Ch.7 Segmentation, Targeting, and Positioning

Explain the difference between segmenting and targeting.

Market segmentation divides a population or market into groups with one or more common characteristics. Targeting selects one or more market segments and a target market strategy.

In a recent interview, a brand manager at Procter & Gamble noted, "Historically, we used to be focused on discovering the common hopes and dreams within a country, but now we're seeing that the real commonalities are in generations across geographic borders." What is the significance of this comment in terms of the "conventional" versus "unconventional" approaches to global market segmentation shown in Table 7-1?

Global market segmentation has been defined as the process of identifying specific segments - whether they be country or individual consumer groups- of potential customers with homogeneous attributes who exhibit similar responses to a marketing mix. Global market segmentation is based on the premise that companies should attempt to identify consumers in different countries who share similar needs and desires. Conventional and unconventional wisdom views of the world suggests that just because consumers share some similar characteristics towards a product that they share all of those characteristics. The process of market segmentation begins with the choice of one or more variables to use as a basis for grouping customers. Common variables include: -demographics (including income and population) -psychographics (values, attitudes, and lifestyles) -behavioral characteristics -benefits. Global marketers must determine whether a standardized or an adapted marketing mix is required to best serve those wants and needs.

What is global consumer culture positioning (GCCP)? What other strategic positioning choices do global marketers have?

-Global consumer culture positioning (GCCP) : a strategy that identifies the brand as a symbol of a particular global culture or segment. It has proven effective for communicating with global teens, cosmopolitan elites, and globe-trotting laptop warriors (e.g., Sony's "My First Sony" line is positioned as the brand for youngsters around the globe). Another option is : -Foreign consumer culture positioning (FCCP): associating users, use occasions, or production origins with a foreign country or culture (e.g., the name "Haägen-Dazs" implies Scandinavia though the ice cream is American). -Local consumer culture positioning (LCCP) associates the brand with local cultural meanings and norms, local consumption, or local production (e.g., LCCP is seen in Budweiser's U.S. ads featuring Clydesdale horses, associated with rural America).

Identify the five basic segmentation strategies. Give an example of a company that has used each one.

1.Global market segmentation identifies and groups customers or countries according to common needs and wants. Coca-Cola has identified and grouped both customers and countries. 2.Demographic segmentation is based on measurable population statistics such as age, gender, income, occupation, and geography. Volkswagen, Citroen, Chrysler, and other automakers have identified China as an attractive segment based on the sheer size of its population. 3.Psychographic segmentation divides people into lifestyle or personality segments based on assessments of activities, interests, and opinions. Porsche established psychographic profiles of its U.S. owners. 4.Behavior segmentation focuses on whether or not a population's members use a product, and, for users, how often, how much, and how loyally they use it. Visa International and other credit card companies target Asian countries, where credit card utilization is much lower than in the United States. Conversely, tobacco companies such as Philip Morris and B.A.T. are targeting China and other Asian countries because, compared with the West, a relatively higher proportion of Asian adults smoke. 5. Benefit segmentation divides the market...

What is positioning? Identify the different positioning strategies presented in the chapter and give examples of companies or products that illustrate each.

Positioning represents marketers' attempts to differentiate their products from all competing products in terms of consumers' mental images and representations. The positioning strategies identified in the chapter include attribute or benefit, quality/price, use or user, and a company's competition. Toothpastes, detergents, and similar consumer products are often positioned by attribute. Premium spirits such as vodka and gin are positioned at the high end of the quality/price continuum.