Transcript Kotler Keller 1 - Jenne Meyer PhD

BUS7450
Strategic Marketing
Management
Week 5
Dr. Jenne Meyer
BUS7500
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Article reviews
8
Identifying Market
Segments and Targets
Effective Targeting Requires…
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Identify and profile distinct groups of buyers
who differ in their needs and preferences
Select one or more market segments to enter
Establish and communicate the distinctive
benefits of the market offering
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8-4
What is a Market Segment?
A market segment consists of a group
of customers who share a similar set of
needs and wants.
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8-5
Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral
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8-6
Demographic Segmentation
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Age and life cycle
Life stage
Gender
Income
Generation
Social class
Race and Culture
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8-7
Age and Lifecycle Stage
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8-8
Gender and Income
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8-9
Generational Influences
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8-10
Psychographic Segmentation
and The VALS Framework
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8-11
Behavioral Segmentation:
Decision Roles
Initiator
Influencer
Decider
Buyer
User
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8-12
Behavioral Segmentation:
Behavioral Variables
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Occasions
Benefits
User Status
Usage Rate
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Buyer-Readiness
Loyalty Status
Attitude
8-13
Loyalty Status
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Hard-core
Split loyals
Shifting loyals
Switchers
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8-14
Figure 8.3 Behavioral
Segmentation Breakdown
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8-15
Segmenting for Business Markets
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Demographic
Operating variable
Purchasing approaches
Situational factors
Personal characteristics
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8-16
Steps in Segmentation Process
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Need-based segmentation
Segment identification
Segment attractiveness
Segment profitability
Segment positioning
Segment acid test
Market mix strategy
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8-17
Effective Segmentation Criteria
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Measurable
Substantial
Accessible
Differentiable
Actionable
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8-18
9
Creating Brand Equity
Steps in
Strategic Brand Management
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Identifying and establishing brand
positioning
Planning and implementing brand
marketing
Measuring and interpreting brand
performance
Growing and sustaining brand value
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9-20
What is a Brand?
A brand is a name, term, sign, symbol or
design, or a combination of them, intended
to identify the goods or services of one seller
or group of sellers and to differentiate them
from those of competitors.
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9-21
The Role of Brands
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Identify the maker
Simplify product handling
Organize accounting
Offer legal protection
Signify quality
Create barriers to entry
Serve as a competitive advantage
Secure price premium
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9-22
What is Brand Equity?
Brand equity is the added value endowed
on products and services, which may be
reflected in the way consumers, think, feel,
and act with respect to the brand.
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9-23
Advantages of Strong Brands
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Improved
perceptions of
product
performance
Greater loyalty
Less vulnerability to
competitive
marketing actions
Less vulnerability to
crises
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Larger margins
More inelastic
consumer response
Greater trade
cooperation
Increased marketing
communications
effectiveness
Possible licensing
opportunities
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9-24
Virgin Atlantic’s Brand Promise
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9-25
What is a Brand Promise?
A brand promise is the marketer’s vision of
what the brand must be and do for consumers.
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9-26
Brand Equity Models
Brand Asset Valuator (BAV)
Brandz
Brand Resonance
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9-27
Figure 9.1 BAV Model
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9-28
Figure 9.2 Universe of
Brand Performance
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9-29
Figure 9.3
Brand Dynamics Pyramid
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9-30
Figure 9.4 Brand Resonance
Pyramid
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9-31
Brand Building Blocks
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9-32
Brand Elements
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Brand names
Slogans
Characters
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Symbols
Logos
URLs
9-33
Brand Element Choice Criteria
Memorable
Meaningful
Likeable
Transferable
Adaptable
Protectable
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9-34
Slogans
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Like a good
neighbor, State
Farm is there
Just do it
Nothing runs like a
Deere
Save 15% or more
in 15 minutes or
less
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We try harder
We’ll pick you up
Nextel – Done
Zoom Zoom
I’m lovin’ it
Innovation at work
This Bud’s for you
Always low prices
9-35
Figure 9.5 Secondary Sources of
Brand Knowledge
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9-36
Table 9.4
The 10 Most Valuable Brands
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9-37
Devising a Branding Strategy
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Develop new brand elements
Apply existing brand elements
Use a combination of old and new
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9-38
Branding Terms
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Brand line
Brand mix
Brand extension
Sub-brand
Parent brand
Family brand
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Line extension
Category extension
Branded variants
Licensed product
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9-39
Reasons for Brand Portfolios
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9-40
Brand Roles in a Brand Portfolio
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Flankers
Cash cows
Low-end, entry-level
High-end prestige
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9-41
Brand Extensions
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9-42
10
Crafting the
Brand Positioning
What is Positioning?
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10-44
Value Propositions
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Perdue Chicken
 More tender golden chicken at a moderate
premium price
Domino’s
 A good hot pizza, delivered to your door
within 30 minutes of ordering, at a moderate
price
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10-45
Competitive Frame of Reference
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10-46
Table 10.2 Customer Ratings
of Competitors
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10-47
Defining Associations
Points-of-difference
Attributes or benefits
consumers strongly
associate with a
brand, positively
evaluate, and believe
they could not find to
the same extent with a
competitive brand
Points-of-parity
Associations that are
not necessarily unique
to the brand but may
be shared with other
brands
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10-48
Point-of-Difference Criteria
Desirable
Deliverable
Differentiating
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10-49
Figure 10.1a Perceptual Map:
Current Perceptions
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10-50
Figure 10.1b Perceptual Map:
Possibilities
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10-51
Designing a Brand Mantra
Communicate
Simplify
Inspire
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10-52
Constructing a
Brand Positioning Bull’s-Eye
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10-53
Conveying Category Membership
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Announcing category benefits
Comparing to exemplars
Relying on the product descriptor
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10-54
Examples of Negatively Correlated
Attributes and Benefits
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Low-price vs. High
quality
Taste vs. Low
calories
Nutritious vs. Good
tasting
Efficacious vs. Mild
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Powerful vs. Safe
Strong vs. Refined
Ubiquitous vs.
Exclusive
Varied vs. Simple
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10-55
Differentiation Strategies
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10-56
Means of Differentiation
Employee
Channel
Image
Services
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10-57
Emotional Branding
Strong culture
Communication style
Emotional hook
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10-58
Brand Narratives and Storytelling
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10-59
Class wrap up
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What is due for next week