Marketing Management, Kotler Keller Chapter Summaries

Brand extension is a technique in order to create a good brand image and increase the sales.

When one talks about market segmentation, this refers to companies or businesses ‘dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviours, and who might require separate products or marketing programs (Armstrong and Kotler, 2015).

Dividing the market into different geographical units such as nations, states, regions, cities or neighbourhoods.

According to Horner and Swarbrooke (2005: 39), Segmentation may be defined as the process of dividing a whole market into subgroups or segments for marketing management purposes. Market segmentation is the division of the overall market for a service into various categories with common characteristics. In response to different segments, organisations facilitate the available resources to achieve greater efficiency, in order to satisfy specific needs of customers.

It is only fair that each segment is explained briefly. Geographical segmentation is where the market is divided into different geographical units. For example, nations, regions, states, countries, cities and sometimes even neighbourhoods. Demographical segmentation divides markets based on age, life-cycle stage, gender, income, occupation and other factors. Moving on, Behavioural segmentation is where by factors like occasions, benefits, user status, and usage rate and loyalty status and last but not least, Psychographic segmentation. This segmentation variable is where the market is divided into segments like social class, lifestyle and personality.

• Market Segmenting- is known for targeting potential customers that are the best matches for services and products. This type of tool is important to businesses because it involves finding the different needs that exist with consumers. For example, some consumers prefer a fast paced environment while others are concerned with the space.

After positioning the brand, an organisation should establish Points-of-Difference and Points-of-Parity associations. Points of difference are the associations that are unique to the brand and are held favourably by consumers. Points of parity associations however are not unique, but are the associations that are shared with other brands and are necessary for a company to be legitimate and credible (Keller, 1998).

In conclusion, positioning is a strategic way of selling products geared towards the desires of wanting, needing, owning and obtaining something great. Positioning is how a company presents and differentiates itself, and its product, from competition in order to gain and keep prospective buyers. So it is safe to say that positioning is a strategic way in winning the hearts and minds of consumers for their confidence, and their

In determining whether or not a brand extension will be successful, corporations and marketing strategists must attempt to build strong correlations between the existing brand and/or product line. A strong pairing or high-fit brand extension immediately associates a new line or extension with currently held views of consumers. The more dissimilar a new product

They have a very clear strategy for the pursuit of their goal and vision. The market segmentation as well as the identification of target markets is the important element of each marketing strategy at which they are the basis for determining any particular of the marketing mix, which is product, pricing, place and promotion. Market segmentation reveals the company's market segment opportunities. The company has to evaluate the various segments and decide how many and which segments it can serve the best. In evaluating different market segments, a company must consider of three factors, that is, segment size and growth, segment structural attractiveness and also company’s objectives and resources. (Armstrong & Kotler, 2005)

Central Theme The novel, Positioning: The battle for your mind, by Jack Trout and Al Ries introduces readers to the concept of positioning. Positioning is a newer alternative approach to classic advertisement, that requires brands to brainstorm from the customer’s point of view. The novel is separated into four major sections and follows multiple central themes. The first and most important theme, is the idea that in order for a product to be successful, it must be the first.

Geographic segmentation is based on division of the country on the basis of the market, and then down to cities and communities on the basis of further movement. It divides the market into different geographical units such as nations, regions, states, countries, cities or even neighbor. A country may be at the level of company counties / districts, the first moves down to the city and other sub-levels. Yet the demographic segmentation divides the market into groups based on variables such as age, gender, family, size, family life cycle, income, occupation, education, religion, race, generation and nationality.

Segmentation, Targeting, Positioning and Differentiation are marketing tools which help the marketers differentiate, attract, retain and grow the customer base for their respective products.

Positioning means where a brand stands in the eyes of its target audience. Positioning helps the marketers in giving them a proper strategy and makes the target audience view a brand in the same manners. It focuses on priority or aim of the company. In the case of Nucor Corporation, it changes its positioning and came up with new, innovative strategies and products for its potential buyers (Brandeo.com, p. 2).

Ans. Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the minds of the target market. A good brand positioning helps guide marketing strategy by clarifying the brand’s essence, what goals it helps the consumer achieve, and how it does so in a unique way. The result of positioning is the