1. Module 4: Developing marketing strategies – positioning the product, developing the positioning strategies, differentiation tools, product life cycle marketing strategies, designing competitive strategies. Product line decisions, brand decisions, pricing decisions, promotion decisions, channel decisions. Assignment -II

9. Product Life Cycle Marketing Strategies

32. The STP Process – segmenting, Targeting & Positioning Step- I Segmentation is the process of classifying customers into groups which share some common characteristic Step-II Targeting involves the process of evaluating each segments attractiveness and selecting one or more segments to enter Step-III Positioning is arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the mind of the consumer

33. Market Segmentation 1.The process of breaking up a homogeneous market into heterogeneous segments forces the marketer to understand the market and its customers their needs and the company’s ability to competently serve those. 2. Understanding the competitive advantages and disadvantages which helps the company to clarify its own positioning strategy 3.Limited resources are used to best advantage, targeted at those segments that offer the best potential

34. STEP-I Steps in Segmentation, Targeting, and Positioning 1. Identify Bases for Segmenting the Market 2. Develop Profiles of Resulting Segments 3. Develop Selection Criteria 4. Select Target Segment(s) 5. Develop Positioning for Each Target Segment 6. Develop Marketing Mix for Each Target Segment Market Positioning Market Targeting Market Segmentation

35. Requirements for Effective Segmentation Size, purchasing power, profiles of segments can be measured. Segments can be effectively reached and served. Segments are large or profitable enough to serve. Measurable Accessible Substantial Differential Actionable Segments must respond differently to different marketing mix elements & programs. Effective programs can be designed to attract and serve the segments.

36. Levels of Market Segmentation Mass Marketing Same product to all consumers (no segmentation) Mass Marketing Same product to all consumers (no segmentation) Segment Marketing Different products to one or more segments (some segmentation) Segment Marketing Different products to one or more segments (some segmentation) Micromarketing Products to suit the tastes of individuals and locations (complete segmentation) Micromarketing Products to suit the tastes of individuals and locations (complete segmentation) Niche Marketing Different products to subgroups within segments (more segmentation) Niche Marketing Different products to subgroups within segments (more segmentation) Local Marketing Tailoring brands/ promotions to local customer groups Individual Marketing Tailoring products/ programs to individual customers

37. Bases for Segmenting Consumer Markets Geographic Demographic Age, gender, family size and life cycle, or income Psychographic Social class, lifestyle, or personality Behavioural Occasions, benefits sought, user status, usage rate, loyalty Nations, states, regions or cities

38. STEP-II Target Market A market is a set of all actual and potential buyers A target market is a group of people toward whom a firm markets its goods, services, or ideas with a strategy designed to satisfy their specific needs and preferences. Any marketing strategy must include a detailed (specific) description of this.

39. Market Coverage Strategies Segment 1 Segment 2 Segment 3 Segment 1 Segment 2 Segment 3 Company Marketing Mix Company Marketing Mix Company Marketing Mix Company Marketing Mix Company Marketing Mix 1 Company Marketing Mix 1 Company Marketing Mix 2 Company Marketing Mix 2 Company Marketing Mix 3 Company Marketing Mix 3 Market A. Undifferentiated Marketing B. Differentiated Marketing C. Concentrated Marketing

40. Choosing a Market-Coverage Strategy Company Resources Product Variability Product’s Life-Cycle Stage Market Variability Competitors’ Marketing Strategies

41. STEP- III - Positioning

42. Steps in Choosing and Implementing a Positioning Strategy Step 1. Identifying Possible Competitive Advantages: Competitive Differentiation. Step 2. Selecting the Right Competitive Advantage: Unique Selling Proposition (USP). Step 3. Communicating and Delivering the Chosen Position. Step 4. Support the positioning strategy with a unique marketing mix

43. Step 1. Developing Competitive Differentiation Product Service Image People Areas for Competitive Differentiation Areas for Competitive Differentiation

46. Step 2. Selecting the Right Competitive Advantage: Unique Selling Proposition (USP). A unique selling proposition is what your business stands for and sets your business apart from others Instead of attempting to be known for everything, businesses with a unique selling proposition stand for something specific, and it becomes what you’re known for. Many businesses make the mistake of attempting to stand for everything when they first get started. When you attempt to be known for everything, you don’t become known for anything..

47. Step 3. Communicating and Delivering the Chosen Position. During the process of generating product positioning strategies, periodically review each one against the following list of characteristics. Is your product positioning strategy: Single-minded—does it convey one primary message at a time? Meaningful—will it connect with the target audience? Differentiating—does it contrast your strengths against the competition?

48. Important—is it pertinent and significant to the target audience? Sustainable—will it resonate with the target audience well into the future? Believable—will it ring true with the target audience? Credible—can you clearly substantiate your claims? Step 4 – Supporting the positioning strategy with a unique marketing mix At this stage the company has decided on its positioning strategy and must now design a marketing mix to support this strategy. The next part of the course looks at ‘Developing the Marketing Mix’

49. POSITIONING STRATEGIES A product can be positioned based on 2 main platforms: The Consumer and The Competitor. CONSUMER the campaigns and messages are always targeted to the consumer himself (the user of the product) Peter England and Louis Philip always campaigns their product concentrating on the consumer, the user of its product. COMPETITION. These campaigns are targeted towards competing with other players in the market. Compared with Rivals products. Dettol television commercials always concentrate on advertisements, which show that this product would give you more protection, then the others.

50. A number of positioning strategies might be employed in developing a promotional program. The 7 such strategies are discussed below: 1. Positioning by Product Attributes and Benefits Associating a product with an attribute, a product feature or a consumer feature.- Promise(Balasara)- Clove- against Colgate Sometimes a product can be positioned in terms of two or more attributes simultaneously. Microsoft windows 8- cool as a tree & Scary as a Sea/ 3 Roses – Tea- Colour, Taste, Strength The price/ quality attribute dimension is commonly used for positioning the products. Nirma low price /whiteness- against surf A common approach is setting the brand apart from competitors on the basis of the specific characteristics or benefits offered. Suzuki- Max fuel efficiency & Safety

51.  Sometimes a product may be positioned on more than one product benefit. –  Colgate- Prevent cavity & fresh Breathe  Marketers attempt to identify salient attributes (those that are important to consumers and are the basis for making a purchase decision)-  Ariel- Cleaning the dirtiest- micro cleaning systems in the product.  Volvo stands for ‘safety’ BMW for ‘performance’,Mercedes for ‘luxury’, Dermi Cool (prickly heat powder that cools)  2. Positioning by Price/ Quality: For e.g. Baja Auto: “ Value-for-money, for years”. Zenith Computers: “ MNC quality, Indian price.” the ICICI prudential ad and also the wheel detergent or Rin soap which always focuses on the value addition and price.

52. 3.. Positioning by use or application: Another way is to communicate a specific image or position for a brand is to associate it with a specific use or application. For.e.g. Surf Excel is positioned as stain remover ‘ Surf Excel hena!’------- Repositioned ---- Surf Excel no soaking ‘ Surf Excel matic!’ 4. Positioning by product Class /Category: ( Relative rivals rather than Absolute rivals) Often the competition for a particular product comes from outside the product class. For example, airlines know that while they compete with other airlines, trains and buses are also viable alternatives. Manufacturers of music CDs must compete with the cassettes industry. The product is positioned against others that, while not exactly the same, provide the same class of benefits.  Diet beers (kingfisher) and ice beers (United Breweries) as against the regular beer.

53. 5. Positioning by product user: Positioning a product by associating it with a particular user or group of users is yet another approach. Loreal with Aishwarya Rai, Revlon with Cindy Crawford. The Marlboro Man, Thums up is also trying to reinforce its ‘for grown ups’ image by using a ‘macho’ celebrity route (Akshay Kumar). In these ads the persona of the user of the product is been positioned. 6. Positioning by Competitor: Competitors may be as important to positioning strategy as a firm’s own product or services. For e.g. Captain Cook (free flow vs. Tata Salt) Savlon (does not sting vs. Dettol). Onida was positioned against the giants in the television industry through this strategy, ONIDA colour TV was launched with the message that all others were clones and only Onida was the leader.

54. 7. Positioning by cultural symbols: An additional positioning strategy where in the cultural symbols are used to position the products. Examples would be Humara Bajaj, Tata Tea, Ronald McDonald. – Each of these symbols has successfully differentiated the product it represents from competitors. At the initial stages when the product is launched all the ad’s that a company does is to create an image of the product among its consumers.

66.  Positioning : Complan  How it is done…? -“ Complete planned food”  Complan for what?- Enriched with 23 vital nutrients in right quantity and proportion essential for healthy growth Complan  for whom? - A brand for growing children  Complan for when?- Higher nutrition needs  Packaging - Complan Boy / Complan Girl/ Loving Complan mummy.  Positioning : Boost  How it is done? “ Boost is the secret of my energy”  Boost for what? -For fitness and health  Boost for whom? -For the young and the sporty Kapil Dev, Sachin Tendulkar and Virender Sehwag  Boost for when? - Whenever and wherever energy is needed  Packaging- Tall cylindrical straight jar that symbolizes athleticism and fitness

67. Means-End Chain- Toothpaste AttributesBenefitsValue Fluorideno cavitieshealth Genericlow costeconomy Baking sodawhiteningbeauty Mintnice breathsocial No additivesnaturalecology