Positioning

Positioning strategy
 Positioning is the act of designing the company’s
offering and image to occupy a distinctive place
in the minds of the target market.
 The result of positioning is the successful
creation of a is the successful creation of the
customer-focused value proposition .
 Deciding on a positioning requires determining a
frame of reference and identifying the ideal point
of parity and point-of-difference brand
associations.
Competitive frame of reference
 Is determined by identifying the target market
and the competition.
 First step is to identify category membership.-
the products or set of products with which the
brand competes and which function as close
substitute.
 Marketers need to understand the consumer
behaviour and the consideration sets the
consumers use in making brand choices.
 E.g.-Indica
Points-of parity and Points-of- difference

 PODs are attributes or benefits consumers

strongly associate with a brand, positively
evaluate, and believe they could not find to the
same extent with any other brand.
 POPs are the benefit associations that are not
necessarily unique to the brand but in fact may
be shared with other brands.
 Often the key to positioning is not so much
achieving a POD as achieving point of parity.
Differentiation strategy
 Differentiation strategy is the competitive
advantage company enjoys with respect to its
competitors (which they cannot match.)
 Differentiation with respect to product and
service-Himalya drugs
 Personnel differentiation-kingfisher airlines
 Channel differentiation-eureka forbes,oriflame
 Image differentaition.-united colors of benetton
Product life cycle Marketing strategies

 Products have a limited life

 Product sales pass through distinct
stages, each posing different challenges,
opportunities and problems to the seller.
 Profits rise and fall at various stages of
PLC.
 Products require different strategies for
each functional area in each stage of PLC.
PLC
 Bell shaped
 Four stages-introduction, growth, maturity
and decline.
 Introduction-slow sales growth, product is
introduced in the market, heavy expenses
in product introduction, profits non-
existent.
 Growth- rapid market acceptance,
substantial profit improvement
Contd…
 Maturity- slowdown in sales growth,
product achieves acceptance by most
potential buyers, profits stabilize or decline
because of increased competition.
 Decline-profits erode, sales show a
downward drift.
 Not all products show a bell shaped PLC.
Contd…
 Alternate patterns
 Growth-slump-maturity pattern
 Cycle-recycle pattern
 Scalloped pattren
STYLE, FASHION AND FAD LIFE
CYCLES
 Style is a basic and distinctive mode of
expression appearing in a field of human
Endeavour, can last for generations and go in
and out of vogue.
 Fashion –currently accepted style in a field.
distinctiveness, emulation, mass fashion,
decline.
 Fads- are fashions that come quickly into public
view are adapted with great zeal, peak early and
decline very fast.
marketing strategies: introduction and the
pioneer advantage.
 Inform potential consumers
 Induce product trial
 Secure distribution in retail outlets
 Firms focus on those buyers who are the
most ready to buy, usually in higher
income groups.
Marketing strategies for growth stage
 Sustain rapid market growth
 Improve product styling and add new features
 Enters new market segments

 Increases distribution coverage

 Lower prices to attract the next layer of

customers
A firm can earn a dominant position by spending
money on product improvement, promotion and
distribution.
Markeitng strategy: Maturity stage
 Market modification---increase the number of
brand users, increase the usage rate per user.
 Product modification-quality improvement,
feature improvement, style improvement
 Marketing program improvement-related to
price, distribution, advertising, sales promotion
 Personal selling
 Services
Markeitng strategies-decline stage
 Harvesting call
 New product development
 Make or buy , new-to-the world and
updated products
 SPEED
 PROBIOTIC ICECREAM
 New product success
 See the future through the eyes of your
customer
 Intellectual property and brand power
 Use digital technology to create tools for
the customer 9disruptive technology)
 Build a championship team
 Incremental Innovation
 Speed is critical, so push the organisation
 Partner if you are not bets in something
 New-Product Development
Process
 Idea generation-worth considering
 Idea screening-compatibility of idea
with company objectives, strategies
and resources
 Concept development and testing-
inducing consumer trial
 Marketing strategy development-cost
effective affordable marketing
strategy.
 Contd.
 Business analysis-profit goal
generation by the idea
 Product development-is the product
technically and commercially sound
 Market testing- whether pilot testing
results into sales expectation
 Commercialization-are product sales
meeting expectations