1. Mass Marketing vs. SegmentationUndifferentiation DifferentiationMicromarketingBenefit s {Attributes}Price or Quality Country of OriginMKT 327: CLASS FIFTEEN “POSITIONING STRATEGY”Theme: “A Niche on the Wild Side”Pre-Class Tasks:1. Reach Chapter 8 LO to LO2. Read article, “Segmentation and Targeting Analysis” (not on syllabus)3. Complete Quiz 13 on ConnectLearning Objectives:1. Mass Marketing vs. Segmentation2. Segmentation Strategy3. Concept of Positioning4. Concept of ‘Unique’ Value Proposition5. Positioning StrategyKey Terms:Non-SegmentationProduct DifferentiationMass MarketingSegmentation StrategiesUndifferentiation DifferentiationConcentrated NicheMicromarketingMass CustomizationStrategic vs. Tactical Segmentation Bases (Chernevarticle)Segmentation Bases (Chernev article)Value-base vs Profile-baseUser-base vs Occasion-baseFirmographicsProduct PositionProduct or Perceptual Map {Perceptual Framework}Ideal Point ‘Open’ PositionPositioning Map DimensionsPositioning Map AnchorsDEFINITION, PURPOSE & PROCESS: Segmentation strategy (Targeting) is defined as the process of deciding which groups {segments} to compete for and to what extent the marketing approach will be diversified. Its purpose is to frame who will be marketed to, and what needs and wants need to be addressed.The segmentation strategy process involves three steps: 1. determining selection criteria,2. selection of a segmentation (targeting) strategy, 3. and, determining segment attractiveness.There are four alternative courses of action for a segmentation strategy:A. non-segmentation,B. undifferentiated,C. differentiated,D. concentrated, or niche. These are evaluated on the decision selection criteria of1. company resources,2. market behavior,3. stage in life cycle, and4. level of competition.Positioning is defined as creating an image or perception in the minds ofconsumers about the organization or its products relative to the competition.That is, to occupy some distinctive spot in customers’ PSYCHOLOGICALFRAMEWORK in order to gain some competitive advantage in marketing to thosecustomers . Its purpose is to frame the message and set of benefits that must becommunicated and delivered to the market. A product positioning strategy has threemain components:1. the value proposition;2. the product position in psychological framework; and3. the product position in blue ocean strategy canvasThere are six steps in determining a product map. The first three steps determinethe criteria customers use. They are1. Identify attributes;2. diagram the most important dimensions, and3. locate brands relative to other brands.The next two steps determine product position. They are:4. identify ideal position of segments, and5. determine desired product position.The last step, step six determines desired image by6. developing marketing mix tactics to achieve position.obtain some desire position in product map.I. Two focus on demand (A):A1. changing perception of what product is; orA2. changing perception of when/where product is used. II. The remaining three options focus on the attributes of the product(B):B1. improve how the product is rated on an attribute,B2. change the importance of an attribute, andB3. introduces a new attribute all together.Determining whether to use demand focus or attribute focus is based on thecriteria:Positioning BasesBenefit s {Attributes}Price or Quality Country of OriginComparison SpokespersonDemandTime or Usage Product ClassRepositioningUnique Value Proposition (Chernev article)There are five alternatives for a positioning strategy to obtain some desireposition in product map.I. Two focus on demand (A):A1. changing perception of what product is; orA2. changing perception of when/where product is used. II. The remaining three options focus on the attributes of the product(B):B1. improve how the product is rated on an attribute,B2. change the importance of an attribute, andB3. introduces a new attribute all together.Determining whether to use demand focus or attribute focus is based on thecriteria:1. growth strategy,2. structure of perceptions (open positions ?), and3. cost / value creation