Lecture 5 Flashcards
What are low level-motivators vs high-level motivators?
low-level motivators are rooted in basic survival and well-being, while high-level motivators are driven by personal growth, social connection, and self-fulfillment. Both types of motivators play a role in influencing human behavior and decisions.
Low level motivator: its a small snack and toy for my kids
High level motivators: it’s a bonding opportunity.
What is the S-T-P PROCESS?
Segmentation, targeting, positioning.
- Create market segments
- Evaluate the segments on a set criteria
- select target markets
- evaluate the attractiveness of the segments
- construct segment profiles
- develop positioning strategy
- develop and implement marketing mix
- review performance
What different marketing strategies are there?
- UNDIFFERENTIATED (MASS) MARKETING –Ignores segmentation opportunities
- DIFFERENTIATED (TARGETED) MARKETING–Targets several segments and develop marketing plans for each
- CONCENTRATED (NICHE) MARKETING –Targets one or more small segments
- MICROMARKETING–Local or individual marketing
What is market segmentation?
dividing the market into distinct groups of homogeneous consumers (sharing some characteristics)
What are the segmenting criteria?
- Geographic (nation, region, city, district)
- Demographic (age, number of components of a family)
- Psychographic (lifestyle, personality)
- Behavioural (attitudes)
- Occasion consumption
- benefit sought (technical performance, comfort, economy of use, image)
- User status (first-timers, regular users, ex-users)
- usage rate status (light medium heavy)
- loyalty status
How do you evaluate segments?
❑ Mesurable: It should be possible to identify and measure it,
❑ Valuable: it should be big enough to be worth the effort,
❑ Interested : the product or service should satisfy their needs (relevance)
❑ Purchase power : they must afford to pay for the price we ask
❑ Accessible: they can be reach with some kind of communication
❑ Duration: the segment should not change quickly,
How do you select the segments?
➢Growth of the segment/ sector/ industry
➢Size or population of the potential target group
➢Existing competition: who should we face as competitors (high/low)
➢Marketing resources required: investments required (adv,sales…)
➢Expected profitability: Return on the investment -ROI
How do you construct segment profiles?
Create a persona. A buyer persona profile identifies, in details, the averageconsumer you are targeting with your future marketing initiatives. You may have more than one. Your surveys, samples and interviews will help define the optimum profiles .
what is the brand positioning?
The brand positioning is the place in the consumers’ mind you want to own
How do we define our niche for the brand?
We define our “niche” for a product/service by having customers to think about our brand with respect to Competitors
How can managerial influence be a positive influence on brand positiioning?
Brand positioning occurs whether or not a company is proactive in developing a position, however…… If management properly, it can positively influence its brand positioning in the eyes of its target customers.
What four key elements has the best in class positioning statement?
- Target: description of the consumers you want to sell to
*Market/category you play in
*Brand Promise (emotional or rational benefit): USP UNIQUENESS –Point of Difference (POD)
*The Reason to Believe (RTB) the brand promise: the most compelling evidencethat your brand delivers on its brand promise
What’s the best space to find a “unique advantage”?
Between what consumers want, and what your brand can do the best.
What are the criteria to define an effective point of difference (POD)?
- RELEVANCE: do targeted consumers find the POD personally relevant and important ?
- DISTINCTIVENESS: do targeted consumers find the POD distinctive & superior?
- CREDIBILITY: is the POD credible in the eyes of consumers?
- FEASIBILITY: can we indeed create the POD ?
- COMMUNICABILITY: the POD can be easily communicated to the target ?
- SUSTAINABILITY: can we “own” the POD for a long period do time (enough to justify investments) ?
What is the Brand Positioning Statement Structure?
Target: For those who value an infinite amount of choices
Category reference: Amazon.com is the e-commerce platform
Benefit: The gives the best combination of convenience, service and choice
Reason to believe: because Amazon.com offers a truly global selection of products
For internal use. To guide the marketing and operating business of your brand.
