Situation Analysis & Segmentation, Targeting and Positioning (STP)

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Marketing Management

Building Brands

Dr Marian Makkar Week 5

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Today’s Agenda

• Topics of discussion – Branding and positioning

• Activities – Customer journey mapping – Positioning and LinkedIn personal rebranding

• Assignments – Situation analysis- part 2

• Check in: – Quiz 3? – What insights did you gain from the changes since Q2 (Segmentation &

Targeting)?

RMIT Classification: Trusted Semester schedule – MKTG1100

Week Topic/Chapter(s) Activity

5 Building brands Ch. 10 & 5

• Brand positioning, Personal branding

• Quiz 3 (ch. 5 & 10) – 4/4/21 • Simulation Q3 – closes 11/4/21

Mid-Semester Break (1-7 April) * week 5 Friday class is on 9.3.21

6 Marketing mix: Product Ch. 13

• Assignment 2 DUE (Sunday 18 April) Quiz 4 (ch. 13)

7 Marketing mix: Pricing Ch. 16

• Assessment discussion • Quiz 5 (ch. 16) • Simulation Q4 – closes 25/4/21

8 Promotion P1 – Managing IMC - Ch. 19 & 21

• Quiz 6 (ch. 19 & 21) • Guest speaker

9 Promotion P2 – Managing Digital/Personal Communication - Ch. 20 & 22

• Quiz 7 (based on ch. 20 & 22) • Simulation Q5 – closes 9/5/21

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Semester schedule – MKTG1100 (contd/..)

Week Topic/Chapter(s) Activity

10 Marketing channels & services Ch. 14, 17 & 18

• Quiz 8 (ch. 14, 17 & 18) • Simulation Q6 – closes 16/5/21 • Guest speaker

11 Globalisation & responsible marketing Ch. 8 & 11

• Brand positioning, Personal branding

• Simulation Q7 – closes 19/5/21 • Simulation Q8 – closes 23/5/21

12 A holistic marketing organisation approach Ch. 23

• Assignment 3 DUE (w/c 24 May)

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Create a Customer Journey Map

• Consider: – Understanding the full customer experience

and steps required to lead to completion • Start/end; ask what happens next

– Identifying customer pain points (customer struggles)

– Identifying customer physical and digital touchpoints/ interaction opportunity/ moments for intervention

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Customer Journey Mapping (B2C)

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Starbucks Experience

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Workshop – Create a Customer Journey Map – 20 mins

1. How do people go get coffee? 2. How does a family go grocery shopping? 3. How does a student buy a car? 4. How does a professional decide to join a gym? 5. How does a newly married couple decide and go on a

honeymoon destination? Campus students only: Use paper & a sharpie to map out the customer’s journey. Use Play-Doh to build a physical representation of your understanding of this journey – get creative; do anything! From honing down on the major issues, presenting the customer, creating a solution or disrupting traditional business processes.

Virtual students only: Break out session, design together, share image/PPT/PDF when done

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POSITIONING

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Learning objectives

1. How can a firm develop and establish an effective positioning in the market?

2. How are brands successfully differentiated?

3. How do firms communicate their positioning?

4. What are some alternative approaches to positioning?

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? What’s a brand?

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Developing a Brand Positioning

• Positioning – The act of designing a

company’s offering and image to occupy a distinctive place in the minds of the target market

– Value proposition: good positioning results in a customer-focused value proposition. This captures the way a product or service’s key (emotional & rational) benefits to provide value to customers

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Value proposition

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Selling a country

Tourism Australia Case Study

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Brand position

• You don’t just visit Australia, you live it

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Brand promise

• On holiday in Australia, you don’t switch off you switch on. The unique experiences you have and the people you meet will make you feel uplifted and full of life.

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Brand personality

• High spirited, down to earth, irreverent, welcoming.

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Target: Experience Seekers

• Looking for unique, involving and personal experiences from their holidays.

• Informed, interested and curious about potential travel destinations.

• Less affected by the traditional barriers to travel of distance, time and cost.

• Found among all age groups, income levels and geographic locations.

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Example segment: Youth

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Experience Australia

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Questions to consider:

• What tangible elements make up a brand? • How do we build brand associations? • How do we leverage a brand community? • What are the dimensions of brand experience?

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Points-of-Difference and Points-of-Parity

• Points-of-difference (PODs) – Attributes/benefits that

consumers strongly associate with a brand, positively evaluate, and believe they could not find with a competitive brand.

– Strong brands often have multiple points-of-difference.

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Points-of-Difference and Points-of-Parity

• Points-of-parity (POPs) – Attribute/benefit associations that are not necessarily unique to the

brand but may in fact be shared with other brands

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Positioning • Who your brand or company is in the marketplace, vis-à- vis the competition, and in the eyes of the customers • A perceived value à Value can be expressed in numerous forms including product benefits, features, style, value for money

Positioning is determined/ emphasised through the marketing mix

Ø Product Ø Price Ø Place Ø Promotion

Positioning your brand/company/service/self

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Old-school product positioning

In 1961, Ogilvy positioned the Saab as the car for the European winter

Lux, print advertisement (1916) positioned the soap as a gentle product for washing delicate clothing

In 1957, David Ogilvy used the positioning concept to position Dove as a beauty soap for women

Source: Wikipedia

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We wish you a branded Christmas…

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Let’s talk strategy…

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What position do we have now?

Do we have the money to do the job?

What position do we want to own?

From whom must we win this position?

Do we have the tenacity to stay with it?

Does our creative strategy match it?

Position

Positioning questions Answering these six questions before proceeding with a positioning strategy will establish a clear understanding of the company’s current situation and where it wants to go.

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Positioning strategies & approaches

By attributes and benefits?

By price or quality?

By use or application?

By product class?

By product user?

By competitor?

By cultural symbols?

How should we

position?

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Positioning by attributes/benefits

Setting the brand apart from competition using specific characteristics or benefits offered.

Marketers attempt to identify salient benefits which are those that are important to customers in their purchase decisions.

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Positioning by price/quality

Using price as characteristic of the brand.

High quality/image pricing can be used, as well as value pricing, which reflects a very competitive price.

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Positioning by product class

Competition can come from outside the product class whereby a product is positioned against another product category

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Positioning by use

Associating the brand with a specific use. This approach can also be an effective way to expand usage of a product.

Bose headset —‘Use it as a sanctuary or...’—reflects this positioning well.

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Positioning by user

Associating a brand with a type of person or group that uses a product or service.

‘We are happy little Vegemites’.

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Positioning by competitor

Avis rent a car: An example of the positioning strategy

whereby the brand is positioned at a product user.

This approach is similar to positioning by product class,

although in this case the competition is within the same

product category. Avis positioned itself against the car

rental leader, Hertz by stating, ‘We’re number two, so

we try harder’.

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Positioning by cultural symbols

Using symbols that have acquired cultural meaning and associating a brand with these symbols to differentiate it from competitors.

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Developing a positioning platform

6. Monitor the position

5. Make the positioning decision

4. Analyse consumer preferences (motives, value)

3. Determine competitors’ current positions

2. Assess consumers’ perceptions of competitors

1. Identify the competitors

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Break

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Positioning matrix/ (Perceptual Map)

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Positioning matrix

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Perceptual Maps

• Perceptual maps show graphical depictions of how the brands and their competitors are perceived in the minds of customers – Brands close together are seen as similar – Brands farther apart are viewed as different

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Example: Perceptual maps of motor vehicles (2 variables)

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Positioning Statements

• Positioning statement • Succinctly communicates parameters of a position • Consider

• Your target market • Your unique selling proposition (USP)

– If a “real” attribute difference does not exist, create a “perceived” image difference

• e.g., For customers who want {target}, our brand is the best at {USP}

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Positioning Statements

• Answer the following questions: 1. Who are you trying to persuade? 2. Who are you competing with?

• Who are your competitors? What is your major product category?

3. How are you better? • What makes you unique? What are your points of

difference? Do you have any benefit that dominates competitors?

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Positioning Statements

• Make sure your statement is succinct – Prioritise your brand benefits and

choose the most important, compelling differentiator

– Think about what benefits the customer

– Example: • Porsche: “Engineered for magic.

Every day.”

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How to position products/brands/country?

Companies may emphasise the distinguishing features of their brand (what it is, what it does and how, etc.) or they may try to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end, etc.) through the marketing mix

Ø Product Ø Price Ø Place Ø Promotion

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Points-of-Difference and Points-of-Parity

• Brand mantras: three- to five-word articulation of the heart & soul of the brand & is closely related to other branding concepts like “brand essence” and “core brand promise.”

Communicate (what is unique)

Simplify (memorable)

Inspire (personally meaningful/relevant)

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Let’s start with your own brand…

The eight laws of branding Brian Tracy

What 2-3 words would you want professionals to describe you as? What do you need to do to get there?

https://www.entrepreneur.com/video/303531

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8 laws of branding – Individual activity 20 minutes

• Specialisation (core competency) • Leadership (what aspect of your field will you show leadership?) • Personality (how would you like to be described?) • Distinctiveness ( how will you stand out?) • Visibility (in what ways can you be visible?) • Utility (same inside and out) • Persistence (consistency) • Goodwill (how will you build goodwill?)

Activity: Complete your own 8 laws of personal branding

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Individual Activity: Personal branding

• Look at your LinkedIn page (e.g., brand website)

• Purpose: land a job • Write a personal positioning statement to use

when speaking to future employers. • Share your rejuvenated LinkedIn page in the

Discussion Board for everyone to follow you.

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Example: Individual Activity https://www.linkedin.com/in/marian makkar/

• Imagine you work in an advertising agency. You have a number of clients currently needing positioning strategies.

• Under Course Documents & Materials/week 5/ week 5 workshop

• Complete the final column in the following table, indicating a statement that could be used online/in advertising campaigns etc. First example is provided.

https://www.linkedin.com/in/marianmakkar/

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Personal Brand – What’s your Personal Brand’s Bull’s Eye

Starbucks

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What makes up a brand?

• A brand starts with a name – Some names immediately convey information

• e.g., YouTube, Kleenex – Some names suggest their benefits

• e.g., Optical4less – Some names are those of their founder

• e.g., Christian Dior

• Marketer should choose a brand name that conveys its benefits

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What tangible elements make up a brand?

• Name (helps to convey a benefit – eg., YouTube)

• Logo (design, colours, symbols, typeface)

• Packaging (unique design eg., Coke bottle; Grill on BMW cars)

• Communication style • The product itself

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Should a brand be adapted over time?

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Source: https://digitalsynopsis.com/design/female-brand-logos-womens-day/?fbclid=IwAR2Vg_D7aK-zoZAUfiJTCwOQpuA17CM1WzxcGIyglh2pzxCUZid7qOGxhtQ

The future of brands is precisely in their dynamic approach to narratives

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Building brand associations

• Concrete product attributes: 40 mpg • Abstract product benefits: Save money • Abstract emotional benefits: Feel good

Tip: Benefits that are abstract: harder to create and communicate, but more

meaningful and harder to copy

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Sexist Ads for Luxury Watches Sparked Anger & Apology

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Rebranding gone wrong

Rebranding comes with issues = loss in brand awareness and brand familiarity

The first function of a new brand name = to present initial positive associations.

Better approach = start with a revised brand strategy and updated brand offerings, then make small changes to brand identity, such

as brand logo and tagline.

Corporate name change should have been their very last step of rebranding.

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Managerial Recap

Brands are promises to customers; they include names, logos, colours, and fonts

Brands signal information to customers about predictability

Anticipated reliability and expected quality

Brands can command higher prices because they offset risk

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Managerial Recap (contd/...)

Brand associations are cognitive and emotional

To develop effective positioning, a company must study competitors as well as actual and potential customers. Marketers need to identify competitors’ strategies, objectives, strengths, and weaknesses.

Developing a positioning requires identifying a frame of reference—by locating the target market and the nature of the competition—and the optimal points-of-parity and points-of-difference brand associations.

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Week summary + homework

1) Assessment 1 Quiz 4 (based on ch.13) à Sunday 18 April 2) Simulation Q3 decisions (based on Positioning & Branding) à Sunday 11 April

3) Assessment 2 à Sunday 18 April

• By now you should have basic points on (from last week) - PESTEL, Porter’s Five Forces, Porter’s Generic Strategies - SWOT/TOWS + strategy and objectives

• 4-6 Consumer segments using the Segmentation Matrix • Identified 2 target markets

+ • Brand positioning (based on POD and POP)

– Positioning statements – Perceptual Maps

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Sample Table of Contents: Situation Analysis (Jeans co.) Part 1

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Sample Table of Contents: Situation Analysis (Jeans co.) Part 2

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Sample Situation Analysis (Jeans co.) Part 1

1. Executive summary (to include brief of company)

2. Environmental analysis a. The marketing environment (only those that are relevant) – PEST Analysis:

v Economic forces v Political forces v Legal and regulatory forces v Technological forces v Sociocultural forces

Competitive forces

b. Current Target Markets (at time of Q1) c. Current marketing objectives and performance (at time of Q1)

3. SWOT/ TOWS Analysis a. Strategies to utilise strengths and opportunities b. Strategies to mitigate weaknesses and threats

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Sample Situation Analysis (Jeans co.) Part 2

4. Consumer segmentation: – Rationale for research around the segmentation – 5 criteria of segmentation applied (and the information clearly relates to the category) – 4-6 consumer segments discussed

5. Targeting: - Primary and secondary target markets - Consumer personas for each target - Justification for targets - Customer journey: based on behaviours and motivations

6. Brand positioning - Perceptual map - Positioning statement

7. Marketing Objectives (+ simulation KPIs) 8. Strategic Marketing Decisions

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ASSIGNMENT 2 - consultations

1) Thursday 8 April @ 3:30-4:30pm (AEST) 2) Tuesday 13 April @ 3:30-4:30pm (AEST)

NEXT CLASS: WEEK 6 starting Monday 12 April

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BE KIND TO OTHERS

BE KIND TO YOURSELF J

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Simulation game – 30 mins

Work on positioning & brand profile, and finalise decisions for Q1-Q3

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Group Workshop

Go to a company website and identify their brand positioning statement: 1. The Warehouse 2. Audi 3. Trademe 4. Airbnb 5. Rebel Sport 6. Sleepyhead 7. Vogel’s 8. Whittaker’s

9. Air New Zealand 10. Tip Top 11. Avis 12. Whiskas 13. Dettol 14. Canon 15. Fisher & Paykel 16. Head & Shoulders

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Case study: Tilcotil

• NSAID (non-steroidal anti-inflammatory drug) • Position: “Power to Move” • Not unique • Product category issues • Repositioned: “Gentle. But Effective”

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• POD criteria to determine whether a brand association can truly function as a point-of-difference:

Points-of-Difference and Points-of-Parity

Desirable: Consumers must see the brand association as personally relevant to them.

Deliverable: company must have the internal resources and commitment to feasibly and profitably create & maintain

the brand association in the minds of consumers

Differentiating: consumers must see the brand association as distinctive and superior to relevant competitors.

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• POP forms

Points-of-Difference and Points-of-Parity

Category: attributes/benefits that consumers view as essential to a legitimate & credible offering within a certain

product or service category.

Correlational: negative associations that arise from the existence of positive associations for the brand

Competitive: associations designed to overcome perceived weaknesses of the brand in light of

competitors’ points-of-difference.

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Associative network

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Workshop 1: Brand Packaging Re-Design

– Read case study entitled “What to Learn From Tropicana” under Course Documents and Materials/ Week 3

– In your own words, describe the: – Role of packaging in purchasing decisions – Importance of customers’ reactions – Difference between advertising and

packaging

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Brand personality

Source: http://www.millwardbrown.com/BrandZ/Top_100_Glo

bal_Brands/Brand_Personality.aspx

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4 Dimensions of Brand Experience

• Eg., Hallmark

• Eg., Lego

• Eg., Ferrari

• Eg., Adidas

Behavioral Sensory

AffectiveIntellectual

Source: Brakus, Schmitt & Zarantonello, “Brand Experience,” Journal of Marketing, 73 (2), 52-68

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Brand Equity

• A brand’s value:- determined by consumer perception of and experiences with the brand.

• If people think highly of a brand, it has positive brand equity. When a brand consistently under-delivers and disappoints to the point where people recommend that others avoid it, it has negative brand equity.

• When there is positive brand equity: – Companies can charge more for a product with a great deal of brand equity. – That equity can be transferred to line extensions – products related to the brand that include the

brand name – so a business can make more money from the brand. – Help boost a company’s stock price.

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Positive brand equity

• Apple - “the world’s most popular brand”.

• The company built its positive reputation with Mac computers before extending the brand to iPhones, which deliver on the brand promise expected by Apple’s computer customers.

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Negative brand equity

• Financial brand Goldman Sachs lost brand value when the public learned of its role in the 2008 financial crisis,

• Automaker Toyota suffered in 2009 when it had to recall more than 8 million vehicles because of unintended acceleration

• Oil and gas company BP lost significant brand equity after the U.S. Gulf of Mexico oil spill in 2010.

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Bang and Olufsen

Brand Re-positioning Case Study

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The problem

• “They were aware of a group of people who (they felt) should have been customers, based on the car they drove, the places they lived, their children’s private education, holidays etc., but weren’t. The [Managing Director] would meet them socially or in business situations and were amazed that they simply didn’t consider Bang & Olufsen for themselves. If these people knew the brand at all they generally assumed it was “the best”, but they weren’t interested in owning it.”

Roy Morgan Research (2005)

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Roy Morgan Value Segments

• Basic Needs • A Fairer Deal • Traditional

Family Life • Conventional

Family Life • Look At Me

• Something Better

• Real Conservatism

• Young Optimism • Visible

Achievement • Socially Aware

100

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New target:

• Visible Achievement refers to the pattern of thinking associated with people who have “made it” in whatever field they are involved and are confident in their own abilities and position. – Despite being successful, they retain traditional values about

home, work and society. Being highly individualistic, they do not need to prove themselves or impress anyone. This, combined with their practical and realistic natures means they are happy to shop at places like Target and factory second stores.

101

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Creative evolution

From: “Socially aware” • Photo – clinical and product focus • Brand on pedestal accentuating design

element • Smug headline with element of

exclusivity • Copy extolling product capabilities • Gallery style showrooms reflect

advertising

102

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Creative evolution To: “Visible achievement”

• Situation focus • More accessible • Copy benefit focus rather than features • Photos warm and people focus • Call to action - Invitation to see

103

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Workshop 2

Bang & Olufsen were trying to appeal to a new market segment, described by Roy Morgan as Visible Achievers. You are a media buying agency. Choose and justify 3 different media types you would use to target this group (giving examples of each; i.e. specific magazine, TV program or digital channel etc).

Roy Morgan’s description of the segment is:

Visible Achievement refers to the pattern of thinking associated with people who have “made it” in whatever field they are involved and are confident in their own abilities and position. Despite being successful, they retain traditional values about home, work and society. Being highly individualistic, they do not need to prove themselves or impress anyone. This, combined with their practical and realistic natures means they are happy to shop at places like Target and factory second stores.