Module 4: Developing marketing strategies – positioning the product,

1. Module 4:Developing marketing strategies – positioning the product, developing the positioning strategies, differentiation tools, product life cycle marketing strategies, designing competitive strategies. Product line decisions, brand decisions, pricing decisions , promotion decisions, channel decisions. Assignment -II

9. Product Life Cycle Marketing Strategies

32. The STP Process – segmenting, Targeting & Positioning • Step- I Segmentation is the process of classifying customers into groups which share some common characteristic • Step-II Targeting involves the process of evaluating each segments attractiveness and selecting one or more segments to enter • Step-III Positioning is arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the mind of the consumer

33. Market Segmentation • The process of breaking up a homogeneous market into heterogeneous segments forces the marketer to understand the market and its customers their needs and the company’s ability to competently serve those. • Understanding the competitive advantages and disadvantages which helps the company to clarify its own positioning strategy • Limited resources are used to best advantage, targeted at those segments that offer the best potential

34. STEP-I Steps in Segmentation, Targeting, and Positioning 6. Develop Marketing Mix for Each Target Segment Market Positioning 5. Develop Positioning for Each Target Segment 4. Select Target Segment(s) Market Targeting 3. Develop Selection Criteria 2. Develop Profiles of Resulting Segments Market Segmentation 1. Identify Bases for Segmenting the Market

35. Measurable Requirements for Effective Segmentation Accessible Substantial • Size, purchasing power, profiles • of segments can be measured. • Segments can be effectively • reached and served. Differential • Segments are large or profitable enough to serve. Actionable • Segments must respond differently to different marketing mix elements & programs. • Effective programs can be designed to attract and serve the segments.

36. Mass Marketing Same product to all consumers (no segmentation) Segment Marketing Different products to one or more segments (some segmentation) Niche Marketing Different products to subgroups within segments (more segmentation) Levels of Market Segmentation Micromarketing Products to suit the tastes of individuals and locations (complete segmentation) Local Marketing Tailoring brands/ promotions to local customer groups Individual Marketing Tailoring products/ programs to individual customers

37. Bases for Segmenting Consumer Markets Geographic Nations, states, regions or cities Demographic Age, gender, family size and life cycle, or income Psychographic Social class, lifestyle, or personality Behavioural Occasions, benefits sought, user status, usage rate, loyalty

38. STEP-IITarget Market • A market is a set of all actual and potential buyers • A target market is a group of people toward whom a firm markets its goods, services, or ideas with a strategy designed to satisfy their specific needs and preferences. • Any marketing strategy must include a detailed (specific) description of this.

39. Market Coverage Strategies Market Company Marketing Mix Company Marketing Mix 1 Segment 1 Company Marketing Mix 2 Segment 2 A. Undifferentiated Marketing Segment 3 Company Marketing Mix 3 Segment 1 Company Marketing Mix Segment 2 B. Differentiated Marketing Segment 3 C. Concentrated Marketing

40. Choosing a Market-Coverage Strategy Company Resources Product Variability Product’s Life-Cycle Stage Market Variability Competitors’ Marketing Strategies

41. STEP- III- Positioning

42. Steps in Choosing and Implementing a Positioning Strategy • Step 1.Identifying Possible Competitive Advantages: • Competitive Differentiation. • Step 2.Selecting the Right Competitive Advantage: • Unique Selling Proposition (USP). • Step 3.Communicating and Delivering the Chosen Position. • Step 4.Support the positioning strategy with a unique marketing mix

43. Product Service Areas for Competitive Differentiation Step 1. Developing Competitive Differentiation Image People

46. Step 2.Selecting the Right Competitive Advantage: Unique Selling Proposition (USP). • A unique selling proposition is what your business stands for and sets your business apart from others • Instead of attempting to be known for everything, businesses with a unique selling proposition stand for something specific, and it becomes what you’re known for. • Many businesses make the mistake of attempting to stand for everything when they first get started. • When you attempt to be known for everything, you don’t become known for anything..

47. Step 3.Communicating and Delivering the Chosen Position. • During the process of generating product positioning strategies, periodically review each one against the following list of characteristics. • Is your product positioning strategy: • • Single-minded—does it convey one primary message at a time? • • Meaningful—will it connect with the target audience? • • Differentiating—does it contrast your strengths against the competition?

48. • Important—is it pertinent and significant to the target audience? • • Sustainable—will it resonate with the target audience well into the future? • • Believable—will it ring true with the target audience? • • Credible—can you clearly substantiate your claims? • Step 4 – Supporting the positioning strategywith a unique marketing mix • At this stage the company has decided on its positioning strategy and must now design a marketing mix to support this strategy. • The next part of the course looks at ‘Developing the Marketing Mix’

49. POSITIONING STRATEGIES • A product can be positioned based on 2 main platforms: • The Consumer and The Competitor. •  CONSUMER • the campaigns and messages are always targeted to the consumer himself (the user of the product) • Peter England and Louis Philip always campaigns their product concentrating on the consumer, the user of its product. • COMPETITION. • These campaigns are targeted towards competing with other players in the market. Compared with Rivals products. • Dettol television commercials always concentrate on advertisements, which show that this product would give you more protection, then the others.

50. A number of positioning strategies might be employed in developing a promotional program. • The 7 such strategies are discussed below: • 1.Positioning by Product Attributes and Benefits • Associating a product with an attribute, a product feature or a consumer feature.- • Promise(Balasara)- Clove- against Colgate • Sometimes a product can be positioned in terms of two or more attributes simultaneously. • Microsoft windows 8- cool as a tree & Scary as a Sea/ 3 Roses –Tea- Colour, Taste, Strength • The price/ quality attribute dimension is commonly used for positioning the products. • Nirma low price /whiteness- against surf • A common approach is setting the brand apart from competitors on the basis of the specific characteristics or benefits offered. • Suzuki- Max fuel efficiency & Safety