Segmentation, Targeting &

Positioning

27th Oct
 What is Positioning?
 Positioning is the way marketers ensure their product / service
occupies a unique, distinctive and relevant place in the mind of the
target audience, so they choose it in preference to its competitors

WHY we expect the

WHO we are Doctor to prescribe
this brand for the
targeting the patient segment in
brand at preference to
competitors
Patient segment Differentiation elements

Driven by insight
Characteristics of a great positioning

C
– Relevant and motivating to patients and doctors
– Genuine differentiation in the “Who” & / or the
ompetitive “Why”

C
– Absolute clarity on “Who” is being targeted, &
“Why”
– No scope for ambiguity or alternative
lear interpretations

Choices
–
–
Single minded and focused: less is more
Tough choices have been made

Consistent
–
–
Aligned with the brand essence
Consistent over time
 Positioning is about being distinctive in WHO is
targeted
BROAD FOCUSED

All epilepsy Female epilepsy sufferers

Lamictal
sufferers

Smokers who are trying to

Zyban All smokers quit and have tried other
methods

Moderate asthmatics
Seretide All asthmatics not controlled on high
steroid doses

Superior insights drive clear Patient segments

 Positioning is about being distinctive in WHY the
brand should be chosen
GENERIC DISTINCTIVE

Treats more triggers than

Flixonase Treats allergies any other RX
antihistamine pill

Improves lung Total control/ Liberation

Seretide
function

Superior insights drive more distinctive positioning

 Principles of positioning

1 Based on target patient segments

2 Apply patient and customer insight

3 Build an emotional appeal upon a rational benefit – based on what the

“Who” want

4 Seek to create competitive advantage through differentiation

5 Be single-minded

6 Ensure your positioning is delivered through every element of the

marketing mix
 Positioning checklist
What Positioning is Not What Positioning Is
A laundry list of features  A concise idea that gives a reason to
use/prescribe the brand

Compensation for weakness Consistent with attributes

Forever unchangeable Specific to a point in time
A claim that “we’re the best”  Why “we’re the best”, and/or who
our product is best for

 The creative expression The idea behind the

(e.g. the “Diamond creative (e.g. total
Standard”) control)
 Influencers of positioning

2. Minimise direct competition with other GSK products in the same therapy area

Anti-
depressant
Depression & users with
Anxiety weight gain
or reduced
libido

Otitis Media Bronchitis

 Influencers of positioning
1. Must be distinctive versus other brands in the category

Middle Class
Executive Families Reliable
Safe

Status conscious
Lower-Middle Income Better engineering
Value

Wealthy
Luxury
 Influencers of positioning
3. Understand your expected source of business – other
brands in same category…or competing categories?
If other brands in same If other categories are
category are main Competing main source of
source of business Categories business

ICS/LABA combos
Seretide

How Seretide Symbicort

is better than
 ICS combos
Symbicort
 LTRA combos
How Seretide
is better than
 Ipratropium combos all other
categories
 When to reposition a brand
1. First segment near saturation / new indication /
line extensions
Positioning is a key part of the brand strategy - any change is not too be taken lightly.
Re-positioning should only happen when:
– With a growth strategy (build) when the first segment is near saturation - widen the target market
to continue overall market growth (The WHO)

Original Target
Severe
New Target

Moderate

Mild
 When to reposition a brand
2. A change in competitor environment
With a growth strategy (build) when the competitor environment
changes (the WHY):
– For example, when Prozac was the only SSRI, it only had to position itself
as more effective than TCAs
– Once other competitors appeared, it had to ensure a distinctive positioning
versus Seroxat and Zoloft
 Principles of positioning
Key principles of positioning

1 Based on target patient segments

2 Apply patient and customer insight

3 Build an emotional appeal upon a rational benefit

4
Seek to create competitive advantage through differentiation
5
Be single-minded

6 Ensure your positioning is delivered through every element of the

marketing mix
 When to reposition a brand
Positioning is a key part of the brand strategy - any
change is not too be taken lightly. Re-positioning
should only happen when:

– With a growth strategy (build) when the first segment is

near saturation - widen the target market to continue
overall market growth
– With a cash generation strategy (maintain / harvest) -
narrow the target market to focus on the most profitable
customers
– With a revitalisation strategy (build / maintain) reposition
in a growing market - this is a high risk strategy and it is
important to validate that you have a unique offering that
will be competitive against existing stakeholders.
 At its simplest the entire Positioning
can be summarized in one sentence
Brand name
In ____________________ ,
Market
Single Minded Proposition Patient Segment
______________________________

delivers _____________________
Supporting evidence
to
____________________

In the allergy market, Flonase nasal spray delivers the most effective relief of
because
all allergy symptomsof_________________
to allergy sufferers because it treats more triggers than
any other Rx antihistermine pill
 The balance between global and local

Global Positioning:

– Provides consistency with known clinical profile/benefits

– Communicated to international KOL’s
– Based on identification of optimum patient groups
– Provides basis for local positioning strategy

Local Positioning:

– Adapt to local conditions within global positioning framework

– Local patient insights may differ
– Local healthcare infrastructure may differ
– Local customer attitudes may differ
 When to reposition a brand
Positioning is a key part of the brand strategy - any
change is not too be taken lightly. Re-positioning
should only happen when:

– With a growth strategy (build) when the first segment is

near saturation - widen the target market to continue
overall market growth
– With a cash generation strategy (maintain / harvest) -
narrow the target market to focus on the most profitable
customers
– With a revitalisation strategy (build / maintain) reposition
in a growing market - this is a high risk strategy and it is
important to validate that you have a unique offering that
will be competitive against existing stakeholders.
Consistency in positioning
over time
What changes when you reposition a brand?

Patient Segment Possibly

Brand Essence Never

Possibly…but likely to be some

Single Minded
consistency or logical link with
Proposition
previous positioning

Yes…but likely to retain same

Execution
personality as before
Once established, treat with respect
i ng
Pos’timteisos wnith me)
(don

Positioning may evolve over time, but there needs to be consistency

 The benefits of differentiation
– Enables your brand to stand out from the crowd.

– Prevents your brand from being commoditised

– Giving the customer a reason to choose our

brand among similar competitors

– Enables us to identify and focus on clear

customer choice drivers
 Ensure Points of Difference are
relevant to the target audience
WHO
Target patient
segment

Competitive advantage
Differentiation among
“Fit” built upon
category competitors
differentiation

WHY
Differentiator
relevant to segment
(rational/emotional)

A differentiator is only a competitive advantage if you make it into one by

selecting the right target segment
 Competitive advantage
Rational benefit + emotional appeal
RATIONAL BENEFITS EMOTIONAL BENEFITS

 Tangible/measurable
 Medically/feature–oriented
 Based on understanding therapeutic
performance
 Doctor-centred interpretation of need
 Intangible/non-measurable
 Feeling–oriented
 Based on understanding the patient’s
world (customer insight)
 Patient–centred interpretation of need

RATIONAL AND EMOTIONAL BENEFITS SHOULD RELATE TO EACH OTHER

(Not a trade-off / not mutually exclusive)

Skilled marketing builds an emotional benefit on top of a rational benefit

using customer insight to create competitive advantage
 Examples of some points of difference
that are relevant in pharmaceuticals
– More effective – Superior product design

– Greater safety – Better in use characteristics

– Easier dosing – Patented ingredient

– Better value for money – More features than other brands

– Greater convenience – Better tolerability

– Superior service – Fewer side effects

– Longer lasting – Perceived patient/customer advantage

– Unique endorsement (KOL support

etc.)

Need to also consider emotional points of difference

 Oxy vs. Clearasil
P&G GSK

· Similar products with similar claims

· Straight rational sale from P&G
· GSK execution provided emotional
relevance and benefit
· Oxy more successful than Clearasil
Consistency in positioning
across multiple indications
Dealing with multiple indications
The goal for any brand is to have

– Consistency
– Integration
– Alignment

Across all indications

– Like an elastic band, the brand can stretch – but don’t snap it
– If there isn’t that brand stretch when moving into a new indication –
you can damage the brand or cause brand confusion
– If the brand does not stretch to a new indication you may have to
consider a new brand
Dealing with multiple indications for the same brand
Element Detail
1. Brand name The same
2. Market Different
3. Patient segment Likely to be different, but there may be overlaps
4. Customer target Likely to be different, but there may be overlaps
5. Category Different
6. Other competing categories Likely to be different, but there may be overlaps
7. Insight Likely to be different, but there may be overlaps
8. Brand personality Exactly the same
9. Brand essence Exactly the same
10. Points of difference Likely to be different
11. Single minded proposition Likely to be different but ideally some continuity /
12. Supporting evidence connection across indications
13. Brand positioning summary Different
statement Expression will probably be different based on the
14. Key messages
above
 Examples of a different brand name for the
same drug
– Lamictal (Belgium) is being launched under a
new brand name – Lamotrigine for bipolar
disorder

– Zyban (smoking cessation) and Wellbutrin

(depression) are the same drug launched as
different brands

Every case is different, however there are some key questions to ask
Questions to ask when considering whether
your brand can stretch across indications
– Can your Brand Essence work across both indications?
– Can you Brand Personality work across both indications?
– How different are the indications?
– To what extent are the target audiences for each indication
separate?
– How different does the communication need to be to effectively
market to the different indications / customers?
– Are there different reimbursement conditions?
– Do you have the budget to support two different brands?

Looking for consistency, integration and alignment across indications

for the same brand
 Assignment (10 marks)
For your respective brands: -
1) Define the market
2) Choose at least 2 basis for segmentation
3) Priorities the segment(s)
4) Define the target market

Submission on 3rd Nov