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Source: A Note of Consumer Market Segmentation, Harvard Business School
Positioning: Key ConsiderationsCompetitive frame of reference (FOR)Establishing category membership; defining the target market and competitionPoints of difference (POD) (i.e., differentiation)Attributes or benefits consumers strongly associate positively with a brand, and believe they cannot find with a competitive brandPoints of parity (POP)Associations by consumers that are shared with other brandsMay not be reason to choose a brand, but absence can be reason to drop a brandImportant 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
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 timePositioning: Key Considerations
Positioning ToolPerceptual mapA positioning tool that helps define a brand’s position relative to competitorsConveys product information on a few key dimensionsRepresents the position of your product in consumers’mindrelative to competitors
Looking Ahead: Segmentation, Targeting, PositioningCase Preparation: Jones Blair1.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