Top

Published in:

2021 | OriginalPaper | Chapter

7. Market Segmentation, Positioning, and Branding

Authors : Michael R. Czinkota, Masaaki Kotabe, Demetris Vrontis, S. M. Riad Shams

Published in: Marketing Management

Publisher: Springer International Publishing

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

Markets can be defined in a number of ways, but for a marketer, the key definition is in defining who the customer is. Even so, there are different categories: (1) customers, (2) users, and (3) prospects. This categorization leads to the concepts of penetration and brand (market) share.

Within markets, there may be segments, which a producer may target to optimize the use of scarce resources. The viability of these segments depends on (1) size, (2) identity, (3) relevance, and (4) access. The identification of market segments requires a number of activities including (1) background investigation, (2) qualitative research, (3) quantitative research, (4) analysis, (5) implementation, and (6) segmentation/positioning. A major aid to positioning is usually offered by two-dimensional maps based on the two most critical dimensions identified by statistical analysis.

Branding is the most powerful marketing device for differentiation, which may, in effect, create a near monopoly. Once established, a brand name has a strong brand equity. Branding policies may be based on (1) company name, (2) family branding, and (3) individual branding. These policies may be developed further by brand extensions and multibrands, but this approach may be limited by cannibalism. Cobranding by companies that market complementary products helps fill market segments not met by them individually. Private brands and generic brands are also becoming increasingly important in price-sensitive markets.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

previous chapter Estimating the Market Demand

next chapter Product and Service Decisions

Sullivan, A. (1995). Mobil bets drivers pick cappuccino over low prices. Wall Street Journal, B1, B8; and Francella, B. G. (2000). ExxonMobil retail segment growing. Convenience Store News, 12.

Lexmark Unveils Latest Range of Laser Printers. News Straits Times-Management Times (2003, June 23).

Vasilash, G. S. (2002). Beyond OEM: Where the money is. Automotive Design & Production, 30.

Orme, G. (1998). Think about an attitude adjustment: Using attitudinal data to determine market segments. Direct, 10, 49.

Haley, R. I. (1968). Benefit segmentation: A decision oriented research tool. Journal of Marketing, 32, 30–35. Also see his “Benefit Segmentation—20 Years Later,” Journal of Consumer Marketing, 11(1986), 5–13.

Kotabe, M., & Helsen, K. (2020). Global segmentation and positioning. In Global marketing management (7th ed.). Hoboken: John Wiley & Sons.

Kale, S. H., & Sudharshan, D. (1987). A strategic approach to international segmentation. International Marketing Review, 60–70.

Goldberg, A. (1998). Are You Part of the Sub-$ 1,000 Market? Computer Shopper, 118.

Murray, C. J. (2002). Unix Workstation Touts 64-bit Performance at a PC Price. Electronic Engineering Times, 79–80.

10.

Vavra, B. (2002). A Year for Sheer? Progressive Grocer, 44.

11.

Garvey, W. (2003). B/CA Fast Five. Business & Commercial Aviation, 32.

12.

United States Census Bureau. (2019). Hispanic heritage month 2019. https://www.census.gov/newsroom/facts-for-features/2019/hispanic-heritage-month.html#. Accessed 06 April 2020.

13.

Arriola, R. (2003). U.S. hispanic market has immense potential for card issuers. U.S. Banker, 64.

14.

Maier, M. (2002). Mr. Car Dealer, Meet Mr. Car Buyer. Business 2.0, 108.

15.

Ryan, E. F. (1998). Cornering the online market. Best’s Review, 99, 93.

16.

Johnson, R. (1971). Market segmentation: A strategic management tool. Journal of Marketing Research, 8, 13–18.CrossRef

17.

McMath, R. (1998). New products need more than a small miracle: An authority on new products reveals some truths about past successes and failures. Supermarket News, 60.

18.

Lunn, T. (1986). Segmenting and constructing markets. In R. Worcester & J. Downham (Eds.), Consumer market research handbook (3rd ed.). New York: McGraw-Hill.

19.

Who’s Afraid of J&J and 3M?: Not Techol. It’s a lesson in how a small company can win. Business Week (December 5, 1994): 66; and Premier Inc. Continues Contract Blitz: Recent Pacts Cover Wide Range of Products. Hospital Materials Management 22 (March 1997): 8.

20.

Tanzer, A. (1998). The VTech Phenomenon. Forbes, 88–90.

21.

Levitt, T. (1983). The globalization of markets. Harvard Business Review, 61, 92–102.

22.

Why Hyatt is toning down the Glitz: The Chastened Hotelier Retools for the Cost-Conscious ‘90s, Business Week (February 27, 1995), 92–94; and Hein, K. (2004). The Consumer Loyalty Conundrum. Brandweek, 45, 24–27.

23.

Brenkert, G. G. (1998). Marketing to inner-city blacks: PowerMaster and moral responsibility. Business Ethics Quarterly, 8, 1–18.CrossRef

24.

Black, H. A., Boehm, T. P., & DeGennaro, R. P. (2003). Is there discrimination in mortgage pricing? The case of overages. Journal of Banking & Finance, 27, 1139–1165.CrossRef

25.

Joy, J. P., Ceynowa, C., & Kuhn, L. (2020). Price recall: Brand and store type differences. Journal of Retailing and Consumer Services. Published online ahead of print, https://doi.org/10.1016/j.jretconser.2019.101990.

26.

Zwanka, R. J. (2018). Everyday low pricing: A private brand growth strategy in traditional food retailers. Journal of Food Products Marketing, 24(4), 373–391.CrossRef

27.

Chatterjee, S. (2017). Two efficiency-driven networks on a collision course: ALDI’s innovative grocery business model vs Walmart. Strategy & Leadership, 45(5), 18–25.CrossRef

28.

Warren, H. C. (1916). Mental association from Plato to Hume. Psychological Review, 23, 208–230.CrossRef

29.

Marsden, P. (2002). Brand positioning: Meme’s the word. Marketing Intelligence and Planning, 20, 307–312.CrossRef

30.

Ries, A., & Trout, J. (1982). Positioning: The battle for your mind. New York: Warner Books.

31.

Marsden, P. (2000). Brand selection, naturally: A case study. Proceedings of the Market Research Society Conference.

32.

Blain, C., Levy, S. E., & Ritchie, J. R. B. (2005). Destination branding: Insights and practices from destination management organizations. Journal of Travel Research, 43, 328–338.CrossRef

33.

Bonetto, L. (2015). The Ethical Consumer – US – July 2015. Mintel Academic. Mintel Group Ltd.

34.

Laroche, S. (2017). Cause-related marketing in five unique culture (honours dissertation). Texas: Texas Christian University.

35.

Varadarajan, P. R., & Jayachandran, S. (1999). Marketing strategy: An assessment of the state of the field and outlook. Journal of the Academy of Marketing Science, 27, 120–143.CrossRef

36.

Sharp, B. M. (1993). Managing brand extension. Journal of Consumer Marketing, 10(3), 11–17.CrossRef

37.

Roberts, C. J., & McDonald, G. M. (1989). Alternative naming strategies: Family versus individual brand names. Management Decision, 26(6), 31–37.

38.

Taylor, M. B. (1986). Cannibalism in Multibrand Firms. Journal of Consumer Marketing, 3(2), 69–75.CrossRef

39.

Harris, B. F., & Strong, R. A. (1985). Marketing strategies in the age of generics. Journal of Marketing, 49, 70–81.CrossRef

40.

Lovelock, C. H. (1992). A basic toolkit for service managers. In C. H. Lovelock (Ed.), Managing services: Marketing, operations, and human resources (pp. 17–30). New Jersey: Prentice Hall.

41.

Murray, J. Y., & Kotabe, M. (1999). Sourcing strategies of U.S. service companies: A modified transaction-cost analysis. Strategic Management Journal, 20, 791–809.CrossRef

Berthon, P., Hulbert, J. M., & Pitt, L. F. (1999). Brand management prognostications. Sloan Management Review, 40, 53–65.

Dubow, J. S. (1992). Occasion-based vs user-based benefit segmentation: A case study. Journal of Advertising Research, 32, 32–39.

Grapentine, T., & Boomgaarden, R. (2003). Maladies of market segmentation. Marketing Research, 15, 27–30.

Helsen, K., Jedidi, K., & DeSarbo, W. S. (1993). A new approach to country segmentation utilizing multinational diffusion patterns. Journal of Marketing, 57, 60–71.CrossRef

Hydock, C., Chen, Z., & Carlson, K. (2020). Why unhappy customers are unlikely to share their opinions with brands. Journal of Marketing. Published online ahead of print, https://doi.org/10.1177/2F0022242920920295.

Ji, W. G. L., Liu, Y., & Sun, Q. (2020). Branding cultural products in international markets: A study of hollywood movies in China. Journal of Marketing, 84(3), 86–105.CrossRef

Kamakura, W. A. (1991). Value segmentation: A model for the measurement of values and value systems. Journal of Consumer Research, 18, 208–218.CrossRef

Leclerc, F., Schmitt, B. H., & Dube, L. (1994). Foreign branding and its effects on product perceptions and attitudes. Journal of Marketing Research, 31, 263–270.CrossRef

Liu, Y., Li, K. J., Chen, H. A., & Balachander, S. (2017). The effects of products’ aesthetic design on demand and marketing-mix effectiveness: The role of segment prototypicality and brand consistency. Journal of Marketing, 81(1), 83–102.CrossRef

Lovelock, C. H. (1992). Managing services: Marketing, operations, and human resources. New Jersey: Prentice Hall.

McDonald, M., & Dunbar, I. (1995). Market segmentation: A step-by-step approach to creating profitable market segments. Basingstoke: Macmillan Business.

Michman, R. D. (1991). Lifestyle segmentation. New York: Prager.

Samli, C., Pohlen, T. L., & Bozovic, N. (2002). A review of data mining techniques as they apply to marketing: Generating strategic information to develop market segments. Marketing Review, 3, 211–227.CrossRef

Shuv-Ami, A., Papasolomou, I., & Vrontis, D. (2018). New measure of brand equity status of a Basketball Club. Journal of Transnational Management, 23(1), 39–63.CrossRef

Shuv-Ami, A., Thrassou, A., & Vrontis, D. (2015). Fans’ brand commitment to basketball teams. Journal of Customer Behaviour, 14(4), 311–329.CrossRef

Srivastava, R. K., & Shocker, A. D. (1991). Brand equity: A perspective on its meaning and measurement. Cambridge, MA: Marketing Science Institute.

Stäbler, S., & Fischer, M. (2020). When does corporate social irresponsibility become news? Evidence from more than 1,000 brand transgressions across five countries. Journal of Marketing, Published online ahead of print, https://doi.org/10.1177/2F0022242920911907.

Swaminathan, V., Sorescu, A., Steenkamp, J. B. E. M., O’Guinn, T. C. G., & Schmitt, B. (2020). Branding in a hyperconnected world: Refocusing theories and rethinking boundaries. Journal of Marketing, Published online ahead of print, https://doi.org/10.1177/2F0022242919899905.

van Osselaer, S. M. J., & Alba, J. W. (2003). Locus of equity and brand extension. Journal of Consumer Research, 29, 539–550.CrossRef