Topic:- Developing & Communicating a Positioning Strategy
All marketing Strategy is built on STP :Segmentation
Targeting
Positioning
Positioning :- is the act of designing the company’s offering & image to occupy a distinctive place in the
mind of the target market .
Positioning is not what you do the product . Positioning is what you do to the mind of the prospect .
Ex:- Domino’s – brand’s essence
Delivery speed (30 min) , hot pizza , moderate price
Differentiation Strategies
Brands can be differentiated on the basis of many variables . ex:- Subway differentiates itself in terms of
healthy sandwiches as an alternative to fast food .
4 different differentiation strategies :1.
2.
3.
4.
Product Differentiation
Personnel Differentiation
Channel Differentiation
Image Differentiation
1. Product Differentiation
High – quality product positioning :- can charge premium price
- can be benefited from more repeat purchase
- consumer loyalty
- positive word of mouth
- not much cost difference in providing more quality .
Quality image is also affected by
- packaging
- Distribution
- Advertising
- Promotion
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2. Personnel Differentiation
Companies can gain a strong competitive advantage through having better-trained people .
Ex:- Singapore Airlines :- popular for its flight attendants .
McDonald’s :- people are courteous
IBM :- professional
Better trained personnel exhibit 6 characteristics :(i)
Competence
(ii)
Courtesy
(iii)
Credibility
(iv)
Reliability
(v)
Responsiveness
(vi)
Communication
Retailers in particular , are likely to use their front-line employees as a means of differentiating & positioning
their brand .
3. Channel Differentiation
Companies can achieve competitive through the way they design their distribution channel’s
- coverage
- expertise
- performance
Ex:- Avon in cosmetics distinguish themselves by developing & managing high –quality direct-marketing
channels
4. Image Differentiation
Buyers respond differently to company & brand images .
Identify & image difference :Identify :- the company aims to position itself or its product
Image:- the way the public perceives the company or its product .
Ex:- Marlboro’s :- image is “macho cowboy”
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PLC (Product Life Cycle) Marketing Strategies
Most product life-cycle curves are portrayed as bell-shaped . This curve is typically divided into 4 stages :1. Introduction
2. Growth
3. Maturity
4. Decline
Sales & Profits (rs)
Sales
Introduction
Profit
Growth
Maturity
Decline
Time
1. Introduction Stage :A period of slow sales growth as the product is introduced in the market. Profits are nonexistent because of
the heavy expenses of product introduction.
Points :- Profits are negative or low
- Promotional expenses at their highest due to
-informing potential consumers
-inducing product trial
-secure distribution in retail outlets
- Prices tend to be high as costs are high
Pioneer firms :- who are the first entrants in the market . It can be rewarding , risky & expensive .
Pioneer Advantage :- sustained market dominance . Pioneer can have more effective marketing spending &
enjoy higher rates of consumer repeat purchases . ex:- coca-cola , Hallmark & Amazon.com.
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2. Growth Stage :A period of rapid market acceptance & substantial profit improvement .
Points:- rapid climb in sales
- additional consumers start buying
- New competitors enter
- New product features & distribution
Marketing Strategies in the growth stage:- Improved quality & add new product features
- New models
- Enter new market segment
- Increase distribution coverage , new distribution channels
- Product-awareness advertising to product-preference advertising
- Lower prices to attract price-sensitive buyers
3. Maturity Stage :A slowdown in sales growth because the product has achieved acceptance by most potential buyers . Profits
stabilize or decline because of increased competition.
Points:- Competitors scramble to find niches
- Increase advertising , trade & consumer promotion
- Increased R&D Budgets
- Weaker competitors withdraw
- Abandon weaker products & concentrate on profitable ones
- Domination by giant firms – quality leader, service leader, cost leader .
Marketing Strategies in the Maturity Stage :-
-
-
Market Modification
Converting nonusers
Entering new market segments
Product Modification
Quality improvements
Feature improvements
Style improvements
Marketing Program Modification
Prices
Distribution
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Advertising
Sales promotion – trade deals , rebates, gifts etc
Personal Selling
Services – credit facilities
4.
Decline Stage :-
Sales show a downward drift & profits erode.
Points :- Decline due to technological advances
- Shifts in consumer tastes
- Increased domestic & foreign competition
- Overcapacity
Marketing Strategies in Decline stage :-
Increased price –cutting
Reduce no. of products to offer
Cut promotion budget
Reduce prices
Withdraw from smaller market segments & weaker trade channels
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