Product Positioning Business Marketing

Learning Objectives Marketing Strategy: Strategies, Positioning, and Marketing Objectives Describe the alternative strategies by industry position. Explain the concepts of relationship marketing and strategic alliances. Identify the reasons that have made positioning essential in today’s business climate. List and describe the steps required for effective positioning (the five Ds).

Learning Objectives Marketing Strategy: Strategies, Positioning, and Marketing Objectives List and describe the six different approaches to positioning. Explain the benefits of having marketing objectives and list the four requirements for good marketing objectives.

It is a combination of target markets and Marketing Strategy The selection of a course of action from among several alternatives that involves specific customer groups, communication methods, distribution channels, and pricing structures. It is a combination of target markets and marketing mixes.

Target Market A target market is a market segment selected by a company/organization for marketing attention. Market segmentation involves dividing customers into groups (market segments) with common characteristics.

Marketing Mix A marketing mix includes those controllable factors that have been chosen to satisfy customer needs. The four controllable factors are product, price, place, promotion, These are also known as the 4 Ps.

Marketing Objective A marketing objective is a measurable goal that a company/organization attempts to achieve for a target market within a specific time period, typically one year.

Alternative Strategies for Product Life Cycle Stages Introduction Stage Rapid-skimming strategy (high price/high promotion). Slow-skimming strategy (high price/low promotion). Rapid-penetration strategy (low price/high promotion). Slow-penetration strategy (low price/low promotion).

Alternative Strategies for Product Life Cycle Stages Growth Stage Improve service/product quality and add new features and elements Pursue new target markets Use new channels of distribution Lower prices to attract more price-sensitive customers Shift some advertising emphasis away from building awareness to creating desire and action

Alternative Strategies for Product Life Cycle Stages Maturity Stage Market-modification strategy Product-modification strategy Marketing-mix modification strategy Decline Stage Reduce costs Sell off or get out of the business

Positioning Positioning is the development of a marketing mix to occupy a specific place in the mindsof customers within target markets.

Reasons for Increased Importance of Positioning Perceptual processes of customers They screen out most information 2. Greater competition More organizations competing for share of mind 3. Growing volume of commercial messages Advertising and promotion clutter

Steps Required for Effective Positioning (the five Ds) Documenting Deciding Differentiating Designing Delivering

The 5 Ds of Positioning Documenting What benefits are the most important to your current and potential customers? Deciding What image do you want your current and potential customers to have of your organization? Differentiation Which competitors do you want to appear different from, and what are the factors that you will use to make your organization different from them?

The 5 Ds of Positioning Designing How will you develop and communicate these differences? Delivering How will you make good on what you’ve promised, and how do you make sure that you have “delivered?”

Positioning Approaches: Six Major Alternatives Specific product features Benefits, problem solution, or needs Specific usage occasions User category Against another “product” “Product class” dissociation