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8/8/2019 Positioning Developing Marketing Strategy
http://slidepdf.com/reader/full/positioning-developing-marketing-strategy 1/27
Developing Marketing Strategy
Product Positioning & Differentiation
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Watch the product life cycle; but
more important, watch the market
life cycle.
Kotler on Marketing
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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
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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?
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Developing and Communicatinga Positioning Strategy
Positioning Value position
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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
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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
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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
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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
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Positioning: How many ideas to promote?
Unique selling proposition
± Four major positioning errors
1. Underpositioning
2. Overpositioning
3. Confused positioning
4. Doubtful positioning
Developing and Communicating
a Positioning Strategy
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Developing and Communicating
a Positioning Strategy
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?
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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
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Positioning strategies
By Price/ Quality Nirma
By Competitor Avis
By Usage Burnol/ Dettol
By product User Red & White
By Product Class Bata
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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
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Benefit Positioning
Fresh breath
Good for gums
Colgate
Decay prevention
Forhans
Longer lasting teeth
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How to Position
Perceptual Mapping - Shampoos
Medicated
Premium
Popular
Cosmetic
Sunsilk
Clinic
Clinic Active
ZPTO
Pantene Pro V
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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.
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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.
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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
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Developing and Communicating
a Positioning Strategy
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
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Adding Further Differentiation
Differentiation
± Differentiation criteria:
Important
Distinctive
Superior
Preemptive
Affordable
Profitable
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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
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Differentiation Tools
Product Differentiation
± Form
± Features
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Differentiation Tools
± Performance Quality
± Conformance Quality
± Durability
± Reliability ± Reparability
± Style
± Design: The Integrating Force
Services Differentiation
± Ordering Ease
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Differentiation Tools
± Delivery Quick response system
± Installation ± Customer Training
± Customer Consulting
± Maintenanceand Repair
e.g HP¶s online support pagee.g HP¶s online support page
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Differentiation Tools
± Miscellaneous Services
Personnel Differentiation
Competence Courtesy
Creditability
Reliability
Responsiveness Communication
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Differentiation Tools
Channel Differentiation
Image Differentiation
Identity
Image
± Symbols, Colors, Slogans, Special Attributes
± Physical plant ± Events and Sponsorship
± Using Multiple Image-Building Techniques