Source A Note of Consumer Market Segmentation Harvard Business School

Source a note of consumer market segmentation harvard

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Source: A Note of Consumer Market Segmentation, Harvard Business School
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Positioning: Key Considerations Competitive frame of reference (FOR) Establishing category membership; defining the target market and competition Points of difference (POD) (i.e., differentiation) Attributes or benefits consumers strongly associate positively with a brand, and believe they cannot find with a competitive brand Points of parity (POP) Associations by consumers that are shared with other brands May not be reason to choose a brand, but absence can be reason to drop a brand Important to nullify competition by matching POP’s, e.g., late market entrants try to make competitor's POD into a POP for the category, and then introduce a new POD to gain leadership
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A clear differentiation point is key Clearly linked to who you are for…(and thus delineated from who you are not for) Offer points of differentiation that are valuable to your target consumers Positioning may evolve over time Positioning: Key Considerations
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Positioning Tool Perceptual map A positioning tool that helps define a brand’s position relative to competitors Conveys product information on a few key dimensions Represents the position of your product in consumers mind relative to competitors
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Artificial Natural Unhealthy Beneficial Beverage Sprite /7-up Coke Coffee Tea Juice Water Milk Ginger Ale Pepsi Fanta
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Looking Ahead: Segmentation, Targeting, Positioning Case Preparation: Jones Blair 1.How would you characterize the industry Jones Blair is in?2.How should Jones Blair’s market area be segmented? What are the characteristics of each of these segments?3.Which segment(s) should Jones Blair pursue? Why?4.Among the four different plans proposed by the different VPs, what strategy should Jones Blair adopt? Note: In addition to qualitative assessment, you might also want to do some calculations. (Hint: Contribution Margin = Unit Contribution/Price)
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  • Marketing, Harvard Business School, consumer market segmentation

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