Positioning Developing Marketing Strategy

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Developing Marketing Strategy

Product Positioning & Differentiation



Watch the product life cycle; but

more important, watch the market

life cycle.

Kotler on Marketing



The more information, the more confusion

Insecure managers create complexity. Frightened,nervous managers use thick, convulted planning books& busy slides filled with everything they¶ve known sincechildhood. Real leaders don¶t need clutter. People must

have the self-confidence to be clear, precise, to be surethat every person in their organization«highest tolowest«understands what the business is trying toachieve. But its not easy. You can¶t believe how hard it isfor people to be simple, how much they fear being

simple. They worry that if they¶re simple, people will thinkthey¶re simple-minded. In reality, of course, it¶s just thereverse. Clear, tough minded people are the mostsimple««Jack Welch, Chairman & CEO, GE



Objectives

In this we focus on the following questions:

± How can the firm choose and communicate an

effective positioning in the market?

± What are the major differentiating attributes available

to firms?

± What marketing strategies are appropriate at eachstage of the product life cycle?

± What marketing strategies are appropriate at each

stage of the market¶s evolution?



Developing and Communicatinga Positioning Strategy

Positioning Value position



Table 11.1: Examples of Value Propositions

Demand States and Marketing Tasks

Company

and

Product

Target

Customers Benefits Price

Value

Proposition

Perdue

(chicken)

Quality-

conscious

consumers of chicken

Tenderness 10%

premium

More tender

golden chicken at

a moderatepremium price

Volvo

(station

wagon)

Safety-

conscious

³upscale´

families

Durability

and safety

20%

premium

The safest, most

durable wagon in

which your family

can ride

Domino¶s(pizza)

Convenience-minded pizza

lovers

Deliveryspeed and

good quality

15%premium

A good hot pizza,delivered to your

door door within

30 minutes of

ordering, at a

moderate price



Product Positioning

Positi oning i s what y ou d o t o the mind of the

c onsumer «.Al Ries and Jack Trout

Implication

± What does it mean to the consumer

± How is it different from that of competitors

Relevance

± Marketing mix has to respond to the positioning by

complementing it



Developing and Communicating

a Positioning Strategy

Positioning According to Ries and

Trout

± Strengthen own current position

± Grab an unoccupied position

± De-position

± Re-position

± Product ladders



The Process of Positioning

Identify the organization's or brand¶s possible

competitive advantage

Decide on those that are important and are to be

emphasised

Implement the positioning concept



Positioning: How many ideas to promote?

Unique selling proposition

± Four major positioning errors

1. Underpositioning

2. Overpositioning

3. Confused positioning

4. Doubtful positioning







Basis of Positioning:

Attribute positioning

Benefit positioning Use or application positioning

User positioning

Competitor positioning

Product category positioning Quality or price positioning

Which Positioning to Promote?



Positioning strategies

Positioning by attribute ± Functional value««««..Liril uses Freshness

± Ingredient«««««««.Promise with clove oil / Closeup withGel

± Additional features«««..VIP Luggage with 360´ wheelers

± Packaging«««««««.Frooti in Tetra pack

± Product Design«««««Kinetic Honda with self-start ignition

± Quality/Technology«««.Cross Pens offer lifelong warranty



Positioning strategies

By Price/ Quality Nirma

By Competitor Avis

By Usage Burnol/ Dettol

By product User Red & White

By Product Class Bata



Benefit Positioning

A research into toothpaste marketing revealed the

following benefits relevant to toothpaste users:

± Economy««««.those looking for low price

± Cosmetic««««.those who want white, bright teeth

± Taste««««««those to whom taste is important

± Medicinal««««.those who are concerned about tooth decay

or prevention



Benefit Positioning

Fresh breath

Good for gums

Colgate

Decay prevention

Forhans

Longer lasting teeth



How to Position

Perceptual Mapping - Shampoos

Medicated

Premium

Popular

Cosmetic

Sunsilk

Clinic

Clinic Active

ZPTO

Pantene Pro V



Lintas on Positioning

The lifelong plywood

The fun shoe polish

The freshness soap

The health soap

The gentle soap

Kitply

Cherry Blossom

Liril

Lifebuoy

Pears

Since positioning represents the µslot¶ the brand occupies in the consumers mind,

The best way to define a particular positioning slot is to use 3 or 4 words.



Some famous positioning statements

Titan Quartz, the international watch you can pay for in

rupees

Four Square«Live life king size.

TVS Suzuki«Fill it, shut it, forget it. Savlon«Yeh jale ga nahin

Forhans«Yeh jhag wala hai

Avis«We are No.2, but try harder

Maggi Noodles«bus do minute ESSO petrol«..put a tiger in your tank.



Method for Competitive-

Advantage Selection

(1) (2) (3) (4) (5)

Competitive

Advantage

Company

Standing

Competitor

Standing

Importance of

Improving

Standing

(H

-M-L)*

Affordability

and Speed

(H

-M-L)Technology 8 8 L L

Cost 6 8 H M

Quality 8 6 L L

Service 4 3 H H

H=high, M=medium, L=low





Communicating the Company¶s Positioning

± Positioning statement M ore car per car«««.TATA Indica V2

Spoil y our sel f ««««..TATA Indig o

Let s make thing s better««P hilips

For a s pecial j ourney called li f e«..Chevr olet The di ff erence i s German engineering«.C or sa

Express y our sel f ««Airtel

For M anaging T omorr ow«..Business T oday



Adding Further Differentiation

Differentiation

± Differentiation criteria:

Important

Distinctive

Superior

Preemptive

Affordable

Profitable



Adding Further Differentiation

Exceed customer expectations with a three-step process

1. Defining the customer value model

2. Building the customer value hierarchy

Basic

Expected

Desired Unanticipated

3. Deciding on the customer value package



Differentiation Tools

Product Differentiation

± Form

± Features




± Performance Quality

± Conformance Quality

± Durability

± Reliability ± Reparability

± Style

± Design: The Integrating Force

Services Differentiation

± Ordering Ease




± Delivery Quick response system

± Installation ± Customer Training

± Customer Consulting

± Maintenanceand Repair

e.g HP¶s online support pagee.g HP¶s online support page




± Miscellaneous Services

Personnel Differentiation

Competence Courtesy

Creditability

Reliability

Responsiveness Communication




Channel Differentiation

Image Differentiation

Identity

Image

± Symbols, Colors, Slogans, Special Attributes

± Physical plant ± Events and Sponsorship

± Using Multiple Image-Building Techniques

Positioning Developing Marketing Strategy

Documents

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