POSITIONING & DIFFERENTIATING THE MARKET OFFERING THROUGH THE PRODUCT LIFE CYCLELecture 9

LEARNING OBJECTIVES

How can a firm choose and communicate an effective positioning in the market?

What are the major differentiating attributes available to the firms?

What marketing strategies are appropriate at each stage of the Product Life Cycle?

What marketing strategies are appropriate at each stage of the market’s evolution?

POINT?

NO company can win if its products and offerings resemble every other product and offering!

Today, most company's are guilty of strategy convergence – namely, undifferentiated strategies!

Companies must pursue meaningful and relevant positioning & differentiation

DEVELOPING & COMMUNICATING A POSITIONING STRATEGY

Marketing strategies are built on: Segmentation Targeting Positioning

A company identifies the different needs and groups in a market place, targets those needs and groups that it can satisfy in a superior way, and then positions its offerings so that the target market recognizes the company’s distinctive offering and image

POSITIONING

It is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market

Value proposition is the end result of positioning; a reason as to why the target market should buy the product

Company & Product

Target Customers

Benefits Price Value Proposition

Nandos – Chicken

Quality conscious consumers of chicken

Healthy 15% premium Healthy, tender chicken at a moderate premium price

Domino’s - Pizza

Convenience minded pizza lovers

Delivery speed and good quality

12% premium Hot, tasty pizza delivered to your door at a moderate price

POSITIONING – HOW MANY IDEAS TO PROMOTE

How many ideas (benefits / features) to convey in its positioning to its target customers. Most marketers advocate promoting only one.

USP Better communication, organizational

aligning becomes easier

POSITIONING – HOW MANY IDEAS TO PROMOTE

Not everyone agrees that single benefit positioning is always the best.

Multiple benefit positioning may become more attractive

The challenge is to convince the customer that all the benefits are being delivered!

POSITIONING ERRORS

Under positioning Over positioning Confused positioning Doubtful positioning

TYPES OF POSITIONING

Attribute positioning Benefit positioning Use or application positioning User positioning Competitor positioning Product category positioning Quality or price positioning

HOW TO CHOOSE WHICH POSITIONING TO PROMOTE?

Customer Competition

COMMUNICATING THE POSITIONING STRATEGY

To communicate a company or brand positioning, a marketing plan should include a positioning statement

This statement should be as follows: To (target group and need) our (brand) is

(concept) that (point of difference) E.g. ‘To busy professionals who need to stay

organized, Palm Pilot is an electronic organizer that allows you to back up files on your PC more easily and reliably than competitors products’

COMMUNICATING THE POSITIONING STRATEGY

Next, the company should communicate that positioning effectively through all the elements of the marketing mix

FURTHER DIFFERENTIATION

Differentiation is the process of adding a set of meaningful and valued differences to distinguish the company’s offering from competitor’s offering

E.g. IKEA

DIFFERENTIATION VARIABLES

Product Services Personnel Channel Image

Form Ordering Ease

Competence Coverage Symbols

Features Delivery Courtesy Expertise Media

Performance Installation Credibility Performance Atmosphere

Conformance Customer Training

Reliability Events

Durability Customer Consulting

Responsiveness

Reliability Maintenance & Repair

Communication

Repairability

Style

Design

PRODUCT LIFECYCLE MARKETING STRATEGIES

PRODUCT LIFECYCLE MARKETING STRATEGIES

PRODUCT LIFECYCLE MARKETING STRATEGIES