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2-2
Marketing and Promotions
Process Model
Competitiveanalysis
Targetmarketing
Identifying
markets
Marketsegmentation
Selectinga targetmarket
Positioningthrough
marketingstrategies
Product
decisions
Pricingdecisions
Channel ofdistributiondecisions
Promotionaldecisions
advertisingdirectmarketinginternet/interactivemarketingsales
promotionpublicityand publicrelationspersonalselling
Resellers
UltimateconsumerConsumersBusinesses
MarketingStrategy andAnalysis
TargetMarketingProcess
Marketing PlanningProgram Development
Promotion tofinal buyer
Target Market
Purchase
Promotionto trade
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The Target Marketing Process
Identify markets with unfulfilled needs
Determining market segmentation
Selecting market to target
Positioning through marketing strategies
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Five-Step Segmentation Process
1. Finding ways to group consumers
according to their needs.2. Finding ways to group marketing actions -
usually the products offered - available tothe organization.
3. Developing a market/product grid to relatethe market segments to the firmsproducts and actions.
4. Selecting the target segments toward
which the firm directs its marketingactions.
5. Taking marketing actions to reach targetsegments.
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Bases for Segmentation
Geographic Segmentation State - region - country - climate
Demographic Segmentation Age - sex - family status - education -
occupation - income - social class.
Psychographic Segmentation Values - personality traits - lifestyles.
Behavioristic Segmentation
Usage, loyalties, occasions. Benefit Segmentation Types of specific needs or wants to be
satisfied.
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Segmentation Decision Check List
Can the size of the market segmentbe measured?
Is the market segment large andprofitable enough to serve?
Is the segment identifiedaccessible? Can it be reached
effectively and efficiently?
Can effective marketing programsbe developed to attract and serve
the segment identified?
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2-7
The Positioning Process
Positioning ConceptThe desired perception or
association management wants
target customers to have for a
firm and/or its products
Positioning EffectivenessThe extent to which managements
positioning objectives are achieved
in the market target
Positioning StrategyThe combination of marketing
actions used to portray the
positioning concept to targeted
buyers
Positioning of the brandThe positioning of the brand by
the buyers in the market target
Market
Target
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Positioning Strategy
Development Process
1. Identify the competitors
2. Assess perceptions of them
3. Determine their positions
4. Analyze consumer preferences
6. Monitor the position
5. Make the positioning decision
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Product/Service and
Brand Positioning
BASIC QUESTIONS TO ASK
1. What position, if any do we currently hold inthe mind of customers?
2. What position do we want to hold?
3. Whom do we have to compete against toestablish this position?
4. Do we have the resources to occupy and holdthe position?
5. Can we stay with one consistent positioningstrategy?
6. Does our marketing and advertising match ourpositioning strategy?
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Approaches to Positioning A Product/Service
or Brand
1. By Product or Service Attributes or features
2. By Price/Quality
3. By Use or Application
4. By Product Class
5. By Product or Service User
6. By competition
7. By price or value
8. By brand image (emotional/psychological)
9. By cultural symbols
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Classic Positioning Examples
BrandApparent
TargetMajor
Benefit SupportPositioning
Line
Avis
Pepsi
Rolling Stone
Magazine
Chevy
Trucks
DeBeers
Intel(co-branded)
Businesstravelers
Betterservice
More effort byAvis owner-employees
Were #2.We tryharder
Non-loyal
Coke drinkers
Taste/act
young
Visual/
situational
Pepsi Generation/
Generation Next
AdvertisersReachesinfluentialaudience
Readershipstudies
Perception/Reality
Blue-collar
Truck owners
Quality trucks
Durable,reliable
Product
quality,image
Like a rock
Men (purch.)Women(influencer)
Emotionalgratification
Beauty,timelessnessof product
A Diamondis Forever
MIS mgrs./end-usersoperation
Superiorhardware
Micro-processorperformance
IntelInside
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Product Decisions
A product is a bundle of benefits or values
Product symbolism refers to what a productor brand means to customers
Product quality, branding, packaging, andcompany name contribute to product image
BRANDING: Brand name communicates attributes and
meaning
Advertising creates and maintains brand equity
PACKAGING: Packaging has become increasingly important It is often the customers first exposure to
product
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The Value of Strong Corporate and/or Brand
Identity
Strong corporate identity creates moreoptions for competing against lower-priced competitors
Strong corporate identity builds customerloyalty and enhances employee moraleand pride
Strong corporate/brand identity makes it
easier to withstand economic fluctuationsand marketing crises
Strong brand identity facilitates attractionof top talent
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Strong companies and brands can maintain sell products/services at a premium price and maintain larger profit margins
Strong corporate/brand identity makes customer responsemore inelastic to price increases and elastic to price decreases
Strong corporate/brand identity facilitates expansion into newmarkets and the ability to attract acquisition candidates and
joint venture partners
The Value of Strong Corporate and/or Brand
Identity
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Pricing Decisions
Price must be consistent withperceptions of the product
Higher prices communicate higherproduct quality
Lower prices reflect bargain orvalue perceptions A product positioned as high quality
while carrying a lower price than
competitors will confuse customers Price, advertising and distributionmust be unified to create the positionfor the product or service.
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Distribution Channel Decisions
Channel decisions involve: Selecting Managing
Motivating Independent intermediaries: Wholesalers Distributors Brokers Retailers
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Information Flow
Push Versus Pull
Push PolicyProducer
Retailer
Consumer
Wholesaler
Pull PolicyProducer
Wholesaler
Retailer
Consumer
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The Process of Positioning
MARKET
ANALYSIS SEGMENTATIONTARGET MARKET
SELECTION
INTERNAL
CORPORATE
ANALYSISPOSITION
COMPETITIVE
ANALYSISDIFFERENTIATION BENEFITS
SELECTION
MARKETING STRATEGY
PRODUCT/BRAND
PRICE
CHANNELS
COMMUNICATIONS
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Positioning Assumptions and Realities
Assumption
Company/brands arepositioned by marketers inthe marketplace
Branding is something themarketing department does
Positioning is a decision,followed by an action
Company/brands arepositioned against otherbrands in the category
Once a company/brandpositioning is set, it shouldnot change
Reality
Company/brands arepositioned in the mind of theprospect
Branding must be reflected inevery aspect of a productoffering
Positioning is a continuousrethinking process
Company/brands arepositioned against other
alternatives within theprospects reality
Positioning prompts must becontinually added
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Creating a Position: What Do We Want the Company or Br
Mean To Customers?
Key Elements
Brand or Company Name
Target Customer
Brand Image and Personality
Major End-Benefit
Rational Support/s
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The Core of Brand Equity
BrandName
Product/Service
Performance
Promotion/Merchandizing
MarketingCommunications
Logo/GraphicSystem
SellingStrategies
Brand
Positioning
Strategic
Personality
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"Push" Techniques
Point of sale displays, racks, stands Trade deals, special displays
Dealer premiums, prizes, gifts
Cooperative advertising deals
Advertising materials, mats, inserts
Push money or "spiffs" Collaterals, catalogs, manuals
Company conventions, meetings
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"Pull" Techniques
Sampling, free trial Cents-off promotions Cents-off coupons
Combination offers Premiums or gifts Contests, sweepstakes
Point-of-purchaseadvertising Trading stamps