Download SEM+II+5.02

Objective 5.02
Explain product
positioning.
Product positioning
 Getting consumers to think of a product in
a certain way.
 Ways to segment a market:
 Demographics
 Psychographics
 Geographics
 Behavioral
 Hybrid
Demographics

Demographic segmentation divides the market
based on personal characteristics such as:
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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)
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Psychographics

Psychographic segmentation divides the market based on
values, attitudes and lifestyles.
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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.
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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.
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Explain product
positioning
The consumers’ perception impacts image.
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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.
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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. Multipositioning is positioning the same product
differently to a variety of markets. For example:
Dell positions computers differently to mature
markets than to tween markets.
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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
G M D
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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.
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
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
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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.