1. Rector of Eurasian Management and Administration School (EMAS Business
School)
STRATEGIC MANAGEMENT.
DETERMINING MARKET
SEGMENTS. DETERMINING
MARKET POSITION. BRANDING
AND BRAND MANAGEMENT
ANDREY KOLYADA
7. Sign No.4 – You understand that the resources are scarce.
A good strategy is a strategy of the most effective use of the
scarce resources and of the maximum outcome of the most scarce of
them.
WHAT MAKES A GOOD STRATEGY DIFFERENT FROM A BAD ONE?
11½ SIGNS OF A GOOD STRATEGY
9. Cluster segmentation criteria
Most common:
by socio-demographic characteristics (B2C)
by physical, operational, situational and other characteristics
(B2B)
by psychographic characteristics (B2C and B2B)
Rare:
by specifics of consumer buying behavior etc.
CLUSTER SEGMENTATION
TARGET POSITION ON THE MARKET. BRANDING
10. • Age
• Sex
• Family size
• Family life-cycle stage
• Income level
• Occupation
• Education
• Social class
Socio-demographic characteristics (B2С – Consumer market)
CLUSTER SEGMENTATION
TARGET POSITION ON THE MARKET. BRANDING
11. PHYSICAL VARIABLES:
• Field of the company
• Size of the company
• Location
• Form of incorporation
• Age of the company
• Financial indicators
DECISION-MAKING SCHEME,
PROCUREMENT SCHEME:
• Degree of centralization
• Procurement policy
OPERATIONAL VARIABLES:
• The company’s needs
• The company’s demands
SITUATIONAL FACTORS:
• Speed of the delivery
• Size of the order
PERSONAL CHARACTERISTICS:
• Values
• Nationality
• The company’s orientation
Physical, operational, situational and other characteristics (B2B –
Corporate market)
CLUSTER SEGMENTATION
TARGET POSITION ON THE MARKET. BRANDING
12. CLUSTER SEGMENTATION
TARGET POSITION ON THE MARKET. BRANDING
2 elements:
1. Natural + Consumer motive(s) – WHAT a client wants
2. Mindset = Psychotype – HOW a client makes a decision
Psychographic characteristics (B2C and B2B)
Demand for the
product
Natural motive
Consumer motive(s)
Mindset = Psychotype
15. CLUSTER SEGMENTATION
TARGET POSITION ON THE MARKET. BRANDING
Example of distribution of European population of Russia
according to the psychotypes – EMAS research* (%)
Type 1; 11.3
Type 2; 12.8
Type 3; 8.4
Type 4; 6.6
Type 5; 4.2
Type 6; 9.5
Type 7; 26.2
Type 8; 14.8
Type 9; 6.2
1. Reformer
2. Assistant
3. Striving for success
4. Individualist
5. Thinker
6. Loyalist
7. Enthusiast
8. Confronter
9. Peacemaker
* To be clarified for each region
16. CLUSTER SEGMENTATION
TARGET POSITION ON THE MARKET. BRANDING
TRANSPORTATION SERVICES
Cluster: Medium prices, Regular shipments not less than twice a week
Segment # Dominant consumer motive Segment profile Number of clients
Volume,
$/year
1 Pick-up time
Industrial enterprises,
revenue > $200 mln/year
2,500 $2 bln
2 Lower price
Wholesale business,
importers, revenue >
$5 mln/year
1,500 $800 mln
3 Client-focused approach 2,000 $1.5 bln
Cluster TOTAL 6,000 $4.3 bln
19. POSITIONING
TARGET POSITION ON THE MARKET. BRANDING
ABC Transportation Company offers medium-priced transportation
services of the highest quality with the shortest pick-up time.
TRANSPORTATION SERVICES
Cluster: Medium prices, Regular shipments not less than twice a week
Segment # Dominant consumer motive Segment profile Number of clients
Volume,
$/year
1 Pick-up time
Big industrial enterprises,
revenue > $200 mln/year
2,500 $2 bln
Example
Positioning is conveyed to the target segment by means of:
[1] Sales,
[2] Marketing communications.
It’s only now that the CREATIVITY starts!
20. POSITIONING
TARGET POSITION ON THE MARKET. BRANDING
METHODS TO DELIVER POSITIONING:
Based on the distinctive feature of the product
Based on the benefits and or on the solution of the problem
Based on the special method of using
Based on the focus on some certain category of consumers or
some case of consumption
Based on the interaction with the competitive brand
Based on the difference with some certain category of
products
Based on the worldview
21. POSITIONING
TARGET POSITION ON THE MARKET. BRANDING
Under-positioning – not enough characteristics, positioning
goes beyond the target segment
Over-positioning – too many characteristics, positioning is too
narrow for the target segment
Vague positioning – positioning criteria are too vague and have
nothing to do with the motives of the target cluster
Doubtful positioning – credibility of the positioning criteria is
doubtful for the target segment
4 groups of mistakes made while developing / conveying
the positioning
22. POSITIONING
TARGET POSITION ON THE MARKET. BRANDING
• Emphasis on the properties that have nothing to do with the
natural and / or consumer motive(s) (for instance, too much
“creativity”)
• Desire to be a brand for everyone
• Positioning on a low price only
Specific types of mistakes made while developing /
conveying the positioning
23. POSITIONING
TARGET POSITION ON THE MARKET. BRANDING
• Non-compliance of positioning with the target segment image
of the product category with which the brand is already
associated
• Reaching another target segment with natural and / or
consumer motive(s) that don’t match
• Dissipation of the marketing budget
Specific types of mistakes made while developing /
conveying the positioning
24. POSITIONING
TARGET POSITION ON THE MARKET. BRANDING
• Attempt to deliver numerous messages at the same time
• Negligent design
Specific types of mistakes made while developing /
conveying the positioning
27. Strategic Formulation is an in-depth description of the essence of the
company’s strategic intent = HOW the Goals will be achieved = BRIEF
DESCRIPTION OF THE COMPANY’S STRATEGY.
STRATEGIC FORMULATION
Strategic Formulation of EMAS (old version):
We put major focus on the local market constantly stepping up our presence.
We do it by getting the status of the top expert in strategic management (the
strategy of the company, strategic marketing, corporate culture and leadership),
production management, business analytics and HR management implementing the
projects and participating in image events in the relevant spheres for that. Our MBA
programs have open an corporate formats. We implement both general and specific
MBA programs.
Target market segment – business owners and managers of all levels requiring
100% implementation expert knowledge in business; average price cluster.
In order to acquire the best practices, contacts and competences EMAS has
become a member of prestigious local and international associations in business
education. We maintain strategic partnership with foreign business schools.
29. Marketing Management is carried out based on the model called
Marketing Complex (Marketing Mix).
Marketing
Management
1. Product
2. Place
3. Price
4. Promotion
5. People
6. Processes
7. Physical
Evidence
4 P – for the goods
7 P – for the services
(and goods as well)
MARKETING MANAGEMENT. MARKETING MIX
31. Unique Selling Proposition (USP) is a real superiority over the
competitors in characteristics important for the target segment
within its natural and consumer motive(s).
USP is created based on the logic of CSI - Customer Satisfaction
Index:
• USP for the product (based on CSI of the product in the
narrow sense),
• USP for the processes (based on CSI of the related processes),
• USP for the personnel (based on CSI of the personnel).
Creating USP, i.e. obtaining superiority, is the essence of your
company’s strategy
UNIQUE SELLING PROPOSITION
