oriented"

    (To indulge)Type-3 19% *Subdued *Family oriented/indoor preference *Technology inclined (computer, "hi-tech") "Enlightened"

    *Introverted *Loyal Traditional

    *Cool (To be and to share)

    *Affiliative

    Type-4 15% *Int roverted *Family oriented *"High" /"Heavy" mus ic/arts /culture "Ersatz progressive"

    *Cool *Loyal *Environmental "conscience" Traditional

    *Subdued *Quality of life

    *"Meaningless"/"shallow"(To have and to defend)

    Type-5 3% *Assertive *Vis ible/ "Exterior oriented" *Healthy food/ac tivit ies /life Modern Pioneer

    *Energetic *"Meaningless"/"shallow" *Active life

    (Tobuy and to consume) *Alternative/different

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    TARGETING

    C it i f T ti M k t S t

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    Criteria for Targeting Market Segment

    Segment size (Volume/Value)

    Growth Rate (current/likely)

    Barriers to entry

    Social factors

    Regulatory factors

    Segment Attractiveness

    Marketing skills

    Technological expertise

    Production capacity

    Raw materials availability

    Distribution facilities

    Financial leverage

    Business Potential/Strength

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    THE BRAND

    THE BRANDS :

    COMPONENTS OF A BRAND

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    COMPONENTS OF A BRAND

    THE

    BASIS

    The Product/

    Service

    THE

    IDENTIFIER/RELATOR

    Brand Name/

    Logo

    THE

    PURVEYOR

    The Commu-

    nication/Advert.

    THEPRESENTER

    The

    Packaging

    Should be

    matching to each

    other

    THE

    PROXY OF

    VALUE

    ThePrice

    Should be

    matching

    Copyright Rahim Jabbar/1999

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    THE BRANDS:

    PRODUCT/SERVICE AS THE BASIS

    HABITS AND

    USAGE DATA/INFO

    USERS THE PRODUCTBenefits Attributes

    Choice

    Criteri

    a

    Overall

    Performance

    Measure

    Dimensions of Product Performance

    Specific

    Positives/Negatives

    Physical

    attributes

    Effect

    attributes

    Process

    attributes Benefitattributes

    Uses/

    Usages

    Copyright

    Rahim Jabbar/1999

    Page 7

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    THE BRANDS :

    NAME AS THE IDENTIFIER/RELATOR

    Meanings

    Associations

    Sound/

    rhyming

    Shape

    of

    Fonts Symbols

    Socio-

    cultural

    context

    The

    BRAND

    NAME

    Commonality

    of association -> CORE

    AB

    C

    Impacting

    Affective

    &

    Cognitive

    aspects of

    human Impacting

    consumer

    perceptionCopyrightRahim Jabbar/1999

    THE BRANDS :

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    PACKAGING AS THE PRESENTER

    Colour

    Associations

    Shape

    Logo/

    Icon Symbols

    Socio-

    cultural

    context

    The

    PACKAGINGMaterials

    Attributes

    Impacting

    Human

    Mood

    Impacting

    cognitive &

    affective

    aspects of

    human

    beings

    Impacting

    consumer

    perceptio

    n

    Copyright Rahim Jabbar/1999

    THE BRANDS:

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    COMMUNICATION & ADVERTISING

    AS THE PURVEYORThe Essence of Marketing Communication Process

    WHO WHATWHAT

    EFFECTSSAYSIN

    WHAT

    CHANNELTO WHOM WITH

    MARKETEERS

    EXPOSES

    THE

    OFFER

    PROMOTE

    ADVERTISE

    DISPLAY

    ABOVE

    THE

    LINE

    BELOW

    THE

    LINE

    THE

    TARGET

    OTHER-

    WISE

    PREFERENCE

    Copyright Rahim Jabbar/1999

    THE BRANDS :

    COMMUNICATION & ADVERTISING

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    AS THE PURVEYOR

    What to say and How to say it

    What ?

    (THE

    PROMISE)

    How ?

    (The Way)

    To Whom?

    (THE

    TARGET)

    Communication

    Psychology

    (Symbology,

    tone, pitch,etc)

    Creativity

    (Big Idea)Consumer

    Psychology

    ADVERTISING

    AND

    COMMUNICATION

    MATERIALS

    (AUDIO/

    VISUALS)

    Why ?

    (THE

    SUPPORTINGFACT

    COPY

    STRATEGY

    SELECTED

    POSITIONING

    Should

    be

    CORRECT

    Should

    be

    CLEAR

    Should

    be

    COMPETITIVE

    For

    the

    PRODUCT

    For

    the

    MARKET

    Should consider

    LONG-TERM

    HEALTH OF THE

    BRAND

    Copyright Rahim Jabbar/1999

    Should

    be

    CREDIBLE

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    THE POSITIONING

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    Positioning : The Concept

    Positioning is what you do to the mind of the prospect.That is how you position your product/brand in the mind of the prospect.

    Therefore, to be effective,

    Positioning has to be done with the target (consumers/market) in mind

    The marketer should understand :

    What explains their behavior (what motivates them; what benefts

    are sought.

    The degree to which his/her product/brand satisfy the targets needs

    (Brand Health Indicator/Brand Equity Monitor)

    The degree to which the competitors products/brands satisfy

    the targets needs (Customer Satisfaction Monitor, Competitive

    Brand Mapping, etc.) )

    Source: Adapted from Al Ries & Jack Trout, Positioning, the Battle for Your Mind (1989)

    Positioning : Factors to be Considered

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    Positioning : Factors to be Considered

    and Potential Sources

    Positioning is to find a position of your offer ( in the mind of the prospect)

    that is THE BEST for it and THE MOST APPROPRIATE FORTHE TARGET MARKET

    Factors to be considered, therefore, should be :

    the product/service itself (What makes it so unique? What can make it

    distinctive ?). The followings can be explored :

    a. Technical innovation (

    b. Improved Performance (Corolla Altis)c. Perceived Superiority (Intel Computer Microchip)

    d. New benefits (Sony Walkman, G-3 Phone in Japan)

    the Company that makes it (What makes the Company so special?).

    Examples :Baygon --> Bayer guarantees Quality)

    Consumer Preference : Citibank , the House of Money.The Competitive Environment. The followings can be explored :

    a. Market segmentation (AMEX Card)

    b. Re-classifying competitors (BMW vs. Mercedes)

    c. Price/Value (Promag vs. Mylanta)

    Source: Adapted from Al Ries & Jack Trout, Positioning, the Battle for Your Mind (1989)

    THE POSITIONING:Page 5

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    THE POSITIONING:

    POSITIONING, BRAND DEVELOPMENT

    AND TARGET SEGMENT

    THE

    BASIS

    The Product/

    Service

    THE

    IDENTIFIER/

    RELATOR

    Brand Name/

    Logo

    THE

    PURVEYOR

    The Commu-

    nication/

    Advert.

    THE

    PRESENTER

    The

    Packaging

    THE

    PROXY OF

    VALUE

    The

    Price

    Copyright Rahim Jabbar/2002

    Selected

    POSITIONwithin

    TARGET

    SEGMENT

    THE

    SELECTED

    POSITIONING

    Correct for

    the product

    Direct the development

    of the offer

    Correct for

    the target

    segment

    THE PROCESS OFTHE

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    BMW is the status symbol of the

    successful Yuppies

    X) Meanings : gender

    include status

    age

    life-style

    XX) Symbolic :

    elements Objects

    Persons

    Contexts

    Motifs

    BRAND DEVELOPMENT FOR

    SPECIFIC POSITION

    Symbolic

    Elements xx)

    to communicate the meanings

    (something exclusive, only for a few

    Creative

    Selection & Developments(the way, the feel, the mood, the tone, the moment,

    the ambience, etc.)

    Product/Packaging/

    Campaign/Communication

    (colour coding, verbal/visual,

    etc.) at a Price

    Meaning transfer xxx)

    (with my BMW, I belong to -

    the Yuppie club)

    XXXX)

    The product becomes the locus of the

    selected meanings & the consumer

    use

    the product to create their notions of

    self and the world

    (My BMW is my status; it is me)

    Cultural meanings x) available in the society

    (Respectability is a valid goal in life)

    XXX) Transfer

    of meanings from

    the product to the

    users/consumers

    THE

    SELECTED

    POSITIONING

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    * Hard-Sell : How does brand communication persuade people to buy ?

    MessagesTransmission/

    Transportation

    Persuasion &

    play - backTransformed

    BehaviourBuying

    * Soft-Sell : How does communication add values through symbols that carry specific meanings ?

    Messages Myths/

    Rituals

    Modified

    shared

    culture

    Attitudinal

    change

    Behavioural

    changeBuying

    Symbols

    Meanings

    Values

    BRAND COMMUNICATIONSoft-Sell vs Hard-Sell

    Brand Positioning:

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    Basic Questions to Develop the Communication Strategy

    1. Brand Vision : What is the ultimate goal you have in mind for your brand.

    2. Brand Mission : What role will it play in the market? (How many roles are

    there? What are they ?)

    What role will it play in the Companys portfolio?. (How

    many roles are there? What are they ?)

    3. Basic Positioning : How you want it to be seen comparatively

    among the offers claiming the same/similar benefits?

    (targeted to the same segment)

    Acid tests are :* Is it clear ? (unmistakable v.s. the others?)

    * Is it correct ? (for the brand ? for the market?

    for the target group?)

    * Is it competitive ? (better than the others ?

    able to challenge market leaders/major players

    in the category/segment/sub-segment ?)

    4. Consumer end benefits: What will it do for me ? (functionally ? Emotionally ?Socially ? Etc.)

    5. Reasons why : What make/will make the consumers believe that

    it will give the end benefits stated ?

    6. Proofs : Why should your brand delivers its promise ?

    7. Support benefits : What other benefits I get? (The consumer questions)

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    THE RESEARCH ASPECT

    CONCEPTUAL RELATIONSHIP AMONGST

    THE RELEVANT DIMENSIONS

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    BRAND

    BEHAVIOUR &

    EXPERIENCE

    WITH BRAND

    ATTENTION

    BRAND

    ASSOCIATIONS

    & BELIEFS

    BRAND

    POSITIONING

    BRAND

    AWARENESS

    EXPOSURE

    ADVERTISING

    PROCESSING

    BRAND

    EVALUATION

    & ATTITUDE

    PRODUCT

    BEHAVIOUR &

    EXPERIENCE

    -Overall ratings

    (Overall a good brand)

    -Loyalty to CMB (Probability of staying or

    leaving)- degree of attachment

    ADVERTISINGAWARENESS

    -Advertising awareness

    -Advertising recall

    -Message comprehension

    IDEAL

    BRAND

    PRICING

    THE RELEVANT DIMENSIONS

    -Appropriate amount of money to spend on

    the product

    -Evaluation on price/ value ratio of CMB

    -Brand Personality

    -Brand Image

    (including lifestyles).

    -Brand Personality

    -Brand Image

    (including lifestyles).

    ELEMENTS

    OF BRAND

    POSITIONING

    -Appeal/attractiveness

    -Believability

    -

    THE

    CONSUMERS

    -Personality-Values

    -Lifestyles

    -Ratings on product performance-Overall rating on product (perceived)

    Recruitment

    Criteria

    THE DIMENSIONSOF BRAND POSITIONING RESEARCH

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    THE CONSUMERS

    *Personality

    - Extrovert vs. Introvert

    - Ego-centered vs. Socially affiliative

    - Warm vs. Cool

    -Energetic vs. Subdued

    *Values:

    -Selection from Rokeachs list

    *Lifestyles:

    -Modern

    -Contemporary

    -Ect.

    THE BRAND

    *Evaluation on the Brand

    - Overall ratings:

    -Brand for me (to evaluate degree of bonding)

    -Overall a good brand (total brand value)

    - Level of loyalty- Probability of staying with the brand/

    leaving the brand

    - Product quality (perceived)

    - Ratings on product performance

    - Overall product acceptance

    -Pricing

    - Appropriate amount to spend on the product

    - Degree of good value for money

    *Brand Associations and Beliefs-Brand Personality

    -Extrovert vs. Introvert

    - Ego-centered vs. Socially affiliative

    -Warm vs. Cool

    -Energetic vs. Subdued

    -Brand Image (including lifestyles)

    -A selection of prepared list

    THE NEW BRAND CONCEPT/POSITIONING*Verbal stimuli

    - A selection of the brand muscles

    to be evaluated in terms of

    - Appeal/attractiveness

    - Believability

    *Pictorial stimuli

    - A selection of the pictures/ events prepared

    by the Agency

    to be evaluated in terms of

    - Appeal/attractiveness

    - Believability

    BRAND POSITIONING RESEARCH:

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    Ratings on

    specific product

    benefitattributes

    (perceived)

    Overall

    Evaluation

    (Overall

    satisfaction)

    Image Appeal

    (Has an appealing

    image)

    Price/ValueEvaluation

    (good value

    for money)

    Appropriate

    Spend on

    the Product

    OverallEvaluation

    (Overall a

    good brand)

    BRAND POSITIONING RESEARCH:

    A Basic Model

    Brand

    Image

    (attributes)

    BRAND POSITIONING RESEARCH:

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    Weight of

    Quality

    BenefitAspect

    (... %)

    Weight of

    Image

    appeal

    (... %)

    Overall

    Evaluation(Example : Score

    for brand X:

    .........)

    Leverage Analysis for each Brand

    Benefit 1 : weight %

    Image 1 : weight %

    Image n : weight %

    Image 2 : weight %

    Benefit Attribute 2 : weight %

    Benefit Attribute n : weight %

    Weight of

    Valuefor money

    ( ... %)

    BRAND POSITIONING RESEARCH:

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    Further Leverage Analysis for Each Brand

    Degree of

    Bonding

    (Brand for me)

    Brand Personality 1 : weight %

    Brand Personality n : weight %

    Brand Personality 2 : weight %

    BRAND POSITIONING RESEARCH:

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    Further Analysis to understand

    the components of image

    that contribute to personal suitability of the brand

    Personal suitability(Brand for me)

    Image attribute 1: weight %

    Image attribute 2: weight %

    Image attribute n: weight %

    BRAND POSITIONING RESEARCH

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    Further Analysis to understand

    the components of brand loyalty

    Level of Loyalty(Brand for me)

    Personal suitability

    (Brand for me):

    : weight %

    Overall Evaluation

    (Overall a good brand):

    weight %

    BRAND POSITIONING RESEARCH:

    BRAND POSITIONING RESEARCH

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    Analysis of each aspect

    of Brand Positioning Elements

    both for Verbal & Visual Stimuli

    Evaluativeaspects

    Positioning Element 1

    Positioning Element 2

    Positioning Element n

    Appeal

    Believability

    Attractiveness

    BRAND POSITIONING RESEARCH:

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    SUMMARY OF THEMAIN POINTS

    SUMMARY OF THE MAIN POINTS

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    1. Marketing is a major element of the core business process of creating value added through

    inducing and stimulating transactions

    2. Business transaction can only through offering product/service (=the offer) as a means ofexchanging values between the consumers/customers/clients and the firms/companies.

    3. Consumers/customers/clients will consider any offer (be it product or service) as bringing

    values to them if the offer help them achieve their goals , satisfy their wants and fulfill their

    needs

    4. Values, therefore can be seen as special meanings attached to a particular consumptionoccasion or the event of receiving a particular service. (pragmatic/utilitarian use of the

    word value)

    5. The task of marketing function is to create consumers/customers/clients by transforming

    individual persons or groups of people from being lay people in the streets into obtaining

    some added values at consuming the offers or becoming recipients of the services. After

    this transformation, the task is to manage the relationship (Customer/Consumer

    Relationship Management).

    SUMMARY OF THE MAIN POINTS

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    6. Managerially, the marketing process consists of creation, development and activation of the

    offer (product or service) destined for a specific target in mind.

    7. These days rarely do we find single product for single market ( a single product-marketcategory). The overwhelming majority of categories comprise of multi-products targeted

    at a variety of different groups of consumers/customers/clients. ( Each group is conveniently

    called a segment of the market).

    8 Due to the above reasons, the development of any offer (be it product or service) should

    go through the process of S.T.P. (Segmentation, Targeting and Positioning)

    9 Segmentation is the way you partition the market based on certain approach. Segmenting

    the market would facilitate in choosing the specific part of the market you want to target.

    10. Targeting is the process matching your product/offer to specific part of the market.

    11. Positioning is the way you differentiate your product/offer from same product category

    targeted to the same segment.