Marketing Management Module 3
Marketing Management Module 3
Marketing Management Module 3
2 MARKS
Ans: Marketing segmentation is the process of dividing up the mass markets into groups with
similar needs and wants .The rationale for market segmentation is that in order to achieve
competitive advantages and superior performance.
>Market targeting
>Market positioning
5 MARKS
Ans: 1.Demographics covers age, gender, race, location, education and more.
4.Product benefits can also be used to differentiate audience segments. E.g. car dealership
messaging might address its luxury brand to those with desire for social status, on incomes,
while touting the roominess of a wagon to young families on channels during prime
commuting time.
Q2.What are audience segmentation needs?
Ans: Analyzing the available data, the media planner can gain more insight into audience
behaviours. Based on a researched, nuanced understanding of the customers, the planner or
buyer can better perform audience segmentation that takes into consideration consumer
demand to determine strategic approach
Ans: Each audience segments will have different attributes, but you may also want audiences
to act differently too. Customize communications accordingly and track campaign success for
each segmentation to determine what strategies are working or need to be retooled.
Carefully subdividing several mutually exclusive segments can also hurt messaging as what
you say to one group could be confusing to another targeted segment if there is spill over
across channels.
Ans: When looking at multivariate analysis, the strategist can find answer to hundreds of
question. Yet it can be too easy to overlook the basic. For instance, a market segment may
represent a large percentage of the market. Look at dollar potential as well as the number of
people.
In segment analysis, the media planner and buyer need to ask the questions that help identify
measurable, actionable and substantial targets. Using segments analysis and powerful media
targeting software, media planners are equipped with the ability to construct substantial
plans without having to play a guessing game, After all, all this data analysis is only useful if
the end result is targeted, attracted, and serviced with the marketing mix
12 MARKS
Ex: Deducing that adults over 50 are not as tech savvy as twenty some things is a safe
assumption based on the reasoning that high tech devices were not as widely available to the
older generation than they are to the younger. However, be careful to check your
assumptions since they can change over time. In 30 years, that statement may no longer be
true.
However, once usage segmentation is created, it’s exceptionally helpful to know the
motivating factors behind the purchasing decisions of the heaviest users of your product.
4. Needs Based Segmentation: Needs based segmentation is the concept that the market can
be divided based on customer need.
This type of analysis is used to develop products that sell rather than trying to sell products a
business developed.
Needs based segmentation uses conjoint analysis to separate the groups according to
functional performance .Using cluster analysis, it’s goal is it determine the driving forces
behind the performance data.
Knowing which segmentation to use is often as critical as the analysis is itself as critical it is
driven by the cost and the stated business goals of the decision makers.
Ans: 1. What to except: This Business Builder will take you though step-by-step processes
that will help you identify specific target markets within your industry and provide you with
the know-how to create a customer profile.
2. What you should know before getting started: In order to market your product or service,
it is imperative that you tailor your marketing and sales efforts to specifically reach the
segment of population that will most likely buy your product or service. It is critical that you
first determine or clearly identify your primary market. Your energies and founds then can be
spent more efficiently.
If you don’t know who your customers are, how will you be able to assess whether you are
meeting their need? Since success depends on your being able to meet customer’s needs and
desires, you must know who your customers are, what they want, where they live and what
they can afford.
We have all heard a business owner say, “My product is terrific! It appeals to everyone. “Many
of us have also seen small businesses that try to be all things to all people. This is a difficult, if
not impossible, bridge to cross.
Targeting your market is simply defining who your primary customer will be. The market
should be measurable, sufficiently large and reachable.
3. Types of Markets: A market is simply any group of actual or potential buyers of a product.
There are three major types of markets.
>The consumer market: Individuals and households who buy goods for their own use or
benefits are part of the consumer market. Drug and grocery items are the most common types
of consumer products.
>The industrial market: Individuals, groups or organization that purchase your product or
service for direct use in producing other products or for use in their day-to-day operations.
>The reseller market: Middlemen or intermediaries, such as wholesalers and retailers, who
buy finished goods and resell them for a profit.
4. Indentifying your market: Here are three steps to follow when identifying your market:
Q3: What are four groups with high resource and low resource in segmentation system?
2. Thinkers: Mature, satisfies, and reflective people motivated by ideas and who vale order,
knowledge, and responsibility. They seek durability, functionality, and value in products.
3. Achievers: Successful, goal-oriented people who focus on career and family. They favour
premium products that demonstrate success to their peers.
4. Experiences: Young, enthusiastic, impulsive people who seek variety and entertainment.
They spend a comparatively high proportion on fashion, entertainment, and socializing.
>Low resource:
1. Believers: Conservative, conventional, and traditional people with concrete beliefs. They
prefer familiar, U.S.- made products and are loyal to established brands.
2. Strivers: Trendy and fun-loving people who are resource-constrained. They favour stylish
products that emulate the purchases of those with greater material wealth.
3. Makers: Practical, down-to-earth, self-sufficient people who like to work with their hands.
They seek U.S –made products with a particular or functional purpose.
4. Survivors: Elderly, passive people concerned about change and loyal to their favourite
brands.
Ans:
Target Market
Unaware Aware
Negative Favourable
Neutral Opinion Rejecter Not yet Repeated
Opinion repeated
Light
user
Loyal to Switcher Loyal to
Regular brand other
user brand
Heavy
user
Bases for Segmenting Business Markets
5. Segment positioning: For each segment, create a “value proposition” and product-
price positioning strategy based on that segment’s unique customer needs and
characteristics.
6. Segment “Acid Test”: Create “segment storyboard” to test the attractiveness of each
segment’s positioning strategy.
ANSWER: The product Gatorade was first developed by researchers at the University
of Florida to help school athletes to cope with weakening effects of the hot and humid
climate. Following its success as pioneers in the sports drink category, PepsiCo acquired
its parent company, Quaker Oats, in 2001 for $13.4 billion in stock. The brand
flourished due to PepsiCo’s massive distribution system and a slew of new product and
packaging introductions. But when the market share dropped from 80% to 75%, the
brand seemed tired. Then PepsiCo decided to return the brand to its roots, focusing
more on athletes.
Their goal- go beyond the $7 billion a year sports drink market and become a major
player in the $20 billion a year sports nutrition market. As a result three new lines
were introduced for pre-, during-,
and post-workout, respectively. Three different markets were targeted. The G Series
line aimed at
“Performance” athletes, the G Series Fit line targeted less competitive 18-34year olds
and the G Series Pro line targeted professional athletes. A new advertising tagline, ”Win
From Within “ was introduced which reflected the new Gatorade brand strategy. There
was also a significant change in the brand’s communication budget from 90%
advertising to include a 30% digital component.
ANSWER: Brands perform a number of functions for both consumers and firms.
Brands role for Consumers- A brand is a promise between the firm and the
consumer. It is a means means to set consumers expectations and reduce their risk.
A brand may even be “ predictably
unpredictable” but the key factor is that it fulfills or exceeds customer
expectations in satisfying
their needs and wants. The consumers learn about the brands through past
experiences with the product and its marketing program, finding out which brand
satisfy their needs and which do not.
Brands also take on personal meaning to Consumers and become an important part
of their Identity. They can express who consumers are or Who they would like to be
and for some consumers Brands can even take on human like characteristics
Brands role for Firms- Brands simplify product Handling by helping organize inventory
and accounting records. A brand also offers the firm legal protection for unique
features or aspects of the product. Brand loyalty provides predictability and security of
demand for the firm, and it creates barriers to entry that make it difficult for other firms
to enter the market. Loyalty also prompts customers to pay a higher price than
competing brands.
ANSWER: Branding is the process of endowing products and services with the
power of a brand.
ANSWER: Brand equity is the added value endowed to products and services with
consumers.
It is reflected in the way the consumers think, feel, and act with respect to the brand
as well as in the prices , market share , and profitability it commands.
ANSWER: Customer-based brand equity is the differential effect brand knowledge has
on consumer response to the marketing of that brand.
ANSWER: A brand has positive customer-based brand equity when consumers react more
favorably to a product and the way it is marketed when the brand is identified than when
it is not identified. A brand has negative customer-based brand equity if consumers react
less favorably to marketing activity for the brand under the same circumstances.
11. What are the three key ingredients of customer- based brand
equity?(2M)
SWER: > Brand equity arises from differences in consumer response. If no differences occur, the brand-name
product is essentially a commodity, and competition will probably
be based on price.
> Differences in response are a result of consumers’ brand knowledge,
all the thoughts, feelings, images, experiences, and beliefs associated
with the brand.
Brand equity is reflected in perceptions, preferences, and
behavior related to all aspects of the marketing of a brand.
Stronger brands earn greater revenue.
12. Summarize some of the key benefits of brand equity / Mention the
marketing advantages of strong brands?(5M)
Greater loyalty Increased marketing communications
effectiveness
Less vulnerability to competitive marketing Actions
Possible licensing opportunities
Larger margins
ANSWER: A brand promise is the marketer’s vision of what the brand must be and do for
consumers.
14. What are the three main sets of brand equity drivers?(2M)
WER: > The initial choices for the brand elements or identities making up the band (band names, URLs,
Logos, Symbols, characters, spokespeople, slogans, jingles, packages, and signage)
The product and service and all
accompanying marketing activities and supporting marketing
programs.
Other associations indirectly transferred to the brand by linking it to
some other entity (a person, place, or thing)
ANSWER: Brand elements are devices, which can be trademarked, that identify and
differentiate the brand. Most strong brands employ multiple brand elements.
ANSWER: There are six criteria for choosing brand elements. The first three—memorable,
meaningful, and likable—are brand building. The latter three— transferable, adaptable,
and protectable—are defensive and help leverage and preserve brand equity against
challenges.
>Memorable – how easily consumers recall and recognize the brand elements and when
(purchase or consumption)
>Transferable- can brand element introduce new products in the same or different
category?
ANSWER: The specific mix of human traits that are attributed to a particular brand is known
as brand personality. Consumers are more likely to choose brands whose personalities
match with their own.
18. What are the traits of brand personality according to Stanford’s Jennifer Aaker? (2M)
Sincerity
Excitement
Competence
Sophistication
Ruggedness
ANSWER: BrandAsset Valuator Advertising agency Young and Rubicam (Y&R) developed the
model of brand equity called the BrandAsset Valuator (BAV). BAV compares the brand
equity of thousands of brands across hundreds of different categories. The four key
components/pillars of brand equity, according to BAV are > Energized Differentiation: It
measures the degree
to which a brand is seen as different from others as well as its pricing power.
Esteem: It measures perceptions of quality and loyalty or how well the brand is
regarded and respected.
knowledge: It measures how aware and familiar consumers are with the brand
and the depth of their experience
Esteem and Knowledge create the Brand Stature (The report card of past performance and
a lagging indicator of current operating value)
Brand Strength and Brand Stature combine to form the Power Grid which depicts the stages
in the cycle of brand development.
Module 3 part 3
Aishwarya R
JU2019MBA1825
2 Marks
1) What is Targeting?
Targeting is a strategy of choosing segments of the market that is appropriate for a particular
product. It is a streamlined process of selecting customers for a product.
It is a type of segmentation of the market where the customer base is very clearly defined
and narrow. Deep segmentation helps in tailoring the market strategy and ensures its success.
3) What are the two main factors in evaluation and selection of market segments?
The two main factors in selection of market segments are i) The segment’s overall
attractiveness, that is how likely is growth going to occur in that segment and ii) The
company’s objectives and resources, depending upon the company’s resources decisions are
made about which segments will be the most effective targets to make profit.
A super segment is a group of segments that have some similarities that can be used to sell a
product to a large group of customers with varied taste. This helps the firm diversify its risk,
so loss of segment won’t affect the sales too badly. For example, Loreal has come up with an
antiaging line called skin perfect, but the segment that is usually interest in this product in the
35-45-year-old females but loreal manages to sell this product to even college going girls by
pivoting on the fear of aging that all women have. The two segments have in common is their
fear of ageing.
5) What is a niche?
Niche is a narrowly defined market that is small, specialized market only for a product or
service. For example, cat nip is a niche market product as it serves only those who want and
as opposed to for everyone who has cats.
6) What is customerization?
5 Marks
An effective segment is one that can maximise profits by targeting most people within that
segment, here are a few characteristics of an effective segment
I. Identification of segments.
II. Each segment must be looked at as a marketing capability and understand what makes
a segment unique.
III. The characteristics or profile traits of each of the segment must be identified e.g.
Needs, preferences, buying behaviour etc,
IV. The worth of each segment should be evaluated based on segment size and segment
growth rate.
V. The segment is evaluated to see if it is an effective segment. The segment or segments
that most favourable to the firm are chosen.
VI. Estimated the firm’s unique capability and resources in serving that segment, and gaps
that the firm can fill with its new product or strategy.
VII. The best segment or segments are chosen for the firm to service.
3) How can wrong targeting affect a company? Explain with an example.
There are many ways in which a company can wrongly target segments and their
marketing strategies can fail. I) Improper segmentation is one of the main causes for
failure of a marketing strategies. ii) wrong assumptions about the segment iii) wrong
segment selection- when companies don’t successfully analyse the utility of a product to
the customer segment and instead target it to another one it can lead to losses.
● Many companies despite putting in efforts to segment the market very carefully can
still go wrong in their targeting approach. Taking the example of large MNCs like
Reebok in India trying to enter the Indian market as an example.
● Reebok entered the Indian market aiming to target the segment with Rs. 5,00,000
annual income. Reebok wrongly assumed that this segment would be willing to send
around Rs.6500 on a pair of shoes.
● However, Reebok later adjusted its price range to about Rs.900 and subsequently sales
started picking up.
● Reebok’s oversight of the spending power of their segment lead to a targeting disaster
but thankfully no lasting damage had happened.
12 Marks
1) Describe Porters Five Forces and the threats these forces pose that determine the
intrinsic long-term attractiveness of a market or market segment.
According to Michael Porter there are five forces that determine the long-term attractiveness
of a market, they are- i) Industry competitors, potential entrants, substitutes, buyers and
suppliers.
Marketers have come up with a range in which there are four possible approaches to targeting
it ranges from Mass market coverage to Individual coverage.
I) Full Market coverage -very large firms try to serve all the consumers within the
market, Coco cola is one company that does this. They cover the whole market by
using two different types of marketing one is Undifferentiated or mass marketing
and the other is differentiated marketing.
II) Multiple segment specialization- In specialized segment selection the firm chooses
to serve more than one segment, but the segments all have some common
denominator, this helps the firm broaden its consumer base and maximise profits.
There are two ways in which a firm can do this.
With product specialization-The firms sells the same product to multiple buyers.
With market specialization- the firms sell multiple products to a customer group to gain a
strong reputation and create a channel for the entry of new products into the same
customer group.
2 marks
1) What is Positioning?
Positioning is the act of defining a company’s offering and image in such a way that it occupies
a distinctive place in the minds of the target market.
Value proposition is an innovation in service or a product feature that make it more appealing
and attractive to the customers.
Brand image is the level of trust or the popular opinion about the brand the in-people’s
perception. For example – Apple’s brand image is associated with innovation and high-quality
products.
5 Marks
1) What is the criteria for devising brand mantra and what is its importance?
A brand mantra is used to creatively engage the minds of customers. There are three main
criteria for selecting a brand mantra
i) Communicate it should define the category of the brand and show what is
distinctly unique about it.
ii) Simplify an effective brand mantra is memorable, it is also short and crisp.
iii) Inspire The mantra should be meaningful and resonate with as many employees
as possible.
Brand mantras help the customer identify with the sentiments of the brand, it creates an
emotional connection with the company, this is the why its so important to have an effective
brand mantra that not only lasts in the memory but also communicates the unique aspects of
the brand.
2 marks
Brand dilution is the weakening of a brand by its overuse, such that the consumer no longer
associates the brand with a product or a group of similar products but don’t think about the
brand anymore.
2) What is cannibalisation?
It is the reduction in sales volume within the same company, the parent brand may lose out
on its consumer base due to cannibalisation.
Brand extension is the addition of new products to a company under the same brand name.
this is called brand extension. Brand extension is favourable for the company as they can pivot
on customer sentiments to sell new products.
When an existing brand introduces a new brand, it is called a parent brand and when the
same parent brand has multiple brands already under its belt it is called a family rand or a
master brand.
Brand extension can be of two types a) a line extension into a category that it already serves
and b) category extension where the parent brand introduces a product in a completely new
category under the same brand name.
6) What is a licenced product?
Its is used by brand owners to extend its brand name to a certain product that it does not
directly produce. For example, Marvel licences its superheroes to other companies that
makes toys of them.
5 marks
12 marks
Brand portfolio is a collection of many brands that operate under one single corporate
umbrella, each of the brands are separate entities they benefit from shared resources and
cross promotion. The need for developing multiple brands:
i) One brand can only be stretched so far, and it cannot serve multiple segments in
order to more segments there is a need for more brands.
ii) Increased shelf space means increased profits.
iii) Attracting customers with variety.
iv) Increasing the internal competition within the firm.
The main idea behind developing a brand portfolio is to increase market coverage. The brand
should be large enough to gain consumer attention, and the segment targeted should be large
enough to justify the production and marketing cost.
Careful consideration of brands in a portfolio need to be maintained and the brands that are
not performing are supposed to be pruned. Too many brands within a portfolio can lead to
cannibalisation and confusion for customers in terms of choice.
Flanker-it is a fighter brand that is positioned against all the competitors so that the key
brands can remain profitable is called a flanker.
Cash cows-these are brands that have very bad sales numbers but are still profitable with no
marketing support are called cash cows. For example, Gillette has much better technology
than its Mach3, but it does not pull the product from the shelf because it isn’t sure if the
consumer will move on to another Gillette brand.
Low end entry level- this is a brand that is introduced to introduce the customer to the
franchise with cheap products and slowly the customers are introduced to higher end
products from the franchise.
High End Prestige brand- the role of such kind of a brand is to be high priced and add prestige
to the whole company.
2)What is Brand Extension? Describe the advantages and disadvantages of brand extension.
Brand Extension is the use of an already existing brand to market a new product. For example,
Patanjali was a well-established brand in the FMCG sector and to introduce a new product
which was their jeans they leveraged on their brand name to do it.
I) Line extensions may cause a brand name to be less likely to be associated with one
product. It can cause brand dilution, it occurs when a customer no longer
associates a product or a set of products with a brand and instead doesn’t think
about the brand at all.
II) When a firm launches brands that are inadequate it brings into question the entire
brand line rather than just the product. For example, in 2015 when there was a lot
of controversy surrounding Maggie it not only lost out on the instant noodles
market but other products like its coconut milk also took a hit.
III) Brand extension can also lead to cannibalisation.
IV) The major disadvantage the a firm faces with brand extension is the missed
opportunity to create a new brand, while extending a brand line may increase
profits in the short-term, the addition of new brands strengthens the portfolio of
the company.
Jain University
Submitted by:
Manasi A Gokarn
JU2019MBA8100
Section E
CHAPTER 3
Positioning is the act of designing a company’s offering and image to occupy a distinctive place
in the minds of the target market. The goal is to locate the brand in the minds of consumers
to maximize the potential benefit to the firm.
Examples:
● Colgate is positioned as protective.
● Patanjali can be trusted as it is fully organic.
● Competitive frame of reference defines which other brands a brand competes with
and therefore which brands should be the focus of competitive analysis.
● Identifying competitors—Pepsi (Aquafina) and Coca-Cola (Dasani), Citigroup knows
Bank of America is a major banking competitor.
● Ex: Sensodyne carved out profitable share through its focused positioning strategy in
the oral care market dominated by CP and Hindustan Unilever. Sensodyne identified
the GAP for toothpaste appropriate for sensitive teeth.
● We can examine competition from both an industry and a market point of view.
● Marketers classify industries according to number of sellers; degree of product
differentiation; presence or absence of entry, mobility, and exit barriers; cost
structure; degree of vertical integration and degree of globalization.
● Thus, competitive frame of reference = defining customer target market + nature of
competition.
ii) Identifying the optimal points of parity and points of difference brand
associations given that frame of reference
a. POINTS-OF-DIFFERENCE
b. POINTS-OF-PARITY
c. POINTS-OF-PARITYVs POINTS-OF-DIFFERENCE
a. POINTS-OF-DIFFERENCE
Points-of-difference (PODs) are attributes or benefits that consumers strongly associate with
a brand, positively evaluate, and believe they could not find to the same extent with a
competitive brand.
Three criteria determine whether a brand association can truly function as a point-
of-difference: desirability (personal association, say; anti-ageing crème),
deliverability (communicate the desired association) and differentiability (brand
association as distinctive and superior)
b. POINTS-OF-PARITY
Points-of-parity (POPs), are attributes or benefit associations that are not necessarily
unique to the brand but may in fact be shared with other brands.
● Two basic forms: category POPs (necessary but not sufficient—ex: travel)and
competitive POPs ( to overcome perceived weakness of the brand) (ex: Savlon Vs
Dettol)
These types of associations come in three basic forms: category, correlational, and
competitive.
3. Local cafe PODs might be convenience and service quality; POPs might be product
quality, variety, price, and community.
e. Straddle positioning
Occasionally, a company will be able to straddle two frames of reference with one set of
points-of-difference and points-of-parity.
Example:
● Subway restaurants are positioned as offering healthy, good tasting sandwiches. This
positioning allows the brand to create a POP on taste and a POD on health with respect
to quick-serve restaurants such as McDonald’s and Burger King and, at the same time,
a POP on health and a POD on taste with respect to health food restaurants and cafes.
● Again Domino's pizza has the similar kind of positioning i.e. by Product
attribute and Desirable benefit. Product attribute by promoting fresh pizza
and Desirable benefit by home delivery service.
iii) Creating a brand mantra to summarize the positioning and essence of the brand.
6. How to establish brand positioning and what are the ways to convey a brand’s category
membership? (5 Marks)