the current data collection or distribution systems. Segments in an
innovative area may cause managers problems in terms of how to allo-
cate targets and monitor progress. If this is linked to the problem
already discussed under organisational structure, it may complicate
issues such as areas of responsibility and reporting lines even further.These factors of compatibility with the internal practices of an organisa-
tion are likely to prove critical to the successful implementation of a new
segmentation strategy. The newly entered segment has to have clear
departmental ownership. Reporting lines and information flows have to
be able to monitor its progress. In short individuals within the organisa-
tion have to wholehearted embrace the development of the new segment
or failure will follow no matter how attractive the segment or how well
the organisations overt assets and competencies might fit.
A successful selection process will have identified a market segment or
segments that are in alignment with the company’s assets and competen-
cies and is also compatible with the wider organisational issues.
■ Positioning
Having selected a target market or markets the organisation then has to
decide on what basis it will compete in the chosen segment or segments.
How best can it combine its assets and competencies to create a distinctive
offering in the market? This has to be done in such a way that consumers
can allocate a specific position to the company’s product or service within
the market, relative to other products. Consumers have to cope with a
huge amount of product information. Customers will position a product
in their mind in relation to other products on the market based on their
perception of the key attributes it contains. Consumers will see the key
attributes of Volvo as safety and durability. BMW’s main attributes are
based on performance hence the ‘The Ultimate Driving Machine’ adver-
tising slogan. When consumers consider the car market, these two com-
panies’ products will be positioned relative to each other based on these
perceptions. Companies can attempt to associate various qualities to their
product as a way to help shape consumers perceptions of their position in
the market. A brand can be positioned using a range of associations such
as (Kotler et al., 1996):
Product attributes: Heinz positions it products on the attributes of no
artificial colouring, flavouring or preservatives.
Product benefits: Volvo positions itself using the product benefits of
safety and durability.
Usage occasions: The convenience store SPAR eight-till-late shops are pos-
itioned on the usage occasion. Customers use the shops when they need to
shop out of normal hours or near to their home. Kit Kat (have a break have
a Kit Kat) links the brand to tea and coffee breaks in the UK market.
Users: Ecocover cleaning products are positioned as environmentally
friendly products for the green customer.
Targeting, positioning and brand strategy 189