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3.strategies of Marketing
3.strategies of Marketing
LOGIC/RATIONALE:
• Companies in consumer products & services cannot serve each and every
customer !
• Customers are too numerous, dispersed, varied, in their requirements
Companies cannot operate effectively !!
• Therefore instead of serving ALL Companies serve few customers but
operate effectively !!!
• Core of modern strategic marketing STDP (i.e. SEGMENTATION,
TARGETING, DIFFERENTIATION, & POSITIONING).
Introduction
LOGIC/RATIONALE:
• 100 yrs ago Ford started mass production of black coloured T-ford car.
• Then GM started offering varieties – Pontiac, Buick, Oldsmobile; in different
colours.
• Germans & Japanese came in with cars targeted for different segments. Eg.:
Mercedes, BMW, Volkswagen, Toyota, Honda. Each leader in their own
segment.
• Extreme end of STP marketing Customised products !!! Eg.: Rolls-Royce.
Introduction
“There will be no market for products that everybody likes a little, but
there will always be for products which somebody like a lot.”
Introduction
Introduction
Concept of STDP
• Seller identifies various segments in the market.
• Evaluate & Target (i.e. Select) the segments.
• Identify options for suitable Positioning.
• Identify scope of Differentiation & finalize.
• Develop Product & Marketing program customised for each segment.
• Communicate the Position taken to the consumers.
Segmentation – General approach
Segmentation – General approach
Introduction
Typical market:
Say “Flats” in India
(in nos. in 2018-19)
Marketing Segmentation : “Flats” in India
(in ‘1000 nos. in 2018-19)
NORTH
WEST
SOUTH
EAST
Bases of Segmenting Consumer markets
• 3rd e.g.: Region & Apartment size (Geographic and Demographic resp)
Bases of Segmenting Consumer markets
Bases of Segmenting Consumer markets
Bases of Segmenting Consumer markets
Bases of Segmenting Consumer markets
Bases of Segmenting Consumer markets
Personality:
Jeep SUV: Positioning characteristics Independent, impulsive, masculine,
confidence, adventurous !
Honda City (or any Sedan): Prestige conscious, modern yet family orientation,
typical corporate executive type !!
Targeting of Market Segments
Entry Barriers
Exit Barriers
Targeting: Evaluation
• Complete specialization
• Focus of resources
• Economies of scale
• LEADERSHIP in the segment
• High ROI
• High RISK (all eggs in one basket !!!)
• E.g.: Colgate in toothpaste, Amul in
milk products, Cadbury in chocolate.
Targeting: Selection Product-Market matrix
2. Selective specialization
3. Product specialization
4. Market specialization
• Introduction
• Differentiation – General approach
• Ways to Differentiate
• Positioning Strategy
Introduction
LOGIC/RATIONALE
• Differentiation: It is a the act of designing a set of meaningful differences to
distinguish the Company’s offer from competitors’ offers.
• Any product or brand can be differentiated !
• Commodity / Undifferentiated product can be differentiated and offered.
• Buyers have different needs they are always attracted to the Offer that
suits their needs !!
Introduction
LOGIC/RATIONALE
• Positioning: It is strategic process to influence consumer perception
compared to competition, by designing the Company’s offer and image so
that it occupies a distinct and valued place in the target customers' minds.
• Each firm wants to promote few differences those were developed to appeal
to its target customers.
• Positioning calls for the company to decide how many differences to develop
and which differences to promote !!
Introduction
Introduction
Product Differentiation
1. Features
2. Performance
3. Conformance
4. Durability
5. Reliability
6. Repairability
7. Style
8. Design
Ways to Differentiate
Services Differentiation
1. Delivery
2. Installation
3. Customer Training
4. Consulting services
5. Repair
6. Miscellaneous
Ways to Differentiate
Personnel Differentiation
1. Competence
2. Courtesy
3. Credibility
4. Reliability
5. Responsiveness
6. Communication
Ways to Differentiate
Image Differentiation
1. Symbol
2. Media
3. Atmosphere
4. Events
Positioning Strategy