1. Chapter Three Positioning and Targeting for MarCom Efforts

2. 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.

3. 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.

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

5. 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

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

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

8. Positioning via Usage Imagery

9. 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

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

11. An Appeal to Functional Needs

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

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

14. An Appeal to Symbolic Needs An appeal to symbolic needs

15. An Appeal to Symbolic Needs Another appeal to symbolic needs

16. An Appeal to Symbolic Needs Appeal to Symbolic needs

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

18. An Appeal to Experiential Needs An appeal to experiential needs

19. An Appeal to Experiential Needs Sensory pleasure

20. Demographic Targeting Baby Boomers

21. Demographic Targeting Baby Boomers

22. Demographic Targeting Baby Boomers

23. Demographic Targeting Mature Consumers

24. Demographic Targeting Mature Consumers

25. Demographic Targeting Children and teenagers

26. Demographic Targeting Children and teenagers

27. 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%)

28. Demographic Targeting Women

29. Demographic Targeting Women

30. Demographic Targeting Women

31. Demographic Targeting % of population as of 2000

32. Demographic Targeting Ethnic targeting

33. Demographic Targeting Ethnic targeting

34. Demographic Targeting Ethnic targeting

35. Demographic Targeting Ethnic targeting

36. Demographic Targeting Ethnic targeting

37. VALS2

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

39. VALS2 Fulfillers

40. VALS2

41. 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

42. 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

43. VALS2 Experiencers

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

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

46. 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

47. VALS2 Makers

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

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