objective 5.02 explain product positioning.. product positioning getting consumers to think of a...
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Objective 5.02 Explain product
positioning.
Product positioningGetting consumers to think of a product in
a certain way.
Ways to segment a market:DemographicsPsychographicsGeographicsBehavioralHybrid
Demographics Demographic segmentation divides
the market based on personal characteristics such as:
Age (14-20,21-29,30-45,46-56,57-65+, Gender Income ($25-$35K,$36-$46K,$56-$60K,
$65-$70K) Ethnic background (Hispanic, African or
Asian American ) Education (H.S. college, graduate,
doctoral degree) Occupation (Teacher, doctor, coach,
military)
Psychographics Psychographic segmentation divides the
market based on values, attitudes and lifestyles.
Consumers who enjoy professional wrestling might not enjoy the ballet.
Geographics Geographic segmentation
divides a market based on where a person lives.
Consumers living in the Boone area are more likely to attend an event held in that area.
Behavioral Behavioral segmentation divides
the market into groups based on what they are looking for in a product and why they buy the product.
Consumers may be loyal to Jennifer Lopez and go to as many of her concerts as possible.
Hybrid Consumer segments brought
together using several variables. Example: Psychodemographic
segmentation might be based on education and lifestyle.
Example: Consumers with a high level of education tend to play more golf.
Explain product positioning
The consumers’ perception impacts image.
Marketers must understand the consumer’s attitudes and needs affecting their perceptions of the product.
Consumer perceptions are based on experiences. Products should be positioned based on image.
Ex. Mountain Dew sponsors “extreme” sports.
To increase market share, companies may choose to utilize a multi-positioning strategy.
Niche marketing
Targeting an underserved market. Characteristics of a niche market include:Smaller markets.Specific needs.Example: Doritos targeting
skateboarding fanatics.
Multi-position strategy
To increase market share, companies may choose to utilize a multi-positioning strategy. Multi-positioning is positioning the same product differently to a variety of markets. For example: Dell positions computers differently to mature markets than to tween markets.
Mature markets are positioned through the benefits of sending/receiving email and photos from family members.
Tween markets are positioned through gaming and instant messaging.
PRODUCT LIFE CYCLE
Product Life Cycle Strategies
Introduction stage: stimulate consumer interest and create awareness.
Growth stage: stress benefits of a product over its competitor’s products.
Maturity stage: repositioning a product.
Decline stage: greatly reduce marketing or drop product due to poor sales.
IG M
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Introduction stageStrategies during this stage should stimulate consumer interest and create awareness.
Example: A company may show more commercials to make its target market aware that the product is now available.
Growth stageGrowth stage. Strategies during
this stage stress benefits of a product over its competitor’s products.
Example: A company may say its brand is a higher quality product than the product its competitors sell.
Maturity StageStrategies during this stage may include
repositioning a product. Choosing a different target market to
position the product. When the existing target market gets tired of a product, choosing a new group of people to market the product will make the product seem new to them.
Decline stage Strategies during this stage may
be to greatly reduce marketing support or drop a product due to poor sales and lack of consumer interest. At some point, consumers do not want a product anymore, therefore it is time to drop the product and find something new.