Recap of 8th June 2004

MARKET SEGMENTATION & TARGETING

1: Mass Marketing
2: Segment Marketing

Niche Marketing

Segment Marketing Local Marketing

Micro Marketing
Individual Marketing

Segmenting Consumer Market – Geo, Demo (age, gender, income), psycho etc .

Segmenting Business Market – Demo. Operating variable, purchasing approach etc. .

Effective segmentation – measurable, accessible, substantial, differentiable, actionable

Market Targeting – evaluation of segments, undifferentiated, differentiated, concentrated

Choosing Market Coverage Strategy – Co’s resources, prod. variability, competitors

 For 10th June

POSITIONING FOR COMPETITIVE ADVANTAGE

 POSITIONING FOR COMPETITIVE ADVANTAGE

Product Position
The way the product is defined by consumers on important attributes –
the place the product occupies in consumer’s mind relative to
competing products.

Choosing a Positioning Strategy

a: identifying a set of possible competitive advantages
b: choosing the right competitive advantages
c: selection of overall positioning strategy

Identifying Possible Competitive Advantages

Competitive Advantage: An advantage over competitors gained by offering

consumer greater value, either through lower prices or by providing more
benefits that justify higher price.

Advantage can be in product, services, channels, people or brand image

Choosing the right competitive advantage

1: How many differences to be promoted

one (USP) or more
Avoid under positioning, over positioning or confused positioning

2: Which differences to promote

a: Important for customer – delivers high valued benefit

b: Distinctive - Competitors do not offer the same difference or the

company can offer it in a more distinctive way.
c: Superior

d: Communicable – visible to buyer

e: Preemptive – competitors cannot easily copy the difference

f: Affordable by the buyers

g: Profitable for the company

Selecting an overall positioning strategy

Value Proposition:
The full positioning of a brand - the full mix of benefits upon which
it is positioned.

1: More for more: More benefits for more money/price

2: More for the same: More benefits for the same price/money
3: The same for less: Same benefit/product but at lower price
4: Less for much less: Less benefits but with much less cost/price

5: More for less : More features with less price

Communicating & Delivering the Chosen Position

If company builds position on better quality, it MUST DELIVER

Needs quality check at every level like production, warehousing, logistics,

Distributors, retailers, add agencies etc. etc.

Service points
PRODUCT AND SERVICE STRATEGY
 PRODUCT AND SERVICES STRATEGY

PRODUCT is anything that can be offered to a market for attention,

acquisition, use or consumption that might satisfy a want or need.

SERVICE is an activity or benefit that one party can offer to another

that is essentially intangible and does not result in the ownership of
anything

EXPERIENCE: Products are tangible, services are intangible but

experiences are memorable.
LEVELS OF PRODUCT

1: Core product - Core benefit or services - benefits the product will

provide to the consumer

2: Actual product - built around the core product, quality, features,

designs, brand name and packaging.

3: Augmented product – additional consumer services and benefits

e.g. warranty, installation, after sale service
 PRODUCT CLASSIFICATIONS

CONSUMER PRODUCTS, products bought by final consumer for

personal consumption.

a: Convenience products: Consumer products that the customer buys

frequently, immediately and with a minimum of comparison and
buying efforts.

b: Shopping products: Consumer goods that the customer, in the process

of selection and purchase, characteristically compares on such bases as
suitability, quality, price and style

c: Specialty products: consumer products with unique characteristics or

brand identification for which a significant group of buyers is willing to
make a special purchase effort

d: Unsought products: Consumer products that the consumer either does

not know about or knows about but does not normally think of buying –
Product classifications - contd

INDUSTRIAL PRODUCTS: Products bought by individuals and

organizations for further processing or for use in conducting a
business.
1: Material and parts.

2: Capital items capitalized.

3: Supplies and services

ORGANIZATIONS, PERSONS AND IDEAS

1: Corporate image building

2: Personal marketing

3: Place marketing

4: Idea marketing

5: Social marketing: The design, implementation and control of programs

seeking to increase the acceptability of a social idea, cause or practice
among a target group.
INDIVIDUAL PRODUCT DECISIONS

While developing and marketing individual products and services the

important decisions are product attributes, branding, packaging,
labeling and product support services

Product Attributes:

Quality: The ability of a product to perform its functions. It includes the

product’s overall durability, reliability, precision, ease of operation,
repair and other valued attributes

Product features - standard or limited edition with more features?

Product style and design

 QUIZZ -- 10th June 2004

Write True or False

1: Market Targeting is process of evaluating each market segment’s

attractiveness and selecting one or more segments to enter.

2: Market segmentation is dividing a market into distinct groups on the

bases of needs, characteristics or behavior who might need similar
products.

3: Micromarketing is tailoring products and marketing program to suit

tastes of specific individuals

4: While segmenting business market, location of an industry or

buyer is not of much importance

5: Effective segment has to be substantial and measurable

BRANDING

Brand is a name, term, sign, symbol or design or a combination of these,

that identifies the maker or seller of product or service.
Brand is a part of the product. It adds value to the product

Brand Equity is value of a brand, based on the extent to which it has

high brand loyalty, name awareness, perceived quality, strong brand
association and other assets such as patents, trademarks and
channel relationships. - Glaxo-D, Polka, Ava water - Coca Cola > US $ 100 billion

BRAND NAME SELECTION IS VERY VERY SERIOUS BUSINESS

Brand name should suggest something about the product’s benefit –
BRITE, HAMDARD
Easy to pronounce - AA vs Tent Pegger, Cottonele, Sufi

Distinctive Translate easily to foreign language

Brand be legally protected - Habitt, Tulip, Century/Jubilee

BRAND SPONSOR
Four options:

1: Manufacturer’s brand -

2: Private Brands -
Slotting fee by retailers

3: Licensed brands

4: Co-brands
 BRAND STRATEGY

A COMPANY HAS FOUR OPTIONS TO DECIDE ON BRAND STRATEGY

1: LINE EXTENSION – introduction of additional items in a given product

category under the same brand name - Sufi – Dawlance, PEL

2: BRAND EXTENSION – using a successful brand name to launch a new or

modified product in a new category -- Sufi, Rafhan

3: MULTIBRANDS - same category with new or additional brands -

detergents and soaps by Unilevers , Rose Petal and Tulip tissues, cigarettes

4: NEW BRANDS – new brand for new product category

 FOUR BRAND STRATEGIES

PRODUCT CATEGORY
Existing New

Line Brand
Existing
Extension Extension

BRAND NAME

New Multibrands New Brands