OBJECTIVES

After going through this session you will be able to

understand :

• What constitutes the Market Strategy Design

• What is Positioning and why is it important
• What are the factors on which competitive differences
can be created
• What are the different ways to Position a product
• What is the need for repositioning

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 THE MARKETING PROCESS

CONCEPT DEVELOPMENT

ANALYSIS OF MARKET
SELLING OPPORTUNITY

MARKET STRATEGY
IMPLEMENTATION
DESIGN

MARKET TESTING

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 MARKET STRATEGY DESIGN

PRODUCT
PRICE

POSITIONING

PROMOTION PLACE

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 WHAT IS MARKET STRATEGY DESIGN?

Designing the Market Strategy involves the following :

• Positioning the Company’s offer in relation to the

competition

• Developing the appropriate Marketing Mix i.e. :

• Product planning
• Price
• Placement
• Promotion

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 WHAT IS POSITIONING?

Positioning is the creation of a distinctive

identity, image or position of your product in
the mind of a consumer.

“ Positioning is what you do to the mind of a

prospect...”
Al Ries and Jack Trout

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 WHY IS POSITIONING IMPORTANT?

• To create a competitive difference and a

specific identity for the product in relation to its
competitors

• Ensures that a product does not become a “me too”

• Establishes a Unique Selling Proposition for the

benefit of the consumer

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 CREATING COMPETITIVE DIFFERENCES

A company’s market offer can be differentiated on :

• Product Differentiation :
• On physical attributes like design, features, packaging,
benefits, performance
• On accompanying services like consulting services, training,
delivery etc.

• Price Differentiation : on the basis of high/ low price

or on value for money.

• Place Differentiation : on the basis of different

channels/outlets to make the product available.

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 CREATING COMPETITIVE DIFFERENCES

• Promotion differentiation : establishing

specific image and brand personality through
different media of communication.

• Image Differentiation : can be done by

creating a specific image or identity for the
product/brand through symbols, written and
audio visual media and events.

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 DIFFERENT POSITIONING STRATEGIES

Positioning strategies for similar products

revolve around four aspects :
• Who am I : deals with origin/parentage
• Positioning by parentage : of Company or Established
brand

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 Who am I- An example

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 What is the positioning of Blue Star
AC ?
Temperature. Humidity. Electricity bills. All kept under
strict control.

Breathe easy
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 DIFFERENT POSITIONING STRATEGIES

• What am I : deals with product’s functional

capabilities
• Positioning by benefits : by offering a unique benefit
for the product
• Positioning by Usage : a new usage or a different
occasion for usage
• Positioning by category : by choosing a different
product category

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 DIFFERENT POSITIONING STRATEGIES

• For Whom am I : deals with target segment

• Positioning by user : in terms of user demographic
status, lifestyles and personality

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 For whom am I- An example

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 DIFFERENT POSITIONING STRATEGIES

• Why Me : deals with the reason for selection or

preference for the product/brand
• Positioning by Unique feature : to add a unique
differential to the product in relation to competition
• Positioning by Competitor : comparison with competitor
to demonstrate brand’s superiority and to destabilize
the consumer’s confidence in the competitor

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 Why Me- An ad for - Mahindra Bijlee

                                         

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Marketing Management 1\5\16

     
 Ambassador,The Great Indian
Survivor A Case Study

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 THE NEED FOR REPOSITIONING

Products need to be repositioned when:

• Their competitive edge or uniqueness in the market is

lost.

• Competition is eating away at the market share.

• Customers do not perceive the image created by the

company and thinks that the product is not for them.

• The consumer needs change and the product loses

its perceived benefit.

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 SUMMARY OF LEARNING

• Positioning is the process of creating a distinctive image of

the product in the mind of the consumer
• Companies need to position in order to give a product a
unique advantage over competitive brands and to ensure it
does not become ‘‘me too’’
• Competitive advantage can be based on product
attributes, price, place, promotion and image factors
• Various strategies to position include positioning by
parentage, product usage, product category, benefits, on
target segment, on unique features and in relation to
competitor
• Repositioning needs to be done when a product
loses its identity or image
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