Name: Nino Giorgadze
Topic: Chapter 6 - International Positioning
I. Chapter Summary 6.1 Elements and definition/ 6.2 Target Consumer Identification
Positioning - long term strategic marketing tool, which influences consumers' perception of a brand in international markets.
The goal of positioning to create a clear perception for the brand in consumers' mind, differentiate it from its competitors and create benefit/value to the consumers.
The process of positioning should answer the following questions:
Who are our consumers?
What does the brand deliver to the target consumers?
How does the consumer perceive the brand?
How does our brand compete with others on the market?
Who does the consumer consider as a competitor of our brand?
Definition of Positioning includes 3 core elements:
Brand Equity - brand as consumers perceive it. It is influenced by several elements
Brand Image (set of associations, e.g McDonald's)
Brand Heritage ( s.g. Bosch)
Target Consumer - People have different preferences, taste and lifestyle.
Thus different market segments require different solutions. In the process of targeting, decisions should be made with regard to which of the segments best matches the brand's image, as we want it to be perceived in the future.
Consumer Benefit - Consumers buy products because they bring them certain value/benefit. There are several concepts of Brand Benefit. The earliest one _ Unique Selling Proposition was introduced in 1960 by Rosser Reeves. It focused on effective advertising and had three integral parts: 1. each advertisement must make a proposition to consumer 2. Proposition must be unique 3. Proposition must be strong to attract new consumers. Though, nowadays we can differentiate between 3 types of consumer benefit that a brand can offer:
Functional Benefit - technical attribute, quality, durability etc. e.g. - Volvo
Emotional Benefit - Self-confidence,