crafting and positioning of marketing
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8/8/2019 Crafting and Positioning of Marketing
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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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Differentiation Tools
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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Differentiation Tools
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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Differentiation Tools
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
Product Life-Cycle Marketing
Strategies
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Figure 11.5: Style, Fashion, and Fad Life Cycles
Product Life-Cycle Marketing
Strategies
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Marketing Strategies: Introduction StageMarketing Strategies: Introduction Stage
The Pioneer AdvantageThe Pioneer Advantage
InventorInventor
Product pioneerProduct pioneer
Market pioneerMarket pioneer
Product Life-Cycle Marketing
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
Product Life-Cycle Marketing
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
Product Life-Cycle Marketing
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
Product Life-Cycle Marketing
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.
Product Life-Cycle Marketing
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.
Product Life-Cycle Marketing
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.
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