P. 1
Chapter 10

Chapter 10

|Views: 3|Likes:
Published by Prashant Chaturvedi

More info:

Published by: Prashant Chaturvedi on Aug 08, 2012
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PPT, PDF, TXT or read online from Scribd
See more
See less

08/08/2012

pdf

text

original

MARKETING MANAGEMENT

10 Crafting the Brand Positioning

Chapter Questions
• How can a firm choose and communicate an effective positioning in the market? • How are brands differentiated? • What marketing strategies are appropriate at each stage of the product life cycle? • What are the implications of market evolution for marketing strategies?

10-2

Marketing Strategy
Segmentation

Targeting

Positioning

10-3

Positioning

Act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.

10-4

Why Positioning?
• Clarifies brand’s essence. • Determines the goals it helps consumers achieve. • Helps create customer focused value proposition. • Enables definition and communication of similarities and differences between brands.
10-5

Customer Focused Value Propositions
• Domino’s – A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price.

10-6

Choice of Positioning determined by:
• Identify target market. • Determine frame of reference. • Identify POD & POP.

10-7

Competitive Frame of Reference:
• Category Membership: Products or sets of products with which a brand competes & which function as close substitutes.

10-8

Establishing Category Membership:
• • • • • Brand Lakme TCS Raymond HP and Cameras? Category ?

10-9

Communicating Category Membership:
• Announcing category benefits. • Comparing exemplars. • Relying on the product descriptor:

10-10

Defining Associations
Points-of-parity Points-of-difference (PODs) (POPs) • Attributes or benefits • Associations that consumers strongly are not necessarily associate with a unique to the brand brand, positively but may be shared evaluate, and believe with other brands they could not find to the same extent with a competitive brand
10-11

Points-of-parity (POPs)
• Category points of parity: Associations viewed as essential to an offering within a certain product or category. • Competitive points of parity: Associations designed to negate competitors points of difference.

10-12

Implication:
• POP: Consumers must feel that brand does well enough on that particular attribute. • POD: Brand must demonstrate clear superiority.

10-13

Examples of Negatively Correlated Attributes and Benefits
• Low-price vs. High quality • Taste vs. Low calories • Nutritious vs. Good tasting • Efficacious vs. Mild • Powerful vs. Safe • Strong vs. Refined • Ubiquitous vs. Exclusive • Varied vs. Simple

10-14

Differentiation Strategies:

10-15

Competitive Differentiation:
• Definition: Is a company’s ability to perform in one or more ways that competitors cannot or will not match. • Leverageable advantage: that a company can use as springboard to new advantages.
• Competitive advantage Customer advantage.

10-16

Case let:
• Product: Hand Sanitizers. • Segment: Niche. • Earlier: Category confined to hospitals & premium health care centers. • Benefit: Does not require water, works by removing outer layer of oil on skin. • Task: Educate market. • TG: Young executive, upwardly mobile living in metros & mini metros. • Influencers: Doctors & surgeons.
10-17

Differentiators:
Brand USP Tag line
Kills 99.99 % germs in 15 secs. Germs se suraksha kahin bhi kabhi bhi.

SKU & price
Rs.30 for 50 ml

Godrej Protekt Insta sanitize technology, easy to carry bottle. Paras: Dermi cool skin defense instant hand sanitizer Himalaya’s Pure Hands Instant germ killing protection.

Rs.50 for 50ml

Herbal formulation.

Rs.39 for 50 ml & Rs.225 for 500ml.

HUL’s Lifebuoy, Wipro’s Chandrika, Dettol.
10-18

10-19

Differentiation Strategies

Product

Personnel

Channel

Image

10-20

Product Differentiation
• • • • • • • Product form Features Performance Conformance Durability Reliability Reparability • • • • • • • • Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance

10-21

Case: Loreal / Horlicks

10-22

Personnel Differentiation: Singapore Airlines

10-23

Channel Differentiation

10-24

Image Differentiation

10-25

Identity and Image

Identity: The way a company aims to identify or position itself

Image: The way the public perceives the company or its products

10-26

Product Life Cycle

10-27

Facts about Life Cycles
• Products have a limited life. • Product sales pass through distinct stages. • Profits rise and fall at different stages. • Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each stage.
10-28

Common PLC Patterns

10-29

Style, Fashion, and Fad Life Cycles

10-30

10-31

PLC: Introduction.
• • • • Rapid Skimming. Slow Skimming. Rapid penetration. Slow penetration.

10-32

Pioneer:
• Advantages: – Early users recall name. – Establishes attributes of product class. – Economies of scale. – Technological leadership. – Patents. – Watch out for 2nd mover advantage • Golder & Tellis differentiated between: • Inventor: 1st to develop patents. • Product pioneer: 1st to develop working model. • Market pioneer: 1st to sell in the new product category.

10-33

Growth Stage:
• Features: • Increase in sales. • Early adopters like the product. • Price same or may fall. • Firm continues to educate market. • Heavy demand. • Profits rise. • New firms enter.
• Strategies: • Lowers price to attract next layer of customers. • Emphasis on product benefits. • Add new features models. • Introduce new distribution channels. • Enter new markets.

10-34

Maturity:
Features: • Growth: – Sales growth rate starts to decline. – No channels to fill. – New competitive forces emerge. • Stable: – Sales flatten on per capita basis. – Future sales governed by population increase & replacement. • Decaying: – Customers begin switching. – Absolute sales decline. – Overcapacity created.

• Market Characteristics: – Frequent markdowns. – Increase in trade & consumer promotion. – Increase in R&D budgets. – Weaker competition withdraw.

10-35

Strategies:
• Market modification:
– Sales volume=Number of brand users X usage rate /user

• Product modification: – Quality – Feature – Style • Marketing Program modification: Prices, distribution, advertising, sales promotion, personal selling, services.
10-36

INTRODUCTION GROWTH

MATURITY

DECLINE

Third generation mobile phones

Portable DVD Players

Personal Computers

Typewriters

E-conferencing

Email Breathable synthetic fabrics

Faxes

Handwritte n letters

All-in-one racing skin-suits

Cotton t-shirts

Shell Suits

iris-based personal Smart cards identity cards

Credit cards

Cheque books 10-37

Decline:
• Reasons for decline: • Technological advances. • Increase in competition. • Taste & preferences.

• Strategies: • Reduce number of products. • Cutting promotional budgets & prices. • Cut in distribution channels. • Withdraw from markets/ weaker segments.
10-38

Decline: Strategies.
• Increase investment. • Maintain investment. • Decrease investment in unprofitable segments & increase in profitable segments. • Harvest. • Divest.

10-39

Market Evolution Stages

Emergence

Growth

Maturity

Decline

10-40

Emergence:
• Single niche strategy: design product to meet requirements of one corner of market. • Multiple niche strategy: Launch 2 or more products simultaneously to capture two or more parts of market. • Mass market strategy: New product for middle of the market. • Emergence begins with product launch.
10-41

Growth:
• Product sells well: – New firms enter growth phase ushered. – New firm small: avoid head on competition. – New firm large:
• Attack pioneer. • Opt for multiple niche.
10-42

Maturity:
• Competitors cover & serve all major segments. • Market fragmentation. • Market consolidation.

10-43

Decline:
• Demand for the current products decline.

10-44

• Thank You.

10-45

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->