5 02 Define positioning Positioning is getting consumers

5. 02

Define positioning. • Positioning is getting consumers to think of a product in a certain way.

Segmentational elements of the target market include: �Demographics. Demographic segmentation divides the market based on personal characteristics such as age, gender, income, ethnic background, education and occupation. Consumers with high income are more likely to purchase box seats. �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 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.

The consumer’s perception impacts image. �Marketers must understand the consumer’s attitudes and needs affecting perceptions. �Consumer perceptions are based on experiences. �Position products based on image. Example: Mountain Dew sponsors “extreme” sports.

◦ Niche marketing is targeting an underserved market. Characteristics of a niche market include: �Smaller markets. �Specific needs. �Example: Doritos targeting skateboarding fanatics.

• 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.

Introduction stage. • Strategies 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 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 stage. • Strategies 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.