class: middle, title-slide # Marketing ## 7: Segmentation, Target Marketing, and Positioning ### Dennis A. V. Dittrich ### 2021 --- layout: true <div class="my-footer"> <span><img src="img/tcb-logo.png" height="40px"></span> </div> --- ## Target Marketing: Select and Enter a Market .col-7[ In our modern, complex society, it is a mistake to assume everyone’s needs are the same. **Market fragmentation** occurs when diverse interests and backgrounds of individuals create greater diversity in needs and wants. * Technological and cultural advances have fueled growing fragmentation of markets. .question[ Consider the choice you made as a consumer of higher education… ] ] ??? The marketing concept dictates that firms should make every effort to understand and satisfy customer needs. Unfortunately, understanding needs is an increasingly complex task because of market fragmentation. Technological and cultural changes in our society have increased the diversity of people’s interests and backgrounds, leading to the creation of many consumer groups, each with its own set of needs. As a result of market fragmentation, mass marketing efforts are not as effective as they were 20 years ago, or even 10 years ago for that matter. For the vast majority of brands, targeting everyone is not an option. DISCUSSION NOTES: * Instructor may ask students to reflect on the numerous types of colleges or universities they looked at and/or received information from in the course of their college selection process. * Not only did they have the more traditional schools to choose from— community or technical colleges and public or private four-year schools—but you also had newer schools, such as the for-profit University of Phoenix or Kaplan University, and several online-only schools, such as Western Governors University. * Each of these institutions of higher learning serves a different market need, and what may meet your needs currently might not meet your needs in the future. --- # Steps in the Target Marketing Process ![](img07/solomon_rprc9e_fullppt_071.png) ??? Market fragmentation, and the reduced effectiveness of mass marketing efforts in turn underscores the importance of developing a true target marketing strategy. The target marketing strategy process consists of three separate yet interrelated steps: 1. Marketers first divide the market into segments based on needs and other customer characteristics. 2. The marketer then selects one or more segments to serve,. 3. For each segment chosen, the marketer develops products specifically to meet the needs of the selected group, and customizes all other aspects of the marketing mix in a manner which most effectively and efficiently sells the product to the segment. --- # Step 1: Segmentation .row[ .col-4[ **Segmentation** is the process of dividing a larger market into smaller pieces based on meaningful, shared characteristics. * Useful in both consumer and B2B contexts * Many different dimensions, or segmentation variables, that marketers can utilize ] .col-8[ #### Segmenting Consumer Markets ![](img07/solomon_rprc9e_fullppt_072.png) ]] ??? In addition to needs, marketer’s use one or more segmentation variables to segment consumer markets. Segmentation variables can be defined as dimensions that divide the total market into fairly homogeneous groups, each with different needs and preferences. Segmentation variables can be broadly classified as demographic, psychographic, or behavioral in nature, as shown in Figure 7.2. --- # Segmenting by Demographics: # Age and Generational Marketing .col-7[ Children Teens and Tweens Generation Z * Born after 1994 * Digital Natives Generation Y * aka Millennials or Echo Boomers * Born between 1979 and 1994 ] ??? Age is a popular demographic segmentation base because different age groups have different needs and wants; specifically, members of a generation tend to share the same outlook and priority. For this reason, many marketers engage in generational marketing. Children: It may surprise you to learn that American children aged 4 to 12 have a say in family-related purchases of more than $130 billion a year. The purchase of toys, games, and even food items are heavily influenced by children, while parents purchase a variety of items (diapers, car seats, clothing, etc.) for use by their children. When advertising to children, marketers use cartoons and shows such as Hannah Montana, American Idol, and others. Teens: Teens are defined as people falling within the 12—17-year-old age group. Marketers are particularly interested in teens because this group is growing nearly twice as fast as the general population. Furthermore, this group (as well as the “tweens”, kids 8–14 years old), spend nearly $3000 of their own money on cosmetics, fast foods, and other feel good products. Generation Y is also called “Millennials” or the “Baby Boomlet” by some. This free-spending group is highly attractive, as they represent approximately 26% of the population. They are the first generation to grow up in a wired world, and are ethnically diverse. Unfortunately, Gen Y is somewhat difficult to reach because they resist reading (meaning newspapers and magazines can’t reach them easily) and don’t watch a lot of TV. When they do, they gravitate towards alternative fare such as the late-night lineup on Adult Swim. Better methods of reaching this group include social networking, email, online chat rooms, and other digital and social networking methods. DISCUSSION NOTE: * Apple has had exceptional success marketing to teens, particularly via products such as the iPod which allows teens to create their own content and control every aspect of their music consumption. Teens have a strong need for individuality, which Apple caters to. Teens don’t particularly like to be marketed to, which is a great fit for Apple’s approach of letting fans and the media do their marketing for them. The iPod and iPhone are iconic symbols of modern youth— stylish, nonconforming, and an expression of a clear difference from the past. WEBSITE NOTE: Recognizing that GenY does not like to be “sold” to, Nike’s “Chosen” campaign directly involved the company with action sports athletes to help them showcase their sports. --- # Age and Generational Marketing .col-7[ Generation X (born between 1965 and 1978) * Has entrepreneurial reputation, views home as an expression of individuality Baby-boomers (born between 1946 and 1964) * Key segment due to their size and earnings, willing to invest money, time, and energy to maintain youthful image Mature consumers * Focus on lifestyle factors, such as mobility ] ??? An asset is an economic resource that is expected to benefit the business in the future. Assets are something the business owns or has control of. Cash, merchandise inventory, furniture, and land are examples of assets. --- # Segmenting by Demographics: Gender .row[.col-6[ Many products appeal to one sex or the other * Metrosexual: A straight, urban male who is keenly interested in fashion, home design, gourmet cooking, and personal care. .question[ Identify some products that are specifically targeted to one gender or another. ] ] .col-6[ ![](img07/solomon_rprc9e_fullppt_073.jpg) SHE beer specifically targets female brew drinkers. ]] ??? DISCUSSION NOTES: * Ask students to identify some products that are specifically targeted to one gender or another. Likely responses may include perfume, cologne, feminine hygiene products, clothing, shoes, wigs, etc. * The image on the slide depicts SHE beer. Ask students whether they would prefer to drink a gender-specific beverage. Are there other products in which they would prefer gender exclusivity? How do they feel about marketing promotions that focus on a specific gender, such as “Ladies Night” at bars and nightclubs? In addition to products that are only sold to one gender or another, many marketers develop parallel products which each appeal to a different sex. Pink and blue diapers, men and women’s razors, and men and women’s Nikes are just a few examples. Until recently, purses and many types of grooming products were marketed exclusively to women. However, growing recognition of the “metrosexual” has led many marketers to target this group when selling fashion accessories, personal care items, and “man-bags”. --- # Segmenting by Demographics: # Family Life Cycle .col-7[ Family needs and expenditures change over time. * As families move through stages, different product categories ascend or descend in importance. * Even if importance is constant, needs within category may change (e.g., furniture). .question[ What purchase categories would be of rising importance for young newlywed couples? Expectant parents? Empty nesters? ]] ??? Family Life Cycle: Family needs change dramatically for many products over time, creating the opportunity to segment by family life cycle. For example, furniture is product category that varies with the family life cycle. Singles living away from home for the first time may purchase very small refrigerators to serve as beverage coolers in their dorm room, or inexpensive press wood furniture for an apartment. Young married couples purchase a greater number of items, but quality is likely to be relatively low because cost is a concern. As children join the family, parents purchase cribs, baby changing tables, and later on, twin beds or bunk beds. As family income rises, families may move to larger homes in more affluent neighborhoods, and purchase higher-quality furniture. After the kids have moved out of the house, couples in their prime working years may acquire a second (vacation) home, or upgrade their primary home furnishings to even higher-quality items (Ethan Allen; leather sofas, etc.). DISCUSSION NOTES: * As families age and move through the cycle, some product categories gain in importance while others decline in importance. * Instructor may ask anyone if they are engaged or newly married. What categories are important for them right now? Conversation may extend to discuss needs of expectant families as well as those of empty nesters, like many of their parents. --- # Segmenting by Demographics: Income and Social Class .col-7[ Income * Strongly connected to buying power Social Class * Upper class, middle class and lower class Many consumers buy according to an image they’d like to portray, not their actual level. * For instance, “easy credit” may lead consumers to buy cars and homes they can’t truly afford. ] ??? Income: The importance of income is self-evident. The more discretionary money available, the more likely it is that certain types of products and services will be consumed. {(Ask students to NAME some products that are targeted to higher-income classes.)} It should be noted though that the recent economic turmoil has resulted in some important changes – many individuals who were comfortable before the financial meltdown now find that they can’t retire, while others are spending more cautiously and in some cases, “downshopping”, meaning that higher income consumers are more likely to shop at stores like K-Mart and Walmart. On the other end of the spectrum, some businesses such as WalMart, pawn shops, and payday loan places actively target individuals at the lower end of the income spectrum. Social Class: While historically some marketers have chosen to segment by social class (such as upper class, middle class, and lower class), fewer do so today because research has shown that consumers are more likely to buy according to the image they wish to portray rather than where they actually fall within the social class framework. Of course in doing so, many of these consumers got themselves into trouble by buying on readily available credit; it will be interesting to see whether this trend reverses itself now that lending guidelines have tightened somewhat. DISCUSSION NOTE: * Instructor may wish to reference the housing bust that helped trigger the Great Recession. --- .row[ .col-7[ ## Segmenting by Demographics: Ethnicity U.S. ethnic and cultural diversity is increasing. * African Americans, Hispanic Americans and AsianAmericansare largest groups and growing. * Content marketing establishes thought leadership with specificg roups. * Managers practice cultural diversity. ] .col-5[ ![](img07/solomon_rprc9e_fullppt_074.jpg) ]] ??? A consumer’s ethnicity often plays a strong role in preferences for products, services, and media. Understanding the unique needs of each group, as well as the media preferences that indicate how they can best be reached, is essential for marketers who target on the basis of race or ethnicity. African-Americans comprise about 12% of the U.S. population. A variety of specialized media, such as Urban sound, rap, or hip-hop radio stations and Ebony, Vibe, or The Source magazines, are valued by this group, and provide marketers with an excellent opportunity to reach this segment. Asian Americans are the fastest growing minority in the United States. Though the overall size of the sample is small, they earn more than other minority groups, and serve as an excellent target for technology products. Hispanic Americans overtook African Americans as the largest minority group following the 2010 census. Commanding over $200 billion in purchase power, Hispanics are also an attractive market due to their brand loyalty, geographic concentration by national origin (e.g., Mexican-American, Cuban-American, Puerto Rican), youth, larger household size, and receptivity to relationship-based selling and marketing approaches. Cultural differences need to be taken into account when trying to reach Hispanics; family is very important to this group. By 2020, the growth in Latino youth (62%) is projected outstrip the growth of traditional teens (10%) by 52%. Latino teens seek spirituality, stronger family ties, and more in color in their lives. One implication of the growth in minorities is that cultural diversity is increasing in the workplace and elsewhere. Cultural diversity is the management practice that actively seeks to include people of different genders, races, ethnic groups, and religions as employees, customers, suppliers, or other members of the value chain. --- # Segmenting by Demographics: # Place of Residence .col-7[ Geodemography * Combines demographics with geography * PRIZM provides detailed segment profiles by zip code based on geodemography and lifestyle. Geotargeting * Geographically customized web advertising that feeds local ads to users. * Underscores much paid search advertising on Google and other search engines. ] ??? Recognizing that consumer preferences often vary depending on where they live, many marketers tailor their offers to geographic regions. Census data can be helpful in learning about the demographics of different state, cities or zip codes, but most marketers prefer geodemographic segmentation systems that offer more precise methods of reaching targeted consumers. PRIZM by Claritas is a geodemographic targeting system which combines not only demographics and geography, but also lifestyle traits and product purchase behavior. The basic assumption is that “birds of a feather, flock together” meaning that people who live in the same neighborhood share many characteristics. Prizm identifies 66 clusters, and assigns each neighborhood to a cluster. Marketers can purchase mailing lists based on Prizm data; other forms of media are also Prizm coded, allowing marketers to select the optimal media vehicles to reach their target market markets. Geotargeting of ads changes web advertising so people who log in different geographic locations see ad banners for local businesses. DISCUSSION NOTE: * It should also be noted that geocoding underscores much of paid search advertising. For example, visiting Google, and searching on a term such as “dentist,” “chiropractor,” “pest control,” or “vet” will likely yield at least some paid search ads for local businesses. Paid search ads are shown either at the top of the natural search results (usually against a colored background to distinguish them as paid ads), or in the far right-hand column, next to the natural search results (the long list of search results spanning multiple columns along the left and middle portions of the page). A demonstration may help students to better understand this concept. --- # Segmenting by Psychographics .row[.col-7[ Uses psychological, sociological, and anthropological factors to categorize customers. * Shared “AIOs” * activities, interests, and opinions * Best known system is [VALS](http://www.strategicbusinessinsights.com/vals/presurvey.shtml) * Values and Lifestyles * Harley Owners groups * Gamers (combination of psychographic, lifestyle, and generational segmenting) .question[ You may want to take the [VALS Survey](http://www.strategicbusinessinsights.com/vals/presurvey.shtml) yourself. ] ] .col-5[ ![](img07/solomon_rprc9e_fullppt_075.jpg) ]] ??? Psychographics: The use of psychological, sociological, and anthropological factors to construct market segments Members of psychographic segments typically share activities, interests, and opinions, often abbreviated as AOIs. For example Harley-Davidson’s customers include thrill-seekers as well as weekend warriors who have an affinity for counterculture. Even doctors and lawyers may be members of the Harley Owners groups (HOGS). Understanding psychographics is important; while the average age of Harley riders has risen to about 46, older than the industry average of 38, Harley-Davidson knows better than to emphasis safety features or conservatism in their advertising. Thrill seekers aren’t that concerned with safety and those who enjoy a counter culture would not be receptive to ads equating Harleys with conservatism. --- # Segmenting by Behavior .row[ .col-7[ Categorizes consumers based upon how they act toward, feel about, or use a product * User status * 80/20 rule * Long tail concept * Usage occasions ] .col-5[ ![](img07/solomon_rprc9e_fullppt_076.jpg) ]] ??? One way to segment on the basis of behavior is to divide the marketing into users and non-users. While this can be helpful, further segmenting the market according to usage status (heavy, medium, and light users) allows for more effective targeting, as the 80/20 rule dominates the majority of situations. The 80/20 rule suggests the 20% of the purchasers (a small portion of the target market) account for 80% (or the majority) of the volume. This underscores the importance of targeting heavy users, as it implies that the majority of purchases are made by a minority of the consumers. The long tail concept takes the opposite approach to segmentation. This approach is based on the idea that firms can make money by selling small amounts of items that only a few people want (e.g., targeting small volume segments), provided that they sell enough different items. Examples of firms that have embraced the long tail form of segmentation include Amazon.com (3.7 billion titles, many of which will only sell a few hundred or thousand copies) and Netflix (infrequently rented older, foreign, and obscure films are kept in inventory in addition to blockbusters). Finally, usage occasions represent a final type of behavioral segmentation. Many products such as Christmas cards and Easter egg coloring kits are associated with holidays. Other products are associated with specific times of the day (orange juice/breakfast), business functions (party platters/catering by restaurants), or casual get-togethers. The Biltmore Estate in Asheville, NC (pictured on this slide), increased attendance during its annual Christmas celebration as part of a strategy to segment on the basis of usage occasion. As part of this strategy, heavy users (defined as families who have made the Christmas pilgrimage an annual event) received a different invitation and a customized package design to appeal to them which differed from that sent to the other three segments. By catering to the differences between these segments, visits increased by 300% in a single season. --- # Segmenting B2B Markets .col-7[ Segmentation also useful for B2B firms! * Helps B2B companies understand needs and characteristics of potential customers Firms can be categorized based on: * Organizational demographics * Production technologies used * User status ] ??? Segmentation helps B2B firms understand the needs and characteristics of potential customers. The underlying logic to segmentation in the B2B market is the same as with consumers, but the variables used to form segments typically differ. For example, firms can be segmented by organizational demographics, as opposed to the demographics associated with individual employees. Organizational demographics include the size of the firm (in sales or number of employees); number of facilities, whether they are a domestic or international firm, among others. Additional characteristics could include the type of production technology used by the firm, and behavioral characteristics such as whether a given business firm is user or nonuser of the selling firm’s product. * Production technology used * Whether customer is a user/nonuser of product --- # Segmentation, Not Stereotyping .col-7[ The idea of segmenting is to identify groups of customers with similar needs. * Allows marketing to be more efficient and more effective There are many ways by which marketers may segment consumer and business markets. .question[ Imagine you have been hired by an off-campus college bookstore as a marketing consultant. What do you think would be the best approach for segmenting their market? ] ] ??? DISCUSSION NOTE: * Let students debate the advantages and disadvantages of each of the consumer segmentation approaches. * Once segments have been identified, the instructor may choose to carry this example over into their lecture and discussion of targeting and positioning processes. --- # Step 2: Targeting .row[ .col-6[ The next step is **targeting**, in which marketers evaluate each potential segment and decide upon which groups of customers they will invest marketing resources. * Selected groups are known as **target markets** ] .col-6[ #### Phases of Targeting ![](img07/solomon_rprc9e_fullppt_077.png)]] ??? Targeting is characterized by three phases in which marketers evaluate the attractiveness of each potential segment, profile each segment, and decide in which of these groups they will invest resources in order to turn them into customers. --- # Evaluation of Market Segments .col-7[ A viable market segment should: * have members with similar wants and needs that are different from those in other segments. * be measureable in size and purchasing power. * be large enough to be profitable. * be reachable by marketing communications. * have needs the marketer can address. ] ??? The first phase in targeting is to evaluate the potential of each market segments. The purpose is to weed out non-viable alternatives at the beginning of this process. To be useful, a segmentation scheme must yield at least one viable segment. Viable segments display each of the characteristics shown here. Without a real difference in consumer needs, a firm might just as well mass market their brand. Determining the size and purchasing power of a potential segment allows the marketer to forecast sales, and based on forecasts, determine if pursing the segment is worth the time and effort. Trends pertaining to growth in the segment and must also be considered, as it is critical that the segment be large enough now, and in the future, to justify targeting. Sometimes segments determined by unique psychographics prove less than useful when purchasing media time and space. Marketing communications must be able to reach the segment. Finally, it goes without saying that the marketer must be able to satisfy the needs of the segment by means of superior resources or expertise, compared to the competition. --- # Develop Segment Profiles .col-7[ After segments are identified, marketers should develop profiles or descriptions of the typical customers within a segment. * Segment profiles might include demographic, location, lifestyle and product-usage characteristics. .question[ Develop a profile of the typical “college” consumer for Touro. Is Touro catering to more than one segment? ] ] ??? Segments that “pass” each step of the viability test progress to the second phase of targeting, in which segment profiles are developed. Segment profiles provide a detailed description of the typical customer in terms of key demographic, lifestyle, geographic, and product-usage behaviors. DISCUSSION NOTE: * It might be helpful to break the class into small groups, and challenge students to develop a profile of the typical “college” consumer for your University. It would probably be beneficial to remind students that most Universities cater to more than one segment. Actual answers will vary depending upon the University in question. --- .row[ .col-6[ .col-10[![](img07/solomon_rprc9e_fullppt_078.png) ]] .col-6[## Choosing a Targeting Strategy An **undifferentiated targeting strategy** appeals to a wide-spectrum of people A **differentiated targeting strategy** develops one or more products for each of several customer groups with different product needs A **concentrated targeting strategy**: a firm offers one or more products to a single segment ]] ??? The final phase in targeting is to choose a target strategy to follow. A fundamental decision must be made as to whether the firm will pursue a single large segment or focus on meeting the needs of multiple, smaller markets. In an undifferentiated targeting strategy, the marketer assumes that people have similar needs, and an attempt is made to appeal to a broad spectrum of people. An example of a firm that follows a somewhat undifferentiated targeting strategy is Wal-Mart. Efficiency occurs because of enhanced economies of scale. But in today’s day and age, following a purely undifferentiated strategy is risky; markets are fragmenting and for most products, needs are not similar enough to justify this technique. Instead, the more common practice is to follow a differentiated targeting strategy in which the firm develops one or more products (and marketing strategies) for each of several customer groups. A differentiated strategy might also involve marketing a single product differently to different segments, by changing marketing communications to appeal to each targeted group. Firms that focus their efforts on a single segment use to follow a concentrated targeting strategy. One or more products may be promoted to the segment. Finally, a firm may choose to follow a custom marketing strategy which is explained in more detail on the following slide. : Tailoring specific products to individual customers. Common in personal and professional services, and in industrial marketing. --- # Customized Targeting Strategy .row[ .col-7[ Customized marketing strategy * Tailoring specific products to individual customers * Common in personal and professional services, and in industrial marketing * Mass customization is the extreme case, which involves modifying a basic product to meet the needs and tastes of an individual consumer. ] .col-5[ ![](img07/solomon_rprc9e_fullppt_079.jpg) ]] ??? Customized targeting strategy permits companies to specifically tailor products to individual customers. The illustration shows a 3-D printed car – probably the ultimate in customization. --- # Ethical / Sustainable Decisions in the Real World .col-7[ Candy companies have received scrutiny for advertising directly to children. A large number of candy companies have announced that they will no longer advertise directly to children. .question[ Should candy companies be allowed to advertise directly to children? ] ] ??? DISCUSSION NOTE: * Instructor should seek to create debate on issue, pointing out the difficulties in balancing the rights of individual consumers and business owners in a capitalist system versus the interests of some consumers and society as a whole. * The instructor may wish to extend debate into food options at their college or university. Do administrators have a responsibility to eliminate unhealthy food options when competing universities maintain a variety of fast food type options on their campuses? What is the solution? --- .row[ .col-6[ ### The Positioning Decision ![](img07/solomon_rprc9e_fullppt_0710.png) ] .col-6[ # Step 3: Positioning **Positioning** is the process by which marketers develop a marketing strategy to influence how a particular market segment perceives a good or service in comparison to the competition. ]] ??? **Positioning** is a strategic level decision that is critical in directing the marketing communication efforts for the brand. Positioning influences consumers’ perceptions of the product, particularly in comparison to the competition. For this reason, many firms focus on a brand’s competitive advantage as the basis of the positioning strategy. Competitive advantages ideally should be sustainable, but rarely are for the long haul. In fact, lack of sustainability is the biggest difficulty faced by those who position themselves as the “low cost” alternative compared to competitors. The first stage in developing a positioning strategy (or repositioning strategy) is to analyze the positions held by competitors. This is important, because if a competitive brand is already strongly associated with a particular benefit or advantage, it will be difficult to convince consumers to perceive your brand as being superior with respect to the same benefit or advantage, unless you have compelling proof. In addition to analyze how direct competitors are positioned, it is also important to analyze the positions of indirect competitors. Indirect competitors provide similar benefits but often compete in different product categories. For example, if marketers of a soft drink beverage are considering positioning the product on the basis of its ability to quench thirst, they would analyze not only other soft drinks, but other beverages in general including bottled water, sports drinks, teas, lemonade products, etc. The second step requires that the marketer define and select a specific competitive advantage to use in the positioning strategy. Competitive advantages are desired because they demonstrate the brand’s superiority over the competition and give consumers a reason to buy the brand. However, to be effective as a positioning strategy, the particular competitive advantage chosen must be important to consumers, and ideally relate to the primary benefits of the product. A more prestigious image, better quality product, superior warranty, or better customer service are just some of the competitive advantages which may be valued by consumers for many types of products. Competitive advantages based on price (lower price) are generally not sustainable, unless lower prices stem from truly lower costs which are realized due to efficiencies in the production process or cheaper access to raw materials which the competition cannot match. Once a competitive advantage has been identified and selected as the basis of the positioning strategy, the marketing mix is adapted as necessary. The brand’s positioning strategy should come through clearly in all marketing communications, and the product itself must provide the benefits promised at a price the consumer is willing to pay. Finally, the product must be made available in locations where consumers shop. After implementation of the positioning strategy, it is important that marketers conduct or commission market research to ascertain whether or not consumers are actually perceiving the product in the same way that marketers intended. If not, the marketing mix needs to be adapted or the positioning strategy needs to be changed. Over time, even successfully positioned products may need to change their positioning strategy. --- # Positioning Statement .col-7[ An expression of a product’s positioning that is internally developed and maintained in order to support the development of marketing communication that articulates the specific value offered by a product ] ??? Positioning statements typically include the segment(s) to which the product is targeted, the most important claim (differentiator) to be attributed to the product for the targeted segment(s), and the most important piece of evidence that supports the claim made about the product. --- # Modifying Positioning Strategies .col-7[ **Repositioning** establishes a new position in response to market changes. * Commonly used to change the brand image * Repositioning can breathe life into “retro” brands. ] ??? Changes in the marketplace, such as evolving needs, changing consumer values and behaviors, or the introduction of a superior competitive product, may indicate the need for product repositioning. For example, a brand may need to modernize its image to keep with current consumer values or shifts in demographic trends. For example, Arm & Hammer baking soda was originally used by women who baked bread, cookies, or cakes from scratch. As more women entered the workplace, baking from scratch declined, and women began buying prepackaged cake and cookie mixes. Arm & Hammer realized that it needed to reposition its brand to reverse its declining market share. The firm did so by looking for ways in which the product could be used, other than baking. As a result, they began positioning the product on the basis of uses such as 1) refrigerator/freezer deodorizer, 2) as an alternative to toothpaste for brushing teeth (this was before the Arm & Hammer toothpaste brand was launched, and 3) as a carpet deodorizer which could be sprinkled on rugs, then vacuumed away (again, before the Arm & Hammer branded carpet deodorizer was introduced). Repositioning by finding new uses for existing products is different from reviving a “Retro” brand. Retro brands are products which marketers devote resources towards, and the added boost to the marketing budget helps build popularity for the brand again. For example, a campaign for Kool-Aid might appeal to consumers’ nostalgia with copy such as, “Remember when your mother served you Kool-Aid {blah, blah, blah}. Why not share that same great experience with your children?” --- # Bringing a Product to Life: Brand Personality .col-7[ Positioning strategies often try to create a **brand personality**. * A distinctive image that captures a brand’s character and benefits. **Brand anthropomorphism** * Assigning human characteristics and qualities to a brand * Pillsbury Doughboy is an example ] ??? Brand anthropomorphism makes a brand/product more “human” by giving it traits that we typically associate with people. --- .row[.col-8[ ![](img07/solomon_rprc9e_fullppt_0711.png) ].col-4[## Perceptual Map] ] ??? Recall that one way of positioning a brand is by means of creating a superior brand image. This implies that part of the marketer’s job is to create a brand personality that consumers will prefer over competing products. First, we need to ask consumers what personality characteristics are important, then we need to identify how various brands are perceived compared to one another on the basis of these important characteristics. Perceptual maps, such as the one shown in Figure 7.6, are often used to visually describe where products/brands are “located” in consumers’ minds relative to competing brands. The perceptual map can sometimes help marketers understand where to position a new brand. The marketer might decide to compete directly with the upscale fashion magazines, shown in the upper right hand quadrant, or locate an underserved area, such as upscale service magazines (or downscale fashion magazines). Generally speaking, underserved segments represent great opportunities AS LONG as the market segment in question meets the tests for viability discussed earlier. --- # Positioned for Success .col-7[ Successful brand positioning should align clearly with the company’s competitive advantage(s). * In turn, marketing mix elements should support a distinctive brand image and value proposition for the target market. .question[ Think of your favorite restaurant chain. How would you describe its brand personality? Why? ] ]