Crafting and Positioning of Marketing

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Copyright © 2003 Prentice-Hall, Inc.

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Crafting the Brand Positioning

CH-10




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Differentiation Tools Product DifferentiationProduct Differentiation

Form: Aspirin on the basis of dosage size,Form: Aspirin on the basis of dosage size,

shape, color, coating, or action time.shape, color, coating, or action time.

Features: TideFeatures: Tide ± ± Extra white.Extra white.




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Differentiation Tools

Performance Quality:Performance Quality: quality begets higher price andquality begets higher price andhigher price begets more profit.higher price begets more profit.

Conformance Quality:Conformance Quality: all Toyota cars perform identical.all Toyota cars perform identical.

Durability:Durability: buyers pay more for long lasting products.buyers pay more for long lasting products.

Reliability: Sony calls for more price due to itsReliability: Sony calls for more price due to itsreliability feature.reliability feature.

Repairability: repair parts must be available.Repairability: repair parts must be available.

Style: Lexus, apple computers. Samsung cell phonesStyle: Lexus, apple computers. Samsung cell phones

Design: The Integrating ForceDesign: The Integrating Force Services DifferentiationServices Differentiation

Ordering EaseOrdering Ease




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DeliveryDelivery Quick response systemQuick response system

Installation : buyers of heavy equipment expectInstallation : buyers of heavy equipment expectgood installation service.good installation service.

Customer Training: McDonald¶s two weeks trainingCustomer Training: McDonald¶s two weeks training

at Hamburger University in Oakbrook, Illinois.at Hamburger University in Oakbrook, Illinois. Customer:Customer:

ConsultingConsulting

MaintenanceMaintenanceand Repairand Repair

HP¶s onlineHP¶s online

support pagesupport page




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Miscellaneous ServicesMiscellaneous Services

Personnel Differentiation:Personnel Differentiation: the McDonald¶s peoplethe McDonald¶s people

are courteous, the IBM people are professional.are courteous, the IBM people are professional.

Better trained personnel exhibit six characteristics.Better trained personnel exhibit six characteristics. Competence:Competence: Possessed the required skill and knowledge.Possessed the required skill and knowledge.

Courtesy:Courtesy: they are friendly, respectful, and considerate.they are friendly, respectful, and considerate.

Creditability:Creditability: they are trustworthy.they are trustworthy.

Reliability:Reliability: service consistency and accuracy.service consistency and accuracy.

Responsiveness:Responsiveness: quick to customers¶ requests and problems.quick to customers¶ requests and problems.

Communication:Communication: to understand the customer andto understand the customer and

communicate clearly.communicate clearly.




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Channel DifferentiationChannel Differentiation

Image DifferentiationImage Differentiation

Identity:Identity: ways in which a company identifies itself.ways in which a company identifies itself.

Image:Image: the way the public perceives the company or itsthe way the public perceives the company or its

products.products.

Symbols, Colors, Slogans, Special AttributesSymbols, Colors, Slogans, Special Attributes

Physical plantPhysical plant

Events and SponsorshipEvents and Sponsorship

Using Multiple ImageUsing Multiple Image--Building TechniquesBuilding Techniques




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Product Life-Cycle Marketing

Strategies To say that a product has a life cycle assertsTo say that a product has a life cycle asserts

four thingsfour things

1.1. Products have a limited life.Products have a limited life.2.2. Product sales pass through distinct stages, eachProduct sales pass through distinct stages, each

posing different challenges, opportunities, andposing different challenges, opportunities, and

problems to the seller.problems to the seller.

3.3. Profits rise and fall at different stages of theProfits rise and fall at different stages of the

product life cycle.product life cycle.

4.4. Products require different marketing, financial,Products require different marketing, financial,

manufacturing, purchasing, and human resourcemanufacturing, purchasing, and human resource

strategies in each lifestrategies in each life--cycle stage.cycle stage.




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Figure 11.4: Cost Product Life-Cycle Patterns


Strategies




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Figure 11.5: Style, Fashion, and Fad Life Cycles


Strategies




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Marketing Strategies: Introduction StageMarketing Strategies: Introduction Stage

The Pioneer AdvantageThe Pioneer Advantage

InventorInventor

Product pioneerProduct pioneer

Market pioneerMarket pioneer


Strategies

Figure 11.6:

Long-RangeProduct

Market Expansion

Strategy

(P = Product;

M = Market)




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Marketing Strategies: Growth StageMarketing Strategies: Growth Stage Improve product quality and add newImprove product quality and add new

product features and improved stylingproduct features and improved styling

Add new models and flanker productsAdd new models and flanker products Enter new market segmentsEnter new market segments

Increase distribution coverage and enter newIncrease distribution coverage and enter newdistribution channelsdistribution channels

Shift from productShift from product--awareness advertising toawareness advertising toproductproduct--preference advertisingpreference advertising

Lower prices to attract next layer of priceLower prices to attract next layer of price--sensitive buyerssensitive buyers


Strategies




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Marketing Strategies: Maturity StageMarketing Strategies: Maturity Stage

Market ModificationMarket Modification

Expand number of brand users by:Expand number of brand users by:1.1. Converting nonusersConverting nonusers

2.2. Entering new market segmentsEntering new market segments

3.3. Winning competitors¶ customersWinning competitors¶ customers

Convince current users to increase usage by:Convince current users to increase usage by:1.1. Using the product on more occasionsUsing the product on more occasions

2.2. Using more of the product on each occasionUsing more of the product on each occasion

3.3. Using the product in new waysUsing the product in new ways


Strategies




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Product modificationProduct modification

Quality improvementQuality improvement

Feature improvementFeature improvement

MarketingMarketing--Mix ModificationMix Modification

PricesPrices

DistributionDistribution

AdvertisingAdvertising

Sales promotionSales promotion

Personal sellingPersonal selling

ServicesServices


Strategies




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Marketing Strategies: Decline StageMarketing Strategies: Decline Stage1.1. Increase firm¶s investment (to dominate theIncrease firm¶s investment (to dominate the

market and strengthen its competitive position)market and strengthen its competitive position)

2.2. Maintain the firm¶s investment level until theMaintain the firm¶s investment level until theuncertainties about the industry are resolved.uncertainties about the industry are resolved.

3.3. Decrease the firm¶s investment level selectively byDecrease the firm¶s investment level selectively bydropping unprofitable customer groups, whiledropping unprofitable customer groups, whilesimultaneously strengthening the firm¶ssimultaneously strengthening the firm¶s

investment in lucrative nichesinvestment in lucrative niches4.4. Harvesting (³milking´) the firm¶s investment toHarvesting (³milking´) the firm¶s investment torecover cash quicklyrecover cash quickly

5.5. Divesting the business quickly by disposing of itsDivesting the business quickly by disposing of itsassets as advantageously as possible.assets as advantageously as possible.


Strategies




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Product LifeProduct Life--Cycle Concept: Critiques claimCycle Concept: Critiques claim

that lifethat life--cycle patterns are too variable incycle patterns are too variable in

shape and duration. They also charge thatshape and duration. They also charge thatmarketers can seldom tell what stage themarketers can seldom tell what stage the

product is in.product is in.

Market evolution:Market evolution: firms need to visualize afirms need to visualize a

market¶s evolutionary path as it is affected bymarket¶s evolutionary path as it is affected bynew needs, competitor,s technology, channels,new needs, competitor,s technology, channels,

and other developments.and other developments.


Strategies(Criticism)




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Market Evolution

Stages in market evolutionStages in market evolution:: emergence, growth,emergence, growth,maturity, and decline.maturity, and decline.

Emergence:Emergence:

DiffusedDiffused--preference market optionspreference market options

A singleA single--niche strategy: new product for one of the corner of theniche strategy: new product for one of the corner of the

market.market.

A multipleA multiple--niche strategy: two or more productsniche strategy: two or more products

A massA mass--market strategy: new product for the middle of themarket strategy: new product for the middle of the

marketmarket

Growth: where will a second firm enter the market?Growth: where will a second firm enter the market? MarketMarket--growth stage optionsgrowth stage options

SingleSingle--niche strategyniche strategy

MassMass--market strategy: next to the first competitor.market strategy: next to the first competitor.

MultipleMultiple--niche strategy: in unoccupied corners.niche strategy: in unoccupied corners.




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Maturity:Maturity: competitors cover and serve all thecompetitors cover and serve all the

major market segments. In fact, they go further andmajor market segments. In fact, they go further and

invade each other¶s segments reducing everyone¶sinvade each other¶s segments reducing everyone¶s

profits in the process.profits in the process.

Decline:Decline: demand for the present products declinedemand for the present products decline

and market enters the decline stage. Either society¶sand market enters the decline stage. Either society¶s

total need level declines or a new technologytotal need level declines or a new technology

replaces the old. e.g., mouthreplaces the old. e.g., mouth--wash instead of awash instead of a

toothpaste.toothpaste.

Market Evolution




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A time is always a right time to do a right thing. A time is always a right time to do a right thing.

Crafting and Positioning of Marketing

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