Where We Have Been u Quetzal : Define your business. u Jones Blair: Market Targeting.
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Transcript of Where We Have Been u Quetzal : Define your business. u Jones Blair: Market Targeting.
Where We Have Been
Quetzal : Define your business.Quetzal : Define your business. Jones Blair: Market TargetingJones Blair: Market Targeting
MARKSTRAT
Familiarization of Familiarization of systems/environmentsystems/environment
Basic research needs evaluationBasic research needs evaluation Initiation of R&D projectsInitiation of R&D projects Marketing projections (Plan)Marketing projections (Plan) Moving from Moving from tactical tactical to to strategic strategic
planningplanning
Positioning
“Once a mind is made up, it’s almost impossible to change it.”
- Al Trout & Jack Ries, the “fathers”
of positioning
Inputs to the positioning decision?
Target MarketTarget Market Firm’s SCAsFirm’s SCAs CompetitionCompetition
Mkt Analysis Segmentation
CompetitiveAnalysis Differentiation
PositionInternal
CorporateAnalysis
TM Selection
Package ofBenefitsSelection
Implications forMktg Strat
* Product* Price* Channels* Promo
Quelch, John R. (1982) “Frank Homer LTD - Teaching Note,” inCases in Advertising and Promotion Management, 2d ed., Business Publications, Inc.
THE PROCESS OF POSITIONING
THE PROCESS OF POSITIONING
“Positioning Audit,”Trout & Ries
What is our position?What is our position?
Important Dimensions?Important Dimensions?
BMW
Luxury
Performance
“Positioning Audit”
What is our position?What is our position? What position do we want?What position do we want?
BMWZ3
“Positioning Audit”
What is our position?What is our position? What position do we want?What position do we want? Where is our competition relative to Where is our competition relative to
our desired position?our desired position?
PorscheExotic, Expensive & Italian
JapaneseSwedes
BMW
Jaguar
Mercedes
General Motors
Subaru
Yugo
Lincoln
“Positioning Audit”
What is our position?What is our position? What position do we want?What position do we want? Where is our competition relative to Where is our competition relative to
our desired position?our desired position? Can we defend our position?Can we defend our position?
Exotic, Expensive & Italian
Porsche
JapaneseSwedes
BMW
Jaguar
General Motors
Subaru
Yugo
Mercedes
Lincoln
“Positioning Audit”
What is our position?What is our position? What position do we want?What position do we want? Where is our competition relative to Where is our competition relative to
our desired position?our desired position? Can we defend our position?Can we defend our position? Is our position long-term?Is our position long-term?
“Positioning Audit”
What is our position?What is our position? What position do we want?What position do we want? Where is our competition relative to Where is our competition relative to
our desired position?our desired position? Can we defend our position?Can we defend our position? Is our position long-term?Is our position long-term? Does our promotion reflect our Does our promotion reflect our
position?position?
Sample Markstrat Process for Positioning
Step 1: Where are we?Step 1: Where are we? Step 2: Where do we want to be?Step 2: Where do we want to be? Step 3: Where do we expect the market to Step 3: Where do we expect the market to
be in be in X X time period?time period? Step 4: How much will our move cost us? Step 4: How much will our move cost us?
(R&D costs, Push/Pull costs)(R&D costs, Push/Pull costs) Step 5: What attribute changes brings us Step 5: What attribute changes brings us
to our desired position?to our desired position?
Step 1:Where are we?
Examine perceptual mapExamine perceptual map– Too close = cannibalizationToo close = cannibalization
Semantic vs. Perceptual mapSemantic vs. Perceptual map– Matter of cost vs. accuracyMatter of cost vs. accuracy
Step 2:Where do we want to be?
Optimal Brand positionOptimal Brand position
Prediction of ideal pointsPrediction of ideal points
– Evolution of ideal points over timeEvolution of ideal points over time
Step 3:Where is the market?
Forecast Market ShareForecast Market Share– Examine Consumer survey research for Examine Consumer survey research for
purchase intentions datapurchase intentions data• Brand awareness/brand positioningBrand awareness/brand positioning
Expected Brand DemandExpected Brand Demand– ESS X EPI = EBSESS X EPI = EBS
• Analyze Per segment and then totalAnalyze Per segment and then total
Step 4:How much cost?
Must factor in R&D, Advertising, and Must factor in R&D, Advertising, and sales force expenditures.sales force expenditures.
Impact of production on transfer costImpact of production on transfer cost– Experience curve (productivity gains)Experience curve (productivity gains)– Intro new products (experience effect)Intro new products (experience effect)
• Unit transfer costs decrease as a function of Unit transfer costs decrease as a function of new product designnew product design
• See Brand Contribution: Marketing Plan See Brand Contribution: Marketing Plan
Step 5:What attribute changes?
Pull in data from MDS or Semantic Pull in data from MDS or Semantic scales indicating desired physical scales indicating desired physical characteristics.characteristics.
Examine actual vs. perceived Examine actual vs. perceived attributes (Product Design)attributes (Product Design)– Estimate brand perceptionsEstimate brand perceptions– Estimate physical characteristics for Estimate physical characteristics for
positioningpositioning
Repositioning:What to do after product has been on the market.
Specify Target Segment(s)Specify Target Segment(s) Specify perceptual objectives for the Specify perceptual objectives for the
brand. (pick 2)brand. (pick 2)– Economy, performance, convenienceEconomy, performance, convenience
Allocate advertising budget.Allocate advertising budget. Allocate ad research budget.Allocate ad research budget.