Chapter Three Positioning and Targeting for MarCom Efforts

Chapter Three Objectives Explain the concept of positioning and the role it plays in directing the implementation of MarCom decisions. Discuss the importance of targeting marketing communications to specific consumer groups. Understand the role of demographics,s psychographics, and geodemographics in targeting consumer groups.

Chapter Three Objectives Appreciate major demographic developments such as changes in the age structure of the population and ethnic population growth. Describe the nature of psychographic targeting and the VALS-2 system. Explain the meaning of geodemographics and understand the role for this form of targeting.

Brand Positioning A positioning statement for a brand represents how we want customers and prospects to think and feel about our brand.

Consumer-Based Brand Equity Framework Brand Knowledge Brand Knowledge Non-Product-Related (e.g., Price, Packaging, User and Usage Imagery) Non-Product-Related (e.g., Price, Packaging, User and Usage Imagery) Product-Related (e.g., color, size, design features) Product-Related (e.g., color, size, design features) Functional Symbolic Experiential Attributes Benefits Overall Evaluation (Attitude) Overall Evaluation (Attitude) Types of Brand Associations Types of Brand Associations Favorability, Strength, and Uniqueness of Brand Association Favorability, Strength, and Uniqueness of Brand Association Brand Awareness Brand Awareness Brand Image Brand Image

Positioning via Product Attributes A positioning statement for a brand represents how we want customers and prospects to think and feel about our brand.

Positioning via Product Attributes Product-related features Usage and User imagery

Positioning via Usage Imagery

Positioning via Brand Benefits Positioning with respect to brand benefits can be accomplished by appealing to any of three categories of needs. Experiential NeedsSymbolic NeedsFunctional Needs

An Appeal to Functional Needs Products that attempt to fulfill the consumer’s consumption-related problems

An Appeal to Functional Needs

Health conscious products are a functional need today An Appeal to Functional Needs

An Appeal to Symbolic Needs Products that potentially fulfill a consumer’s desire for self- enhancement, group membership, affiliation, and belongingness

An Appeal to Symbolic Needs An appeal to symbolic needs

An Appeal to Symbolic Needs Another appeal to symbolic needs

An Appeal to Symbolic Needs Appeal to Symbolic needs

An Appeal to Experiential Needs Products that provide sensory pleasure, variety, and cognitive stimulation

An Appeal to Experiential Needs An appeal to experiential needs

An Appeal to Experiential Needs Sensory pleasure

Demographic Targeting Baby Boomers

Demographic Targeting Baby Boomers

Demographic Targeting Baby Boomers

Demographic Targeting Mature Consumers

Demographic Targeting Mature Consumers

Demographic Targeting Children and teenagers

Demographic Targeting Children and teenagers

Demographic Targeting Yup & Comers: The highest levels of education and income, focus on intangible rewards and confident about themselves Bystanders: Predominantly female of African-Americans and Hispanics, disposable income is low but love fashion and shopping Playboys: “Pleasure before duty” lifestyle, self-absorbed, fun-loving and impulsive Drifters: Frustrated with their lives, the least educated, and choose brands that offer a sense of belonging and self-esteem Bystanders (37%) Playboys (19%) Drifters (16%) Yup & Comers (28%)

Demographic Targeting Women

Demographic Targeting Women

Demographic Targeting Women

Demographic Targeting % of population as of 2000

Demographic Targeting Ethnic targeting

Demographic Targeting Ethnic targeting

Demographic Targeting Ethnic targeting

Demographic Targeting Ethnic targeting

Demographic Targeting Ethnic targeting

VALS2

VALS2 Fulfillers n Mature, home oriented, well educated professionals n High incomes n Value-oriented n Open to new ideas

VALS2 Fulfillers

VALS2

VALS2 Achievers n Work oriented n Successful n High job satisfaction n Respect authority, and favor the status quo n Demonstrate success through their purchase

VALS2 Experiencers n Main component of action- oriented segment n Youngest in VALS2, median age is 25 years n Active in both physical and social activities n Favor new products

VALS2 Experiencers

VALS2 Believers n Family and community oriented people n Modest means n Brand loyal n Favor American-made products

VALS2 Strivers n Lower-income people n Values similar to achievers n Style is important in lifestyle.

VALS2 Makers n Main component of action- oriented segment along with experiencers n Self-sufficient group n Practical with little interest in most material possessions

VALS2 Makers

VALS2 Actualizers n Posses both high income and self-esteem n Indulge in a variety of self-orientations

VALS2 Strugglers n Have few resources n Do not fit into the regular VALS2 categories n Brand loyal to the extent possible