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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
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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
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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
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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
???
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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
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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
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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.