Campaign Critique

BUS302

Market segmentation and brand positioning

Learning objectives

• The nature of values and lifestyle targeting

• How the Roy Morgan Values Segments can be used to segment consumer groups

• The role of online behavioural targeting

• The concept of brand positioning and the role it plays in developing marketing communications strategies.

Segmenting consumers

• Segmentation allows for effective delivery of the marketing message.

• Segmentation is based on a group of consumers having similar needs and wants, and also sharing similar consumption behaviours.

Variables used to segment consumers

Demographics Values /

Lifestyles

Geo- demographics

• Traditionally used after a product launch, segments are based on buying behaviour.

Brand usage

Product category usage

Level of product usage (number of times the product was purchased

• Newer digital (online) methods include:

tracking visitors’ onsite selection, such as: pages visited

length of time spent on a page

searches performed.

Behavioural targeting

• Ethical dilemmas include:

targeting the vulnerable, such as, the young, sick and cognitively impaired

‘condition branding’ by making consumers aware of benign medical conditions and profited from

the concern they raise among consumers.

Ethical principles of segmenting markets

• A clear positioning statement is essential to developing marketing communications strategies.

• Positioning strategies provide for:

who the target market is

what marketing should say about the brand

what media should be used to reach the target market.

Brand positioning

• Represent how the brand wants to be seen; i.e. the thoughts and feelings of the consumer.

• Effective positioning statements should:

reflect the brand’s competitive advantage

motivate customers to action.

Effective positioning statements

Positioning via brand benefits

Functional needs

Symbolic needs

Experiential needs

Positioning with respect to brand benefits can be accomplished by appealing to any of three categories of needs.

Products that attempt to fulfill the consumer’s consumption-related problems

Products that potentially fulfil a consumer’s desire for self- enhancement, group membership, affiliation and belongingness

Products that provide sensory pleasure, variety and cognitive stimulation