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Market Segmentation, Positioning, and Branding

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Marketing Management

Part of the book series: Springer Texts in Business and Economics ((STBE))

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.

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Author information

Authors and Affiliations

  1. Graduate School and McDonough School, Georgetown University, Washington, DC, USA

    Michael R. Czinkota

  2. International Business and Strategy, University of Kent, Canterbury, UK

    Michael R. Czinkota

  3. Professor of Marketing and International Business, Waseda University, Tokyo, Japan

    Masaaki Kotabe

  4. University of Hawaii at Manoa, Honolulu, USA

    Masaaki Kotabe

  5. Professor of Strategic Marketing Management, Vice Rector for Faculty and Research, University of Nicosia, Nicosia, Cyprus

    Demetris Vrontis

  6. Senior Lecturer in Marketing, Newcastle Business School, Northumbria University, Newcastle upon Tyne, UK

    S. M. Riad Shams

Authors
  1. Michael R. Czinkota
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  2. Masaaki Kotabe
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  3. Demetris Vrontis
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  4. S. M. Riad Shams
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Correspondence to Michael R. Czinkota .

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Czinkota, M.R., Kotabe, M., Vrontis, D., Shams, S.M.R. (2021). Market Segmentation, Positioning, and Branding. In: Marketing Management. Springer Texts in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-66916-4_7

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