Positioning

Positioning strategy

Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the minds of the target market.

The result of positioning is the successful creation of a is the successful creation of the customer-focused value proposition .

Deciding on a positioning requires determining a frame of reference and identifying the ideal point of parity and point-of-difference brand associations.

Competitive frame of reference

Is determined by identifying the target market and the competition.

First step is to identify category membership.-the products or set of products with which the brand competes and which function as close substitute.

Marketers need to understand the consumer behaviour and the consideration sets the consumers use in making brand choices.

E.g.-Indica

Points-of parity and Points-of- difference

PODs are attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with any other brand.

POPs are the benefit associations that are not necessarily unique to the brand but in fact may be shared with other brands.

Often the key to positioning is not so much achieving a POD as achieving point of parity.

Differentiation strategy

Differentiation strategy is the competitive advantage company enjoys with respect to its competitors (which they cannot match.)

Differentiation with respect to product and service-Himalya drugs

Personnel differentiation-kingfisher airlines Channel differentiation-eureka forbes,oriflame Image differentaition.-united colors of benetton

Product life cycle Marketing strategies

Products have a limited lifeProduct sales pass through distinct

stages, each posing different challenges, opportunities and problems to the seller.

Profits rise and fall at various stages of PLC.

Products require different strategies for each functional area in each stage of PLC.

PLC

Bell shapedFour stages-introduction, growth, maturity

and decline.Introduction-slow sales growth, product is

introduced in the market, heavy expenses in product introduction, profits non-existent.

Growth- rapid market acceptance, substantial profit improvement

Contd…

Maturity- slowdown in sales growth, product achieves acceptance by most potential buyers, profits stabilize or decline because of increased competition.

Decline-profits erode, sales show a downward drift.

Not all products show a bell shaped PLC.

Contd…

Alternate patterns Growth-slump-maturity pattern Cycle-recycle pattern Scalloped pattren

STYLE, FASHION AND FAD LIFE CYCLES Style is a basic and distinctive mode of

expression appearing in a field of human Endeavour, can last for generations and go in and out of vogue.

Fashion –currently accepted style in a field. distinctiveness, emulation, mass fashion, decline.

Fads- are fashions that come quickly into public view are adapted with great zeal, peak early and decline very fast.

marketing strategies: introduction and the pioneer advantage.Inform potential consumersInduce product trialSecure distribution in retail outletsFirms focus on those buyers who are the

most ready to buy, usually in higher income groups.

Marketing strategies for growth stage

Sustain rapid market growth Improve product styling and add new features Enters new market segments Increases distribution coverage Lower prices to attract the next layer of

customersA firm can earn a dominant position by spending

money on product improvement, promotion and distribution.

Markeitng strategy: Maturity stage

Market modification---increase the number of brand users, increase the usage rate per user.

Product modification-quality improvement, feature improvement, style improvement

Marketing program improvement-related to price, distribution, advertising, sales promotion

Personal selling Services

Markeitng strategies-decline stage

Harvesting call

New product developmentNew product development Make or buy , new-to-the world and Make or buy , new-to-the world and

updated productsupdated products SPEEDSPEED PROBIOTIC ICECREAMPROBIOTIC ICECREAM

New product successNew product success See the future through the eyes of your See the future through the eyes of your

customercustomer Intellectual property and brand powerIntellectual property and brand power Use digital technology to create tools for Use digital technology to create tools for

the customer 9disruptive technology)the customer 9disruptive technology) Build a championship teamBuild a championship team Incremental InnovationIncremental Innovation Speed is critical, so push the organisationSpeed is critical, so push the organisation Partner if you are not bets in somethingPartner if you are not bets in something

New-Product Development New-Product Development ProcessProcess

Idea generation-worth consideringIdea generation-worth considering Idea screening-compatibility of idea Idea screening-compatibility of idea

with company objectives, strategies with company objectives, strategies and resourcesand resources

Concept development and testing-Concept development and testing-inducing consumer trialinducing consumer trial

Marketing strategy development-cost Marketing strategy development-cost effective affordable marketing effective affordable marketing strategy.strategy.

Contd.Contd. Business analysis-profit goal Business analysis-profit goal

generation by the ideageneration by the idea Product development-is the product Product development-is the product

technically and commercially soundtechnically and commercially sound Market testing- whether pilot testing Market testing- whether pilot testing

results into sales expectationresults into sales expectation Commercialization-are product sales Commercialization-are product sales

meeting expectationsmeeting expectations