Once a company has decided which segments to enter it must decide on its

Once a company has decided which segments to enter it

This preview shows page 52 - 54 out of 60 pages.

Once a company has decided which segments to enter, it must decide on its differentiation and positioning strategy . The differentiation and positioning task consists of three steps: identifying a set of possible differentiations that create competitive advantage, choosing advantages upon which to build a position, and selecting an overall positioning strategy. The brand’s full positioning is called its value proposition —the full mix of benefits upon which the brand is positioned. In general, companies can choose from one of five winning value propositions upon which to position their products: more for more, more for the same, the same for less, less for much less, or more for less. Company and brand positioning are summarized in positioning statements that state the target segment and need, positioning concept, and specific points of difference. The company must then effectively communicate and deliver the chosen position to the market. MyMarketingLab STUDY, PRACTISE, AND EXPLORE REAL MARKETING SITUATIONS WITH THESE HELPFUL RESOURCES: INTERACTIVE LESSON PRESENTATIONS: Work through interactive presentations and assessments to test your knowledge of marketing concepts. STUDY PLAN: Check your understanding of chapter concepts with self-study quizzes. DYNAMIC STUDY MODULES: Work through adaptive study modules on your computer, tablet, or mobile device. SIMULATIONS: Practise decision-making in simulated marketing environments. Discussion Questions 1. Think of a product or a brand you’re familiar with that caters to a niche market. Describe the shared characteristics of consumers in that market in terms of the four main bases of segmentation: geography, demographics, psychographics, and behaviour.
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2. As a basis of market segmentation, geography can refer to a country, region of a country, or region that is defined by its climate or its terrain, such as coastal areas, the far north, the prairies, or the Rockies. Describe three distinct geographic market segments in Canada. Then think of a product that could be successfully marketed to each of those segments but might not be as successful in another geographic market segment. 3. The George Foreman Grill is a compact cooking appliance with a double-sided cooking surface that is angled to allow fat to drip off the food and out of the grill. Describe a likely target market for this product in terms of its geographic, demographic, psychographic, and behavioural characteristics. How does this target market rate with respect to size, growth, and structural attractiveness? 4. Find out what is the bestselling beer in Quebec and one other province. Describe each province as a market segment. Why do you think those particular beers have the most appeal in those provinces? 5. Think of an example of a hotel chain that falls into each of the five general value propositions. What does each hotel you selected do on the benefits dimension to offer more, the same, or less than competitors?
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