Lecture Notes-Chapter 1-3

Four market segmenting strategies

1. Socio-demographic segmentation - uses socio-demographic variables such as marital status, gender,

2. Behavioral segmentation - research motivators to improve consumer behaviour in terms of frequency.

3. Price segmentation - offers business growing opportunities using a range of price indexes.

4. Psychographic segmentation -used when connecting target consumers in terms of their lifestyle and
psychographic characteristic. This type of segmentation research uses psychographic statements in its
data gathering.This is eventually known as AIO(Activities, Interests, and Opinions) segmentation
research.

 Psychographics refers to the studies that focus on more abstract,theory-based, or clinic-based

 Lifestyle focuses on more specific activities,interests, attitudes, and values directly tied to
consumer behavior.

 Likert scale contains number in ordinal scale that has well-defined meanings.

 Five-point scale is a scale commonly used in Asian practice.

 Sevent-point scale is a scale commonly used in American and European practice.

Two forms of psychographic segmentation

1. Product-Specific Psychographics extends the specificity from behavior-based activities,

2. Generalized Psychographic research is the more traditional and original form.

What are the other uses of UAI profiler data in segment targeting?

1. For market development opportunities

2. For determining the brand’s correct competitors

Seven brand positioning models

1. UAI positioning model

This is the most popular and most used positioning model. In this model , brand positioning is all
about the brand’s consumer value proposition. This model follow two positioning rules:

1a. You position your brand in what is important to your customers.

2. Priority value-based positioning model

This model focuses on what is important to the consumers rather than the brand’s
differentiator.There are two cases of consumer needs where this model applies. These are unserved
need and underserved need.

3. Differentiator-based positioning model

This model considers how consumers have dimensionalized a basic product attribute. There are
two types of attributes considered in this model the motivator attributes and non-motivating attributes.

Motivator attributes are attributes that consumers can be assumed to rate as high in importance and at
the same time high in differentiating brands in the category.

Non-motivating attributes are attributes rated by consumers as low in importance as well as in

4. Experiential positioning model

This model analyze if your brand is a problem-solution product or a usage product. In usage
product, the researcher can used the qualitative research method known as Laddering Technique or also
known as the Means-End Method.

5. Sensory signature positioning model

This positioning model uses senses such as sense of sight, sense of sound, sense of touch, sense
of smell and sense of touch. This is also referred to as 5D strategy.This model work best with customer
service and you do not have to tap all 5 senses.

6. Personality or user-imagery positioning model

This model initially was referred to user imagery positioning. This model came to be known in
terms of personality because it became more and more equated with celebrity.

7. Product-source imagery positioning model

This model take into consideration the maker of the product, therefore the brand positioning
issue here is about the corporate brand and its reputation as a quality product maker.

The Jungian literature presents twelve types of archetypes. These archetypes were developed by
Carl Jung, who “understood archetypes as universal, archaic patterns and images that derive from the
collective unconscious and are the psychic counterpart of instinct. They have inherited potentials which
are actualized when they enter consciousness as images or manifest in behavior on interaction with the
outside world.”

12 archetypes

1. The Ruler- The Ruler is the leader, the one setting the rules others will follow, even
competitors. Usually it's paired with an idea of exclusiveness and status growth. A brand that
 presents itself as a Ruler is suggesting to their audience that they can be rulers too. The
corporate brands typifying in this archetypes are Rolex, Google, Mercedes and Ritz-Carlton

2. The Creator- The Creator is authentic and innovative at the same time. These have not only
been up to the standards of the product they create but also invent something new once in a
while to keep their customers’ loyalty intact and provide them with something they’d like to
invest in. They solve problems and prove their vision of creativity and freedom.The corporate
brand of Home Depot, Apple, Adobe and crayola have been categorized in this archetype.

3. The Hero- the Hero archetype is similar to the Explorer and Outlaw ones, with the difference
that the Hero many times never wanted to be the hero, but injustice and external events
obliged him to find the courage, braveness, and the honor to become one. The Hero is an
idealist. They seek perfection, attention to detail, and courage. Nike and Federal Express are the
corporate brand that often belong to this archetype.

4. The Sage- The Sages wants to know and understand things. The Sage is deeply humanist and
believe in the power of humankind to shape a better world through knowledge. However, the
Sage also has a shadowed side: intolerance to ideas others than their own. This archetype has
CNN and Harvard as corporate brand examples.

5. The Caregiver- Altruism, compassion, generosity. Caregiver brands present themselves as

6. The Lover- Sensuality is the main characteristic of the Lover archetype, as well as strong
physicality, passion, and a need for deep and strong sensations.Calvin Klein, Chanel and
Victoria’s Secret are the corporate brands counted as example of this archetype.

7. The Ordinary and Regular Guy or Gal- The Regular believes in practicality, realism, and
honesty.The corporate brands that have taken on this archetype for its reputation are
Dockers and Wendy’s.

8. The Outlaw- The Outlaw is the rebel, the one who breaks the rules in order to free his true
self.The Outlaw goes against the canon and is very aware of the constrictions society creates. A
great example of a brand that very well represents the Outlaw archetype is Betabrand.

9. The Magician- The brands under Magician are the ones you should look to when they do
communication campaigns. They don’t just think out of the box, but they bring the box in
front of you and give you the unexpected.The corporate brands often cited as examples of this
archetype are Sony and Generals Food International Coffees.

10. The Jester- Jesters make life look simple and fun. Their approach to creating and selling things
in the manner of a joke is applause-worthy.Ben & Jerry’s, Skittles and M&M’s are the 2
corporate brands most often taken as examples of this archetype.

11. The Explorer- Explorer brands prompt their audience to challenge themselves and to
discover the Explorer within. The corporate brands closely referred to as examples of this
archetype are Starbucks and Levi’s.
 12. The Innocent- The Innocent defines being safe and positive at their best. This archetype has
many corporate brand examples like Disney, Dove and Gymboree.

What is product concept?

Product concept is a combination of potential positioning choices.

What are the four most powerful product concept according to Clark and Fujimoto?

1. What it does? or product benefit positioning

2. What it is? or product feature positioning

3. Whom it serves? or positioning by product user

4. What it means to consumers? Or positioning by product experience

What are the product concept testing objectives?

1. To find out how consumers will make sense of new product concept

2. To uncover any adverse negative in parts of the product concept or in its totality

3. To assess the motivating value of the product as conveyed by its concept description

What is product prototype testing?

Product prototype testing translate a good product concept into an actual physical sensory product.

What is test marketing?

Test marketing is the theoretically appropriate research technique for testing a new products marketing
mix and sales effectiveness.

What are the Price sensitivity models?

1. Roberto PSR model- has a simple data collection method and follows an equally simple data analysis
procedure.It uses price scale and two sets of simple statistics a.a percent frequency distribution of the
responses b. a percent cumulative distribution of those same responses.

2. RI(research International) model- uses a sorting procedure that better approximates the consumer’s
price solving and choice process.

3. MBL model- uses the sorting technique that conjoint analysis. The analysis technique gives a different
kind of realism to the testing.