Identifying Market Segments and Targets Crafting The Brand Positioning

MKT – 501: Marketing Management and Decisions
KUSOM MBA
Fall 2020
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Lecture 06
Identifying Market Segments and
Targets Crafting the Brand Positioning
© Sujan R Shrestha, MBA 2020

Bases for Segmenting Consumer Markets
Market segment
A group of customers who share a similar set of needs and wants
Demographic
Geographic segmentation
segmentation
Psychographic
Behavioral segmentation
segmentation
Geographic Segmentation
World Region or Country
City or Metro Size
Density or Climate
Demographic Segmentation
Age & life-

Life stage
cycle stage
Race & Gender

culture
Generation Income
Age and life-cycle stage

Our wants and abilities change with age
Life stage
A person’s major concern (e.g., divorce)
Gender
Men and women have different attitudes and
behave differently
Income
Income segmentation is a long-standing practice
Psychographic Segmentation
Buyers are divided into groups on the basis of psychological/personality traits, lifestyle, or values
VALS Segmentation System
Behavioral Segmentation
Marketers divide buyers into groups on the basis of their knowledge of, attitude toward, use of, or
response to a product
Behavioral Segmentation
Needs and benefits

Decision roles
Initiator
Influencer
Decider
Buyer
User
User and usage-related variables
Occasions User status
Attitude Usage rate
Buyer-
Loyalty status readiness
stage
How Should Business Markets Be Segmented?
 Demographic
 Operating variables
 Purchasing approaches
 Situational factors
 Personal characteristics
Market targeting
SWOT / TOWS Analysis
SWOT analysis (or SWOT matrix) is a strategic planning technique used to help a person or organization identify
strengths, weaknesses, opportunities, and threats related to business competition or project planning. Some authors
credit SWOT to Albert Humphrey, who led a convention at the Stanford Research Institute (now SRI International) in
the 1960s and 1970s using data from Fortune 500 companies. The acronym TOWS is a variant of this and was
developed by the American international business professor Heinz Weirich.
SWOT / TOWS Analysis
SWOT analysis (or SWOT matrix) is a strategic planning technique used to help a person or organization identify
strengths, weaknesses, opportunities, and threats related to business competition or project planning. Some authors
credit SWOT to Albert Humphrey, who led a convention at the Stanford Research Institute (now SRI International) in
the 1960s and 1970s using data from Fortune 500 companies. The acronym TOWS is a variant of this and was
developed by the American international business professor Heinz Weirich.
Porter’s five forces (P5FM)
Threat of Rivalry
Threat of Threat of
New Entrants Substitutes
Threat of Buyer Threat of Supplier

Bargaining Power Bargaining Power
Michael Eugene Porter (born May 23, 1947) is an American academic known for his theories on
economics, business strategy, and social causes. He is credited for creating Porter's five forces analysis
(1979), which is instrumental in business strategy development today.
Evaluating & Selecting the Market Segments
Possible Levels of Segmentation

Effective Segmentation Criteria
 Measurable
 Substantial
 Accessible
 Differentiable
 Actionable
Developing a Brand Positioning
Positioning
The act of designing a company’s offering
and image to occupy a distinctive place in
the minds of the target market
Value proposition
Compétitive Frame of Reference
Competitive frame of reference

Defines which other brands a brand competes with and which should thus be the focus of
competitive analysis
Identifying and analyzing competitors
Points-of-Difference and Points-of-Parity
Points-of-parity (POPs)
Attribute/benefit associations that are not necessarily unique to the brand but may in fact
be shared with other brands
Points-of-difference (PODs)
Attributes/benefits that consumers strongly
associate with a brand, positively evaluate, and
believe they could not find to the same extent
with a competitive brand
Points-of-difference (PODs)
Desirable
Deliverable
Differentiating
Choosing specific POPs and PODs

Competitive advantage
Means of differentiation
Perceptual map
Emotional branding
Brand mantras
Communicate
Simplify
Inspire
Establishing a Brand Positioning
Communicating POPs and PODs
Announcing category benefits
Comparing to exemplars
Relying on product descriptor

Communicating POPs and PODs
Negatively correlated attributes/benefits (trade-off)
 Low price vs. high quality

 Taste vs. low calories
 Powerful vs. safe
 Varied vs. simple
Monitoring Competition
Variables in assessing potential

competitors
Share of market
Share of mind
Share of heart

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MKT – 501: Marketing Management and Decisions

© Sujan R Shrestha, MBA 2020

World Region or Country

City or Metro Size

Age & life-

Race & Gender

Age and life-cycle stage

Needs and benefits

Occasions User status

Attitude Usage rate

Threat of Buyer Threat of Supplier

Possible Levels of Segmentation

Competitive frame of reference

Choosing specific POPs and PODs

Communicating POPs and PODs

Announcing category benefits

Relying on product descriptor

Negatively correlated attributes/benefits (trade-off)

 Low price vs. high quality

Variables in assessing potential

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