Intro to Marketing - Workshop 4 Differentiation & Positioning

MKT 421: MarketingWorkshop 4

Famous Last WordsFamous Last Words

“Heavier than air flying machines are impossible.”– Lord Kelvin, President Royal Society, 1885

“Everything that can be invented has been invented.”– Charles H. Duell, Director US Patent Office, 1899

“Who the hell wants to hear actors talk?”– Harry M Warner, Warner Brothers, 1927

“But what is it good for?”– IBM Engineer, commenting on the microchip in 1968

“The wireless music box has no imaginable commercial value. Who would pay for a message sent to nobody in particular?”

– Response to David Sarnoff’s funding request for development of the radio

Differentiation/PositioningDifferentiation/Positioning

What is the #1 Reason Marketers Fail?

Poor Positioning

PositioningPositioning

DifferentiationDifferentiation

Question: How do organizations build a competitive advantage?

Answer: By differentiating the marketing mix to meet customers’ needs, it creates the perception that the organization’s position in the market is uniquely suited to their preferences and needs.

No CavitiesNo Cavities

BigBig

BenefitBenefit

WhitenessWhiteness

Family SinglesFamily SinglesTarget AudienceTarget Audience

Crest

Colgate

Close-Up

Plotting Your PositionPlotting Your Position

SupermarketsSupermarkets

Where It’sWhere It’s

SoldSold

Health FoodHealth Food

StoresStoresSaccharin All NaturalSaccharin All Natural

IngredientsIngredients

Crest

Tom’s of Maine

Colgate

Close-Up

Plotting Your Position Plotting Your Position (cont.)(cont.)

How can an organization decide How can an organization decide

which strategy is best?which strategy is best?

Differentiation & Positioning StrategiesDifferentiation & Positioning Strategies

1.) Product

2.) Price

3.) Place

4.) Promotion

How would you Position…?How would you Position…?

4 Levels of Brand Awareness• Attributes

Quality is job one - FORD

• BenefitsVolvo = Safety

• ValuesRefers to lifestyle values

• PersonalityHarley Davidson motorcycles

A BRAND is a name, symbol, sign, or design identifying A BRAND is a name, symbol, sign, or design identifying the product/service of an individual producer.the product/service of an individual producer.

Characteristics of a BrandCharacteristics of a Brand

Most Influential Taglines Since 1948Most Influential Taglines Since 1948

Got Milk? 1993Don’t Leave Home Without it. 1975Just do it. 1988Where’s the beef? 1984 You’re in good hands with Allstate. 1956Think different.1998We try harder. 1962Tastes great, less filling. 1974Melts in your mouth, not in your hands. 1954

Most Influential Taglines Since 1948Most Influential Taglines Since 1948

Takes a licking and keeps on ticking. 1956When it absolutely, positively must be there overnight. 1982Reach out and touch someone. 1979A diamond is forever. 1948Finger-lickin’ good. 1952Let your fingers do the walking. 1964Please don’t squeeze the Charmin. 1964Have it your way. 1973I can’t believe I ate the whole thing. 1966

Influences that Shape Influences that Shape Domestic vs. Global Domestic vs. Global Marketing StrategiesMarketing Strategies

Environmental Analysis1. Internal Environment

– Staff, office technology, wages and finance, etc.

2. Micro-enviroment– External customers, agents and

distributors, suppliers, and competition, etc.

3. Macro-environment– Political forces, economic forces, Socio-

cultural forces and Technological forces

Influences That Shape Global StrategiesInfluences That Shape Global Strategies

Political FactorsHave a huge influence on the regulation of businesses, and the

spending power of consumers and other businesses.

Economical FactorsMarketers need to consider the state of a trading economy in

the short and long-terms. Especially true with planning for international marketing.

Socio-Cultural FactorsSocial and cultural influences on a business vary from country

to country.

Technological FactorsTechnology is vital for competitive advantage, and is a major

driver of globalization.

Environmental FactorsEnvironmental Factors

Political Factors– How Stable is the political environment?– Will government policy influence laws that regulate or

tax your business? – What is the governments position on the economy?– Does the government have a view on culture and

religion?– Is the government involved in trading agreements suck

as EU, NAFTA, or others?


Economic Factors– Interest rates?– The level of inflation, employment? – Long-term prospects for the economy Gross Domestic

Product (GDP)?


Socio-Cultural Factors– What is the dominant religion?– What are the attitudes to foreign products on markets? – How much time do consumers have for leisure?– What are the roles of men and women within the

society?– What is the lifespan of consumers? – What is the standard of living over previous

generations?– Does the population have a strong/weak opinion on

green issues?


Technological Factors– Does technology allow for products and services to be

made more cheaply and to a better standard of quality?– Do the technologies offer consumers and businesses

more innovative products and services such as Internet banking, new generation mobile phones, etc?

– How is the distribution changed by new technologies? Ie. Books via the Internet, airline tickets, auctions, etc?


– For Profit

– Not-for-Profit

– Government

Organizational StructuresOrganizational Structures

Buyer TypesBuyer Types

– Organizational Buyers

– Consumers

– Business to business (B2B)– Business to consumer (B2C)– Consumer to consumer (C2C)– Not-for Profit (N4P)

Business ModelsBusiness Models