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MARKETING MANAGEMENT

Marketing is a social and managerial process by which individuals and groups obtain

what they need and want through creating and exchanging value with others. Marketingis to establish, develop and commercialize long-term customer relationships, so that the

objectives of the parties involved are met.

Marketing management is the art and science of choosing target markets and getting,

keeping, and growing customers through creating, delivering, and communicatingsuperior customer value. The art and science of choosing target markets and building

profitable relationships with them.

Requires that consumers and the marketplace be fully understood.

Aim is to find, attract, keep, and grow customers by creating, delivering, andcommunicating superior value.

Marketing deals with identifying & meeting human & social needs or it can be defined asmeeting needs profitably

(1) NEED/ WANT/ DEMAND:

Need: It is state of deprivation of some basic satisfaction. eg.- food, clothing, safety,shelter.

Want: Desire for specific satisfier of need. eg.- Indians needs food wants paneer

tikka/ tandoori chicken. Americans needs food- wants hamburger/ French fries.

Demand: Want for a specific product backed up by ability and willingness to buy.eg.- Need transportation.

Want car (say, Mercedes)but able to buy only maruti. Therefore, demand is

for marut

SELLING MARKETING

1.Emphasis is on the product 1. Emphasis on consumer needs wants

2. Company Manufactures the product first 2. Company first determines customers

needs and wants

and then decides out how to deliver aproduct to

satisfy these wants

3. Management is sales volume oriented 3. Management is profit oriented

4. Planning is short-run-oriented in terms 4. Planning is long-run-oriented in todays

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of todays products and markets products

and terms of new products, tomorrowsmarkets

and future growth

5. Stresses needs of seller 5. Stresses needs and wants of buyers

6. Views business as a good producingprocess

6. Views business as consumer producingprocess satisfying process

7. Emphasis on staying with existing

technology and reducing costs

7. Emphasis on innovation on every

existing technology and reducing everysphere, on providing better costs value to

the customer by adopting a superior

technology

8. Different departments work as in ahighly separate water tight compartments

8. All departments of the business

integrated manner,the sole purpose beinggeneration of consumer satisfaction

9. Cost determines Price 9. Consumer determine price, pricedetermines cost

10. Selling views customer as a last link in

business

10. Marketing views the customer last link

in business

MARKETING CONCEPTS

(1) Exchange Concept : The Exchange concept holds that the exchange of a product

between seller & buyer is the central idea of marketing Exchange is an important part of

marketing, but marketing is a much wider concept.

(2) Production Concept : The production concept is one of the oldest concepts inbusiness. It holds that consumers will prefer products that are widely available &

expensive. Manager of production oriented business concentrate on achieving high

production efficiency low cost & mass distribution.Eg. Haier in China take advantage of

the countrys huge inexpensive labor pool to dominate the market, to manufacture PC &domestic appliances.

(3) Production Concept : This concept holds that consumers will prefer those productsthat are high in quality, performance or innovative features. Managers in these

organization focus on making superior products & improving them. Sometimes, this

concept leads to marketing myopia,Marketing myopia is a short sightedness about business. Excessive attention to

production or the product or selling aspects at the cost of customer & his actual needs

creates this myopia.

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(4) Selling Concepts : This concept focuses on aggressively promoting & pushing its

products, it cannot expect its products to get picked up automatically by the customer.

The purpose is basically to sell more stuff to more people, in order to make more profits.Eg. Coca Cola

(5) Marketing Concept : The marketing concept emerged in the mid 1950s. The

business generally shifted from a product centered, make & sell philosophy, to acustomer centered, sense & respond philosophy. The job is not to find the right

customers for your product, but to find right products for your customers. The marketing

concept holds that the key to achieving organizational goals consist of the companybeing more effective than competitors in creating, delivering & communicating

superior customers value. This concept puts the customers at both the beginning & the

end of the business cycle. Every department & every worker should think customer &

act customer.

(6) Social Marketing Concept : This concept holds understanding broader concerns &

the ethical, environmental & legal & social context of marketing activities & programs.

The cause & effects of marketing extend beyond the company & the consumes to societyas a whole. Social responsibility also requires that marketers carefully consider the role

that they are playing & could play in terms of social welfare.

(7) Holistic Marketing Concept : This concept is based on the development, design &

implementation of marketing programs, processes & activities that recognizes theirbreadth. Holistic concept realizes that everything matters with marketing.

Marketing Environment

Purpose of marketing environment analysis:-(a) To know where the environment is leading, to observe & size up the relevant events

& trends in the environment.

(b) Strategic response to environment is possible only with proper environment analysis.(c) To assess the scope of various opportunities & shortlist those that can favorably

impact the business.

(d) To help secure the right fit between the environment & the business unit which is thecrux of marketing.

marketing environment consist of the following factors :-

(1) Demographic : Demographic is a major element to be studied in environment

analysis. Several factors relating to population, such as size, growth rate, age distribution,

religious composition, need to be studied. Aspects such as composition of workforce,household patterns, regional characteristics, population shifts etc. also need to be studied

as they are a part of demographic environment.

(2) Socio-cultural Environment : Socio-cultural environment is another important

component of the environment. Culture, traditions, beliefs, values & lifestyles of the

people in a given society constitute the sociocultural environment.

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Culture : Culture is the combined result of factors like religion, language,education &

upbringing. Meaningful, information on the consumption habits, lifestyles & buying

behaviour can be obtained through a survey of socio-cultural environment. Cultural shiftscarry with them marketing opportunities as well as threats.

Social Class : Social class is one important concept in socio cultural environment. A

social class is determined by income, occupation, location, of residence etc. Each classhas its own standards with respect to lifestyle, behaviours etc.,. These values have a

strong bearing on the consumption pattern & buying behaviour.

(3)Economic Environment : The factors to be considered under economic environment

are :-

(a) General Economic conditions

(b) Economic conditions of different segments of the population, their disposable income,purchasing power etc.

(c) Rate of growth of the economy, rate of growth of each sector of the economy

(d) Income, prices & consumption expenditure

(e) Credit availability & interest rates(f) Inflation rate

(g) Foreign exchange reserves(h) Exchange rates

(i) Tax rates

(j) Behaviour of capital market

(4)Political Environment : Economic environment is a by- product of the political

environment, since economic & industrial policies followed by a nation greatly depends

on its political environment. Political environment has several aspects, industrial growthdepends to a great extent on the political environment. Legislation regulating business are

also a product of the political configuration. Apart from this political stability, form of

govt. elements like social & religious organizations, media & pressure grps & lobbies ofvarious kinds also form the part of political environment

(5)Natural Environment :

(1) Natural Resources : Business firms depends on natural resources. Raw material is one

major part of these resources & firms are concerned with their availability, they need to

know whether there will be a shortage in any of the critical raw materials, they also needto know the trends governing their cost. Besides raw materials, they are also concerned

about energy, its availability as well as cost.

(2) Ecology : Issues like environmental pollution, protection of wild life & wealth are the

factors concerned with ecology & govt. is becoming active bargainer in environmental

issues.(3) Climate : Firms with products whose demand depends on climate & firms depending

on climate dependent raw materials will be particularly concerned with this factor. These

firms have to study the climate in depth & decide their production location & marketing

territories respectively.

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(6) Legal Environment Business have to operate within the framework of prevailing

legal environment. They have to understand all legal provisions.Legal environment depends on :-

(a) Corporate affairs

(b) Consumers protection(c) Employee protection

(d) Sectoral protection

(e) Corporate protection(f) Protection of society

(g) Regulations on products, prices & distribution

(h) Control on trade practices

(i) Protecting national firms against foreign firms

MARKETING MIX

The marketing mix is a business tool used in marketingproducts. The marketing mix is

often crucial when determining a product or brand's unique selling point (the uniquequality that differentiates a product from its competitors), and is often synonymous with

the 'four Ps': 'price', 'product', 'promotion', and 'place'.

The 'four Ps' consist of the following:

1) Product - A product is seen as an item that satisfies what a consumer needs or wants. It

is a tangible good or an intangible service. Intangible products are service based like

the tourism industry & the hotel industry or codes-based products like cellphone load and

credits. Tangible products are those that can be felt physically. Every product is subject toa life-cycle including a growth phase followed by a maturity phase and finally an

eventual period of decline as sales falls. Marketers must do careful research on how long

the life cycle of the product they are marketing is likely to be and focus their attention ondifferent challenges that arise as the product moves through each stage.

2) Price The price is the amount a customer pays for the product. The price is veryimportant as it determines the company's profit and hence, survival. Adjusting the price

has a profound impact on the marketing strategy, and depending on theprice elasticity of

the product, often, it will affect the demand and sales as well. The marketer should set a

price that complements the other elements of the marketing mix.When setting a price, themarketer must be aware of the customer perceived value for the product. Three basic

pricing strategies are:market skimming pricing, marketingpenetration pricing and neutral

pricing. The 'reference value' (where the consumer refers to the prices of competingproducts) and the 'differential value' (the consumer's view of this product's attributes

versus the attributes of other products) must be taken into account.

3) Promotion - represents all of the methods of communication that a marketer may use

to provide information to different parties about the product. Promotion comprises

elements such as: advertising,public relations, personal selling and sales

promotion.Advertising covers any communication that is paid for, from cinema

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commercials, radio and Internet advertisements through print media and billboards.

Public relations is where the communication is not directly paid for and includes press

releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events.

4) Place - refers to providing the product at a place which is convenient for consumers to

access. Place is synonymous with distribution. Various strategies such as intensivedistribution, selective distribution, exclusive distribution and franchising can be used by

the marketer to complement the other aspects of the marketing mix

DEMAND FORECASTING

What is a demand forecast?

A demand forecast is the prediction of what will happen to your company's existing product sales.

It would be best to determine the demand forecast using a multi-functional approach. The inputs

from sales and marketing, finance, and production should be considered. The final demand

forecast is the consensus of all participating managers. You may also want to put up a Sales and

Operations Planning group composed of representatives from the different departments that will

be tasked to prepare the demand forecast.

Determination of the demand forecasts is done through the following steps:

Determine the use of the forecast

Select the items to be forecast

Determine the time horizon of the forecast

Select the forecasting model(s)

Gather the data

Make the forecast

Validate and implement results

The time horizon of the forecast is classified as follows:

Description Forecast Horizon

Short-range Medium-range Long-range

Duration Usually less than 3

months, maximum of 1

year

3 months to 3 years More than 3 years

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Applicability Job scheduling, worker

assignments

Sales and production

planning, budgeting

New product

development, facilities

planning

How is demand forecast determined?

There are two approaches to determine demand forecast (1) the qualitative approach, (2) the

quantitative approach. The comparison of these two approaches is shown below:

Description Qualitative Approach Quantitative Approach

Applicability Used when situation is vague & little

data exist (e.g., new products and

technologies)

Used when situation is stable &

historical data exist

(e.g. existing products, current

technology)

Considerations Involves intuition and experience Involves mathematical techniques

Techniques Jury of executive opinion

Sales force composite

Delphi method

Consumer market survey

Time series models

Causal models

Qualitative Forecasting Methods

Your company may wish to try any of the qualitative forecasting methods below if you do not have

historical data on your products' sales.

Qualitative Method Description

Jury of executive opinion The opinions of a small group of high-level managers are pooled

and together they estimate demand. The group uses their

managerial experience, and in some cases, combines the results

of statistical models.

Sales force composite Each salesperson (for example for a territorial coverage) is asked

to project their sales. Since the salesperson is the one closest to

the marketplace, he has the capacity to know what the customer

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wants. These projections are then combined at the municipal,

provincial and regional levels.

Delphimethod A panel of experts is identified where an expert could be a decision

maker, an ordinary employee, or an industry expert. Each of them

will be asked individually for their estimate of the demand. Aniterative process is conducted until the experts have reached a

consensus.

Consumer market survey The customers are asked about their purchasing plans and their

projected buying behavior. A large number of respondents is

needed here to be able to generalize certain results.

Quantitative Forecasting Methods

There are two forecasting models here (1) the time series model and (2) the causal model. A

time series is a s et of evenly spaced numerical data and is o btained by observing responses atregular time periods. In the time series model , the forecast is based only on past values and

assumes that factors that influence the past, the present and the future sales of your products will

continue.

On the other hand, t he causal model uses a mathematical technique known as the regression

analysis that relates a dependent variable (for example, demand) to an independent variable (for

example, price, advertisement, etc.) in the form of a linear equation

MARKET SEGMENTATION, TARGETING AND

POSITIONINGMARKET SEGMENTATION

INTRODUCTION: - The market for any product is normally made up of several

segments. A market after all is the aggregate of consumers of a given product.And,

consumer (the end user), who makes a market, are of varying characteristics and buyingbehavior. There are different factors contributing for varying mind set of consumers. It is

thus natural that many differing segments occur within a market.

In order to capture this heterogeneous market for any product, marketers usually divide ordisintegrate the market into a number of sub-markets/segments and the process is known

as market segmentation. Thus we can say that market segmentation is the segmentation of

markets into homogenous groups of customers, each of them reacting differently topromotion, communication, pricing and other variables of the marketing mix. Market

segments should be formed in that way that difference between buyers within each

segment is as small as possible. Thus, every segment can be addressed with anindividually targeted marketing mix.

The importance of market segmentation results from the fact that the buyers of a product

or a service are no homogenous group. Actually, every buyer has individual needs,

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preferences, resources and behaviors. Since it is virtually impossible to cater for every

customers individual characteristics, marketers group customers to market segments by

variables they have in common. These common characteristics allow developing astandardized marketing mix for all customers in this segment.

Market segmentation and the identification of target markets, however, are an important

element of each marketing strategy.They are the basis for determining any particular marketing mix. Basic steps in marketing

strategy are as follows:-

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ATTRIBUTES OF EFFECTIVE SEGMENTATION

Market segmentation is resorted to for achieving certain practical purpose. For example,

it has to be useful in developing and implementing effective and practical marketingprogrammes. For this to happen, the segments arrived at must meet certain criteria such:-

a. Identifiable : The differentiating attributes of the segments must bemeasurable so that they can be identified.

b. Accessible : The segments must be reachable through communication and distribution

channels.

c. Sizeable : The segments should be sufficiently large to justify the resources required to

target them. A very small segment may not serve commercial exploitation.

d. Profitable : - There is no use in locating segments that are sizeable but not profitable.

e. Unique needs : To justify separate offerings, the segments must respond differently tothe different marketing mixes.

f. Durable : The segments should be relatively stable to minimize the cost of frequent

changes.

g. Measurable : The potential of the segments as well as the effect of a specificmarketing mix on them should be measurable.

h. Compatible: - Segments must be compatible with firms resources and capabilities.

REASONS FOR MARKET SEGMENTATIONSegmentation is the basis for developing targeted and effective marketing plans.Furthermore, analysis of market segments enables decisions about intensity of marketing

activities in particular segments.

A segment-orientated marketing approach generally offers a range of advantages for

both, businesses and customers.

1. Facilitates proper choice of target marketing:- Segmentation helps the marketers to

distinguish one customer group from anotherwithin a given market and thereby enableshim to decide which segment shouldform his target market.

2. Higher Profits: - It is often difficult to increase prices for the whole market.Nevertheless, it ispossible to develop premium segments in which customers accept a

higher price level. Such segments could be distinguished from the mass market by

features likeadditional services, exclusive points of sale, product variations and the like.

Atypical segment-based price variation is by region. The generally higher price levelinbig cities is evidence for this. When differentiating prices by segments, organizations

have to take care that there is no chance for cannibalization between high-priced products

with high margins and budget offers in different segments.This risk is the higher, the less distinguished the segments are.

3. Facilitates tapping of the market, adapting the offer to the target:- Segmentationalso enables the marketer to crystallize the needs of target buyers. It also helps him to

generate an accurate prediction of the likely responses from each segment of the target

buyer. Moreover, when buyers are handled aftercareful segmentation, the responses for

each segment will be homogeneous. This in turn, will help the marketer develop

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marketing offer/programmers that most suited to each groups. He can achieve

specialization that is required in product, distribution, promotion and pricing for

matching the particular customer groupand develop offers and appeals for the segmentedgroup.

Bases for segmentation in consumer market:-Consumer market can be segmented on the following customer characteristics

1. Geographic Segmentation.

2. Demographic Segmentation.

3. Psychographic Segmentation.

4. Behaviouralistic Segmentation.

1) Geographic Segmentation : - Potential customers are in a local, state, regional ornational marketplace segment. If a firm selling a product such as farm equipment,

geographic location will remain a major factor in segmenting your target markets since

their customers are located in particular rural areas. While for retail store, geographic

location of the store is one of the most important considerations, in this case city areas arepreferred. Segmentation of customers based on geographic factors are:-

a. Region: - Segmentation by continent / country / state / district / city.b. Size: - Segmentation on the basis of size of a metropolitan area as per its population

size.

c. Population density: - Segmentation on the basis of population density such as urban /sub-urban / rural etc.

d. Climate: - Segmentation as per climatic condition or weather.

2) Demographic Segmentation : - Segmentation of customers based on demographicfactors are:-

a. Age (dominant factor):-Segmentation is done on the basis of age of person. Example

Titan has segmented its product according to differentage group of person.

Titans product segmentation on the bases of age:- Titan created a sub brand,Fastrack. These watches are specifically for young, vibrant, and cool outgoing younggeneration. While forolder person and professional it has created the steel series watches

and also the famous, Sonata. Titan Fastrack( for the younger segment) 10 Steel-1077SM01(for elder person and professional)

b. Income (dominant factor):-Segmentation is done on the basis of income level of a

person.

Example of Titan watches can be citied such as Titan offered Aurum andRoyale in thegold/jewellery watch range with price rangesbetween Rs. 20000 to Rs.1 lakh.

Titan Nebula (Luxury segment watch)For middle segment, Titan offeredExacta range

in stainless steel, aimedat withstanding the rigours of daily life. There were 100 modelsin therange. Price ranges within Rs500-700.

For the third segment, Titan offered the Sonata range. The price range was between

Rs.350 to 500.

Titan Sonata (Watch for the third segment)

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c. Occupation.

d. Gender (dominant factor):-Product can be segmented for male and female.

e. Family Size.

f. Family life cycle.

g. Nationality.

h. Religion.i. Education:-Primary, High School, Secondary, College, Universities.

Many of these variables have standard categories for their values.

For example family lifecycle often is expressed as bachelor, married with no children,full-nest, and empty-nest or solitary survivor.

3) Psychographic Segmentation : - Psychographic Segmentation groups customers

according to their life-style and buying psychology. Many businesses offer productsbased on the attitudes, beliefs and emotions of their target market. The desire for status,

enhanced appearance and more money are examples of psychographic variables. They

are the factors that influence your customers' purchasing decision. A seller of luxury

items would appeal to an individual's desire for status symbols PsychographicSegmentation includes variables such as:-

a. Activities.

b. Interests.

c. Opinions.

d. Attitudes.

e. Values..

4) Behaviouralistic Segmentation : - Markets can be segmented on the basis of buyer

behaviour as well. Since all Segmentation is in a way related to buyer behavior, onemight be tempted to ask why buyer behavior-based segmentation should be a separate

method. It is because there is some distinction between buyers characteristics that are

reflected by their geographic, demographic and psychographic profiles, and their buyinghaviour. Marketers often find practical benefit in using buying behaviour s a separate

segmentation base in addition to bases like geographic, emographics, and

psychographics.

The primary idea in buyer behaviour segmentation is that different ustomer groups expect

different benefits from the same product and ccordingly, they will be different in their

motives in owing it and their ehavior in buying it. Variables of buyer behavior are:-a. Benefit sought: - Quality / economy / service / look etc of the roduct.

b. Usage rate: - Heavy user / moderate user / light user of a product.

c. User status: - Regular / potential / first time user / irregular occasional.d. Brand Loyalty: - Hard core loyal / split loyal / shifting / switches.

e. Readiness to buy.

f. Occasion: - Holidays and occasion stimulate customer to purchase roducts.g.Attitude toward offering: - Enthusiastic / positive attitude / negative ttitude /

indifferent / hostile.

ADVANTAGES OF MARKET SEGMENTATION

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Various advantages of market segmentation are:-

1. Helps distinguish one customer group from another within a given arket.

2. Facilitates proper choice of target market.

3. Facilitates effective tapping of the market.

4. Helps divide the markets and conquer them.

5. Helps crystallize the needs of the target buyers and elicit more redictable responsesfrom them ; helps develop marketing rogrammes on a more predictable base; helps

develop market offer hat are most suited to each group.

6. Helps achieve the specialization required in product; distribution, romotion, andpricing for matching the customer group and develop arketing offers and appeal that

match the need of each group.

7. Makes the marketing effort more efficient and economic.

8. Helps concentrate efforts on the most productive and profitable egment, instead offrittering them over irrelevant, or unproductive, or nprofitable segment.

9. Helps spot the less satisfied segments and succeed by satisfying such egments.

10. Brings benefits not only to the marketer but also to the customer as ell.

11. When segmentation attains high sophistication, customers and companies an chooseeach other and stay together.

MARKET TARGETING

INTRODUCTION: Defining a target market requires market segmentation, the process

of pulling part the entire market as a whole and separating it into manageable, disparate

nits based on demographics. Target market is a business term meaning the arket

segment to which a particular good or service is marketed. It is mainly efined by age,gender, geography, socio-economic grouping, or any other ombination of demographics.

It is generally studied and mapped by an organization through lists and reports containing

demographic information that ay have an effect on the marketing of key products orservices.

Target Marketing involves breaking a market into segments and then concentrating

your marketing efforts on one or a few key segments. Target marketing can be the key toa small businesss success. he beauty of target marketing is that it makes the promotion,

pricing and distribution of your products and/or services easier and more cost-effective.

Target marketing provides a focus to all of your marketing activities.

One has to carry out several tasks beside segmentation before choosing the target market.Through segmentation, a firm divides the market into many segments. But all hese

segments need not form its target market. Target market signifies only those egments that

it wants to adopt as its market. A selection is thus involved in it.In choosing targetmarket, a firm basically carries out an evaluation of thevarious segments and selects those

segments that are most appropriate to it.

PROCESS OF CHOOSING THE TARGET MARKETThe process of choosing the target Market are:-

Choosing the target market is related to, but not synonymous with, marketsegmentation.

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Segmentation is the means or the tool; choosing the target market is the purpose.

Segmentation can also be viewed as the prelude to target market selection.

Choosing the target market usually follows multi-level segmentation sing

different bases.

Choosing the target market involves several other tasks in addition to

segmentation. Looking at each segment as a distinct marketing opportunity.

Evaluating the worth of each segment (sales/profit potential).

Evaluating whether the segment is:

Distinguishable.

Measurable.

Sizable.

Accessible.

Growing.

Profitable.

Compatible with the firms resources.

Examining whether it is better to choose the whole market, or the only a few

segment, and deciding which ones should be chosen.

Looking for segments, which are relatively less satisfied by the current offers in

the market from competing brands.

Checking out if the firm has the differential advantage / distinctive ability forserving the selected segments.

Evaluating the firms resources and checking whether it is possible to put n the

marketing programmes required for capturing the spotted segments with thoseresources.

Finally selecting those segments that are most appropriate for the firm.

FACTS TO BE CONSIDERED WHILE TARGET MARKET

SELECTION

Target marketing tailors a marketing mix for one or more segments identified by arketsegmentation. Target marketing contrasts with mass marketing, which ffers a single

product to the entire market. TWOimportant factors to consider when selecting a target

market segment are the attractiveness of the segmentand the fit between the segment and

the firm'sobjectives, resources, and capabilities.

Attractiveness of a Market Segment

The following are some examples of aspects that should be considered when valuating

the attractiveness of a market segment: Size of the segment (number of customers and/or number of units).

Growth rate of the segment. Competition in the segment.

Brand loyalty of existing customers in the segment.

Attainable market share given promotional budget and competitors' xpenditures. Required market share to break even.

Sales potential for the firm in the segment.

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Expected profit margins in the segment.

Market research and analysis is instrumental in obtaining this information. For example,buyer intentions, sales force estimates, test marketing, and statistical demand analysis are

useful for determining sales potential. The impact of applicable micro-environmental and

macro-environmental variables on the market segment should be considered.

Suitability of Market Segments to the Firm

Market segments also should be evaluated according to how they fit the firm's objectives,resources, and capabilities. Some aspects of fit include:

Whether the firm can offer superior value to the customers in the segment

The impact of serving the segment on the firm's image

Access to distribution channels required to serve the segment The firm's resources vs. capital investment required to serve the segment

The better the firm's fit to a market segment and the more attractive the market segment,

the greater the profit potential to the firm.

TARGET MARKET STRATEGIESThere are several different target-market strategies that may be followed.

Targeting strategies usually can be categorized as one of the following:

Single-segment strategy - Also known as a concentrated strategy. One market

segment (not the entire market) is served with one marketing mix. A ingle-segment approach often is the strategy of choice for smaller companies with

limited resources.

Selective specialization- This is a multiple-segment strategy, also known s adifferentiated strategy. Different marketing mixes are offered to different

segments. The product itself may or may not be different in any cases only the

promotional message or distribution channels vary.

Product specialization- The firm specializes in a particular product and tailors it

to different market segments.

Market specialization- The firm specializes in serving a particular market

segment and offers that segment an array of different products.

Full market coverage - The firm attempts to serve the entire market. This

overage can be achieved by means of either a mass market strategy in which asingle undifferentiated marketing mix is offered to the entire market, or by a

differentiated strategy in which a separate marketing mix is offered to each

segment.

POSITIONING

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INTRODUCTION: - According to them Positioning is what you do to mind of he

prospect. They iterate that any brand is valued by the perception it carries in he prospect

or customer's mind. Each brand has thus to be 'Positioned' in a particular class orsegment. Example: Mercedes is positioned for luxury segment, olvo is positioned for

safety.

The position of a product is the sum of those attributes normally ascribed to it by heconsumers its standing, its quality, the type of people who use it, its strengths, its

weaknesses, any other unusual or memorable characteristics it may possess, its price and

the value it represents."A product's position is how potential buyers see the product", and is expressed relative

to the position of competitors. Positioning is a platform for the rand. It facilitates the

brand to get through to the mind of the target consumer. he position of the brand has thus

to be carefully maintained and managed.

POSITIONING CONCEPTS:- Generally, there are three types of positioning concepts:

Functional positions

o Solve problems.

o Provide benefits to customers.

o Get favorable perception by investors (stock profile) and lenders.

Symbolic positions

o SElfimage enhancement.

o Ego identification.

o Belongingness and social meaningfulness.

o Affective fulfillment.

Experiential positions

o Provide sensory stimulation.

o Provide cognitive stimulation.

APPROACHES OF POSITIONING :-

The main positioning strategy is to either developing or reinforcing a particular image forthe brand in the mind of the customer. The main approaches to positioning strategy are:-

Customer benefits approach.

The price-quality approach. The use or application approach.

The product user approach.

The product class approach. The cultural symbol approach.

The competitor approach.

1. Customer benefit approach: -

This is an important positioning strategy. It involves putting the brand above competitors,

based on specific brand attributes and customer benefit. In the automobiles sector we can

see many car manufacturer give emphasis on different technical aspects such as fuel

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efficiency, safety, engine performance, power windows etc. Generally marketers identify

positioning in respect of product characteristics that have been ignored by the competitor.

Often we can see that firms attempts to position their brands along with two or morecharacteristic simultaneously, this is done to give an extra edge to the product from its

rival and also helps increase the products life cycle. Thus a single product can solve

many problem is the main theme behind the product. Example: Procter & GamblesHead & shoulder shampoo functions as anti dandruff and anti hairfall shampoo.

Head & Shoulder positioned as both anti-dandruff & anti-hairfall shampoo

2. Price quality approach: -

Sometimes brands attempts to offer more in term of service, feature, quality, or

performance. Manufacturer of such brands charge higher prices partly to cover the cost

and partly to communicate the fact that they are of high quality. In fact in the sameproduct category there are brands, through comparable in qualities, which appeal on the

basis of price. For example brands like Rado and Timex use quality and price

positioning technique respectively.

3. The use and application approach: - In this strategy the product is positioned with a

use or application approach. For example: - Largest Mobile manufacturer in the worldNokia positioned its few variant of N-series mobiles as music phones with enhanced

memory and multimedia capabilities.

4. The product user approach:- In this approach, the brand identifies and determines

the target segement for which the product will be positioned. Many brand uses a model or

a celebrity to position their product. The expectation are that a model or a celebrity is

likely to influence the products image by reflecting their own image to it. For example:-

Dabur Chyvanprash is positioned for all age groups.

5. The product class approach:- This approach is use so that the brand is associatedwith a particular product category. This is generally used when a category is too crowded.

For example:- HLL has positioned Dove toilet soap as a cleansing cream product for

young womwn with dry skin and its is positioned as a premium segment toilet soap.

6. The cultural symbol approach:- The positioning strategy is based on deeply

entrenched cultural symbol. The use of cultural symbol can help to differentiate the brand

from competitors brands. For example:- The positioning technique ofMarlborocigarettes use the image of typical American cowboy .

7. The competitor approach:- Many brands use competitor as a dominant plank in theircampaign. These brands are positioned following its competitor. This is an offensive

strategy.

STEPS FOR POSITIONING A PRODUCT

Dibb et al recommend the following steps for determining and implementing the

positioning of a product. Although they focus on new product development, these

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steps are applicable to a relaunch with new features or for a repositioning of an existing

product too.

1. Define the segments in a particular market.

2. Decide which segments to target.

3. Understand what the target consumers expect and believe to be the most important

considerations when deciding on the purchase.4. Develop a product (or products) that cater specifically for these needs and

expectations.

5. Evaluate the positioning and images, as perceived by the target customers, ofcompeting products in the selected market segments.

6. Evaluate the market leaders position; leading brand that occupies a special

position in the consumers mind (cadburys in chocolates); other brands have to

necessary relate themselves in some wayto the leaders position; they cannot ignore theposition of the leader, nor wish it away.

7. Select an image that sets the product apart from the competing products, thus ensuring

that the chosen image matches the aspirations of the target customers.

8. Inform target customers about the product (promotion).

PRODUCT POSITIONING AND BRAND POSITIONING

It is essential to understand the relationship between product positioning and brand

positioning. The two terms are synonymously and interchangeably used, technically they

are different.Product positioning denotes the specific product category /product class in which the

given product is opting to compete. And brand positioning denotes the positioning of the

brand viz-a-viz the competing brands in the chosen product category.

REPOSITIONING

Repositioning involves changing target market or distinct positioning claim/differences

advantages or both to bring the saturated attention of the existing customers back into thelimelight once again to survive safely and happily in the market. In some cases, the

products that are faring well are repositioned. This is done mainly to enlarge the reach of

the product offer and to increase the sale of the product by appealing to a wider targetmarket. The product is provided with some new features or it is associated with some

new uses and is repositioned for existing as well as new target market.

Example ofMaruti Omni repositioning can be citied as important case in repositioningstrategy. When Maruti Omni was launched it was positioned as the low priced, spacious

van. But in the market as the time passed, Maruti Omni cannot acquire a dominant

position. The major competing brands are more spacious, though higher priced. ThusMaruti decided to take the path of repositioning.